Comprehensive Notes on the Technical and Executive System for Country's Construction Projects

Approving the Technical and Executive System for the Country's Construction Projects

  • Date of Approval: June 26, 1996
  • Approved by the Council of Ministers based on the proposal from the Plan and Budget Organization.
  • The "Technical and Executive System" will be implemented according to the following provisions.

Responsibilities of the Plan and Budget Organization

  • The Plan and Budget Organization, in cooperation with various ministries, organizations, state-owned companies, municipalities, banks, and professional associations, is responsible for:
    • Preparing draft bills and proposing them to the Council of Ministers for approval and submission to the Islamic Consultative Assembly.
    • Preparing draft executive regulations for the system and proposing them for approval to the Council of Ministers or other relevant authorities.
    • Preparing and disseminating necessary guidelines within the framework of the aforementioned regulations.

Guidelines for Executive Bodies

  • All executive bodies, specialized councils, and other relevant authorities must adhere to existing regulations, laws, bylaws, and guidelines when conducting studies and implementing research projects until the new regulations are approved and communicated.

Scope of the Technical and Executive System

  • The Plan and Budget Organization is obligated to prepare a bill to extend the Technical and Executive System to all state-owned organizations, including municipalities and banks, as well as organizations requiring specific mention in the law.

Replacement of Previous Regulations

  • This approval replaces the previous approval No. 7250/T166H, dated June 7, 1988.

General Information about Technical and Executive System for Country's Construction Projects

  • Necessity of the System: The wide scope of construction activities in the country, their impact, and the significant economic resources involved necessitate the approval of a technical and executive system.

Definition of the Technical and Executive System

  • The system comprises principles, methods, regulations, and technical, legal, and financial standards governing the preparation, execution, and evaluation of construction projects.
  • It also covers the selection and employment of related personnel, their qualifications, and their interrelationships.

Role of the Technical and Executive System in Construction Programs

  • The system plays a crucial role in planning processes, particularly in:
    • Preparing projects
    • Implementing projects
    • Evaluation
  • It provides principles, methods, standards, and regulations for selecting and employing personnel.
  • It also contributes to basic and regional studies when necessary.

Guiding Principles of the Technical and Executive System

  • Optimal Resource Utilization: Efficiently use existing resources and create new capacities.
  • Scientific and Technical Advancement: Apply scientific principles to enhance technology and improve quality.
  • Private Sector Participation: Encourage private sector involvement in construction projects.
  • Innovation and Creativity: Foster innovation to reduce costs, improve quality, and find new resources.
  • Qualification of Units: Identify, organize, classify, and qualify units involved in studies and project execution.
  • Technical Empowerment: Support domestic technical capabilities and create large units for project phases.
  • Export Facilitation: Facilitate the export of technical services and manpower.
  • Training: Provide training for technical personnel via collaboration between the technical system and academic institutions.
  • Public Participation: Involve banks, Islamic revolutionary institutions, and public benefit corporations in construction investments.
  • Periodic Evaluation: Conduct timely evaluations of the system's performance using specific criteria and methods.
  • Documentation: Mandate documentation of all events related to project phases.
  • Reporting: Implement a system for regular reporting on project progress.

Scope of the Technical and Executive System

  • The scope includes:
    • Fundamental and regional studies
    • Technical standards and criteria
    • Project preparation
    • Project execution
    • Evaluation

Project Preparation

  • Involves:
    • Management of project preparation
    • Feasibility studies
    • Initial studies and design

Project Execution

  • Involves:
    • Management of project execution
    • Management and control services
    • Execution activities

Management and Control Services

  • Include:
    • Project execution management
    • Engineering controls
    • Project control
    • Supervision

Execution Activities

  • Include:
    • Detailed and executive design
    • Procurement and manufacturing
    • Contracting (execution and installation)
    • Preparation for operation

Elaboration on the Principles Governing the Technical and Executive System

  • The principles are elaborated in detail within the following sections:
    • Fundamental and research studies
    • Technical standards and criteria
    • Project preparation
    • Project execution
    • Evaluation

Fundamental and Research Studies

  • Definition: These studies lead to overall decisions on programs and projects, producing scientific outcomes and base information.

