E tools

1
Republic of India
Introduction of e-Tools in Management
of Construction Projects
.
June 2013
SASDT
SOUTH ASIA
Guidance Note For Implementing Agencies
DRAFT

Introduction of e-tools in Management of
Construction Projects
2

3
Republic of India
Introduction of e-Tools in Management
of Construction Projects
June 2013
SASDT
SOUTH ASIA
Guidance Note For Implementing Agencies

4
Copyright Statement
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5
Acknowledgment.................................................................................................................................................................6
List of Abbreviations.........................................................................................................................................................7
1.The Guidance Note: Background, Purpose and Structure...................................................9
Background.........................................................................................................................................................................................9
Purpose............................................................................................................................................................................................ 11
Structure.......................................................................................................................................................................................... 11
2. Construction Project Management: Issuesand Challenges......................................... 12
Project Management...................................................................................................................................................................... 12
Types of Construction Projects.................................................................................................................................................. 12
Key Stakeholders in a Construction Project........................................................................................................................... 13
Project Lifecycle............................................................................................................................................................................. 15
Key Challenges in Project Implementation (Construction) Phase...................................................................................... 17
3. e-Tools: Solutions for Some ofthe Challenges.......................................................................... 21
What are e-Tools?.......................................................................................................................................................................... 21
Available e-Tools for Construction Project Management..................................................................................................... 23
e-Tools as a Solution to Challenges in Construction Project Management..................................................................... 25
4. e-Tools Implementation – Roadmap for Implementation..................................................... 31
Stage I: Framework for Selection of E-Tools............................................................................................................................ 31
Stage II: Implementation Roadmap............................................................................................................................................. 44
Other Considerations................................................................................................................................................................... 51
5. Conclusion.......................................................................................................................................................................... 54
Annex 1: e-Tools Resources................................................................................................................................................ 56
Annex 2: Suggested Standard Clauses for Contractor and Consultant Contracts.......73
Annex 3: Typical ICT Policy Contents....................................................................................................................... 74
Bibliography.................................................................................................................................................................................. 75
Table of Contents

6
Acknowledgment
The Guidance note has been prepared by the South Asia Sustainable Development Transport (SASDT) unit of
the World Bank under DFID-World Bank Partnership for India, Phase III Trust Fund.
The Task Team would like to acknowledge the overall guidance and support from Mr Nilaya Mitash, Joint
Secretary, Department of Economic Affairs, Ministry of Finance, Government of India, Onno Ruhl, Country
Director, India, John Henry Stein, Sector Director, South Asia Sustainable Development, and Karla Gonzalez
Carvajalr, Sector Manager, SASDT.The task team wishes to thank Kulwinder S Rao, Senior Highway Engineer,
AFTTR, Christopher R Bennett, Senior Transport Specialist, EASNS and Kevin McPherson (Bank’s Consultant)
for qualityand peer-reviews.
The task team would like to thank Total Synergy Consulting and IMC Worldwide, who were engaged for
developing a major part of this Guidance Note.The task team highly appreciates support from Jill Armstrong,
Roland Lomme, Michael Haney, Santhakumar Sundaram, Shashank Ojha, Fernanda Ruiz Nunez and Mandakini
Kaul. Kumudni Choudhary and Rajesh B. S. Dongol provided excellent administrative and logistical support.
Rajesh Rohatgi
Senior Transport Specialist
The World Bank
South Asia Sustainable Development Unit (Transport)

7
BOOT Build-Own-Operate-Transfer
BOQ Bill of Quantities
BOT Build-Operate-Transfer
BPR Business Process Re-engineering
CAD Computer Aided Design
CES Cost Estimation Systems
CM Contract Management
CMS Content Management System
COTS Commercial Off-the-Shelf
CPM Construction Project Management/Critical Path Method
CS Communication systems
DBFO Design-Build-Finance-Operate
DSS Decision Support System
DGS&D Directorate General of Supply and Disposals
DMS Document Management System
DFID Department for International Development
EDI Electronic Data Interchange
EDM Electronic Document Management System
EP&C Engineering, Procurement & Construction
ERA Ethiopian Road Authority
ERAMS Ethiopian Road Authority Management System
ERP Enterprise Resource Planning
EA Executing Agency
FICCI Federation of Indian Chamber of Commerce and Industry
FM Financial Management
FMS Financial Management System
GDP Gross Domestic Product
GIS Geographic information system
GPMS Global Project Monitoring System
HVAC Heating,Ventilation,Air Conditioning
ICT Information and Communications Technology
IPC Interim Payment Certificates
IA Implementing Agency
IS Implementing System
IT Information Technology
KSHIP Karnataka State Highway Improvement Programme
M&E Monitoring and Evaluation
MB Measurement Book
PaaS Platform as a Service (PaaS)
PMC Project Management Consult
PERT Program Evaluation and Review Technique
PMDU Project Management Development Unit
PMI Project Management Institute
PMIS Project Management Information System
PMP Project Management Plan
PMS Project Management System
PPP Public Private Partnership
PQ Pre-qualification
QMS Quality Management System
RFI Request for Inspection
RFP Request for Proposals
RHD Roads and Highway Department
RMIS Risk Management Information System
SaaS Software as a Service
SASDT South Asia Sustainable Development Transport
SLA Service Level Agreement
SBD Standard Bidding Documents
SLA National Informatics Centre
SOR Schedule of Rate
TCO Total Cost of Ownership
List of Abbreviations

8
This Note contains names of several e-tool products developed by specialised software firms.
These names are trademarks or registered trademarks of respective firms which developed
these products. Although the Note lists some of the COTS software/e-tools available in the
market pertaining to specific aspects of CPM, this list is neither intended to be prescriptive nor
is it based on any comprehensive market study.The e-tools list included in this Note is simply
intended to illustrate the point that several e-tools options, each with its own unique set of
features, functionality and pricing, are readily available in the market.The World Bank and the
authors of this Note do not assume any responsibility for the usefulness, appropriateness or
quality of any of these products.Any organization which intends to use any of these e-tools is
expected to exercise due diligence and seek professional advice after a thorough examination
of their particular situation.The authors of this Note also do not recommend any particular
COTS/bespoke e-tool.
The information contained herein is of a general nature and is not intended to address the
circumstances of any particular entity.Although we endeavour to provide accurate and timely
information, there can be no guarantee that such information is accurate as of the date it
is received or that it will continue to be accurate in the future. No one should act on such
information without appropriate professional advice after a thorough examination of the
particular situation.
This volume is a product of the staff of the International Bank for Reconstruction and
Development/ The World Bank.The findings, interpretations, and conclusions expressed in this
paper do not necessarily reflect the views of the Executive Directors of The World Bank or
the governments they represent.The World Bank does not guarantee the accuracy of the data
included in this work.The boundaries, colors, denominations, and other information shown on
any map in this work do not imply any judgment on the part ofTheWorld Bank concerning the
legal status of any territory or the endorsement or acceptance of such boundaries.

9
Background
The infrastructure sector has seen unprecedented growth in India during the last decade.
This trend is likely to continue as India targets to achieve US$1 trillion investment in the
infrastructure sector during the 12th Plan (2012-17)(more than twice the 11th Plan figures
with five sectors – electricity, roads, telecom, railways and Mass Rapid Transit System –
accounting for more than 78 percent of the total spend) to remove infrastructure deficit
in the country. A similar trend is also seen elsewhere in the South Asia Region. These
investments are required to be made across a range of infrastructure sectors such as
power, ports, roads, railways, and aviation.
There is also growing public scrutiny, particularly on public-sector led infrastructure
projects, mandating a greater need for improving accountability in terms of ‘value for
money’ and reporting on efficient utilization of public resources. Achieving transparency
in all aspects of infrastructure projects, including greater consultation and participation of
stakeholders, especially the beneficiary community and the citizens at large, and delivering
projects within the stipulated time, budget and specified quality standards has assumed
paramount importance.The complexity and scale of these infrastructure projects have
increased significantly as there are more stakeholders involved in a typical project now
than there were before, thereby necessitating greater need of collaboration and clarity on
the role and responsibility of the various actors.
In addition to the complexity, the infrastructure construction projects are also often
associated with cost and time overruns, disputes, lack of transparency and real as well
as perceived fraud and corruption risks. According to McKinsey, Government data
suggest that close to 60 percent of infrastructure projects are plagued by time and
cost overruns. If the current trends continue over the 11th and 12th Plan periods
(2008 to 2017), it is estimated that India could suffer a Gross Domestic Product
1.THE GUIDANCE NOTE
BACKGROUND, PURPOSE
AND STRUCTURE

