What is ICV Improvement Plan?
The ICV Improvement Plan is a contractual commitment linked to payment against the achievement of actual ICV achieved for the ICV committed as per the ICV Improvement plan.
The company creating a plan needs to consider the Evaluation of the combination of ICV certificate and improvement plan with higher weightage on improvement Plan, the Governance of ICV milestone payment of 5% of project value and amounts released annually based on compliance with ICV improvement plan, and the Implementation of specific agreements.
What are the Types of ICV improvement plans?
Company based Improvement Plan
An improvement plan that’s required for Annual ICV certificates issued during the full agreement period. The percentage of agreement value to be held and released progressively as per compliance with ICV targets.
Agreement based Improvement Plan
An additional requirement from Supplier to engage project auditor to audit project spend for verification purposes. Project-specific ICV issued by the Certifying bodies with the percentage of project value to be held and released progressively as per compliance with ICV targets.
What is the role of the ICV Improvement Plan?
- Suppliers need to submit the improvement plan with the ICV bid. The improvement plan is considered binding and shall not be revised.
- New considerations were implemented by Nov. 2018, while ADNOC Group applied them partially on some of its significant tenders instantly.
- The combination of the ICV Certificate and Improvement Plan will be applied to arrive at an ICV score.
- The target to be monitored quarterly to ensure the business is on track. Any shortfall noticed shall be communicated for an immediate rectification action plan.
- A milestone of 5% of the contract value introduced to ensure the ICV achievement with annual progressive payments shall be made according to compliance with the ICV target.
- The supplier needs to submit the required ICV certificate to prove the achievement of the ICV milestone for the release of the respective payment.