PROJECT DESIGN

PHASE 2
CHAPTER 3: PROJECT
FORMULATION/PLANNING
 CHAPTER 3: PROJECT
PLANNING/FORMULATION
1- LIFE OF A PROJECT
2- PROJECT PROPOSAL
3. BIDDING FOR SMALL PROJECT
1- LIFE OF A PROJECT
 1.2 Project
1.2 Project Life
Life Cycle-Timeline
Cycle-Timeline

Phase 3
Phase 2
Implementatio
Level Total Effort

Phase 1 Formulation/ n
Planning Phase 4
Conception/
Termination
Initiation
Time

4
 1.3 Project
1.3 Project Formulation/Planning
Formulation/Planning
PHASE 2-
PROJECT
FORMULATION

 RGC
 Contractor/firm
Concept Approval  Customer
 CSOs
 Private sector

Project Formulation
Non-revenue project Revenue-project
 DPs vs RGC  Client vs contractor/firm
 DPs vs CSO  Client vs customer
 CSOs vs RGC  Client vs supplier
Project Proposal

 RGC Project
 DPs Project
Negotiation
Proposal Approval
 Business owner Contract
s
2-PROJECT PROPOSAL
 2. Project
2. Project Proposal
Proposal

1.What is a Project Proposal?

 A project proposal is a type of business proposal that describes the
objection of a proposed endeavor together with the steps necessary to
accomplish the objective.
 If a project idea (project concept note) is to be funded and
implemented, its formulator must communicate it in a clear and
concise manner. To this end, a document known as a project proposal is
written to summarize the project rationale and design. It contains four
1.parts
Project context
as below:
2. Project rationale and objectives
3. Description of project interventions
4. Implementation arrangements
Part I: Project Context:
 2. Project Proposal
2. Project Proposal

1.1 Project Context:

Part I: Project Context

1.1 Origin
1.2 Relevance
1.2.1 Conformity with business or client’s objectives
and priorities
1.2.2 Relevance to the submitting business or client’s
policies and strategic
1.3 Target areas
1.3.1 Geographic location
1.3.2 Social, cultural. Economic and environmental
aspects
1.4 Expected outcomes at project completion
 2. Project Proposal
2. Project Proposal

1.1 Project Context:

Part I: Project Context

1.1 Origin
 A recommendation from a pre-project
 An earlier project phase
 A particular study
 A business mission
 A conference or workshop
 An initiativefrom an interest group
 An idea stemming from an institution or
individual, etc.
 2. Project Proposal
2. Project Proposal

1.1 Project
Context:
Part I: Project Context

1.2 Relevance
1.2.1 Conformity with business or client’s objectives and
priorities
 Explain briefly how the project is related to the objectives of
the business or institution.
 Explain how the proposal is related to the priorities and
operational activities set out in the current business Action
Plan.

1.2.2 Relevance to the submitting business or client’s policies

and strategic

 2. Project Proposal
2. Project Proposal
1.1 Project
Context:
Part I: Project Context
1.3 Target areas
1.3.1 Geographic location
 Briefly describe the location of the proposed project,
referring to the location map.
 If relevant, provide a short description of the area’s
major physical features and ecological characteristics
as they pertain to the project.
1.3.2 Social, cultural. Economic and environmental
aspects
 Describe the social, cultural, economic and
environmental background of the project area at the
time of project identification.
 2. Project Proposal
2. Project Proposal
1.1 Project
Context:
Part I: Project Context
1.4 Expected outcomes at project completion
 The project proposal should describe the intended changes
(outcomes) that the project will bring about for the beneficiaries and
other stakeholders;
 The specific objective will be achieved if all the outputs have been
realized and the assumptions about their effects have proved valid.
The outcomes should be clearly described in terms of:
• Envisaged use of the outputs by the
beneficiaries after the completion of the project

• Other consequences of project implementation: eg

changes in awareness and attitudes of the
 2. Project Proposal
2. Project Proposal
1.1 Project
Context:
Part I: Project Context
1.4 Expected outcomes at project completion
 Describe the main outcomes that the project will achieve
at or before completion. The description should address
the following questions:
 What are the intended immediate effects of the
project?
 What are the benefits, and for whom?
 What improvements or changes will the project bring
about?
 What will the target groups be doing after project
completion as a consequence of the project?

Part 2: Project
Rational/Objectives:
 2. Project Proposal
2. Project Proposal

1.2 Project
Rational/Objectives:
Part II: Rationale and
Objectives 2.3 Indicators
2.1 Rationale 2.3.1 Type of indicators
2.1.1 Institutional set-up and 2.3.2 Methodology for
organizational issues producing indicators
2.1.2 Stakeholder analysis 2.4 Baselines
2.1.3 Problem analysis 2.5 Means of verification
2.1.4 Logical framework matrix 2.6 Setting up the key
2.2 Objectives assumptions
2.2.1 Development objective
2.2.2 Specific objective
 2. Project Proposal
2. Project Proposal

1.2 Project
Rational/Objectives:
Part II: Rationale and Objectives
2.1 Rationale
2.1.1 Institutional set-up and organizational issues
 Institutional capacity assessment is particularly important for projects that
will rely on local partners for the implementation of activities.

 In particular, the project formulator must assess the adequacy of institutional

capacity and organizational set-ups to ensure the success of project
interventions. Relevant governance issues, including organizational
adequacy, accountability and transparency, should also be assessed.
 2. Project Proposal
2. Project Proposal

1.2 Project
Rational/Objectives:
Part II: Rationale and Objectives
2.1 Rationale
2.1.1 Institutional set-up and organizational issues (Cont.)
 Since it influences the choice of partners with whom the project formulator
will interact in proposal formulation, institutional capacity assessment should
be done at an early stage. Attention should be paid to:
- Appropriate partners for project implementation and the degree of coordination
between them
- The likely relevance of the project to institutional and organizational needs
- The specific roles and responsibilities of different agencies
- The capacities of different institutions and agencies to participate in
project implementation
- The design of appropriate capacity-building elements in the project and thus the
formulation of a
 2. Project Proposal
2. Project Proposal
1.2 Project
Rational/Objectives:
Part II: Rationale and Objectives
2.1 Rationale
2.1.2 Stakeholder analysis
 A high-quality project proposal is the end-result of a participatory process that
involves discussions, meetings and workshops with key stakeholders. Project
design begins, therefore, with a systematic analysis of stakeholders.
 Stakeholders are the people, groups, organizations and institutions who might
influence or be influenced by a problem or by the potential solution to a problem;
stakeholder analysis clarifies their views and interests.
 The proposal should describe the characteristics and size of the target and
beneficiary groups (eg by age, gender and ethnic composition).
 Stakeholder identification offers an opportunity to encourage interested
individuals and groups to participate in the project from its outset. Their
participation at this stage allows the planning of participatory activities in
 2. Project Proposal
2. Project Proposal

1.2 Project
Rational/Objectives:
Part II: Rationale and Objectives
2.1 Rationale
2.1.2 Stakeholder analysis (Cont.)
 The first step in stakeholder identification is to make a
list of those who might be interested in or affected by
the project. The second step involves classifying them,
for the purposes of the project, into operational
categories, such as:
1. Primary stakeholders
2. Secondary stakeholders
3. Tertiary stakeholders
 2. Project Proposal
2. Project Proposal