10
(GDP) loss of US$200 billion (around 10 percent of India’s GDP) in the fiscal year
2017.”1
A report by Federation of Indian Chamber of Commerce and Industry (FICCI)2
states that out of 1,032 infrastructure projects completed in India from April 1992 to
March 2009, 42 percent faced cost overruns and 82 percent faced time overruns.
Although project management as a discipline is not new, there is a renewed focus and
attention on project management of construction/infrastructure projects as well as on
the application of professional project management techniques to better manage these
projects.Many management research studies have shown that in the construction industry
– which is grappling with serious human resource constraints – there is a severe lack of
project management capacity and use of Information and Communications Technology
(ICT) tools to enhance project management are not practiced widely, in comparison with
other industries, e.g., IT , Manufacturing,Automobile, Banking and Tourism.
The growth of the ICT sector has opened up opportunities for improving project
management processes for infrastructure projects and has led to the availability of a
plethora of e-tools in the construction industry. Technological advances in computer
hardware and software provide an excellent opportunity for innovative approaches to be
adopted for collection,compilation,processing and sharing of relevant data and assessment
of constructional and environmental impacts. New technologies such as Geographic
Information System (GIS), Computer Aided Design (CAD), RFID and handheld devices
(such as tablets and smart phones) make it more efficient and convenient to collect,
manage,analyze and visualize data and to convert it into meaningful information which can
enhance the decision maker’s knowledge and assist in resolving conflicts and mitigating
project risks.
Although some progressive public-sector agencies including public works departments
have initiated the introduction of ICT tools in construction projects, largely these remain
absent.
With this backdrop,the SouthAsia Sustainable DevelopmentTransport (SASDT) unit of the
World Bank undertook a study “Introduction of e-Tools in Management of Construction
Projects” under the Department for International Development (DFID)-World Bank
Partnership for India, Phase IIITrust Fund.The objective of the study was to introduce and
enhance the use of IT based interventions/solutions in the management of construction
projects and programs to enhance efficiency, transparency and governance in delivery,
1
Building India—Accelerating Infrastructure Projects by McKinsey (2009)
2
Project Management in India: Insights from Six Key Sectors by the FICCI and PMI India

11
thereby increasing their success and impact potential.The scope of the study included an“As
Is” study of three projects to fully understand and document the current project/program
management practices of public sector construction projects; stakeholder consultations;
site visits; and market survey of existing IT based project/program management systems/
solutions.This Guidance Note is the output of this study.
Purpose
While the benefits of e-tools for more effective Construction Project Management (CPM)
are well known, implementing them painlessly and in a cost-effective manner continues
to be a challenge for most organizations. This Note provides a broad framework and
roadmap for how executing agencies, regardless of their current level of computerization,
can initiate a structured approach for introducing or improving their usage of e-tools.
The Guidance Note is designed for Implementing Agencies (IAs) of construction projects
in the public sector and aims to provide knowledge and resources to introduce/integrate
e-tools in construction project management.At a broader level, the Note also advocates
and promotes the usage of ICT tools in the construction industry.
The Note can be used by Senior Executives, Chief Engineers and Project Managers of IAs,
who would like to gain information on the availability, options, risks and implementation
process for e-tools that they can opt for and the likely benefits of automating construction
project management functions, that their organizations can accrue.
The Guidance Note does not recommend a particular e-tool or approach to a specific
project, program or agency, considering their unique mandate, scope, objectives and
scope.
Structure
This Note describes key CPM issues and challenges during the project implementation
(construction) phase; provides information on available e-tools and; how can e-tools
address these challenges.
The Note finally recommends simple and practical approaches to e-tools implementation
and provides guidance and information that can support any IA to identify the most suitable
path for achieving improved CPM through e-tools.
The Note also provides e-tool resources in Annexes.
THE GUIDANCE NOTE
BACKGROUND, PURPOSE AND STRUCUTRE

12
2. CONSTRUCTION PROJECT MANAGEMENT
Project Management
Project Management is the discipline of planning, organizing, securing and managing resources
to bring about the successful completion of specific project goals and objectives.3
Construction
Project Management (CPM) is project management that applies to the construction
sector.
Project management aims to execute a project while ensuring that the scope is
controlled, particularly during implementation, the deliverables meet scope
requirements on budget and schedule, and at acceptable risk, quality, safety, and
security levels.
Key aspects of project management include time, cost, and quality (Figure 1)within
which the scope of the work being performed needs to be addressed. For public
sector projects, transparency assumes significance since it is public funds that are
being utilized.
Box 1 defines the key dimensions of project management and highlights the need
for ensuring that unless all aspects of project management are addressed, the
project is unlikely to meet either its target and deadlines or its eventual goals.
Types of Construction Projects
There are different categories of infrastructure projects. A common approach to
classifying infrastructure projects is based on horizontal and vertical construction as
explained below.
Horizontal construction involves repeated construction of a typical cross-section where
construction is parallel to the ground over or under. It includes construction of roads,
railways, and Metro Rail.Vertical construction involves construction from ground upwards
and comprises residential construction; construction for commercial buildings,such as offices,
ISSUES AND CHALLENGES
3
Source : Project Management Institute (PMI).
Time
Cost Quality
Transparency
Scope
Figure 1 Aspects of
Project Management

13
warehouses, retail outlets; and industrial construction which includes
small and large manufacturing units and manufacturing complexes.
Vertical projects executed by public sector agencies include low-rise
buildings such as small schools, hospitals, residences and offices and
high-rise buildings such as large schools and hospitals, government
buildings, office blocks, residential apartments, etc.
Key Stakeholders in a Construction Project
There are multiple stakeholders in a typical public sector construction
project. Figure 2 shows the key stakeholders that have a role in CPM.
Depending on the type of procurement, the stakeholders may vary
slightly but the general principle is as indicated in this figure.
The Implementing Agency (IA)/Executing Agency (EA) (Ccient)
is responsible for the overall management of the project and is
answerable to a government department and ultimately to the general
public.It is responsible to ensure that the overall justification,financing,
planning co-ordination and implementation of the project is carried out
according to government regulations and in a fully transparent manner.
In the procurement of consultants and contractors, it must ensure
that it achieves value for money, that the quality of the deliverables –
be it design or construction – meets international quality standards
and those set by the government. The client must manage and
coordinate with other government departments and stakeholders to
ensure the smooth execution of the project, in a cost-effective and
timely manner.
Dimensions of Project
Management
In order to successfully implement and achieve any
project’s objectives, it is important that the following
key dimensions of project management are managed
appropriately:
a Integration Management: Ensure effective
coordination of all project elements among all
project stakeholders
a Variation/Scope Management: Ensure that
variations or scope changes are minimized
a Time Management: Maintain schedule control
a Cost Management: Maintain budget control
a Quality Management: Ensure all standards are
met and all requirements are complete
a Resource Management: Effectively employ
and manage, equipment, labor (professional and
labor force) and materials
a Communications Management: Maintain
effective internal and external information
sharing and communication flow to build
accountability and transparency
a Risk Management: Assess, detect and mitigate
potential risks
a Procurement Management: Obtain goods
and services externally with value for money
Box 1
Citizens
Executing Agency (Client)
Design
Consultants
Project Mgmt.
Consultants
Field
Supervisors
Local
Bodies Community
Govt.
Departments
Funding
Agency
Utilities
Contractor
Figure 2 Key Stakeholders in CPM

14
Various government departments are responsible for providing approvals such as land
clearances, social environmental permits, etc. Local bodies are responsible for providing
the required clearances,under the respective jurisdictions.The community and civil society
is expected to provide feedback on project design or progress and alert the client on
any negative aspects during construction. Utility companies refer to third party agencies
providing power, gas, water, fire safety, etc. Citizens are the main target of a development
activity and often the basis for project justification. Funding agencies include development
donors, and public and private sector agents investing resources in a project.
Design consultants undertake all necessary surveys, develop engineering drawings,
develop particular specifications, Bill of Quantities (BOQs), other bidding and contract
documents, prepare cost estimates and assist the executing authority in liaising with
other stakeholders.
Supervision consultants, depending on the form of works contract adopted, either act as
the EA’s agent or act as independent supervision consultants,ensuring that both executing
agencies and contractors deliver.
Under the works contract, the employer (the client) and the contractor carry out their
responsibilities depends on the form of contract issued. On a conventional Design,
Construct and Supervise contract, their respective roles, during the construction stage,
can generally be summed up as follows:
Employer: Provide design, drawings and specifications to the contractor, approve and
monitor the contractor’s works program, arrange third party agreements for utilities and
other services,obtain approvals (land) and permits,review where appropriate and approve
variation orders and claims, verify quality and workmanship of the works and review
measurement of the same by the supervision engineer and issue payment certificates.
Works Contractor: Construct and supervise the works according to the contract,
adhere to site and public safety measures,ensure compliance with environmental standards,
prepare daily field updates, as-built reports, act on variation orders and make payment
requests.The contractor will coordinate, within the contract limitations, with utilities and
third parties identified in the contract that also have access to the site.
Supervision Engineer:Review and accept the contractor’s resourced program,monitor
the program, look ahead to ensure sufficient resources are available and take action as
necessary,verify the quality of materials and workmanship,and approve,measure and value
the works. The supervision engineer has to be forward thinking in looking for potential
problems ahead, continually identifying risks and be ready with mitigations options.

