Improving contract management process in IDCOL, Bangladesh

Abstract

This report titled "Improving Contract Management Process in IDCOL," presents a comprehensive analysis of the current contract management practices at Infrastructure Development Company Limited (IDCOL) and proposes strategic recommendations to enhance its effectiveness. The study is structured into four chapters, each addressing critical aspects of contract management. The first chapter provides a detailed overview of IDCOL, including its mission, vision, and operational scope. It also outlines the objectives and scope of the practicum, focusing on the need to improve contract management practices within the organization. The chapter establishes the foundation for the subsequent analysis and recommendations. Chapter two delves into the intricacies of contracts and their management within IDCOL. It begins with a definition of a contract and its essential elements, followed by a discussion on the types of procurement contracts utilized by the organization. The chapter elaborates on the role of a contract manager, detailing the current contract management processes at IDCOL. It provides a thorough understanding of how contracts are managed, monitored, and executed within the company. This chapter identifies and analyzes the existing challenges and inefficiencies in contract management at IDCOL. Key issues include shortage of personnel to manage contracts effectively; inadequate contract performance monitoring and evaluation mechanisms; insufficient knowledge of the Public Procurement Act 2006 (PPA-2006) and Public Procurement Rules 2008 (PPR-2008) among stakeholders; and absence of technical tools to monitor the contract management process. Furthermore, the chapter benchmarks IDCOL's contract management practices against international standards, highlighting areas where improvements are necessary. The final chapter offers strategic recommendations to address the identified challenges and enhance contract management at IDCOL. The key recommendations include: 1. Appointment of a Contract Manager: Designate a dedicated contract manager to oversee all contract-related activities, ensuring better coordination and management. 2. Contract Performance Monitoring and Evaluation: Implement robust mechanisms to monitor and evaluate contract performance regularly, ensuring compliance and addressing issues promptly. 3. Training to Enhance Stakeholder Knowledge in Procurement Regulations: Conduct regular training sessions for stakeholders to improve their understanding of PPA-2006 and PPR-2008, ensuring adherence to procurement regulations. 4. Use of Technology in Contract Management: Integrate advanced technological tools to streamline and automate the contract management process, enhancing efficiency and accuracy. These recommendations aim to strengthen IDCOL's contract management framework, ensuring more efficient and effective procurement processes. Implementing these strategies will help mitigate existing challenges, align IDCOL's practices with international standards, and ultimately contribute to the organization's overall success.