2.1.2 Stakeholder analysis (Cont.)

• Those who are dependent on a resource or service that the project is
concerned about and who will benefit from the project or could be
Primary adversely affected by it. Primary stakeholders could include local
populations (individuals and community-based organizations) in the
stakehold project area, or particularly poor and marginalized groups who in the
ers past have been excluded from participating in development efforts.
They might also include potential mainstream providers who are
• Secondary
experiencing problems stakeholders
that the project can provide the main support for the
help address.
Secondar project and might be important partners in project
implementation. They include government service
y providers, line ministries and project staff, government
agencies, local governments, civil-society organizations,
stakehold private-sector organizations, voluntary groups, and
ers donors.
• Those stakeholders not directly involved or
Tertiary affected by the project but with the ability
to influence opinion for or against it; they
stakehold might include local opinion leaders,
ers religious leaders, teachers, the media,
universities and research institutes.
2.1.2 Stakeholder analysis
(Cont.)
Stakeholder group Characteristics Problems, needs, interests Potentials Involvement in the project
Primary stakeholders
Local farmers Derive income from project Base for livelihoods threatened Local knowledge Primary project beneficiaries
intervention/activity

Village administrations Responsible for making Lack of capacity for integrated Authority and Main actors in micro-planning at
and implementing village planning influence in the village level
development plans village
Secondary stakeholders
Development Actively involved in Lack skills for village Experienced in Sub-contracting implementation of
NGOs implementing rural development microplanning working with community development
development activities villages activities
Provincial forestry services Lack enabling framework Insufficient financial means to Can mobilize staff for Directly involved in project
conditions for effectiveness implement yearly plans project operations implementation
(law enforcement, etc.)
Tertiary stakeholders
Education and research Have education and research Lack means to finance Competence in Might collaborate in implementing
institutions missions collaboration research, studies and relevant activities
surveys
Finance institutions Finance local development Lack means to finance Experience in Will be contacted for involvement
activities collaboration providing in the local credit
development loans system
 2. Project Proposal
2. Project Proposal

1.2 Project
Rational/Objectives:

Part II: Rationale and Objectives

2.1 Rationale
2.1.3 Problem analysis (refer to needs
.
identification)
 2. Project Proposal
2. Project Proposal

1.2 Project
Rational/Objectives:
Part II: Rationale and Objectives
2.1 Rationale
2.1.4 Logical framework matrix
 The logical framework is presented in tabular form as the logical
framework matrix include in the project proposal. It summarizes the scope
and essential building blocks of the project and consists of:
- four columns (‘strategic intervention’, ‘measurable indicators’,
‘means of verification’ and ‘key assumptions’)
- four rows (‘development objective’, ‘specific objective’,
‘outputs’ and ‘activities’)
 2. Project Proposal
2. Project Proposal
1.2 Project
Rational/Objectives:
Part II: Rationale and Objectives
2.1 Rationale
2.1.4 Logical framework matrix (Cont.)
 The logical framework matrix provides a baseline for the monitoring and
evaluation of the project’s achievements, and for reporting on progress. It is
based on the vertical cause/effect logic and provides answers to the following
questions:
•Where does the business and/or institution want to be in the medium
and long terms? (development objective and specific objectives )
• How will the stakeholders get there? (outputs, activities, inputs)
• How will they know they have got there? (measurable indicators)
• What will provide the evidence they have reached there?
(means of verification)
 2. Project Proposal
2. Project Proposal
1.2 Project
Rational/Objectives:

Part II: Rationale and Objectives

2.1 Rationale
2.1.4 Logical framework matrix (Cont.)
 The logical framework is based on a logic of cause-effect relationships. It
states that certain activities will produce certain outputs. These outputs will
contribute to producing certain specific or immediate objectives (or
outcomes), and these will lead to certain development objectives (impacts).
This is called the vertical logic of the logical framework.
 2.1.4 Logical Framework
Strategic Matrix Means
Intervention Measurable indicators Of verification Key Assumptions

Development Impact Indicators Sources of Information Assumptions

Objective What are the quantitative or What information sources What external factors
What is intended to be the qualitative indicators by which enable the measurement of are necessary to sustain
longer-term impact of the the achievement of the the indicators? the overall goals in the
project on the ultimate development objective can be long run?
beneficiaries? measured?
Specific Outcome Indicators Sources of Information Assumptions
Objective What are the quantitative or What information sources What external factors
What are the intended benefits qualitative indicators by which enable the measurement of are necessary if the
(the desired situation) and the achievement of the specific the indicators? project immediate objectives
outcomes of the project for the objectives can be measured? progress reports and are to be achieved?
target group? evaluation reports
Outputs 1.3 Output Indicators Sources of Information Assumptions
Objective
What analysis
are the tangible products What are the quantitative or As above What external factors
or services delivered by the qualitative indicators by which are necessary if the
project to achieve the immediate the achievement of outputs can outputs are to be
objectives? be measured? achieved?
Activities Inputs Costs (of each input)
What activities must be carried raw materials, equipment,
out to generate each intended human resources, etc.
output?
 2.2 Objectives
2.2.1 Development Objective
 The development objective is the broader or higher-level objective to which the
project – along with other projects and initiatives – will contribute and which is in
line with the objectives of institution or business development strategies.
 The development objective will not be achieved by your project alone. The project
is just one piece in a complex problem. The development objective corresponds
to the overall picture, to which various development projects, strategic plans and
business plans all contribute.
 The project, by achieving its specific objective, will contribute to the realization of
the development objective. The development objective should be:
• There should be only one development objective
• The development objective should be connected to a wider vision of
sustainable development
 2.2 Objectives
2.2.1 Development Objective?
 The project contributes to the development objective through impacts – the
long-term effects of the project intervention. In order to ascertain these
impacts, baseline data are needed on the social, economic and environmental
contexts against which the changes made by the project can be measured. If
insufficient reliable information exists, a pre-project should be considered. The
following is an example of a development objective and its indicators:
 To contribute to integrated socioeconomic development and
environmental protection in the northern hills Forest Reserve,
Kingdom of Cambodia

The long-term impact indicators are:

• By 2020, deforestation has stopped.

• By 2019, the rate of logged timber waste has decreased from the
current 60–70% to less than 40%, and the income levels of farmers
have increased by 30–50%.
• By 2018, forest management in the Northern Hills Forest Reserve
 2.2 Objectives
2.2.2 Specific Objectives
 The specific objective is a statement of the effects to be achieved in the short
term as a result of the use of the project’s outputs by its target group(s). In other
words, it is a hypothesis for the changes that will take place as a result of
producing and using project outputs. These are usually changes in practices,
policies and laws, systems and services rather than in knowledge or attitudes.
They should be clearly linked to target groups and should be achievable by the
project in its planned duration. The definition of the specific objective should not
be much larger than the sum of the results that are planned to achieve it. In
short, the specific objective:
• should provide adequate justification: ie through its achievement, the
project should solve the key problem through the benefits it provides to project
beneficiaries
• should reflect the main change thatis intended to take place by
the end of the project
 2.2 Objectives
2.2.2 Specific Objectives?
The appropriate indicators for the achievement of the specific objective should be
quantitatively or qualitatively verifiable. A well formulated specific objective identifies
directly or indirectly WHO will be reached, WHAT change will occur, in WHAT time
period and WHERE the change will take place. It
Should be SMART:

• Specific: to avoid differing interpretations

• Measurable: to allow the monitoring and evaluation of implementation
• Appropriate: to adequately address the problems
• Realistic: achievable and meaningful
• Time-bound: with a specific time for achieving it.
Below is an example of a poorly written specific objective, and how it can be corrected
 2.2 Objectives
2.2.2 Specific Objectives?
Example of poorly written specific objective
• To increase capacity in sustainable forest management.
Why is this specific objective poorly written?
• It is not time-bound.
• It does not refer to a key problem to be addressed.
• It does not refer to the target area, and
• Target stakeholders.