15CONSTRUCTION PROJECT MANAGEMENT
ISSUES AND CHALLANGES
Project Lifecycle
A project is conceived through the organization’s strategic planning process and
documented in a plan.A project begins its lifecycle when it is authorized to move from
the plan to implementation.A project lifecycle involves six key phases as explained below.
These phases overlap to some extent. The project implementation phase involves the
physical works and three important tasks.
The Project Launch/Initiation Phase involves the preparation of a conceptual plan for
the project by analyzing requirements, organization needs and vision, assessing potential
risks, formulating an initial budget and obtaining the authorization of the project by the
IA’s Board.
The Project Planning Phase focuses on how the authorized project would be
implemented. Key activities include fleshing out what the project is to deliver,documenting
the final output and outlining the project delivery method, identifying the resource
requirements and the project management arrangements.These details should ideally be
consolidated into a Project Management Plan (PMP).
Project
Launch
Project
Planning
Project
Implementation
Design Works
Asset
Project Closure Maintenance
Project
Development
Procurement
Figure 3 Project Lifecycle

16
The Project Development Phase focuses mainly on the translation of the project
requirements into preliminary engineering and designs that will be used for the
construction.The preliminary design is where the concepts are developed. In the case of
horizontal projects, this would be the various surveys; traffic, soils, crude topographic and
hydrological and environmental surveys are carried out.The need and financial justification
are assessed with the design standards and general layout of the project. On vertical
projects,the need and financial limits are assessed,the floor area and usage are established
and general building concept designs and estimates are developed. This phase may also
include preparing financial justification and comparison with initial budget estimates.The
main aim is to put the steps in motion to implement the project.A procurement strategy
is developed and third party arrangements for utilities are made.This phase also involves
getting the necessary clearances from government authorities and potentially conducting
a public consultation with key stakeholders.
The Project Implementation Phase, the main area of focus of this Note, is sub-divided
into Project Procurement,Design StageWorks and Construction Stage.The sequencing of
these stages varies depending on contract types highlighted above.
Project Procurement Stage: The scope of procurement depends on the contract
method (Box 2) and the scope of work that is to be contracted out. Key tasks include
preparation of a detailed Project Report including complete design, engineering drawings,
BOQ and realistic cost estimates,pre-qualification (PQ) of contractors,pre-bid discussions
with PQ contractors, drawing up of an equitable and clearly worded contract document,
developing a cash flow schedule and making timely decisions after receipt of tenders.
Design Stage: Detailed drawings and specifications are developed further based on
preliminary designs to a more explicit level during this stage. Utility works are designed,
estimated and possibly advanced works are implemented to avoid delays. As the scheme
is developed, land acquisition and resettlement plans need to be completed before
construction commences. The agency must ensure that preliminary designs and later
detailed designs are developed by the consultant to the required specifications and that
they are costed. At this point the client should be aware of the project cost within
10-20 percent variation.The culmination of the detail design stage is the preparation of
a full design report including a detail risk assessment to ensure all parties know their
responsibilities and the mitigation measures necessary to reduce risk of additional funding
or late completion.
Construction (Works) Stage: This stage mainly involves the physical works which will
result in creation of the asset/infrastructure.This stage involves day-to-day supervision of
Contract Methods
a Item Rate: Specified
works are contracted for
fixed rate
a Engineering,
Procurement and
Construction (EP&C):
Contractor designs,
procures and builds
a Public Private
Partnership (PPP)
Contracts: Build-
Operate-Transfer (BOT),
Build-Own-Operate-
Transfer (BOOT), Design-
Build-Finance-Operate
(DBFO) – the contractor
finances, builds and
manages asset
Box 2

the contractor, field supervision, monitoring and ensuring designs are followed rigorously
and the work schedule is adhered to. It is during this stage that sharing of information is
essential,as poor communication can potentially leads to additional costs and time.Quality
assurance through checks and audits as well as contractor performance monitoring are
essential parts of this stage.This stage is concluded on hand-over of the asset to the client,
after ensuring that all necessary documentation is complete and verifying that the asset is
ready for use.
Project Closure Phase: This phase involves closing contractual activities,final settlement
of project contracts,acceptance of contract deliverables,collection of contract documents
and records, approval of final payments and demobilizing the project team.
The Maintenance Phase involves developing and executing a maintenance plan. Good,
timely maintenance considerably prolongs the life of the asset.
Key Challenges in Project Implementation
(Construction) Phase
The major challenges faced during the construction phase of a project or program are
discussed below.
Policy Issues – Delays in Approvals, Clearances and Permits: For public sector
projects,a multitude of approvals are required,i.e.,environment,forest,etc.,which in most
cases, take much longer to resolve than anticipated, thereby delaying contracts at many
stages of its development and procurement.
Poor Risk Assessment: Insufficient understanding of risk and risk mitigation and
preparedness to handle issues arising during the construction stage often leads to
inappropriate choice of contract modality and time/cost over-runs.
Procurement: Delay in evaluation and awarding of contracts, procurement complaints,
and fear of audit among staff of IAs as well as perceived lack of transparency.
Inadequate Performance Monitoring of Bidders: Lack of a transparent monitoring
of performance of contractors and due diligence checks on contractors financial standing
can lead to award of work to less than competent Contractors, thereby resulting in
construction delays and difficulty in maintaining quality of work.
Quality of Planning, Inadequate Surveys and Engineering Design: Poor quality
of designs and engineering that lacks attention to detail often results in scope changes/

18
variationsduringprojectexecution.Inadequatehydrological, geotechnicalandtopographical
surveys lead to major construction delays, additional costs and shorter life cycles. More
often than not, project owners fail to define the complete scope of work upfront, which
tends to evolve during the execution phase, resulting in changed scope of work.
Pre-construction Activities: Delays and coordination issues with various government
entities for Land acquisition, Rehabilitation and Resettlement and utility shifting are
common. Projects are often awarded with only part of the land physically available for
handover to the contractor, sometimes as low as 30% of the total land requirement.This
poses a major risk of project getting delayed due to lack of timely availability of land.
Poor Construction Planning and Monitoring: Lack of well thought through
resourced based planning process.Since plan are not realistic and adequate,its monitoring
is frequently ignored, which in turn leads to several other problems such as inefficient use
of plant, materials and labour, delays and additional cost.
Poor Quality of Supervision: Traditional construction supervision based on ‘paper’-
based information exchanges and management of records, including lack of collaborative
methods or use of any project management tools. Such practices pose the following
challenges, whichare commonly seen in construction projects
l Ineffective documentation and record control; lengthy time taken in finding, validating,
and accessing project information
l Increased project risks with multiple sources of project information in physical form
and upkeep challenges
l Ad-hoc decision making in absence of s reliable and structured decision support
system
l Inconsistent project information and deliverables
l Undue discretion available to supervision consultant staff and absence of adequate
internalcontrol and monitoring mechanisms to examine their quality of supervision.
l Ineffective implementation of quality assurance plan
Slow approval/decisionmaking resulting in frequent disputes: Poor delegation of
responsibility leads to slow approval of variations and claims. This leads to lengthy dispute
resolution, uncertainty and delay.
Lack of Coordination:Lack of coordination among stakeholders leads to misunderstand
ing, resulting in delays and additional costs.

Inadequate Reporting and Poor Communication: Poor regular reporting to
management results in key issues developing on site not being addressed quickly at an
appropriate level.
Lack of Participation by Benefiting Communities, End-users and Citizens
leading to lack of support for the project.
Integration
Management
Coordination between field supervisors and project personnel, between•
client and utilities. Stakeholders not updated on design or scope changes
Third party coordination and approvals (utilities, fire safety)•
Scope Management Early detection of poor designs or scope changes and timely response•
to scope changes inadequate. Disputes due to delays and damages claims
Time Management Time lags between authorization and implementation on the ground,•
schedule control, backlog of issues and lack of accountability for delays
Cost Management Cost effective designs and value engineering not considered, contingency•
funds not available and lack of valid justification for cost variations
Quality Management Findings of audits not communicated adequately, lack of documentation•
on contractor non-performance or delays, limited capacity to detect
performance and re=programme promptly
Risk Management Lack of risk management tools and practice, limited capacity to identify•
common risks and mitigate them, and limited capacity to document,
assess and monitor risks
Procurement
Management
Lack of contract monitoring, clarity on contract terms and openness and•
fairness of tendering process and award
Human Resource
Management
Adequacy of manpower, lack of performance monitoring of project•
personnel and limited sharing, knowledge transfer and learning
Communication
Management
Clarity on communication flow, reporting arrangements, right level of•
information sharing and inefficient document control and sharing
Figure 4 Aspects of Project Management

20
In addition to the project specific challenges highlighted above, the following are some of
the program (portfolio) management challenges/issues relevant to senior management:
l Lack of effective monitoring of overall progress (physical and financial) on projects;
l Budget control, clearance/approval of projects;
l Citizen involvement;
l Timely response to assembly/legislative questions;
l Program reporting; and
l Impact evaluation.
The challenges discussed above broadly highlight some key gaps in the project management
for infrastructure projects. InformationTechnology (IT) will not in itself tackle these issues
but, if developed well, can highlight areas of concern and quantify the consequential vast
sums of money lost through poor performance.