Principles Governing Fundamental and Research Studies

  • Methods: Apply valid methods and global research in related fields.
  • Domestic Resources: Maximize the use of domestic resources.
  • Qualified Units: Conduct studies through qualified units or research institutions.
  • Approval: Contracts with scientific institutions require approval from the Plan and Budget Organization.
  • General Principles: Apply other principles from the project preparation section regarding qualification and pricing.

Technical Standards and Criteria

  • Definition: These are specifications, methods, and guidelines based on scientific principles and environmental conditions.
  • They are used to:
    • Ensure technical and economic acceptance of projects.
    • Guarantee safety.
    • Protect information.
    • Improve the quality of design, execution, and maintenance.

Principles Governing the Development of Technical Standards

  • Enhancement of Technical Knowledge: Improve technical expertise through relevant standards.
  • Technical Relations: Regulate technical relationships between project management units.
  • Standardization: Provide standards for various project phases using international expertise.
  • Execution Standards: Standardize execution and products.
  • Centralized Planning: Adopt comprehensive planning to avoid duplication.
  • Training and Promotion: Encourage training and recognize individuals contributing to high-quality standards.
  • Use of Institutions: Involve research organizations in developing standards.
  • Approval: Specialized technical standards are developed by relevant units and approved by the Plan and Budget Organization.
  • Control Mechanisms: Implement control mechanisms to ensure compliance with standards.

Project Preparation (Detailed)

  • Definition: Encompasses research, study, design, and activities leading to the acceptance or rejection of a project, and actions for planning, organizing, and controlling project activities.

Activities in Project Preparation

  • Management of project preparation:
    • Legal responsibilities of project preparation.
    • Project preparation management services.
  • Feasibility study.
  • Initial studies and design.
  • Final feasibility study.

Principles Governing Project Preparation

  • Comprehensive Studies: Conduct necessary studies for identifying technical, economic, social, and environmental aspects of project.
  • Environmental Assessment: Environmental assessment should align with the second five year's economical, social and cultural development plan of I.R.Iran.
  • Coordination: Ensure project coordination with other relevant plans.
  • Local Resources: Utilize local resources.
  • Public Involvement: Involve the public in project preparation.
  • Operator Identification: Determine the operating entity and conduct necessary studies for maintenance and operation.
  • Qualified Units: Use appropriately qualified units for project management and services.
  • Policy Making: Policy making responsibilities remains on the executive body.
  • Competition: Foster healthy competition for project services.
  • Review by Executive body: Services should be reviewed and approved by executive body.
  • Provincial strategy: Adopt strategies to develop project preparation units at the level of provinces.
  • Training: Ensure information is updated for key personnels through training.
  • Support: Secure the career of proficient individuals.
  • Selection Criteria: Criteria for selection should be developed.
  • Organization: Appropriate organization should be in place without external assignment of responsibilities.

Governing principles over qualification of project preparation units and consulting services units for project preparation

  • Formation is in the context of laws and regulations.
  • Staffs and managers must have proper education and experience.
  • There should be no record of law violation.
  • Necessary measures should be adopted for those who violated the criteria.
  • Independence in finance, management and project execution.
  • For the qualification external units above cases are considered.
  • External unit must make commitment to work in collaboration with local units.
  • Unit must have expertise and necessary experience.

Governing Principles for commissioning of project preparation units, Consulting services for project preparation and Project preparation units

  • Commissioning to qualified units based on previous works.
  • Previous experience of the unit must be considered.
  • Preference is to local units where conditions are equal.
  • Service Management can not be done by units from private sector.
  • Competitiveness should be secured among units.
  • Potential usage of several units should facilitate the establishment of larger units.
  • External units can only be used in exceptions when there are no equivalent experts in the country, the executive body can select external body with permission of Plan and Budget Organization.

