Annual general report of the controller and - Parliament of Tanzania

in the cost of the measured works and preliminaries. (ii)
“This sum shall be adjusted to the final cost of the
measured works and preliminaries.
Clause 32 of the same contract had detailed notes with
regards to fluctuations and this clause has been struck off
by hand without any explanation or amendment.
Regulation 43 of the Public Procurement Regulations GN
No. 97 alteration and amendment of contract spells out
that “a procurement or disposal contract shall not be
altered or amended in any way after it has been signed by
both parties unless such alteration or amendment is
endorsed by the approving authority that reviewed and
approved the original procurement contract or disposal by
tender”.
Regulation 44 states that “any variations to the value of a
procurement or disposal contract shall be reviewed and
approved by appropriate tender Board”.
Until the conclusion of audit report in November 2008, the
Bank could not provide us with information as to the
agreed revised maximum Contract price under the
Extension Project. It does appear though that at present
the Bank has no effective control over the future cost to
complete the project. Management should review the
existing contract for the extension work to ascertain
whether it is still valid and that the Bank is safeguarded
from contract risks. The review should also involve terms
and conditions with sub-contractors and consulting
engineers. Maximum contract price and completion
timetable should be agreed with the Contractor. Since the
Bank will continue to have major contractor such as Estate
management and IT, it should consider developing Project
Management Methodology as well as develop a programme
aiming to build the Bank’s internal capacity to manage
major contracts.
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Office of the Controller and Auditor General PA&oBs 2007/08 151