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Annex I
December, 2016
Finfinne
Head Quarter Building Construction Project Proposal
Section I
1. Introduction
This Delegation of Authority document has been prepared keeping in view that Oromia
Insurance Company S.C and Oromia Coffee Farmers Cooperative Union Liability are jointly
organize head quarter building construction project management office in order to make an
efficient and effective timely decision for the project.
The purpose of these Delegations is to establish a framework for delegating Authority for
Oromia Insurance Company S.C and Oromia Coffee Farmers Cooperative Union Liability joint
implementation of the project. Therefore this delegation manual applies to all part takers of the
project.
3. Working Definitions
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Head Quarter Building Construction Project Proposal
3.8 Recommend means an authority to obtaining and evaluating the relevant facts and
other inputs and then proposing alternative course of actions.
3.9 "Services" means goods related Services, physical Services, or intellectual and
professional Services.
3.10 Technical specifications means a document contain the entire technical
specifications/requirement for due completion of the work.
3.11 Works means any activity involving construction, fabrication, repair, testing,
overhauling, renovation, installation, erection, excavation, dismantling, dredging, etc.
which make use of combination of labor, machinery, equipment, material and
technology.
3.12 Institutions means Oromia Insurance Company S.C and Oromia Coffee Farmers
Cooperative Union Liability
3.13 Joint Venture the agreement signed between Oromia Insurance Company S.C and
Oromia Coffee Farmers Cooperative Union Liability on Common Headquarter building
Construction and administration;
4. Governing Laws
4.1 All Ethiopian applicable Laws.
4.2 b) Directive and rules issued by related regulatory bodies.
4.3 d) Government policies and directives as deemed applicable to the Institutions.
4.4 e) Policies, procedures, and guide lines duly approved and accepted by the Joint
venture.
5. Principles of Delegation of Powers (DoP)
5.1 The delegation shall effectively contribute to the smooth, expeditious and efficient
realization of Institutions laid down goals and targets, within the policy frame work set
for itself
5.2 Delegations are attached to the position occupied and not to the person.
5.3 By delegating authority, a manager cannot free himself from his/her own obligation
rather it increases his/her responsibility.
5.4 That means, if one delegates an authority to another the delegating party remains
responsible and accountable for the actions of the person that is delegated the
authority by them.
5.5 The delegates shall be accountable for their decisions taken as per the Delegation of
Powers
5.6 As the delegation is meant for smooth execution of the work, and expeditious
realization of corporate goals, any constraint or impediment in this direction shall
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Head Quarter Building Construction Project Proposal
promptly be brought to the notice of the Competent Authority by the concerned person
for remedial measures.
5.7 The delegation is based on the concept of matrix organizational structure.
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Head Quarter Building Construction Project Proposal
Authorize:
The Chie Executive Officer (CEO)/General Manager (GM) shall act jointly or separately as the
next highest lawful representative of the Institutions and shall exercise the rights and
responsibilities vested in the relevant laws of the country. They / He /She may also delegate
their/ his/her powers to a responsible person;
Authorize:
Approve:
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Head Quarter Building Construction Project Proposal
7.3.14 Monitor and track capital project scope, quality, and budget expenditures and
deliveries
Authorize:
8. General Authorities
Unless otherwise mentioned explicitly in this document or elsewhere under the direction of the BOT,
the general authorities mentioned below will be exercised the respective authorities in their respective
areas of control, provided these are not in contravention with the existing policies, norms, orders etc. as
set out by the institutions..
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Head Quarter Building Construction Project Proposal
8.2.6 Authorizes fines, unauthorized absence, block or release payments of salaries of employees
within the PMO
8.2.7 Authorize overtime works within the approved budget and plan
8.2.8 Authorizes voluntary deduction from employees' salary as per the request of the Employees.
8.2.9 Approve the renewal of contract employees within the team.
8.2.10 Authorizes performance plan of employees within the team.
8.2.11 Approve training requisition of employees within the team.
8.2.12 Authorizes store requisition for stock and non-stock Sections.
8.2.13 Authorize entertainment expenses within their Offices as specified in the financial
delegation of power
8.2.14 Retain all general authorities of project manger
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Head Quarter Building Construction Project Proposal
Subject to:
the Provision of available budget and prior
Board of Trustee Full Power
recommendation of CEO and GM of the the
Authorizes or Singing of institutions
Contracts agreement/ Subject to : a) Provision of available budget and
Up to ETB 100 million or
Purchase order(POs) for joint oic CEO and ocfcu GM prior approval from one level lower (e. g . BoT will
equivalent to foreign currency
supply of Goods /Works sign the contract approved by CEO and GM).b)
2
/ services (the contract Up to ETB 10 million or Signing of Contract with a value greater than ETB
OIC CEO
is signed between the equivalent to foreign currency 100 million or equivalent to foreign currency should
project and and external be consulted with BoT
Up to ETB 10 million or
Contractors) OCFCU GM
equivalent to foreign currency
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Head Quarter Building Construction Project Proposal
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Head Quarter Building Construction Project Proposal
Up to ETB 10 million or
OCFCU GM
equivalent to foreign currency
Project manager up to ETB 1million
Up to 25% within the limit of
Board of Trustee After prior joint approval of CEO and GM
signing contract
This is subject to :
Up to 25% within the limit of
joint oic CEO and ocfcu GM i. Provisions of available budget.