A better formulation of the specific objective would be:

• To initiate a participatory process to bring about the sustainable forest
management of the Northern Hills Forest Reserve, Kingdom of Cambodia. In
this formulation, initiate relates to a stage in time, participatory process
refers to the role of target stakeholders, sustainable forest management
refers to the key problem to be addressed, and Northern Hills Forest
Reserve is the target area.
 2.3 Indicators?
2.2.2. Indicators
 Type of indicators:
 Indicators can be quantitative or qualitative:
 Quantitative indicators use numerical data, (such as numbers of people or
percentages) to indicate progress. They can be specified through a target or
milestone or both, depending the nature of the projects. See the example
below:
Impact/Outcome Indicators (at the level of an Target (at output
objective) Percentage of tomato level)
Increase of tomato production
production increase by by 10% after 6 months
cooperative members
Milestones (at output level)

Increase of tomato production by 3% after 3 months.

Increase of tomato production by 6% after 5 months
Increase of tomato production by 10% (3% + 6% +
1%) after 6 months (the achievement of the target)
 2.3 Indicators
2.2.2. Indicators
 Type of indicators:
 Indicators can be quantitative or qualitative:

 Qualitative indicators use data based on attributes or qualities, (such as

perceptions) to indicate progress.
Target (at output
Impact/Outcome Indicators (at the level of an
level)
objective)
Two thirds of the cooperative clients
Level of cooperative clients’
are satisfied with the quality of the
satisfaction
tomatoes after 12 months

 Indicators can also be classified as direct or indirect:

 2.3 Indicators
2.2.2. Indicators
 Indicators can also be classified as direct or indirect :

 Direct indicators have a direct relationship to the objective or output.

Direct indicators are preferred because they are very specific and
relevant, and we recommend that you use them as often as possible. In
some cases, they may be costly to measure (for example, data on
household income require expensive statistical surveys and a good
baseline). An example of this type of (achievement) indicator is:
60% of women and young cooperative members
live above the
poverty line at the end of the project
 2.3 Indicators
2.2.2. Indicators
 Indicators can also be classified as direct or indirect :

 Indirect indicators (proxies) measure variables that are associated with a

situation that fluctuates in the same direction as the objective. But indirect
indicators are less specific, because external factors other than the objective
they try to measure may interfere and give an incorrect reading of the
indicator. Consumption of tomatoes has increased by 5% in
district X
 In the above proxy example, a family may decide to put their additional income into a savings
account instead of increasing their consumption of tomatoes. In this case, using consumption as
an indicator of family income would lead to underestimating project success.

Note: Number of indicators: The fewer the indicators per objective and output, the better. But
it is often necessary to use more than one indicator for each objective statement. For example
one indicator may provide good quantitative information, which needs to be complemented by
another indicator that focuses on qualitative matters (such as the opinions of target groups).
However, the trap of including too many indicators should be avoided
 2.3 Indicators
2.2.2. Indicators
 Methodology for producing
indicators::
 A range of methods can be used to produce indicator data. They
include:
 document reviews
 surveys or assessment
 interviews
 focus groups
 observations
 workshops.

 Indicators should be independent of each other, each one relating to

only one objective in the intervention logic, i.e. to the development
objective, the immediate objective or one output.
 2.3 Indicators
2.2.2. Indicators
 The characteristics of good indicators

 The most effective indicators are those which are ‘SMART’ as

the following characteristics:
S = Specific
M = Measurable
A = Achievable and agreed upon (by the project
partners)
R = Realistic
T = Time-bound
Note that in addition to being ‘SMART’, indicators must also enable the
measurement of project progress, achievements and impact in a
gender-sensitive way.
20% increase in the number of women involved in the
cooperative leadership and management after 12
months.
 2.4 Baselines
 When choosing your indicator of progress, it is important to know
the actual data describing the current situation.

 For example, if your project’s immediate objective indicator is

“Tomato production of cooperative members is increased by 10%
at the project’s end”, in order to verify that you have reached this
indicator, you need to know beforehand what the current (before
implementation of the project) tomato production by the same
population (cooperative members) is.

 The baseline should also be disaggregated by sex (e.g. % of

women actively involved in the tomato production at beginning of
the project; level of income earned by them before the project
starts, etc.).
 2.5 Means of Verification
 The means of verification should be considered and specified at
the same time as the formulation of indicators. This will help to
test whether or not the indicators can be realistically measured
with a reasonable amount of time, money and effort.
The means of verification should specify:
 HOW the information should be collected (e.g. from administrative
records, special studies, sample surveys, observation,) and/or the
available documented source (e.g. progress reports, project
accounts, official statistics, engineering completion certificates).
 WHO should collect/provide the information (e.g. local government
workers, contracted survey teams, the district agricultural office,
the project management team).
 WHEN/HOW information should be collected (e.g. monthly,
Note: It quarterly,
is importantannually).
to make sure that the required information can be collected through
existing systems or at least with improvements to existing systems, and with the
available resources. In some cases, additional resources might be needed to develop a
survey or database. This should then be added to the project budget.
 2.5 Setting up the key assumptions
 Key assumptions are the factors can affect the project’s
implementation but are outside its control; the project team,
therefore, has little or no control over them. (a natural disaster, an
economic crisis, etc.).
For example:
- Unpredictable natural conditions, such as for
successful plantation establishment:
There will be sufficient rainfall at the time of seedling
establishment.
- Unpredictablesocio-political upheavals, such as those
required before a project can start:
the negotiations to end the war will be successfully
concluded by the end of 2009. This is a ‘killer’
assumption because the project will not start if the conflict
does not end.
 2.5 Setting up the key assumptions
 Assumptions should be formulated as positive statements of what
is expected to happen. For example:

 If there is a risk that the Ministry of Forestry will

not provide staff for the project, the
assumption could be written: The Ministry of Forestry will
provide the staff for the project.
 If there is a risk that the industry will not adapt
equipment in order to use the project’s
research results, the assumption could be written:
The industry will update its equipment to be able to use
Note: All assumptions must be written in the logical framework matrix and
assessedthe results
in the ofon
section the project
risks. An objective
.
can have more than one
assumption but not all objectives have assumptions.
 Example: Logical Framework
Strategic Matrix Means
Intervention Measurable indicators Of verification Key Assumptions

Development Impact Indicators Project financial report Stability of global eco-nomic

Objective: Local statistic data trends
Reduce poverty by making Increase in income of women and National-level decision-
members’ jobs more young farmers by 100% making aligned with the
decent, productive and project development
profitable objective

Specific Objective: Outcome Indicators Cooperative ac-counting No delocalization or closing

Members’ income, files down of the major local
particularly that of women Percentage of in-come increase of buyer
and young farmers, the members Cooperative audit reports
increased through the No extreme weather
improvement of the co- conditions affect the shape
operative’s 1.3
governance and of cattle.
business performance No crisis in cooperative
Objective analysis
governance due to
corruption.