21
Key Benefits of
e-Tools
a Efficiency gains – business
process re-engineering
a Better quality, speed end
effective flow of information
to support coordination and
informed decision making
a Improved accuracy and
consistency of documentation
to support estimation, designs
and plans
a Paperless interaction –
environment friendly
a Innovation – virtual modelling
and designs
a Supports knowledge sharing
and cross learning.
a Builds transparency and
accountability at all levels
What are e-Tools?
e-Tools or electronic tools imply the application of modern Information and
Communications Technology (ICT) tools to automate certain tasks. e-Tools is
a generic term which covers usage of a combination of computer hardware,
software, communication tools and technologies for a specific purpose or
application.There is increasing evidence of the usage of e-tools in the construction
industry to manage the various stages and aspects of construction project lifecycle
with a view to address some of the challenges mentioned in the previous section.
e-Tools facilitate minimization of cost and time overruns, provide ‘actionable’
information at all levels, and provide a mechanism for smooth exchange of data
and information across different project stakeholders (Box 3).
e-Tools range from simple spreadsheets which will assist a junior engineer in
preparing a BOQ to sophisticated software packages through which detailed
and accurate engineering estimates can be prepared for a major flyover or
road, a school or a hospital building; an electronic Measurement Book (MB) can
be prepared based upon BOQ specified in the contractor’s contract; physical,
financial and temporal progress of all works contracts tracked; a mechanism for
the community to provide feedback on on-going infrastructure projects provided,
etc. The range of areas where e-tools can be used for improving operational
efficiency, staff productivity, transparency and accountability, covers the entire life
cycle of infrastructure projects.
e-Tools options4
for CPM can broadly be categorised into the following major
groups (Figure 5):
3. e-tools
Solutions for Some
of The Challenges
4
There are also profession-specific/technical software packages for architects, town planners, engineers (civil, structural, mechanical and electrical).
Since the Guidance Note focuses on project management, domain specific softwares are not considered.
Box 3

22
Simple Spreadsheets/Database Systems: Simple templates created in a word
processing tool used for preparing standardized documents such as Standard Bidding
Documents (SBDs), Request for Proposals (RFPs), contracts, etc.; spreadsheets or
databases for creating a simple Standard Schedule of Rates (SOR), BOQs, Request for
Information/Inspection (RFI), etc., can automate repetitive tasks and cumbersome manual
calculations.
Commercial Off-the-Shelf (COTS) e-Tools: These are solutions developed, tested
and available in the market. COTS e-tools have less flexibility but some customization
options are available depending on specific requirements of the Client. It may be noted
here that for the purposes of this Note, COTS is taken to include: a) ‘box’ software
packages which can be directly purchased from the market (such as MS Project,Primavera,
SAP R3, etc., developed by large software companies such as Microsoft, Oracle, SAP,
etc.); and b) software solutions or products developed by smaller software development
firms for a specific industry or market segment.The second category, also called Hybrid
software,often starts as a project/client specific application developed by a software
vendor who then later converts this ‘project assignment’ into a ‘COTS product’ which the
vendor can sell to several similar clients.
Bespoke Systems: Brand new, bespoke systems are customized to an organization’s
needs and to a particular task or business process.They can be developed in house or
outsourced to a software developer.There are many excellent bespoke solutions which
have been developed by EAs internationally and in India.These solutions are developed as
Figure 5 Categories of e-Tools
Enterprise
Resource
Planning (ERP)
COTS/Bespoke
e-Tools
Simple Spreadsheets/
Database Systems

23
per the unique requirements of the client and therefore enjoy a very high ‘fit’ factor. Some
of these examples are presented in the later section of this Note.
Enterprise Resource Planning (ERP): Entity-wide systems available in the market
integrating all key business functions including procurement, finance, supply chain,
personnel, and communications.
Available e-Tools for Construction Project Management
Different types of COTS e-tools are available in the market as are bespoke solutions
(developed on/by other projects) for deployment.Each of these e-tools is designed to solve
specific problem(s) or automate specific processes of CPM.The following section gives a
brief overview of different categories of e-tools available and how they can potentially be
used by EAs.
Project Management System
Project Management Software (PMS) has the capacity to help plan, organize, and manage
resource pools and develop resource estimates.Depending on the sophistication of the PMS,
it can also do resource planning including estimation, scheduling, cost control and budget
management and resource allocation.
e-Procurement System
‘e-Procurement is the business-to-business or business-to-consumer or business-to-
government purchase and sale of supplies, work,and services through the Internet as well as other
information and networking systems, such as Electronic Data Interchange (EDI) and Enterprise
Resource Planning (ERP)’.
Content Management System/Website
‘A Content Management System (CMS) is software that allows publishing, editing and modifying of
semi-structured content, as well as its updation from a central and user friendly interface.A CMS
provides procedures to manage workflow in a collaborative environment’. A website developed
on a CMS is very easy to update and maintain.
Communication System/Communications Management System
Communication systems (CSs) range from emailing, online timesheet entry and system
moderated communication that can occur in specific formats. A database system can
facilitate real-time communication from the field, coordination between multiple agencies,
public interface, feedback and summary reports in text and graphical forms.
e-tools
Solutions for Some of The Challenges

24
Document Management System
‘A Document Management System (DMS) is software used to track and catalogue, store and
share electronic documents.’
Computer-Aided Design System
‘Computer-aided design (CAD) is the use of computer systems to assist the creation,modification,
analysis and/or optimization of a design. CAD software is used to increase the productivity of the
designer, improve the quality of design, and improve communications through documentation’.
Works Estimation System/BOQ Automation
A works estimation system (and/or BOQ automation) can estimate and track production/
unit rate, labor and material costs and allow modifications of estimates based on any
changes. A works estimation system will automate the process of preparing cost estimates,
the schedule of rates by the contractor and the BOQ by the EA.
Measurement System
An e-measurement book system allows capture of actual measurements right at the
source and in real time.This ensures permanent record which is non-editable and can be
used as reference at a later point of time.e-Measurement books allow the ready recording
of times,dates and quantities in a format that can be used to compare actual progress with
predicted progress.
Quality Management System
A Quality Management System (QMS) manages all quality management information and
initiatives,automates tracking and notifications on the quality of implementation of projects.
The system allows analysis of quality processes, centralizes management of quality-related
activities such as quality checks and audits, and supports document control of quality-
related procedures and policies.
Performance Monitoring and Evaluation System
The Monitoring and Evaluation (M&E) system describes how the performance and quality
will be continuously monitored and how the outcomes and impact of the intervention
will be periodically evaluated. In construction, a M&E system can support contractor
monitoring, computerized benchmarking to compare performance of contractors, timely
response to delays or non-performance. The regular tracking can also support fair and
transparent action against contractors. The system can generate standardized Planned
Value Curve and Bar Chart Plan on project status.

25
Decision Support System
‘A Decision Support System (DSS) is a computer-based information system that supports business
or organizational decision-making activities.DSS serves the management,operations,and planning
levels of an organization and help to make decisions, which may be rapidly changing and not
easily specified in advance’.
Grievance Redressal System
A Grievance Redressal System allows online handling of complaints. Such a system
can receive and record complaints, allow efficient acknowledgement, investigation and
response to complaints online, link to other responsible agencies for action, and produce
a grievance register which summarises the lists of complaints and actions taken.
Financial Accounting and Cost Management System
‘Accounting software is an application software that records and processes accounting transactions
within functional modules such as accounts payable, accounts receivable, payroll, and trial
balance’.
Scope Management System
A Scope Management System can mainly capture physical progress (overall actual
achievement of work), financial progress (financial payments made and invoices received)
and temporal progress (time elapsed and remaining compared to project plan). For all
these dimensions the system can produce graphical analysis, bar charts, S curves and
summarize data in a dashboard format.
Risk Management Information System
‘A RiskManagementInformationSystem (RMIS)isan informationsystem thatassistsinconsolidating
asset values, claims, policy, exposure information and provides the tracking and management
reporting capabilities to enable the user to monitor and control the overall cost of risk’.
For further details, e-tools (COTS) available in the market as well as some innovative
bespoke e-tools developed by some agencies are described in Annex 1.
e-Tools as a Solution to Challenges in CPM
e-Tools in themselves cannot address challenges of the construction projects described
in the previous chapter. However, it has been established that automization of CPM and
use of e-tools can greatly reduce risks associated with these challenges. The matrixes
(Tables1-3) in the following pages depict how the introduction of e-tools can address
some of these challenges for various level of management in IAs, primarily at Principal
Secretary, Chief Engineer and Supervision Engineer levels.
e-tools

26
Table 1: Problem-Solution Matrix: Supervision Engineer Level
Key Challenge /
Problems Faced
Main Reason(s) for Problem
Faced
Type of E-Tool(s)
Required
Key
Functionality
Required
Key Data to be
Captured
Poor adherence to
work plans and delays.
Time management and
schedule control
Lack of a clear contractor’s
master plan with planned value
curve/labor/materials; Delayed
designs and drawings due to
multiple level of approvals;
Inaccurate record of unplanned
work/unexpected variations, e.g.,
weather and that of rescheduling
and revised works; lack of regular
field monitoring and early
detection of variations; time lags
between project authorization
and implementation on the
ground
Project Management
System; Time
Management System
Generate
templates for
contractor
estimates; online
design reviews
and comments
submission to
design concepts,
drawings, track
design progress,
update design
estimates and
drawings
Contractor master
plan, SOR, contractor
accounts; design concepts,
drawings, design
approvals, estimates
approvals
Inadequate resource
allocation
Poor resource planning and
system for field checks/site
inspections; inadequate skills on
site for work content
Project Management
System
Allows works
planning,
scheduling and
project updates
Work order RFIs,
MB, planned vs. actual
progress reports,
contract bill, contract
certificate, completion
certificates.
Incorrect works
estimation
Estimates done on rule of thumb
without detailed calculations and
no verification or ‘sanity checks’;
manual BOQ preparation raises
inconsistency and validity issues;
market rates for high value
materials (e.g., steel, bitumen)
not used
Works Estimation
System/BOQ
automation;
Measurement System
(e-MB)
Estimate
templates and
track production
rate, labor and
material costs,
verify estimates,
carry out abstract
calculations such as
that for overheads,
predict SOR vs.
market rates
variations, track
and customize
estimate approval
process
SOR, non SOR, detailed
vs. abstract estimates,
sanity checks on
estimates, terms of
tender, financial terms
of contract, BOQ, BOQ
validation document,
work order
Difficulties in
correct and timely
measurements
Manual RFI and measurements
subject to paperwork, inaccuracy
and delays
Measurement System
(e-MB)
Abstract MB based
on approved rates
and BOQ, adjust
measurements
based on variations
approved,
automated
billing based on
measurements
RFIs, estimated vs agreed
vs actual measurements,
guidelines, GIS data,
payment certificates
approval
Ensuring timely and fair
payments to contractors
Delays/errors in measurement
data; lack of timely decisions
to respond to scope changes;
inadequate documentation of
scope changes
Financial Accounting
& Cost Management
System; Measurement
System (e-MB); Scope
Management System
Document, assess
and analyze
variations
Variation claims, variation
orders, MBs
Challenges and Solutions

