New PFMA-supported Initiatives to Enhance Construction Project Efficiency in Jordan
Under the USAID-funded Public Financial Management and Administration (PFMA) project, Jordan is continuing to make significant strides in enhancing the efficiency and transparency of its state entities.
Indeed, it reached another landmark on May 12, when the Government Tenders Department (GTD) hosted a launching ceremony for two groundbreaking initiatives: the Itemization and Standard Specifications for Construction Projects; and the Construction Materials Price Index. The former aims to categorize and identify various items listed in bills of quantities (BOQs) for construction projects, while the latter seeks to establish an automated index to adjust contract prices and measure changes in construction project costs over time.
The PFMA project, a five-year endeavor in which PMCG is engaged as a subcontractor of DAI Global, is closely supporting the Government of Jordan in implementing these initiatives. In particular, our assistance to the target agencies and ministries will lead to more accurate statistics for the construction sector, and enable more precise determination of preliminary construction project costs. In turn, this will provide for greater stability, predictability, and cost efficiency, while also improving coordination between different government bodies.
Construction procurement in Jordan has long encountered significant obstacles due to misinterpretation and variations in orders during projects, leading to frequent delays and financial overruns, and thus hindering the sector’s growth.
With that in mind, the impact of these initiatives is expected to be substantial, by making project cost assessments more accurate and boosting planning and execution efficiency overall. This, in turn, will positively impact upon revenue streams in Jordan.
“Adopting these two activities in the Jordanian construction sector will ensure achieving the best value for money”,
outlined H.E. Eng. Mahmoud Khleifat, Director General of the GTD.
In addition, Mr. Toufic Slim, international public procurement expert at PMCG, briefly described the benefits of the newly launched initiatives, stating:
“These will not only assist the GTD and other entities in establishing more streamlined and predictable processes, but will also enhance transparency and cost efficiency.”
Ultimately, the PFMA project maintains a leading role in addressing the challenges affecting Jordan’s construction sector, with these latest two innovative initiatives exemplifying how targeted efforts can transform an entire industry. Moreover, by improving individual project outcomes and driving economic growth, the PFMA project’s contributions offer tangible benefits through standardized practices, thereby fostering a more sustainable future for Jordan.
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