Post on 27-Jul-2018
International Federation of Consulting Engineers
Collaboration in the Consulting MarketsRiga Conference, 24 May 2013
Enrico Vink, FIDIC MD
FIDIC Presentation
Founded in 1913
Headquarters in Geneva
Mission:Work closely with stakeholders to improve the business climate in which members operate and enable them to contribute to making the world a better place to live in, now and in the future
Vision: Enabling the development of a sustainable world, as the recognised global voice for the consulting engineering industry
Introduction to FIDIC
60,000 consulting firmsRepresenting 1.5 million CE professionals in 94 countries
Consulting Engineering Industry
• Consulting Engineering US$ 627 b - Civil Engineering, Architecture & Engineering Services: 80% - Industrial Consultancy: 20%• Supplied by CE Industry: 54%• Industry staff : 1.5 million
• Consulting Firms: 60,000
• Construction Cost: US$ 6,300 b
Consulting Engineering Sector
Global characteristicsInternational market place for consulting engineering is becoming more competitive:
• export-led recovery in many countries has given rise to many new players seeking work
• firms are becoming more international and their workforces more multinational and mobile
• developing world is embracing knowledge intensive professional services by leveraging technology and offering low-cost solutions
Consulting Engineering Sector
Global characteristicsRole of Consulting Engineer becoming more critical:
• Life cycle costing strategy more common• Sustainability principles to apply to projects• Design assumptions require a new and more
comprehensive approach• Pending global shortage of skills
* Selection of Consultant critical
FIDIC Strategic Objectives
Be the authority on issues relating to Business PracticePromote the development of a Global and viable consulting engineering industry
Represent globally the consulting engineering industry Enhance the Image of consulting engineersSupport the development of Young Professionals
Promote QualityActively promote conformance to a code of Ethics and to IntegrityPromote commitment to Sustainable development
What FIDIC does
What FIDIC offers the industry
What are FIDIC’s governing principles
FIDIC Principles
Quality ServicesValue for the clientCost efficiency Impartiality
Selection by Ability
Quality of proposals Skills and experience Fair remuneration
SustainabilityLong-term perspectiveRespect for the environmentProject-level focus
High StandardsPerformance Know howIntegrity
Best BracticeStandard contract documentsPolicies and guidelinesFair allocation of risks & responsibilities
Capacity BuildingInternational co-operationTraining and transfer of know-howManuals
FIDIC Activities
Annual Conferences
Provide a meeting place for clients, contractors and consultants involved in development
International Agencies
Keep the consulting engineering industry’s concerns on the agendaStrategic partnerships
LiaisonMaintain communication between members, committees and other organisations
Publications
Establish best practice proceduresPublish contracts for the infrastructure industry
TrainingCapacity building for theconsulting industry in bothdeveloped and developing economies
www.FIDIC.orgDistribute updated information and services to members and society
Introduction to FIDIC
GAMA Group of Africa Member Associations
www.fidic.org.gama
ASPAC Asia-Pacific group
www.fidic.org.aspac
FEPAC Panamerican Federation of Consultants
www.fepac.org.br
EFCA European Federation of Engineering
Consultancy Associations
www.efcanet.org
Groups of Member Associations
Regional Federations
Introduction to FIDIC
EFCA 23 membersFEPAC 12 membersOTHER (Nth America, Gulf, Non EU Europe etc) 20 membersPROSPECTS 15 countries
GAMA 17 membersASPAC 22 members
Membership Spread
Regional Cooperation
Procurement Dominates the FIDIC Agenda• MDBs & Bilateral Agencies• WTO GPA• Uncitral Model Procurement Law• EU Directives• National Country Systems
FIDIC Represents Global Best Practice• Supporting all Regional Groups, lobbying, resources etc• More national support & capacity building
Procurement & Business Practice - Policies
• Public Accountability?• Transparency?• Fitness for Purpose? • Economics & budgets?• Track record• On time delivery?• Qualifications?• CVs?
