The design and construction monitoring structure often involves the use of key interim milestones as either progress monitoring or payment incentive tools. The interim milestones can assist the Procuring Authority to monitor the progress of the works all the way through construction. The use of interim milestones can be particularly helpful where there are separable parts of a major project that can commence operations early.
The interim milestones may introduce additional payment mechanisms on the completion of an agreed section of work to incentivise performance.
The use of interim milestones may be more important on large and complex projects that consist of a number of discrete packages of work. The application of interim milestones enables the Procuring Authority to gain an early indication of any delays that can be mitigated before they affect the overall completion deadline and compromise the delivery of the public service.
EXAMPLE Interim milestones on large and complex projects The Procuring Authority on a light rail project in a developed market noted that the lack of interim milestones combined with the complexities of the work made it more difficult for the Procuring Authority to monitor the construction schedule. Milestones can also be associated with lump sum payments as an incentive for the Project Company, which was not present on this project. |