Outputs Output Indicators

(Achievements)
1) Improved health of Sample survey No new epidemic
farmers’ livestock Increase of healthy livestock by 60%
at the end of the project
2) Long-life milk and Cooperative records at Reliable and sufficient
quality dairy products Decreased incidence of milk spoilage collection and processing electricity supply
 Example: Logical Framework
Strategic Matrix Means
Intervention Measurable indicators Of verification Key Assumptions

Outputs Output Indicators

(Achievements)

3) Increased cooperative market Survey Supermarkets are viable

opportunities and sales At the end of the project, 35% of milk enterprises
sold in the local supermarkets comes
from the cooperative

Young members ask to be

4) Increased access to financial trained
Micro financial institution counts 10% MFI client base
services for women and young
more women and youth cooperative Reforms in national insurance
members legislation will not limit the offer
members amongst its clients at the end
1.3 of the project of micro-insurance services
Objective analysis
Evaluation Report Communication between
5) Increased participation in At the end of the project, participation by management and members has
cooperative governance by women and youth members in the improved.
members. general assembly has increased by
30%
Part 3: Description of Project
Interventions
 Part 3: Description of Project Interventions
 The project proposals should include a description of outputs, activities,
the implementation approach, work plan, risks, and sustainability.

Part III: Description of Project Interventions

3.1 Outputs and Activities
3.1.1 Outputs
3.1.2 Activities
3.2 Implementation approaches and methods
3.3 Work plan
3.4 Budget
3.5 Sustainability
Step 1 - Step 2 – Formulation: the logical
Identification framework 2.3
Situation 2.4
Indicators Assumptio
Analysis
1.1 of ns
Stakeholder analysis progress
and target group Project Indicators Means Assumption
selection Structure Of s
Step 4 –
verification
Planning
1.2 2.1 Developme of
nt
Problem analysis Objective M&E
Objective
s setting Impact
Specific
Objective
2.2
1.3 Outputs Outputs
Objective analysis activities Activities Operationa
l

1.4
Selection of Strategy Work Responsibili Resource
Breakdown ty Schedule plan &
Step 3 – matrix matrix budget
Implementation
 3.1 Output and Activities

The vertical logic of the logical framework

 3.1 Outputs and
Activities
3.1.1 The Outputs
 These are the products of the activities, the combination of which leads to the achievement of
the immediate objective. The implementing organization is accountable for delivering
these services and products. Some examples of outputs are:

“The policy framework for cooperative development is improved”

“The management capacity of young entrepreneurs in district X is reinforced”
“The irrigation system is upgraded and expanded to the neighboring district”

 In short, an output has to be:

 delivered by the project
 necessary to achieve the immediate objective
 demand-driven and not supply-led
 stated clearly in verifiable terms
 feasible with the available budget.
 3.1 Outputs and
Activities
3.1.2 The Activities
 These are the actions and means that will produce the outputs. In most cases,
they are related to: training, equipment, institutional support, planning, studies,
etc.
 Activities cannot always be taken directly from the objective tree. In many
cases, they will have to be defined during the formulation step, as it is quite
rare that a problem and objective tree exercise allows such detail of analysis. In
terms of ownership of the project, it is therefore advisable to submit the
logframe again to the key stakeholders and partners. This will make sure that
 the described activities are based on consensus.
In short, an activity has to:
• define the action strategy of the project;
• be realistic in terms of inputs, resource needs and managerial capacity;
• be stated clearly in verifiable terms.
3.1 Outputs and
Activities
 3.2 Implementation approaches and
methods
3.2.1 Approach and Methods
 The proposal must describe the approaches and methods to be used to address
the key problem in order to bring about the intended changes and to meet the
expectations of stakeholders.

For example:

 The project will work collaboratively with all stakeholders directly or indirectly
 A project is a participatory exercise from beginning to end,

 Sustainable projects are gender-sensitive

 Participatory monitoring and evaluation

 Results-based-management approach
 Results Based
Results Based Management
Management (RBM)
(RBM)

 RBM strives to improve management

effectiveness and accountability by:
(i) Defining realistic expected results.
(ii) Monitoring progress towards
achievement of expected results.
(iii) Using results for management
decisions.
(iv) Reporting on performance. 53
 Results Chain
Results Chain

 Sequence of a project activity that

helps in achieving desired
objectives.
 Beginning with inputs, moving
through activities and outputs, and
finally in outcomes and impact.

54
 The Results Chain

Impact
The positive & negative, intended or unintended
Overall long-term results produced.
Goal
Results
Outcome
s The medium-term results of an output.

Outputs
The products, capital goods and services which
result.

Activitie Actions taken or work performed through

s which inputs are mobilized to produce specific
outputs.

Inputs The financial, human & material resources

required to implement.

55
 Logframe The Results Chain

Goal The highest level result which is intended to

contribute.
Results
The improved situation that is expected to
Purpose
contribute significantly to if completed
successfully and on time.

Outputs
The products, capital goods and services which
result.

Activitie Actions taken or work performed through

s which inputs are mobilized to produce specific
outputs.

Inputs The financial, human & material resources

(Resources required to implement.
)

56
 3.3 Work
Plan
 Some donors ask for the work plan before
giving their approval. The work plan
usually needs to be adjusted just before  Work plan as a monitoring tool when
the project operations start and during the
operations start
implementation.
The work plan is a key tool for monitoring
 The work plan is established by the project project operations. It helps the team in
design team and consists of the following charge of implementation to see whether
three matrices: the activities are carried out:

3.3.1 A work breakdown  on time

matrix,  by the right people
3.3.2 A responsibility  within the planned budget.
matrix,
3.3.3 A calendar of It also gives you an insight into whether the
activities activities actually lead to the outputs in the
logframe
 Those tools allow the project team in
charge of execution to monitor the
implementation of the project activities
 3.3 Work
3.3.1 The work breakdownPlan
matrix:
 A work breakdown matrix is used to prepare the plan of operation and must be carried
out before any of the other steps can be taken. It sets out the activities and tasks required
for each output. This is the basis for the subsequent steps, such as allocating
responsibilities, scheduling activities and estimating resources and budget.
 Project’s activities can be broken down into sub-activities, tasks and sometimes sub-tasks.
This improves the accuracy of cost estimates and enhances monitoring of project activities
and outputs. It also provides improved reporting on obligations and actual expenditure to
carry out implementation and achieve the project outputs. The format of a work
breakdown matrix can be the following:
OUTPUTS ACTIVITIES SUB-ACTIVITIES (not always required, depending on TASKS
the level of complexity of each project)

1. Output 1.1 Activity 1.1.1 Sub-activity Task

1.1.2 Sub-activity etc. Task

2. Output 2.1 Activity Task

2.1.1 Sub-activity 2.1.2 Sub-activity
Task
2.2 Activity 2.2.1 Sub-activity
Task
2.2.2 Sub-activity
Task

3. Output 3.1 Activity 3.1.1 Sub-activity Task

3.1.2 Sub-activity etc. Task
3.3.1 Outputs and
Activities
3.3.2 Outputs and
Activities
 3.3 Work Plan
3.3.2 Responsibility (Cont.)
matrix:
 Good project planning ensures that responsibility for outputs and activities is assigned to
teams or individuals. The responsibility matrix sets out who is responsible for each activity
by allocating duties to different people within the team. All the activities required of a
particular individual or organization form their job description or terms of reference for their
involvement in the project. This helps in coordinating the work of team members,
contractors or partners.
The following matrix sets out who does what. The project team allocates responsibilities for
each activity to different people and organizations.