27
Key Challenge/
Problems Faced
Faced
Type of E-Tool(s)
Required
Key
Functionality
Required
Key Data to be
Captured
RFIs and scope disputes
resolution
Poorly worded contracts leading
to multiple interpretations for
scope of work/variations; lack of
standardized contracts (such as
FIDIC)
MS Office templates
based standard
documents; Works
Estimation System/
BOQ automation;
Scope Management
System
Provide contract
templates
RFC, change
notice, variation
orders, supporting
correspondence, cost/
schedule/scope impacts,
meeting minutes, and
negotiation records
Maintaining appropriate
and adequate
documentation
Enormous amounts of documents
and manual record keeping;
inadequate control of variations
Content Management
System/website;
Document
Management System;
Performance M&E/
BME System
Track and
store electronic
documents,
history, search
Contracts, approvals, site
photographs, reports,
permits, asset verification.
etc.
Scope management Lack of high quality
environmental and hydrological
data; Poor documentation of
designs leaving room for varied
interpretation by supervisor
or contractor and lack of early
detection of poor designs
MS Office Templates
based standard
documents; Works
Estimation System
/ BOQ automation;
Scope Management
System
Standardised
data collection
and analysis, GIS
information,
geotechnical
environmental
investigations;
Allows wireframes,
mockups,
modfications
to designs,
documentation of
designs
Environmental,
hydrological data;
preliminary specifications,
engineering drawings,
design reviews, final
designs and specifications
Keeping all parties
informed & timely
reporting
Lack of systematic information
collection and sharing; delayed
reporting due to compilation
from different data sources
and formats; lack of clarity
about communication flow/
arrangements; right level of
information sharing (inadequate
vs. overload).
Content Management
System (CMS)/
Website; Document
Management System;
Performance M&E/
BME System
Emailing, timesheet
entry, track site
hand over to
contractor, work
commencement,
real time
communication
from site;
contractor
performance
tracking, generating
billing and payment
history, works
status reports,
budget reports vs.
appropriations
Correspondence, public
notices, presentations,
milestone reports,
financial reports,
complaints and claims
register, summary reports
in graphical format;
suggested vs approved
work plans, budget
requests, budget reports
e-tools

28
Key Challenge
/ Problems
Faced
Main Reason(s) for Problem Faced Type of e-Tool(s)
Required*
Key Functionality
Required
Key Data to be
Captured
Difficulties in
tracking physical
progress
Lack of simple but accurate and timely executive
dashboard showing project progress; overload of
unimportant data
Project Management
System; Performance
M&E/BME System
Provides an overview of
project progress highlighting
key markers, dashboard
format
Physical progress reports
Difficulties in
tracking financial
progress
Lack of appropriate accounting and cost
management systems showing up-to-date
information on invoicing and payments
Project Management
System
Provides an overview of
financial progress in graphical
format
Budgets, budget requests,
invoice, payment
certificates
Difficulties in
tracking temporal
progress
Weak project management and monitoring; lack
of schedule control, particularly for CPM tasks;
establishing accountability for delays; lack of
decisiveness and timely response to problems and
backlog of RFC/RFI issues
Project Management
System;Time
Management System;
Decision Support
System
Provides detailed progress
information allowing
problems to be detected at
an early stage.
Physical and financial
progress reports, record
of instructions
Challenges faced for
ensuring high quality
or works
Inadequate competency checks on contractors;
findings of quality checks and audits not
adequately communicated; lack of documentation
for contractor non-performance and cause of
NCRs; limited capacity to detect performance
gaps and re-programme promptly
Quality Management
System; CAD System
Allows the system to be
followed in a standard way
and records the checks and
audits carried out.
Inspection reports,
testing records,As-Built
drawings
Managing scope &
variation orders
Poor planning and design; inadequate surveys and
engineering design; ineffective dispute resolution
process
CAD System;
Scope Management
System; Integration
Management System
Allows variations to be
processed quickly by
providing access to base
information and applying
change controls
Surveys, technical
feasibilities, drawings,
specifications, designs;
variation claims
Integration and
liaison with other
govt. agencies
Poor quality of planning; lack of shared information
and shared systems
Integration
Management System
Allows access to shared
information to all parties
involved in the planning and
implementation process
Project and program
reports covering a range
of topics from planning
to implementation
Procurement delays Manual tendering subject to delays in contract
award; faulty choice of contract type/package;
openness and flexibility of tendering process/
identifying suitable contract modality and terms;
lack of consistency in application of tender rules
e-Procurement System Bidding document
preparation, online bid
submission and bid
negotiation, standardized
evaluation calculations and
comparisons, contract award
and approvals, invoicing
and payments, track tender
progress and stages
Tender notices, SBDs,
RFPs, contracts,
evaluations and approvals
Managing project
risks
Lack of understanding on risk scenarios and ‘what
ifs’; lack of risk management tools and practice;
limited capacity to identify common risks and
common approaches to mitigation; limited capacity
to monitor, assess and document risks
Risk Management
System
Record, assess, quantify
enumerate risk occurences
and predict risk scenarios
Risk assessments, risk
recurrence data, risk
reports
Effective
communication
& coordination
between all actors
Inadequate reporting and poor communication
from lower levels; lack of an updated common
view of the project progress, available to all key
actors
Communications
Management System;
Content Management
System/Website
Systematic contract
monitoring, computerized
benchmarking to compare
performance of contractors,
standard PlannedValue Curve
and Bar Chart Plans, online
billing and payment approvals
Schedule, daily and
weekly updates,As-Built
drawings, RFI, quality
audits, contractor
statements, maps, GIS
data, Interim payment
certificates, completion
certificates, no objection
certificates
Lack of
coordination
between field
supervisors and
project personnel
Lack of effective communication and project
management systems; efficient document control
and ensuring availability of updated documents to
all key actors
Project Management
System;
Communications
Management System;
Content Management
System/Website
Provides updated data,
analysis, reports generation
Status updates and
reports
Table2 Problem-Solution Matrix: Chief Engineer Level

29
Table 3 Problem-Solution Matrix: Principal Secretary Level
Key Challenge /
Problems Faced
Faced
Type of e-Tool(s)
Required
Key Functionality
Required
Key Data to be
Captured
Program management Lack of timely and accurate progress
reporting; timely communication of
likely time over-runs and mitigating
measures; poor planning, design and
contract terms leaving scope for
ambiguity and interpretation; lack of
timely and updated documentation
for establishing accountability for
cost control and overruns
Project Management
System
Real time communication,
document sharing, report
generation, dashboard
features, program overview
Progress status
reports
Where to intervene -
too much vs. too little
oversight and control
Lack of well-designed Decision
Support System highlighting areas
for management escalation and
intervention
Decision Support
System
Provides updated data,
analysis, reports generation
Status updates and
reports
Minimizing litigation
& ensuring efficient
grievance redressal
Cumbersome and poor grievance
redressal; lack of system for dealing
with project affected people
Simple Spreadsheet
for Legal Cases
Monitoring; Grievance
Redressal System; Risk
Management System
Provides an online grievance
and grievance redressal
mechanism
Complaints
register, damage
claims, mitigation
measures and
responses
Poor public opinion &
media perception
Weak information sharing
with public and media; lack
of transparency; shortage of
information in suitable format
Communication
System; Content
Management System/
Website
Platform for public feedback
and disclosure
Progress, site
photographs,
public notices,
tender notices,
expenditure and
payment data
Accurate and timely
information for Right to
Information/Assembly
questions
Lack of systematic and
comprehensive MIS and reporting
systems
Content Management
System/Website;
Document
Management System;
Performance M&E/
BME System
Generates progress reports,
summary data, overall
progress in graphical form
Progress reports,
site photographs,
budget and
expenditure
reports
Managing political
interference
Manual systems leaving scope for
discretion and manipulation
All e-tools collectively
Ensuring transparency
and accountability at all
levels
Lack of file management systems
and documented procedures to be
followed at all levels
All e-tools collectively
Demonstrating real
impacts of project(s)
Lack of readily available information
about project beneficiaries, cost
benefit analysis, value for money,
etc.
Performance M&E/
BME System
Generates reports and
data on project impact and
benefits
Impact evaluations,
maintenance
register, economic
evaluation
Challenge in
institutionalizing
learning
Lack of information sharing,
knowledge exchange on project
implementation and broader lessons
and best practice from the ground
Performance M&E /
BME System; Quality
Management Systems,
Content Management
System/Website,
Decision Support
System
Provides a repository of
documented learning,
lessons and best practices,
project management tools,
online learning
Lessons learnt
and best practice
documents,
learning toolkits
e-tools