signing contract
ii. Original order approved by himself/herself or
Up to 25% within the limit of lower authority
Additional Scope OIC CEO iii. Reason for additional scope should be
signing contract
request for Supply of iv. Additional Scope limit referred here applies to
6 Up to 25% within the limit of
Goods after contract OCFCU GM overall contract value, and not to each item v.
award signing contract
Within a period of three (3) months from the date
of original order.
vi. It should be ensured that there has been no
Up to 25% within the limit of significant downward trend in the prices or that the
Project manager
signing contract rates are either steady or standardized.
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Head Quarter Building Construction Project Proposal
7 Subject to :
Approve
Board of Trustee (a) Contract signed by himself/herself.
Extension in (b) In respect of all cases of extension in completion
completion period joint oic CEO and ocfcu GM Authorize
period a recommendation of detailed analysis
in OIC CEO
listing reasons for delay with documentary
respect of work evidence,
adequate reasons and justification
and Services with OCFCU GM
shall be presented and decision shall be taken as
additional budget per the contract.
variation Project manager
8 Extension in Subject to :
Board of Trustee Approve (a) Contract signed by themself/himself/herself.
completion period (b) In respect of all cases of extension in completion
in period a recommendation of detailed analysis
respect of work joint oic CEO and ocfcu GM Authorize listing reasons for delay with documentary
and Services evidence, adequate reasons and justification shall
OIC CEO be presented and decision shall be taken as per the
without contract.
additional budget OCFCU GM
variation Project manager
Board of Trustee Full Power This is subject to:
a) A recommendation for materials as
joint oic CEO and ocfcu GM Up to ETB 20million obsolete & Surplus and mode of disposal will be
done by Disposal committee..
Disposal of Surplus OIC CEO Up to ETB 10million b) For calculating the amount for tender,
9 materials (other than estimated value or book value of the
vehicle and machinery) OCFCU GM Up to ETB 10million items whichever is available, will be
considered.
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Head Quarter Building Construction Project Proposal
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11 Authorize to Write-Off
for physical assets,
Board of Trustee Full Power
delinquent and other
Receivable and payable Subject to the conditions:
accounts. That, if the losses disclose a defect
joint oic CEO and ocfcu GM on system rectification thereof
shall be taken before hand.
OIC CEO That, if there has been any serious
negligence on part of any
employee(s) of the company,
OCFCU GM which calls for disciplinary action
has been taken report to HR &
Admin office.
Project manager c)That, the amount of write off shall
be determined after adjustment of
the amount recovered, if any.
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Head Quarter Building Construction Project Proposal
Up to ETB 25 million or
OIC CEO
equivalent to foreign currency.
Up to ETB 25 million or
OCFCU GM
equivalent to foreign currency.
Up to ETB 2 million or equivalent
Project manager
to foreign currency.
Board of Trustee Full Power Subject to:
a) provision of approved budget and work plan
joint oic CEO and ocfcu GM Full Power b) requires prior approval of Project Coordinator
15 Work Authorization OIC CEO up to ETB 5million
OCFCU GM up to ETB 5million
Project manager up to ETB 1million
16 Authorization of Board of Trustee Full Power Jointly with assigned finance manager/
cheques, payment assigned project accountant
vouchers, Telegraphic joint oic CEO and ocfcu GM up to ETB 100milion
transfer letters, to be OIC CEO up to ETB 50 million
drawn from OIC &
OCFCU GM up to ETB 50 million
OCFCU joint bank
account
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Head Quarter Building Construction Project Proposal
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Head Quarter Building Construction Project Proposal
Board of Trustee
Subject to:
joint oic CEO and ocfcu GM Full Power Remarks
Up to ETB 150, 000 per a single (a) Provisions of the approved Budget for
OIC CEO Rent Vehicles & machineries.
20 Rent Vehicle /Machinery Case
Up to ETB 150, 000 per a single (b) Verification /Justification for the need
OCFCU GM of Rent Vehicle /machinery and
Case
Up to ETB 50, 000per a single corresponding cost Estimates should be
Project manager prepared
Case
(a) Provisions of the approved Budget for
joint oic CEO and ocfcu GM Full Power Property insurance & public liability.
Property insurance & OIC CEO Up to ETB 500, 000 (b) Verification /Justification for the need
21 of Property insurance & public liability
public liability OCFCU GM Up to ETB 500, 000 should be provided.
Project manager Up to ETB 50, 000
Keys: 1. CEO means: Chief Executive Officer for Oromia Insurance Company S.C
2. GM means General Manager for Oromia Coffee Farmers Cooperative Union Liability
3. ETB means Ethiopian Birr
4. OIC means Oromia Insurance Company S.C
5. OCFCU means Oromia Coffee Farmers Cooperative Union Liability
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Head Quarter Building Construction Project Proposal
Section 2
2.1 GENERAL
The major duties and responsibilities of project management offices include the
followings but not limited to:
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Head Quarter Building Construction Project Proposal
9. Serve as the single point of contact between the PMO and contractors
representatives for all matters related to the project and its performance.