Project outputs Activities Responsible staff Implementing Partner organisation

(implementing agency) partner
1) Improved health 1.1 ) Provide training for Member of the management College of veterinary Provincial vocational
of farmers’ livestock farmers in basic in charge of human resource medicine training centre
veterinary skills development

1.2 ) Run a vaccination Member of the management Association Local

campaign for the cows, in board in charge of livestock of veterinarians Ministry of
partnership with the local support Agriculture
Ministry of Agriculture
 3.3 Work Plan
3.3.3 Calendar of (Cont.)
activities:
 Time is important in any planning process. Scheduling is a way of focusing managerial
attention on the time factor, on critical events and on priorities. The calendar states when
each activity starts, how long it lasts and when it will be completed. This is usually presented
in the form of a bar chart, which sets out the sequence of activities and links them to critical
events or milestones.
 The recommended tool is called a Gantt chart. It is simple but useful. It is easy to read
and can be used to track progress against time. The chart uses the activities from the
work breakdown matrix as headings for each row, and time units (years, quarters,
months, weeks, etc.) as the headings for each column.
Example:
TENTATIVE WORK PLAN TEMPLATE Example:
Proposal Title Setup a training cours on “The use of ICT to boost trade activity"
Approved budget

Implementing agency Institute of Technology of Cambodia (ITC)

IA Focal Point Sopheap Seng, [email protected], 015741234

Start date 1-Feb-11
End date 30-Oct-11

Output Description Start date Due date

responsible M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12
Study on status of the use of ICT in trade
1Output 1 related sector

1.1activity 1 Feasibility studey + Team setup 2/1/2011 2/28/2011

Survey on status of the use of ICT in trade
1.2activity 2 related sector 3/1/2011 4/30/2011
Development of course catalogue and
2Output 2 pedagogical meterial
Study on the quality and adequacy of existing
2.1activity 1 ICT training programs 4/1/2011 6/30/2011
Development of course catalogue and
2.2activity 2 pedagogical meterial 7/1/2011 8/30/2011
2.3activity 3
3Output 3 A well trained team of trainer

3.1activity 1 Training of trainer 9/1/2011 9/30/2011

4Output 4 A training session for 25 officials from MOC

4.1activity 1 Develiver training
5.1activity 1 Evaluation + improvment
TENTATIVE WORK PLAN TEMPLATE
Example:
improvement on quality of film production and enforcement of copyrights film trade on film product
Proposal Title on film trade fair
Approved budget

Implementing agency Ministry of culture and fine arts

IA Focal Point
Start date 1st/Oct/2010
End date 31st/January/2012

description start date due date responsible M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

Established 25 workshops for 2,700 officials, relevant art performers,
producers, composers, cameraman, film traders, exporters and relevant
governmental ministries (300 participants for workshop in Phnom Penh and
100 participants invited to attend each provincial workshop) in promoting for
1Output 1 film production quality for exporting to markets.
1.1activity 1 Advertising for International consultant 1-Oct-10 31-Dec-10 MCFA
1.1.1step Advertising for International consultant 1-Oct-10 1-Nov-10 MCFA
1.1.2step Advertising for local consultant 1-Oct-10 31-Mar-12 MCFA
1.1.3step Internet connection 1-Oct-10 31-Mar-12 MCFA
1.1.4step Prepare document for 25 workshops 1-Nov-10 31-Mar-12 MCFA
1.1.5step Organise venue for 25 workshop 1-Nov-10 31-Mar-12 MCFA
1.1.6step Facilitate the 25 workshop 1-Nov-10 31-Mar-12 MCFA
1.1.7step Produce minute and report 1-Nov-10 31-Mar-12 MCFA
1.2activity 2 STENGTHEN CAPACITY TRAINING INSTITUTION
1.2.1step Puchase Computes,Head projector,Camera-Cuting film machine-generator 1-Dec-10 31-12-2010 MCFA
1.2.2step Hire art professional trainers 1-Mar-11 1-Apr-11 MCFA
1.2.3step Organise Training 1-May-11 31-Oct-11 MCFA
1.2.4step Follow up to performing action 1-Nov-11 31-Mar-12 MCFA
1.3activity 3
1.3.1step Organise film trade sub_degree 1-Mar-11 31-Aug-11 MCFA
1.3.2step Established inter-ministrial committee 1-Sep-11 31-9-2011 MCFA
3.1.3step Organise networking to implemetn sub_degree 1-Oct-11 31-Mar-12 MCFA
1.4Activity 4
Example:
 3.4
 A budget or resource plan
Budget
sets out the
requirements and costs for all necessary inputs:
personnel, basic office premises or facilities,
equipment and materials, or services such as
special subcontracting supplies, training
workshops and other miscellaneous inputs.
 The results-based management approach
prepares the resource plan on the basis of the
activities in the work breakdown matrix and
calendar. For each activity, a list of inputs is
prepared, and these can then be aggregated by
category (raw materials, equipment, personnel,
etc.) to produce an overall project procurement
plan.
 The resources required to implement the
activities associated with each output should be
tabulated. For the implementation plan, it is
rarely necessary to estimate resource
requirements at sub-activity level. The table
should list resource requirements and the
amount of each resource required.
 3.4.1. Project
3.4.1. Project Cost
Cost Estimation
Estimation
A. Cost planning starts with the proposal for the
project.
B. The cost section of a proposal may consist of
elements
such as the following:
1. Labor (It might include the estimated hours and
hourly rate for each person or classification).
2. Materials
3. Subcontractors and consultants (if used).
4. Equipment & facilities rental (If the contractor
needs special equipment, tools, or facilities for the
project).
5.Travel (If it is required during the project)
C. In addition to the above items, the contractor or 68
 Project Cost
3.4.1. Project
3.4.1. Cost Estimation
Estimation

D. It is good practice to have the person who will

be
responsible for the costs associated with the
work
make the cost estimates.

E. Historical data can be used as on the current

project.

F. Cost estimates should be realistic.

69
 3.4.2. Project Budgeting
The project budgeting process
involves two steps.
· First, the project cost estimate is allocated
to the various work packages in the
project work breakdown structure.

· Second, the budget for each work

package is distributed over the duration
of the work package.

70
 3.4.2. Project Budgeting
3.4.2.1 Allocating the Total Budgeted Cost (TBC)

· Allocating total project costs for the

various elements to the appropriate work
packages will establish a total budgeted
cost (TBC) for each work package.

· There are two approaches to establishing

the TBC for each work package: top-down
and bottom-up.

71
 3.4.2. Project Budgeting
3.4.2.1 Allocating the Total Budgeted Cost
(TBC)

1.Top-down Approach

Approaches

2.Bottom-up Approach

72
 3.4.2. Project Budgeting
3.4.2.1 Allocating the Total Budgeted Cost
(TBC)
1.Top-down Approach
1.Top-down Approach
 Total project costs are reviewed in relation to the
work scope for each work package, and a proportion
of total project cost is allocated to each work
package;
 Use the actual cost of a previous, similar project as
the basis for estimating the cost of the current
project.
 This technique requires a good deal of expert
judgment and is generally less costly that others are,
but it can also be less accurate.
Example:1
– An IT project to develop a certain application required 500
development hours. The total cost was $50,000 73
 3.4.2. Project Budgeting
3.4.2.1 Allocating the Total Budgeted Cost
(TBC)
1.Top-down Approach
1.Top-down Approach

 With a top-down estimate, you rely on past project

data to create an estimate for current projects. If you
repeatedly perform similar projects, it's easy to look
at prior deliverables and their associated costs, and
adjust those for the scale and complexity of the new
project.

Example 2:
– For example, if a previous project cost $20,000, and the
current project is 20 percent bigger, then you would
estimate costs of $24,000.