30
4. E-tools Implementation
Roadmap for
implementation
The benefits of using e-tools for improving efficiency, transparency and accountability are
so self-evident that many IAs are keen to adopt various ICTs as soon as possible.However,
since specialised ICT professionals are not always available within these organizations,they
often struggle to identify which e-tools to select and how to integrate these with each
other and in the work flow of the organization.
This section provides two stage implementation roadmap to help the agency choose the
right set of e-tools for their specific needs; and to effectively integrate them with each
other and in the work flow.
Stage I: Framework for Selection of e-Tools
As evident from the previous section,there is a plethora of e-tools available in the market.
In addition to the COTS software, the IAs also has the option of using bespoke solutions
developed by other similar IAs and projects.The choice of identifying the e-tools which
will be most relevant and appropriate in their context,though difficult,is not beyond reach.
While planning to adopt or upgrade existing e-tools, IAs will have to make some strategic
decisions based on their primary concerns,context,IT capacity,available systems and their
flexibility. Essentially the following six key factors will have to be considered in making the
choice in order to select and successfully roll out e-tools:
A. Level of functionality and sophistication desired and feasible.
B. Custom Built (Bespoke) or COTS
C. COTS : Buy or Subscribe
D. Custom Development(Bespoke): Build in-house or Out-source
E. Incremental or Big-Bang Implementation
F. Level of integration desired
G. Funding available

31E-tools Implementation
Roadmap for implementation
A. Levels of Sophistication and Functionality
When an organization decides to introduce or upgrade its e-tools, one of the first
questions it has to answer for itself is – what is the level of ICT sophistication that it
should aspire for. On one hand of the spectrum is the use of simple spreadsheets which
help an engineer to prepare engineer’s estimates for various project components. On the
other end of the spectrum, there are fully integrated ERP systems which cater to all the
functions and dimensions of CPM.While Figure 5 suggests a sequential evolution in terms
of ICT maturity and sophistication,current developments allow organizations to“jump” to
another level of their choice.The level of data and applications integration increases as one
moves from one level to the other in the systems evolution.This ensures that data once
entered at one point, are available across applications and users and adequate security is
in place so that appropriate users can access only their part of the systems. However the
implementation cost increases as one goes to a higher level of sophistication.Scaling up to
a higher level therefore makes sense if the rewards outweigh the additional costs of more
sophisticated systems.
Where the IA should begin and how much it should invest in e-tools will depend upon
the unique situation of each implementing agency. In theory, all organisations want to
implement cutting edge and latest technologies so as to get the maximum benefit from
them.In practice,however,all organizations are constrained by budget,availability of senior
management time (required for ICT implementation), availability of ICT skills and capacity
within the organization, level of ICT adoption within other major stakeholders (such as
Figure 6 Sequence of ICT Maturity

32
contractors, consultants, other government/regulatory bodies with which the organization
has to deal) and level of technical support (for e-tools) locally available. A combination of these
constraints decides what level of automation and ICT sophistication is realistically feasible.
For instance,if the organization predominantly deals with small Class II or III contractors (let
us say,for tertiary and minor road works),it cannot realistically expect them to use high tech
handheld devises to prepare an eMB. Similarly an IA which does not have CAD trained staff,
will find it difficult to implement a full electronic engineering design approval process.
It is often the case that different key stakeholders (IA, consultant and contractor) have a
different mix of IT sophistication (in terms of software, hardware, people-ware and process-
ware). In such a case, some common ground would need to be evolved so that the IA can
utilize the higher capability available with other stakeholders (such as the contractor who
is often technologically more advanced than the EA, especially large contractors) and use it
to ramp up its own ICT preparedness. For this to happen, simple but suitable contractual
provisions need to be included in the contracts of all contractors and consultants, to ensure
easy data and information access and exchange.
e-Tools Readiness:A Simple Self-appraisal
Once an organization has decided to introduce or upgrade its e-tools, the first step would
be for it to do a simple self-appraisal to find out the level at which the organization currently
is (called the ICT maturity level), so that it can decide which is the next step to take, or how
many steps it needs to ‘leap frog’ to move to its desired maturity level.
In order to assess the ICT/e-tools readiness of an organization, one can use fairly complex
assessment frameworks available, all of which require specialized ICT professionals to
administer. Presented in Box 4 is a simple framework that any IA could use easily. This
framework identifies four key dimensions – Business Processes, Capacity of People, Hardware
and Software Availability and Usage.Once the organization determines its ICT maturity level,it
can then use Box4 to know the e-tools options to move to the next stage.
It may be kept in mind that the classification of organizations presented here is deliberately
a simplistic process, aimed to help IAs identify which level (Basic, Experimenting, Evolving
and Expert) their respective organization belongs to. In reality, most organizations may
share characteristics of different levels. For instance, an IA/EA may have a very sophisticated
computerized financial accounting system which takes care of all contractor bills and payments,
project expenditure, etc., but the same agency may have primitive project management
systems. The simple aim of the ICT maturity matrix is to provide you a ready reckoner
for knowing where your organization exists, and, therefore, what is realistically possible to
implement, given your current level.

Basic (no or fww e-Tools)I. : Paper-based processes; documents managed/au-
thenticated manually. People not aware of, or do not use, ICT. Hardware such
as desktop computers and printers non-existent or minimal. If hardware exists,
software includes an operating system such as Word or Spreadsheet.
Experimenting with e-ToolsII. : Processes and document management mostly
manual, data transferred through computer systems. People aware of computer
systems and can work on a computer. Generally uses desktops, printers and
scanners. Some intranet connection may be visible and Internet could be used for
emails and browsing. Use of word processing and spreadsheet software promi-
nent for documentation and calculations (e.g., preparing BOQ).
Evolving with e-ToolsIII. : Processes are increasingly systemized for automation.
People have an understanding of the benefits of e-tools and depend on computers
for work. Routine tasks are performed with computer without any alternative.
User equipments and hardware exists. Experimenting with new equipments vis-
ible. Servers, intranet and Internet available, possibly with broadband connection.
Many software applications are run on a web server. A website exists, enabling
pubic interface.
Expert with e-Tools:IV. Highly evolved processes that are re-engineered towards
automated systems, there is a movement towards a “paperless office” and full
electronic communications. Majority of routine tasks are organized as work-flows
and physical movement of files is reduced to a minimum. Technical experts are
engaged to assist with IT issues. A full range of end-user hardware equipment is
present. Server equipment may be in-house or rented. Have either developed or
use a comprehensive set of software to manage tasks which could include special-
ist software and/or general project management software. Integration of software
is considered or developed to allow easy import and export of data.
Box 4 Where is my Organization on the ICT Maturity Matrix
III. Evolving IV. Expert
Continuous updating and
integration of e-tools and
work process automation
Integration to fully
automated processes
and systems for the
organization – ERP
II. Experimenting
Bespoke or COTS solutions
for parts of routine tasks
and functions
1. Basic
Basic tools: spreadsheet
and word processing

34
WhichType of e-Tools to Use
Just as different organizations exist at different ICT maturity level, similarly different e-tools require
different levels of organizational competence and preparedness for implementation.As explained in
the previous section, e-tools range from simple spreadsheet-based applications to fully integrated
ERP solutions. Figure 6 provides a very rough idea of different types of e-tools with varying levels
of sophistication. It may be noted that the specific e-tools mentioned in Figure 6 simply illustrate
that there is an e-tool available for your organization, irrespective of your current ICT level. Also
the classification is not intended to communicate the usefulness, appropriateness or quality of any
of these products.The same e-tool used to its full potential, and integrated with all other related
e-tools, would allow an organization to move from one level to the next one.
Six factors typically distinguish one e-tool from another e-tool designed for the same purpose:
1. Range and depth of functionality provided;
2. Degree of user-friendliness;
3. Level of integration and interoperability
(between its own modules and with other
external third party software system);
4. Level of security and collaboration features;
5. Level of technical support and customisation
potential; and
6. Pricing model and total cost of ownership.
The degree of importance (weightage) of each of these
factors varies from client to client. For instance, for a
particular client with a severe budgetary constraint, the
pricing model and total cost of ownership, may be the may
factor affecting the decision of which e-tool to choose.
B. Custom Build (Bespoke) or
Buy COTS
The next decision that needs to be taken is: whether to
develop the software (Bespoke) or to buy a COTS solution
from an outside ICT vendor(s). Simple rules on deciding
whether to develop a customized software or to opt for
a COTS system depends upon various factors (Figure 7)
such as:
SAP ERP, Oracle
ERP, MS, Dynamics,
CRM, etc.
Micro Strategy,ArcGIS,
Google Maps, NICE
E-Tendering, Estimate
Master, Peachtree,
ProContractor, Coupa,
3PL, central, PT Inc,
Job PAC, HP-TRIM, MS
SharePoint, Jasper
Microsoft project,
Primavera,Web Portals,
CMS based websites,
AutoCAD, Revit, Chrystal
Reports,Tally, Busy, etc.
MS Word and
Excel-based
templates, static
websites
Basic
Experimenting
Evolving
Expert
Figure 7 Types of e-Tools at
Different Levels of Sophistication

Cost: initial capital investment versus operating costs. Generally, the number of COTS
software licenses required to be purchased (typically) is huge. In developing Bespoke,
there are serious time and cost implications.IAs can often get maximum of their functional
requirements through COTS immediately.
System flexibility: the ease (or difficulty of making changes) and the likelihood of future
changes and expansion of user requirements.
Scope of functional requirements: the larger and more complex the requirements,
the greater the saving in time (and cost) in buying COTS solution.
Available timeframe: to implement the system plays a key role in making the choice.
Buying / subscribing to a COTS solution is much faster than developing the solution.
ICT capacity, knowledge and skills of the staff: the more tech-savvy the staff, the
easier is it to develop (either in-house, or to get an external software development firm
to do it) as well as to implement sophisticated systems.
Scope of functional requirements: of the particular system or business process –
very complex processes are much better handled by readymade COTS software, rather
than by custom developed software.
Degree of customization
Cost of development and deployment
Suitability of software for customer needs
Time to deployment
Low
Low
Low
Low
High
High
High
High
Commercial
off-the-shelf
Completely
Custom
Figure 8 Software Customization Continuum