18. Conducting project performance evaluation to assess how well the project
was managed
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Head Quarter Building Construction Project Proposal
19. Compile lessons learned and best practices, and disseminate this
information to develop and maintain a group of professional and trained
project team and managers.
21. Set standards and monitor the execution of project management plans.
22. Ensure that the appropriate level and types of risk assessments are
performed using consistent risk assessment methodology. Conduct
quarterly or annual reviews, depending on the type of project.
23. Develop and maintain a database of project information for current and
historical purposes.
25. Prepare and issue annual forecasts of project cash flow, cost to complete,
and time to complete, as well as assessments of the likelihood of
achieving approved baselines for strategic and major systems and line-
item projects.
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2.2.2 obtaining and maintaining capable and competent staff to fill all
positions as per approved organizational chart for the smooth execution
of the project
2.2.4 ensuring that the objectives and plans of the unit are achieved
2.2.5 Establishing its own Finance Desk to handle all financial matters
(including project bank account opening) at the Project Level (as per the
signing authority or as per the delegation given by the Management.)
2.2.6 establishing its own Administration Desk (if required) to handle all
administrative issues at Project level
2.2.8 Ensuring clear utilization of budget as per finance rule of the institution
and Govt.
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e. Compile all correspondences from prospective bidders for action with the
assistance of the Engineer and/or for future reference
c. The Project Office prepares and issues the bidding document for
prospective bidders and collects the fees with relevant receipts.
a. The project office determines the tender float period based on and
the following proposed durations.
e. For fast track and emergency project, the contract floating period
shall be determined in consultation with the next superior and the
Engineer.
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b. The project office has to take in to account the critical activity when
issuing bid closing extension.
b. Ensure that bid opening session records are maintained for eventual
distribution
c. Immediately after opening, register and take delivery of bid bonds for
safekeeping until release
d. Immediately after opening, register and take delivery of bids either for
safekeeping until evaluation starts or for immediate evaluation
f. Set evaluation guidelines and timetable for the Bid Evaluating Team
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Head Quarter Building Construction Project Proposal
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f. The Project Manager shall assume full delegation and empowerment for
contract negotiation for all issues within the bidding document. If there
is any issue not foreseen or change to the tender document, the project
manager shall get clearance from the next authority.
g. The project manager and negotiating team are accountable for the
negotiations carried out by them.
The contract shall be signed by the authorized authority as per the signing
authority of the of the project.
c. Ensure that Letter of Credits are opened in time and their validity
maintained for the project period
d. Ensure that foreign currency Bank Permits for Letter of Credits and
Advance Payments are obtained in time at Project Level
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Head Quarter Building Construction Project Proposal
h. Ensure that project goods and materials are fully insured through
Contractors or/and project
b. Based on the input from the Engineer, coordinate the activities related to
compensation payment and timely removal of properties and affected
people.
d. Ensure that project goods and materials are cleared from port in time
e. Ensure the timely transportation of goods and materials from port to the
project site if applicable
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Head Quarter Building Construction Project Proposal
b. Follow-up that designs and drawings are submitted and approved in time
d. Ensure that regular project review meetings are conducted and signed
record of the meetings are maintained and distributed as required
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Head Quarter Building Construction Project Proposal
g. Review from time to time to ensure the availability of competent staff for
supervision and inspection of the site works
d. Submit to the Engineer any disputes or differences that may arise with
Contractors during the execution of the project
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Head Quarter Building Construction Project Proposal
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c. Manage optimal costs of letter of credits and follow up the closing and
validity.
All activities related to insurance and transport if required for the projects
shall be handled by the Project Office.
Costs due to change in legislation as foreseen in the contract and as per the
Engineers approval shall be handled by the Project Office as far as it is
within the approved budget other wise seek approval from the authorized
authority.
The Project Office after reviewing the Engineers determination shall present
to the CEO/GM for approval of extension of time and related costs if any
within fifteen (15) days.
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Head Quarter Building Construction Project Proposal
2.4.12 Finance
b. The Project Office is responsible for all the financial transactions related
to the Project
h. Open (those who are delegated to handle project account), maintain and
operate project bank account
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Make sure that all items procured under the project are registered and
entered into the project office store system
Ensure that all items procured under the project are valued for further
inclusion in project office system
Cost for completion of the project should be forecasted every quarter of the
year normally and within less time if deemed necessary
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Projects budget including transfer with in the domain of the project shall be
handled and authorized by the Project Manager
All guarantees shall be kept under the custody of the Treasury Department
and copy should be maintained with the project office.
2.4.20 Employing
The Board of Trustee shall approve salaries and fringe benefits for
employees based on prevailing market price and taking into consideration the
Oromia Insurance Company S.C regulations or guidelines.
2.4.22 Training
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c. Ensure that Final Taking Over Certificates are issued by the Engineer in
accordance with the conditions of the contract
d. Ensure that Final Project Reports are prepared by the Engineer in time
and in agreed format
e. Based on the Engineers Final Project Report, prepare and submit Job
Completion Reports
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