The use of lump sum construction supervision contracts under conditions of frequent design changes is disadvantageous for the consultant and could jeopardize project implementation. The use of a lump sum contract between the EA and consultant for this project was not suitable. Lump sum contracts work well when tasks are precisely defined and the risks to both parties are well understood. In this case, the project had frequent design changes that resulted in extended discussions on the variations and severe implementation delays. At appraisal, the project was expected to be implemented over 5 years, from 2011 to 2016. But the loan and grant closing date were extended twice, and implementation spanned a total of about 9.3 years.
Regional Logistics Development Project