36
The advantages of a Bespoke system include:having a glove fit,specific to the organization’s
needs; low upfront costs; enables immediate bug fixing and enhancements; functional
obsolescence is minimized (not technological obsolescence) as long as the system is
maintained, investments in upgrades can be controlled and scope for innovation exists.
TheadvantagesofCOTSinclude:quickdeployment;meetingofthemajorityoforganization’s
functional requirements,little organization skills and support required for implementation.
Popular COTS solutions meet international quality standards and facilitate knowledge
sharing and learning across many users.
As a simple rule of thumb, custom development should be considered only if COTS
solutions are not easily available or feasible.
Selection Framework: COTS versus Bespoke
Table 4 provides a simple framework which the IAs can use to decide if they should
go for a COTS or a Bespoke solution. The framework provides a list of key factors
(Selection Criteria) which the IA needs to consider in order to take an informed decision
about whether to go for readily available COTS solution or to embark upon a custom
development (Bespoke) project.The Selection Criteria have not been listed in any order
of prioritization, and that is why the Weightages column has been deliberately left blank.
Depending upon the e-tools readiness and unique requirements of the particular IA, each
agency can assign relative weightage to each Selection Criteria presented inTable 4 (so that
the total of weightages of all Selection Criteria adds up to 100).These weightage should
be filled up in the Weightage column. Against these weightages, the agency may then
evaluate a COTS, Hybrid and Bespoke solution option and award scores for each options,
i.e., prepare a score card for each of the three options. Comparing the total scores for
each option will allow the IA/EA in deciding, based on an objective and systematic manner,
which option would be the most optimal for their case.
For instance, you may choose to assign 8 marks (weightage) to each of the first five
Selection Criteria (serial number 1 to 5), totalling to 40 marks (5 * 8 = 40) and 6 marks
(weightage) to each of the last 10 Selection Criteria (serial number 6 to 15) totalling to 60
marks (10 * 6 = 60).Against this total marks of 100, you can then award objective scores
(using the Low , Medium and High ) as a guide in deciding how many marks
to award for each of the three (COTS, Hybrid and Bespoke) option.The option with the
highest total marks scored, will indicate the best option for you.

C. COTS: Buy or Subscribe
Selection Criteria COTS Hybrid Bespoke Weightage
(Marks)
Score
Time required for solution development/1.
customization
Time required for solution deployment/2.
operationalization
Fitness of solution as per specific needs3.
Range of functionality provided4.
Degree of user-friendliness5.
Flexibility of customization in future6.
Integration and interoperability7.
Security features8.
Collaboration features9.
Cost of acquisition10.
Cost of maintenance11.
Cost of adding new users12.
Level of technical support13.
Dependence on vendors14.
Ownership of IPR/source code15.
Total Weightage 100 Total
Score
High Medium Low
Score Card
Table 4 Framework for Choosing between COTS, Hybrid and Bespoke Solutions

38
Once an IA/EA decides to buy a COTS package, a common and straightforward option is
to buy the required number of licenses of the software package from the market.Typically,
software companies promote the notion of ‘one user-one license’; however, for most
expensive software packages this is rarely followed.Multiple users justifiably share licenses
through a concept called“concurrent users” whereby the software licenses limit the number
of users which can be logged in at one time.For instance,if you purchase a five-user license
of multiuser software, at any given time any five users can be logged in simultaneously.
Another option which is now rapidly gaining popularity is subscribing to the software rather
than buying it. Known as the Software-as-a-Service (SaaS) model, it enables organizations
to lease the software by paying a monthly or annual fee to the software development firm.
SaaS involves paying for using the software, rather than purchasing the product directly.
Not too dissimilar to the Gmail or Yahoo email you use (though these are free), so that
users can simply access it by logging in through their username and password.Thus, its
initial set up cost is generally lower than the equivalent enterprise software.Pricing can be
based upon the number of users,number of machines,or even per transaction.This model
enables IAs to focus on their core competencies while the software vendor is responsible
for maintaining,applications and data,typically with some Service LevelAgreements (SLAs).
As a rule of thumb, other things being equal, wherever possible SaaS solutions should be
preferred to license-based solutions due to benefits such as low deployment costs, web
access anywhere and standardization of the application across locations or agencies.The
Global Project Monitoring System (GPMS) discussed in the previous section is hosted on
a SaaS platform.
Selection Framework: Buy or Subscribe
Table 5 provides a simple framework which the IAs can use to decide if they should go
for a license-based (buy) or subscription-based (SaaS) payment system. The framework
provides a list of key factors (Selection Criteria) which the IA/EA needs to consider in
order to take an informed decision about which option would be more suitable for them.
The Selection Criteria have not been listed in any order of prioritization,and that’s why the
Weightages column has been deliberately left blank.Depending upon the e-tools readiness
and unique situation of the particular IA/EA, each agency can assign relative weightage to
each Selection Criteria presented inTable 5 (so that the total of weightages of all Selection
Criteria adds up to 100).These weightage should be filled up in the Weightage column.
Against these weightages,the agency may then evaluate both the Buy and Subscribe options
and award scores for each options, i.e., prepare a score card for each of the three options.
Comparing the total scores for each option will allow the IA/EA in deciding, based on an
objective and systematic manner, which option would be the most optimal for its case.

For instance,you may choose to assign 10 marks (equal weightage) to each of the first five
Selection Criteria, totalling to 100 marks. Against this total marks of 100, you can then
award objective scores (using the suggested option of Buy or Subscribe depending
upon its High or Low status) as a guide in deciding how many marks to award for each
of the two options.The option with the highest total marks scored, will indicate the best
option for you.
As an example an IA/EA with a HIGH availability of in-house data center infrastructure,
disaster management site and in-house expertise (professional ICT staff) should assign
higher weightages to these Selection Criteria and award high scores to the BUY option
– since the required infrastructure and staff expertise is available within the organization
to host and maintain a licensed software solution.A better decision would be to go for
the Subscribe model in case of an IA/EA with a LOW availability of in-house data center
infrastructure, disaster management site and in-house expertise.
Selection Criteria High Low Weightage
(Marks)
Score
Availability of in-house data center infrastructure, including servers,1.
power and data backup, and related hardware peripherals
Availability of reliable, stable and 24*7 electricity for running the data2.
center
Availability of reliable, stable and 24*7 Internet connectivity for the data3.
center
Availability of disaster management site and mechanisms to protect data4.
Availability of high physical and electronic security mechanisms for pro-5.
tecting ICT infrastructure and data
Availability of in-house expertise (professional ICT staff) for managing6.
data center, such as database administrators, network administrators, etc.
Availability of in-house expertise (professional ICT staff) for solving tech-7.
nical problems and providing support to users
System users scattered over a large geographical areas8.
“Mission critical” applications with serious consequences for downtime9.
Availability of high capital expenditure budget10.
Buy Subscribe
Table 5 Selection Framework: Buy or Subscribe
Score Card

40
D. Custom Development (Bespoke): Build In-house
or Outsource
If a Bespoke system is chosen,the agency can either choose to develop the system in-house
or outsource the development to a software company.The agency can opt for developing
the system in-house if the software requirements are unique, internal development staff
has expertise and bandwidth, extensive integration is required, implementation timeline is
flexible,customized features are needed and if the system’s ability to make changes is critical.
Benefits of opting in-house include software being built around specific requirements,
organization has complete control over future development,there is a clear understanding
within the organization regarding how the software is supposed to work and the system
can integrate unique features that will create a competitive advantage. Developing in-
house, if done right, is normally the cheapest option.
For a Bespoke system, outsourcing development to a third party (professional software
development firm) can be considered if no in-house development staff is available,
deployment is required quickly, if upfront capital expenditure is preferred to investment
overtime and where system quality control and testing is considered critical.Some benefits
of outsourcing include reduced project and financial risk, clearly defined requirements
and deliverables, ability to gain from most up-to-date design capabilities, reduced project
timeline and possibly budget. However, agencies will have to put emphasis on selecting an
experienced and stable software development company,understand the pricing structures
and invest time to maintain a good relationship with the developer throughout the
assignment.
Selection Framework: In-house Development versus
Outsourcing
Table 6 provides a simple framework which the IAs can use to decide if they should go for
in-house software development or outsource it to a professional software development
firm.
For instance, you may choose to assign 20 marks (weightage) to each of the first two
Selection Criteria (serial number 1 and 2),totalling to 40 marks (2 * 20 = 40) and 10 marks
(weightage) to each of the last six Selection Criteria (serial number 3 to 8) totalling to 60
marks (6 * 10 = 60).The option with the highest total marks scored, will indicate the best
option for you.
As an example an IA/EA with a HIGH availability of in-house expertise (professional ICT
staff) for systems study,analysis and software development and in-house ICT infrastructure
for software development should assign higher weightages to these Selection Criteria
Why Develop, Buy,
Outsource
or Subscribe
COTS:Why Buy?
a COTS package preferred
a Time efficient,
a In-house capacity
not required
a Large scope of software
development
Bespoke:Why In-House?
a No suitable products in the
market
a A small Bespoke system is
required
a Good in-house capacity
Bespoke:Why Outsource?
a A comprehensive
aBespoke system is required
a No in-house capacity
a Save time and possibly costs
COTS:Why Subscribe?
a Standardization of
application across locations
a Web-based access anywhere
a Low deployment costs
Box 5

and award high scores to the in-house option, since the required infrastructure and staff
expertise is available within the organization to develop the e-tools. A better decision
would be to go for the outsource model in case of a IA/EA with a LOW availability of
these factors.
Selection Criteria High Low Weightage
(Marks)
Score
Availability of in-house expertise (ICT professional staff) for systems1.
study, analysis and software development
Availability of future career path and growth options for in-house2.
ICT professionals to ensure their retention and job satisfaction
Availability of suitable compensation policy for matching the ICT3.
professionals expectations for remuneration and incentives for good
performance
Availability of in-house ICT infrastructure for software development,4.
such as production, quality assurance and testing servers along with
supporting peripherals
Availability of reliable, stable and 24*7 electricity for running the ICT5.
infrastructure for software development
Availability of reliable, stable and 24*7 Internet connectivity for6.
software development purposes
Need for frequent modifications to e-tools features and functionality7.
Very specialized e-tools requiring detailed and prolonged discussions8.
with in-house domain specialists for systems design
In-house Development Outsource
Table 6 Selection Framework: In-house Development versus Outsourcing
Score Card