74
 3.4.2. Project Budgeting
3.4.2.1 Allocating the Total Budgeted Cost
(TBC)
2.Bottom-up Approach
2.Bottom-up Approach

 Bottom-up estimating breaks the project into a series

of distinct milestones or work packages, then
calculates the costs for that work breakdown. It's
more accurate than top-down estimating because of
the lower level of each component in each package.

Example 1,
– If you had a big construction project, then one of the
components may be to build a fence. This would be simple
enough to estimate by adding the material cost of the fence
posts to the labor charge (daily labor rate multiplied by the
number of days it will take to install the fence).

75
 3.4.2. Project Budgeting
3.4.2.1 Allocating the Total Budgeted Cost
(TBC)
2.Bottom-up Approach
2.Bottom-up Approach

 Planning without Resource Constrained :Concurrently

performing of activities without resource constraints

Paint Living room

Start Project Paint Kitchen Finish Project

Paint Bedroom
76
 3.4.2. Project Budgeting
3.4.2.1 Allocating the Total Budgeted Cost
(TBC)
2.Bottom-up Approach
2.Bottom-up Approach

Þ Resource Constrained Planning : Activity Sequence based on

Resource Constraints.

Start Paint Paint Paint Finish

Project Living room Kitchen Bedroom Project

Þ Resource constraints make the activities to be performed in

series for which decision has to be made.

77
 3.4.2. Project Budgeting
3.4.2.1 Allocating the Total Budgeted Cost
(TBC)
2.Bottom-upApproach
2.Bottom-up
2.Bottom-up
2.Bottom-up Approach
Approach
Approach
Þ Planned Resource Utilization: Indicates the amounts & types
of resources needed to perform each activity.

Paint First Paint Stair

Floor Room and Hall
8 days 4 days
2 painters 1 painter
Paint Basement Paint Bathroom Finish
Start Room 2 Days Project
Project 4 days 1 painter
1 painter
Paint Bedroom
6 days
1 painter
78
 3.4.2. Project Budgeting
3.4.2.1 Allocating the Total Budgeted Cost
(TBC)
2.Bottom-up Approach
2.Bottom-up Approach

 Project cost estimate is allocated to the various work

packages in the project Work Breakdown Structure
(WBS).
 Budget for each work package is distributed over the
duration of the work package.

Example 2, for small projects, a WBS can be as simple

as an itemized
ID
listTask
of tasks:
Start End Budget
10 Mobilize Oct. 10 Oct. 11 $250
20 Dig Canal Oct. 11 Oct. 20 $3,000
30 Pour Concrete Oct. 15 Oct. 23 $5,000
40 Clean Up Oct. 23 Oct. 24 $1,750
TOTAL $10,000
79
 3.4.2. Project Budgeting
3.4.2.1 Allocating the Total Budgeted Cost
(TBC)
 Display and discuss in Example 2,
which illustrates the allocation for a
$10,000 project.

 When the budgets for all the work

packages are summed, they cannot
exceed the total project budgeted
cost.

80
 3.4.2. Project Budgeting
3.4.2.2 Developing the Cumulative Budgeted Cost
(CBC)
 Once a total budgeted cost has been established for
each work package, the second step in the project
budgeting process is to distribute each TBC over the
duration of its work package.
 A cost is determined for each period, based on when
the activities that make up the work package are
scheduled to be performed.
 The cumulative budgeted cost (CBC) is the amount that
was budgeted to accomplish the work that was
scheduled to be performed up to that point in time.
 The CBC for the entire project or each work package
provides a baseline against which actual cost and work
performance can be compared at any time during the
project.
 It’s important to use the cumulative budget as the
standard against which actual cost is compared.
81
 3.4.2. Project Budgeting

3.4.2.2 Developing the Cumulative Budgeted Cost

(CBC)

Example:Work
Example: WorkBreakdown
BreakdownStructure
Structurefor
forPacking
PackingMachine
MachineProject
Project

Design Build Install & Test

1 4 2 6 3 2
Activity Duration Number Estimate (week)

TBC: Packaging
TBC: Packaging Machine
Machine $100,000
$100,000

Design-$24,000
Design-$24,000 Build-$$60,000
Build- 60,000 Install&
Install &Test
Test$$16,000
16,000
82
 3.4.2. Project Budgeting
3.4.2.2 Developing the Cumulative Budgeted Cost
(CBC)
 Amount that is budgeted to accomplish the work
that is scheduled to be performed up to that point in
time.
Budgeted cost by period for the Packaging Machine Project
Week
TBC 1 2 3 4 5 6 7 8 9 10 11 12

Design 24 4 4 8 8

Build 60 8 8 12 12 10 10

Install & Test 16 8 8

Total 100 4 4 8 8 8 8 12 12 10 10 8 8

CBC 4 8 16 24 32 40 52 64 74 84 92 100

Amounts are in thousands of dollars 83

BUDGET TEMPLATE
Example: Annex 02

(SELECT ONE BELOW)

Proposal Title
Approved budget Goods
Implementing agency Consultant Services
IA Focal Point Training or Workshop
Start date Project Management
Monitoring and
End date Evaluation
Operations

Project component/ Key Activities / Unit of

No. Category # of Unit Unit Rate Amount Resource
Inputs measurement
WB RGC/Others
ACTIVITY 1: FEASIBILITY STUDY +
1 DISSEMINATION

International Consultant (lecturer) Day 7 600.00 4,200.00 4,200.00

Consultant Services
International Consultant Travel Ticket Consultant Services 1 3,500.00 3,500.00 3,500.00

International Consultant Per Diem Day 5 150.00 750.00 750.00

Consultant Services
National Consultant (lecturer) Day 10 200.00 2,000.00 2,000.00
Consultant Services
Workshop Lumpsum Training or Workshop 1 4,000.00 4,500.00 4,000.00 500.00
Goods-office
Publication, printing the study Piece equipment, furniture, 2000 3.00 6,000.00 6,000.00
blication, others.
Subtotal 20,950.00 20,450.00 500.00
activity1
 Example:
Budget Contribution from
Strategy of Intervention Inputs Unit Unit Cost ($) Quantity Cost Counterpart Comments
Account Code Counterpart

Impact #1 Enhancing the Government’s ability to lead and drive its Aid for Trade as a means to strengthen the effectiveness of the mainstreaming of Trade in its development policies
and development of its institutions

Outcome #1: Strengthen the NIU’s capacity to monitor and evaluate progress made under Trade SWAp, including evaluating impacts and results of technical assistance
NIU staff NIU staff time 300
1 International Evaluator Day 500 12 6,000 71200
1 National Evaluator Day 0 0 - 71400 The amount of
Output #1: A mid-term International Evaluator DSA Day 0 0 - 71600 contract was for
independent evaluation of $15,000. The
CEDEP II is organized and International Evaluator payment made
Lumpsum 0 0 - 71600
carried out transport so far was
National consultant DSA Day 0 0 - 71400 $9,000.
Staff DSA Day 0 0 - 71600
Local transport Lumpsum 0 0 - 71600
TOTAL OUTPUT 1 6,000
NIU staff NIU staff time 600
1 International Evaluator Day 750 30 22,500 71200
Output #2: A final 1 National Evaluator Day 300 25 7,500 71400
independent evaluation of International Evaluator DSA Day 125 20 2,500 71200
CEDEP II is organized and International Evaluator Travel Lumpsum 3000 1 3,000 71200
carried out National consultant DSA Day 45 10 450 71400
Staff DSA Day 34 50 1,700 71600
Local transport Lumpsum 25 20 500 71600
TOTAL OUTPUT 2 38,150
Sub-total Outcome #1 44,150 900
 3.5 Sustainability
 The sustainability of a project can be assessed in terms of its
ability to sustain results even after the withdrawal of donor
support.