Governing principles over service providing contract for the management of Project Preparation, and Consulting services for Project Preparation

  • Duties, responsibilities and expectations should be reasonable and clear on both entities.
  • Technical standards and protection of capabilities and local resources should be emphasized
  • Securements should be considered agains commitment violation.
  • Mediation process should specified.
  • General text can be used from standard for certain cases.
  • Predict logical limits on volumes, budget and time.
  • Project Preparation service provider must delivery all final documents and resources.

Governing principles over pricing and payment process for the management of Project Preparation, and Consulting services for Project Preparation

  • Formulas should be provided so that it is possible to standardize the process of pricing according to expertise and requirements.
  • The budget is independent of pricing formulas.
  • The process should be verified if formula is not applicable. The process should be based on 17, section J and 19, section TH.

Execution of the Project

  • Definition: Project execution includes a set of services and activities, which are describe below.
    • Non-assignable duties such as selection of type of execution methods, which is done be client or executive set.
    • Management and controlling services including: execution management, engineering controls, controlling the project and supervision.
    • Executive activities including details and executive planing procurement and construction of goods installation of machineries, planning for the start of the operation.

Execution Main principles

  • Execution stages depend on planning stages.
  • The execution body is the client of the project.
  • Allocation and supplying the budget is a pre-request of the execution.
  • Execution activities can be implemented jointly, if it is permitted.
  • Those unit which are responsible for the combined operation should be qualified.
  • Emphasizing on rational price in project execution process.
  • Continues supervisions on operations.
  • Advanced method for the national projects supervision.
  • Facilitate the process of quality control by the qualified units.
  • Preparing the plans and details related to the execution and operations.
  • Establishing units at province level.
  • Technical documentation, drawing should be controlled.
  • Planning for pre-operation activities in time table.
  • Establishing the organization, training, and making available the human force for exploitation, maintenance and delivering the final versions.
  • Predicting the required pre-cautions needed for safety and sanitation.
  • Establishing and promoting specialized and skilled force for project operations.

Definition of Operational Executive Unit

  • Those qualified and legitimate units that are responsible, separately or jointly, for the services mentioned in clause B and P of section 22.

Main principles of qualification for executive unit

  • The unit must be qualified based on technicals and executive standards.
  • Personnel and managers should be graduated with proper experience.
  • There should be no record of law violation.
  • Necessary measurements should be considered for the units those have acted against the standards.
  • Previous records, method of management and the system dominating entity should be taken into the consideration.
  • The possibilities, type of activity. Financial statements and machine availability should be surveyed.
  • Executive managers qualifications should be considered.
  • Apart of government firms, units should be financially independent.
  • Hardware and software availability is a requirement, expect the provincial small branches.

In order to qualify an external execution unit the following requirements are necessary

  • The external units must make commitment to work in collaboration with local units. The local resources should be employed.
  • Has specialized and proficient personnels with the experience and good record in another country.

Executive unit delegation main principles

  • Executive units qualifications and previous record should be emphasized.
  • The case in part B of section 22 should be posed to tender. Cases out of this role and investing units must be certified in council of ministers.
  • Details and clear format should be provided for the tenders.
  • Principals of non-centralization and local delegation should be considered.
  • Potential usage of a group of units to facilitates establishment larger units.
  • The delegation of project execution services with stages mentioned below is not permitted.
    • Execution management with supervision services.
    • Execution management with execution activities and services.
    • Execution management with project Preparation services.
    • Execution management with project preparation services.
    • Engineering controls with execution activities and services.
    • Supervision with preparation and construction, Exploitation planning.
  • Entrusting the whole project should be considered. The partition of the project to the capable local units is of higher priority.
  • External units can only be commissioned where no local experts are available with the consent of Plan and Budget Organization.
  • Executive firms are not authorized to do projects trustingly, unless there is reasonable justification.