42
E. Incremental or Big-bang Implementation
Once the main previous decisions have been made, organizations can either opt for an
incremental (or piloting approach) or a big bang approach aimed at entity-wide ICT
implementation. Following an incremental approach, the envisaged e-tools are first tested
in a smaller controlled live environment and then rolled out to the rest of the organization.
Pilots could be:
By feature/function: A set of particular features are implemented (throughout the
organization) and the next set of features are held until results are evaluated.
By department: e-Tools for a specific subunit (department or location/field office) could
be piloted first and based upon the feedback, roll out is planned for other departments or
locations.
By project: A specific set of e-tools are implemented in one or two projects or contracts
or supervisory engineers (project managers) and once they become fully operational,
are customized to best fit the organizational requirement and are tested to generate the
expected results, they are implemented across all projects and contracts.
Under the big-bang approach, comprehensive ERP systems (covering a comprehensive set
of business functions ranging from financial, communication, cost management, resource
allocation, human resource, risk management, etc.) are implemented organization wide.
Many COTS ERP packages are available in the market, with varying levels of sophistication
and functionality. Needless to say that implementation of such systems requires
excellent ICT capacity and preparedness within the organization as well as relatively high
funding envelop.
It is recommended that EAs, that are at the bottom of the ICT maturity
ladder,start with simple e-tools that can take care of specific tasks or selected
functional areas, through a COTS or Bespoke system. If an organization has
moved to a more expert stage, ERP systems may be considered for full
automation of the executing agency.
F. Level of Integration Desired
It is not uncommon to come across IAs who has taken the leadership in
implementing innovative ICT tools across different donor-funded projects
or government-funded schemes. Although these e-tools, as a general rule
(and specially where the Principal Secretary or Chief Engineer have taken
personal interest and initiative), have delivered good results for the purpose
Figure 9 e-Tool Integration

that was envisaged at the project conception, when most IAs typically struggle to: a) make
these e-tools ‘talk’ to each other, i.e., to exchange data across different e-tools; and b) roll
out these e-tools organization wide (covering all projects and schemes).
While different e-tools working in isolation provide major benefits, as opposed to manual
or paper based system, the real benefits of the ICT will only accrue when information can
easily be exchanged between different software applications (e-tools). Integrated systems
ensure that data once entered, in any one system or subsystem, is easily (preferably
automatically) made available to all other systems and subsystems. Integration eliminates
duplication of data entry effort and need for consequent ‘reconciliation’ (different
applications showing different or conflicting picture) and also avoids the possibility of
information ‘conflicts’.
The second reason why integration is so important is because systems which have been
designed for integration are much easier to roll-out to other projects and programs.While
having ‘best of breed’ software (software which is the best in its class) has its benefits, the
advantages of having ‘joined-up’ systems far outweigh the merits of having different ‘best
of breed’ but disjointed systems.This is especially true of software systems pertaining to
CPM where collaboration between different users, organizations and levels is an essential
requirement, unlike other categories of software (such as engineering design software,
which require great proficiency in usage as well as limited need for data sharing with a
limited number of users and stakeholders).
The information integration is the main reason why organizations need to think about
having a clear ICT roadmap,often also called an ICT Strategy.A road map may be as simple
as a basic project plan detailing which e-tools will get implemented when and a simple
document defining the standards and protocols to be followed for all e-tools, regardless
of whether they are custom developed or COTS products.These standards will ensure
inter-operability across products and make sure that data entered once, in any e-tool, will
be made easily (and if possible, automatically) available across all related e-tools.An ICT
strategy can be a highly technical and complex document (from the point of view of non
ICT staff) but even a simple and clear policy statement such as “we only implement open
source web technologies based software solutions” and a standard contractual clause that
“all our ICT vendors have to ensure that all data/information captured within their system can
be easily used by all other related e-tools implemented in our organization” (in short, making
sure that no proprietary data storage standards are used which prevent other authorized
e-tools from accessing the data) will often do the trick!
Box 6
Caution
In developing the roadmap and
making critical decisions:
l Avoid re-inventing the
wheel, use what others have
developed
l Ensure compatibility and
integration across different
e-tools, right from the
beginning. Select/design e-tools
which are flexible enough
to connect (integrate) with
e-tools that are planned for a
later stage. This will reduce
duplication of data and ease
expansion into the next phase
without having to throw away
the value already gained.
l It is important to ensure
top management buy-in and
ownership of ICT roadmap,
right from the beginning.
l Keep it Simple, Stupid (KISS)!
Resist the temptation to
overdesign and seek every
feature possible.
l Provide for funding for ICT/e-
tools as a standard percentage
(say, 2 percent) of each
project’s budget.

44
G. Funding Available
Budget constraints, though mentioned last in the list of factors, are often the predominant
factor which affects all other factors. As an illustration, if the budget is limited, IAs may
find the ‘open-source software’ (open-source software is computer software with its source
code made available and licensed with an open-source license in which the copyright holder
provides the rights to study, change and distribute the software for free to anyone and for any
purpose) more attractive, as opposed to proprietary software (proprietary software is
computer software licensed under exclusive legal right of the copyright holder with the intent that
the licensee is given the right to use the software only under certain conditions,and restricted from
other uses, such as modification, sharing, studying, redistribution, or reverse engineering).While
open source software is often (though not always) free, proprietary software (or as it is
commonly called commercial software) is often (though not always) available on payment
of a fee or subscription.
More feature-rich e-tools would obviously be more expensive than simple ones. Similarly
e-tools which provide sophisticated mechanisms for data sharing and collaboration (and
therefore make integration easier) are likely to be more expensive than the ones which
do not have such features.
It may also be kept in mind that although when we talk of e-tools, we predominantly
mean computer software,without the appropriate computer hardware (servers,desktops,
printers, etc.) and connectivity (local area connectivity within your office, and Internet
connectivity for communicating with the rest of the world), software on its own cannot
work. It is therefore important to budget for Total Cost of Ownership (TCO) of all ICT
requirements (hardware, connectivity, software, services, training, data entry, etc.) rather
than just the cost of the e-tool software.
Stage II: Implementation Roadmap
The overall efficiency of the project management function can only be achieved if all aspects
and dimensions are rationalized and streamlined. As has been argued in the earlier section
of this Note, e-tools can play a critical and decisive role in achieving such optimization.
More so, if they are, albeit progressively, made to cover the entire life cycle of CPM. It
is in this context that the need for a systematic and holistic approach towards e-tools
implementation is essential.For reaping the full benefits from e-tools implementation,based
on the organizational ICT maturity level, each IA/EA needs to prepare a comprehensive
and time bound roadmap (Figure 8) for e-tools implementation for the short,medium and
long terms.

Short term: Plan quick interventions that can yield tangible benefits within one year or
less, and set the motion for medium- to long-term interventions.
Medium term: Develop and roll out systems to automate specific tasks, functions,
projects or processes within two years or less.
Long term: Implement e-tools across tasks, functions, projects and processes and
integrate key systems to adopt full automation within a period of three to five years.
Suggested Roadmap
Which e-tools can and will be implemented in the short, medium and long term will
depend upon the unique situation of each IA and a host of other factors already discussed
in previous section – Stage I. However, based upon survey of selected implementing agencies
in India and industry experience, in the following section, we recommend a generic blue-print
which can serve as a broad roadmap for most implementing agencies working on public sector
Infrastructure projects.The suggested road map is neither rigid, nor static. It is supposed to
provide a broad blue print for implementation, which will need to be adapted as per the
IAs’ current situation,supporting environment,evolving needs of users and local availability
of technology and technical support.
Set up e-tools taskforce•
Develop and ICT roadmap•
Develop an ICT policy•
Prepare and approve budget•
Procure computers•
Basic computer orientation•
Select simple e-tools (Word,•
Excel, smalls COTS)
Integration of all e-tools•
Scale up pilot e-tools to•
all projects
Establish electronic data•
interchange mechanism
Explore entity-wide system (ERP)•
Select 3-4 e-tools to pilot•
Finalise budgets•
Procure/develop software•
Conduct training•
Preparatory
Phase (2-3
months)
ShortTerm
(within 1 year)
MediumTerm
(1-2 years)
LongTerm
(2-3 years)
Figure 10 Suggested Roadmap

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