Direct implementation should only be used in situations where no other alternatives exist, such as post conflict or during emergency situations where pre-existing capacity is no longer available.

Working in some of the world’s most challenging environments, UNOPS mission is to expand the capacity of the UN system and other partners. Therefore UNOPS is a highly effective provider of direct implementation as it has access and a proven track record in difficult locations along with the benefits of specialization, economies of scale and adherence to UN rules and regulations.

However, direct implementation is not encouraged for long term or very large projects due to its transaction intensive nature and high level of project assets required. Due to its nature, a direct implementation project may deliver less local skill development and support to local business than a contract management implementation.

Direct implementation is normally split into four distinct phases:

• Initiation
• Planning
• Works Implementation - where the fundamental differences exist from the contract management modality.
• Defect Liability Period

Initiation

During the initiation phase the project brief is developed in conjunction with the partner. A project board is established with representation from the partner and the end user. At this stage the basic parameters and outcomes of the project are outlined and project timeframe, budget and acceptance tolerances are set.

Planning

In the planning stage, detailed plans are completed and a Project Initiation Document is approved by the project board. The planning process is crucial prior to any bidding and procurement of contracts because it will confirm the optimal breakdown of contracts, and it will establish target works budgets and tighten the scope of works with set tolerances. Local contractor capacities and rates will be established, along with contacts in all relevant government departments. Pre-feasibility studies - if not already undertaken by the client – can also be undertaken by UNOPS at this stage.

Works Implementation

The works implementation stage is where the majority of time and money is spent in any infrastructure project. Here the fundamental differences exist from contract management as under the direct implementation modality UNOPS takes on the role of the principal contractor and implements the works with a combination of two strategies.

The first strategy is to subcontract locally as many small work packages as possible, such as excavation, brickwork, plastering, painting and electrical works. Secondly, where local capacity does not exist for these activities UNOPS will hire local labour and tradespeople, procure the materials, manage and direct the works themselves. This may include having additional international tradespeople and works supervisors within the UNOPS team.

UNOPS will endeavor to implement the works with as few contract awards as possible and utilize existing contracting firms wherever possible. Typically however a direct implementation project does result in UNOPS taking on much of the work itself and is therefore transaction intensive.

UNOPS high supervision standards develop local capacity, leaving behind higher skills and quality practices for future works.

Defect Liability Period

UNOPS handover infrastructure to partners and end users upon practical completion and after joint inspections. A defect liability period follows, usually from six to 12 months. During this time works are inspected and if they are deemed defect free UNOPS releases retentions and make final payments. Warrantee period services for proprietary items are carried out and monitored by UNOPS.

UNOPS is not responsible for standard ongoing maintenance and operation of the infrastructure during this time. Following the final completion certification UNOPS closes the project out.