Agreements and contracts in project execution main principles

  • The service explanation, rights and duties. Expectation should be logical, clear and complete.
  • For those not conforming the standards penalty should be considered.
  • Insurance coverage should be considered.
  • Standards. Measurement and executive criteria should be considered together with capabilities and local resources
  • Incentives and financial awards should be anticipated if the project is done before deadline.
  • Mediation process should be anticipated for disputes.
  • Limitations and right should be specified for supervision units.
  • Human forces training program should be considered and specified if there is a need.
  • The pre request measurement to save the environmental sanitation and to prevent firms from making losses and damages to external elements should be specified.
  • Standard text should be used for the agreements text when possible.
  • Change limitation should be predictable logically.
  • One original version of documents should be available locally so that it become possible to provide the documents if needed.

Principles of Payments and Pricing in project execution agreements and contracts

  • Executive unit should be obliged to provide with the related documents on the site, so that the client has continuous access to most up-dated versions.
  • Standard formulas should be provided for estimation of the expenditure and costs, considering the type of consumption, operation, material qualities. Human based and technology.
  • Base prices should be supplied using clause A of article 28, based on material waste value, human force, and equipment rental costs.
  • Estimation payment and comparison for selection of tenderers should be done based on base price, in other words. Base price serves as a tool to distinguish prices and estimating all overal price. In this method the comparison is based on limited measurements.
  • Matching the prices during the execution should be considered so that long term projects over a year and those less then a year are discriminated.
  • In cases were standard measurements are not available, expert estimation should be consulted.
  • Pre-paid and secured payments, to facilitate client confident ability to pay the debt on given time based on insurance coverage.
  • Financial resource secure ability for project units by bank facilitation and debt installments.

Exploitation, Control and supervision of the project implementation. Activities of Part B, Section 22

  • Definitions: including a set of activities done to manage the project by controlling execution with consideration of engineering factors, schedules and standards.

Main principles to manage, control and supervise the executive process of a project

  • Units are autonomous from subunits also with consideration of article 26.
  • Those units are responsible in the range of their authority and job definition towards controlling and managing the project with accordance to the standards. Maps and documents together with other criteria are of significant importance.
  • Supervision unit is in charge in the direction of controlling the qualities of equipment and raw material.
  • Executive part saves all the rights to check and control the qualities.
  • Necessary documents should be used for expertise and supervision also description roles.
  • Technical instruction should be considered.

Exploitation preparation planning

  • Objective is to supply the pre-request for the exploitation, together with other executive activities.

governing Principals in preparation for planning for exploitation

  • Definition of exploitation units in defined period Also, the activities related to executive measurements personnel’s coordination and training.
  • Establishes a control procedure to identify the defects until it is cleared completely to obtain a satisfactory result.
  • Submission of “due-built map” and other instructions of maintenance Also, technical monetary direction before the project is handed over.
  • Providing and suppling the machineries and equipment’s and other measurements in defined time for maintenance stage.
  • Supplying technicals needs for know-how and maintenance so that transfer and implantation of technology are applied.
  • Regulate relations between exploitation units and executive managers and facilitating the gradual exploitation of the project.

Assessments

  • Definitions: A set of activities for measuring the performance of projects in the range of the execution and towards reaching objects in the technical level of executive systems for construction project of the country.

Governing principals of measuring qualities

  • Assessing project based on primitive presumptions, indexes and standards.
  • Time of assessment has to be calculated with considering of the type project.
  • Projects have the right to hold the right to be identified with the information of personnel data, technical information and project level data also executive data in special time range.
  • Project has the right to hold the right to be identified with the information of personnel data, technical information and project level data also executive data in special time range.
  • Units that are playing a role should be recognized while, those conforming with the objective criteria should be appreciated.