Political

Economic &
Financial Facto Technolo
consideratio rs gy
ns.

Institutio
nal
Capacity
 3.5 Sustainability
 The project should therefore be designed to be sustainable in technical,
financial, social, economic and institutional terms. Questions to address
include:
Description Key Question
Social  Have local needs been considered?
sustainabili  Are the approaches to involve local communities in project
ty: Implementation adequate?
 Do the activities, including the planned changes in the
target group’s attitudes, take into account local traditions, beliefs and
social practices?
 Will the target group feel a sense of ownership of the results?
 What is the strategy for promoting ownership?
 Have gender issues been adequately analyzed and taken into account?
 Will all stakeholders consider the project’s strategy to be fair and
equitable?
Technical  Is the choice of methods and technologies appropriate given the
sustainabili resource needs for maintenance?
ty:  Do the technologies maximize the use of local labour?
 Will planned capacity building allow the continued use of new
technologies?
Institutiona  Do the implementing institutions have the technical and financial
 3.5 Sustainability
 The project should therefore be designed to be sustainable in technical,
financial, social, economic and institutional terms. Questions to address
include:
Description Key Question
Financial  What guarantee is there that project results will be sustained at the end
sustainabili of donor’s
ty: financial involvement?
 What level of operational costs will need to be met after project
completion?
 What sustainable financing mechanisms are envisaged beyond project
completion?
Economic  If the project intends to promote activities for income generation, will
sustainabili there be an
ty: adequate framework for providing beneficiaries with adequate market
access?
 Has thought been given to the impact of trade and market
forces?
Political  Has the policy environment been adequately assessed and taken into
sustainabili account?
ty:  Is there sufficient political support and commitment to the
Part 4: Implementation
Arrangements
 Part 4: Implementation Arrangements
 The project proposals should include the Implementation
Arrangements, partnerships and collaborations that will ensure the
successful implementation of the project. It provides guidance on
describing the management structure and on reporting, review,
monitoring and evaluation.
Part 4: Implementation Arrangements
4.1 Organization structure and stakeholder involvement
mechanisms
4.1.1 Executing agency and partners
4.1.2 Project management team
4.1.3 Project steering committee
4.1.4 Stakeholder involvement mechanisms
4.2 Reporting, review, monitoring and evaluation
 4.1 Organization structure and stakeholder involvement
mechanisms

 Projects should have a simple structure that fits within the existing
structures of the beneficiary country. However, in some cases,
projects will be implemented almost entirely through sub-contracts
and consultancies.

 The project proposal should describe and illustrate in a chart the

project’s management and organizational structure; the chart
should clearly show the functional and hierarchical relationships
within the project structure.
4.1 Organization structure and stakeholder involvement
mechanisms

 The project management team comprises the coordinator, project

experts and project consultants; it is responsible for the
coordination, management, implementation and monitoring of
activities under the authority of the project coordinator.

 The project coordinator is under the line authority of the executing

agency. The project management team directly supervises the
execution of activities.

 The proposal should describe the qualifications of the members of

the project management team. Their tasks and responsibilities
should be specified in an annex of the proposal.
 4.1 Organization structure and stakeholder involvement
mechanisms
.1.1 Executing agency and partners

• Each project must have a single executing agency, which is the

organization, agency or institution with overall responsibility for the project.
It can be governmental or non-governmental; its role is to provide overall
guidance and policy support for the project.
• The executing agency can use collaborating agencies for the co-execution
of certain activities and it can sub-contract activities to other bodies. A
research institute, for example, might undertake research specified in the
project document, and a trade association might distribute information and
promote the active participation of its members.

• The responsibilities of the collaborating agencies are established in

memoranda of understanding between them and the executing agency.
 4.1 Organization structure and stakeholder involvement
mechanisms
4.1.2 Project management team
 The executing agency appoints an experienced and professional
project coordinator for day-to-day project management and additional
professional, administrative and financial staff to make up the project
management team. The project coordinator is usually a full-time
position. The names and curricula vitae of the project management
team should appear in Annex of the project proposal.

 The executing agency also recruits the consultants specified in the

proposal. The terms of reference of consultants and sub-contractors
should appear in Annex of the proposal.
 4.1 Organization structure and stakeholder involvement
mechanisms
.1.3 Project steering committee
 As part of its responsibilities, the • A chairperson appointed by the
executing agency must establish a executing agency
project steering committee, the • A representative of donors
primary role of which is to oversee • Representatives of relevant
project implementation, approve ministries
expenditures within the budget, review • Representatives of research
the activities that have been carried
and educational institutions
out, and review and propose changes
• Representatives of relevant
in budgets and activities. The project
non-governmental organizations
steering committee monitors the
(NGOs)
overall strategic management of the
project and ensures that it proceeds in • The project coordinator
a timely, efficient and effective manner (observer and secretary of
in accordance with its logical the project steering
framework matrix, work plan, and committee).
 4.1 Organization structure and stakeholder involvement
mechanisms
1.4 Stakeholder involvement mechanisms

 The executing agency can also establish a consultative committee

comprising, for example, representatives of local and regional
authorities and organizations, local communities, research and
educational institutions, citizens’ groups and NGOs, as well as
independent experts, members of parliament and other stakeholders.

 The purpose of the consultative committee is to keep stakeholders

informed about and involved in project implementation and to provide
a platform by which stakeholders can provide input into the project.
The consultative committee can request and receive information and
give advice but has no formal responsibility for the project. Its
recommendations are forwarded to the chairperson of the project
steering committee.
Example1: Organizational structure, northern hills Forest Reserve project

Project Steering committee

Executing Agency:
Collaborating Agency
Forest Department (FD)

Project Advisory committee

Project Coordinator
(at FD’s Headquarters)

Project Accountant

Management Unit 1 Management Unit 2

Technician Technician Technician Technician Technician

Zone 1A Zone 1B Zone 1C Zone 2A Zone 2B
Example 2: MoC
Example 3: MoI SC
Chaired by MOI

PAS
MAFF PCO Academic
Headed by and Located in MOI DP
Multisector
NGOs

SMT 1 SMT 2
Siem Reap PPC

NGOs
Private Sector
DF Contracted
D/KF
DWG DWG (Khan)

CPs/
CAHE

CC, CLF, AC, SHG SC

Rural Poor HHs Urban Poor HHs

 4.2 Reporting, review, monitoring
and evaluation
4.1.1 Executing agency and partners
 Monitoring helps ensure that the project is on schedule and is meeting its objectives.
It targets not only the activities and outputs but also the outcomes, impacts and
assumptions.

 The project proposal should indicate the arrangements that will be made for project
monitoring, reporting and evaluation. A preliminary monitoring and reporting
schedule should be provided, indicating the dates of presentation for the project
inception report, progress reports and technical reports.

 The proposal should also indicate how and when the project management team will
monitor the progress of the project, and how and when internal participatory
evaluations involving stakeholders will be conducted.

 A project monitoring system should be designed and a baseline of data established

that will serve as a reference for measuring the progress and impacts of the project.
These activities should be budgeted for in the proposal.
 4.2 Reporting, review, monitoring
and evaluation
4.1.1 Executing agency and partners
 The project monitoring system should be compatible with the Donor
Manual on Project Monitoring, Review, Reporting and Evaluation and
should include the following aspects:
 Baseline survey/study
 Mid-term Evaluation
 End –term Evaluation
.
3- BIDDING FOR SMALL PROJECT
 3.1 Bid/No-Bid
3.1 Bid/No-Bid Decision
Decision
Whether or not to go forward with the
preparation of a proposal?
Factors
1. Level of competition
2. Involvement of risk
3. Consistency with mission
4. Extension of capabilities
5. Level of reputation
6. Availability of funds
7. Proposal resources
8. Project resources
103
 2.1 Bid/No-Bid
2.1 Bid/No-Bid Decision
Decision
1. Level of Competition:
Which other contractors might submit
a proposal in response to RFP?
Do any of them have a competitive
advantage?
Have they undertaken any pre-RFP
efforts?
What is their reputation with the
customer?
2. Involvement of Risk:
Is there any financial risk? 104
 Does the customer want the
contractors to submit a proposal
based on a fixed-price contract?
3. Consistency with Mission:
Is the proposed project consistent with
the contractor’s business mission?
4. Extension of Capabilities:
Would the proposed project provide
the contractor with an opportunity to
extend and enhance his/ her
capabilities?
105
5. Level of Reputation:
Has the contractor successfully
completed projects for the same
customer in the past?
Were there problems that left the
customer dissatisfied?
6. Availability of Funds:
Does the customer have funds
available to go forward with the
project?
Is the RFP pre-matured?
Is it issuing the RFP without having 106
7. Proposal Resources:
Are appropriate resources available to
prepare a quality proposal-
Manpower?
8. Project Resources:
Are appropriate resources available to
perform the project?
Remember:
 Do not submit a lot of non-winning
proposals.
 Success is winning the contract and
not simply submitting a proposal. 107
3.2 Developing
3.2 Developing aa Winning
Winning Proposal
Proposal
 Proposal is a selling document.
 Contractor has to convince the customer
that:
Understands what the Will do the work
customer is looking for professionally
Can carry out the Will achieve the intended
Proposed project result
Will provide the greatest Will complete the project
Within Budget & on
value to the customer
schedule
Able to solve the
Will satisfy the customer
problem
108
3.3 What
3.3 What should
should be
be the
the Proposal?
Proposal?

 Be written in a simple manner.

 Should use terminology with which the
customer is familiar.
 Avoid abbreviations.
 Use simple illustrations and graphics.
 Be specific in addressing customer’s
requirements.

109
 3.4 Proposal
3.4 Proposal Contents
Contents

Technical
Technical Management
Management Cost
Cost

Objectives
Objectives

To provide
To provide least
least To
To do
do the
the project
project Price
Price ofof the
the project
project
risky &
risky & most
most work &
work & achieve
achieve is realistic
is realistic and
and
beneficial solution
beneficial solution the result
the result reasonable
reasonable
110
 3.4.1.Technical Section
3.4.1.Technical Section

Problem understanding Proposed Solution Benefits to customers

Methods to be used for

Rationale for
development of
proposed solution
the proposed solution

111
 3.4.2.Management Section
3.4.2.Management Section

Description of
Project structure
work tasks

Deliverables Related experience

Project Schedule Equipment & facilities

112
 3.4.3. Cost
3.4.3. Cost Section
Section

Labor
Labor Documentation
Documentation

Materials
Materials Overhead
Overhead

consultant
consultant Escalation
Escalation
Equipment&
Equipment &
facilitiesrental
rental
Contingency
Contingency
facilities

Travel
Travel Fee
Fee
113
 3.4.3.1. Pricing
3.4.3.1. Pricing the
the Project
Project
 Be careful not to overprice or under
price the proposed project.
Reliability of
Cost estimates
Risk
Competition PRICING (Contingency)

Customer’s Value of the project

budget to the customer

114
4.Proposal Submission
4.Proposal Submission and
and Follow-up
Follow-up

Submission:
 Due date by which proposals must be
submitted.
 To whom the proposals should be
submitted.
 Number of copies to be submitted.
 Mail delivery/ hand delivery.
Suggestion:
 Send two sets of proposals by different
express mail services for safe and on-
time arrival. 115
 4. Follow-up
 Contractors should be proactive.
 Ensure about the arrival of the
proposal.
 Provide clarification to the customer, if
any.
 Do not be aggressive.
 Be responsive.

116
5. Evaluation
5. Evaluation of
of Proposals
Proposals
May be ??
 Three lowest-priced proposals for
further discussion.
 Screen out proposals with prices
above the budget.
 Rejecting proposals- Failure to
meet the requirement in the
technical section.
 Using scorecard by a Review team.
117
5.1 Criteria
5.1 Criteria for
for Evaluating
Evaluating Proposals
Proposals

Þ Compliance with customer’s

statement of work and requirements.
Þ Understanding of customer’s problem
and need.
Þ Experience and success of the
contractor.
Þ Experience of key individuals.
Þ Management capability – budget and
time.
Þ Price consideration – detailed cost. 118
 5.2 Signing
5.2 Signing of
of Contract
Contract
 Must be signed between the customer
and the contractor.

Fixed- Price
Fixed- Price Cost-Reimbursement
Cost-Reimbursement
contract
contract contract
contract

Low risk
Low risk for
for High
High risk
risk for
for Low risk
Low risk for
for High
High risk
risk for
for
the customer
the customerthe the contractor
contractor the
the contractor
contractorthe
the customer
customer

119
 5.2.1 Fixed-
5.2.1 Fixed- Price
Price contract
contract
Necessity
Necessity
 Develop accurate and complete cost
estimates.
 Include sufficient contingency.
 Careful not to overprice.
 Most appropriate for projects that are
well defined and little risk.
 Examples: Construction of a standard
model house, Designing of a brochure
with detail specifications, etc. 120
5.2.2 Cost-Reimbursement
5.2.2 Cost-Reimbursement contract
contract
 Customer agrees to pay the contractor
for all actual costs plus some agreed-
upon fee.
 Most appropriate for projects that
involve high risk.
 Examples: Development of a new
technology, new product development,
job of cleaning up a site, etc.

121
 Contract Provisions
Contract Provisions -- Example
Example
 Misrepresentation of Costs:
Illegal for the contractor to overstate
the hours or costs expended on the
project.
 Notice of Cost Overruns or
Schedule Delays:
Contractor must inform the customer
immediately of any actual or
anticipated cost overruns or schedule
delays.
Submit in writing both the reason and 122
 Approval of Subcontractor:
Indicates when the contractor needs to
get advance approval from customer
before hiring a sub-contractor.
 Customer-furnished Equipment or
Information:
List the items the customer will
provide to the contractor throughout
the project along with the dates.
 Patents:
Covers ownership of patents that may
result from conducting the project.
123
 Disclosure of Proprietary
Information:
Prohibits contractor from disclosing to
anyone else the project confidential
information, technologies, etc.
 Termination:
Explain the conditions under which the
customer can terminate the contract.
 Terms of Payment:
How the customer will make payment?
Monthly payments based on actual
costs. 124
 Equal monthly or quarterly payments
based on expected overall duration of
the project.
Percentages of total contract amount
paid as per completion of work as
agreed upon.
Single payment at completion of the
project.
First payment after signing the
contract and final payment at
completion.
 Bonus/ Penalty Payments:
Contractor gets a bonus if the project 125
 Penalty provision: Customer may
reduce the final payment if the
project is not completed on schedule
or performance requirements are not
achieved.
 Changes:
Covers procedure for proposing,
approving and implementing changes
to project scope or schedule.
Changes can be either proposed by
customer or contractor.
Changes must be documented and
approved by the customer.
May necessitate a change in price. 126
 Thanks!
Questions & Answers

127