What Drives Procurement?
Procurement & Business Practice - Policies
What Should Drive Procurement?
• Value for money• Quality of solution• Environment• Millenium Development Goals• Capacity Building• Sustainability• Integrity
But, what is “QUALITY”?
Procurement & Business Practice
Quality ProcurementProcurement policies and practices seem back to frontDefine clearly the desired outcomes (in human terms, not technical)Determine how to achieve these outcomesFIDIC’s PSM and SOW can assist
Best practice principles
Green procurementIntegritySustainabilitySocial accountabilityCapacity buildingPoverty Alleviation
Procurement & Business Practice - QBS
Quality Based SelectionQuality is paramount in the selection of consultants, and Quality Based Selection is the recommended method for procurement.The fees paid to a consultant are a small fraction of the total project life-cycle cost, and yet the consultant’s work is key to the project success.
Best practice principles
Purchasers are dictated by so-called “objective” criteria.They fear “subjective” assessments of the “softer” criteria.QBS allows a focus on the “softer” issues:- sustainability, integrity, training.
How can the industry assist?
Procurement & Business Practice - QBS
Life-Cycle Cost and Impact on Project Success
The procurement phase has the greatest impact on the life-cycle cost of the project, yet it is the least costly component.
Procurement & Business - FIDIC
Quality of Construction Informed PurchaserConsultant Selection Tendering Procedures Conflict of Interest Scope of Services DefinitionsReviewing the Work of Others Project DeliveryHIV-AIDS Consultants in Design-Build & PFIProvision of OMS ServicesProject Cost EstimatesQuality Management Risk ManagementProject Sustainability ManagementProfessional Liability InsuranceInsurance of Large ProjectsDispute Resolution
To be the Authority on Procurement and Business Practice
Procurement & Business Practice - Policies
The role of the consulting engineer in design-buildThe role of the consulting engineer during the execution of a projectSelection, engagement and remuneration of consulting engineers Projects in which consultants have a financial interest other than a normal fee
Transfer of technologyConsulting engineers and the environmentGuarantees, bonds and retentionsHIV-AIDS in the construction sector Consulting engineers and the environment The consulting engineer in turnkey projects Professional risk and responsibility Alternative dispute resolution Quality management Quality of ConstructionBusiness Integrity
Policy Statements and Resources
Informed purchaserCollateral warrantiesContingent legal feesThe expert witnessLimitation of liabilityTransfer of technologyConflict of InterestInformed purchaserBusiness Integrity Site safetyCopyright
Procurement & Business Practice - Sustainability
Project SustainabilityManagement
Guide to the principles of sustainable projects using recognised indicators
State of the World
Tools to define priorities and make informed decisions on:- Economic factors- Social factors- Environmental factors- Comprehensive guide to
rating systems
Professional Services Agreements
FIDIC publishes model agreements for professionals services:
- Client/Consultant- Joint Venture- Sub-Consultant- Representative
Works Contracts – Rainbow Collection
FIDIC publishes internationally recognised forms of contract for infrastructure works.
More than 40,000 copies supplied each year
FIDIC Contracts - MDB Harmonised Construction Contract
Since May 2005Multilateral Development Banks use the FIDIC MDB Harmonised Construction Contract
Adopted by bilateral development agencies (Australia, France, Japan, Korea, …)MDB Supplement to Contracts Guide available
Procurement & Business Practice - Capacity Building
Business Practice Training Manual- Training modules with resource kits- Applicable in developed and developing countries
International Training Programme- Events co-organised with Member Associations- Based on Guide to Practice manuals
Accredited Trainer Development Programme- Trainers available locally and international- International standards
Training Suppliers- Recognised Training Centres: China, India, Jordan- Accredited Training Suppliers
Procurement & Business Practice - Training Modules
- The consulting industry- Organising a consulting firm- Administration of the firm’s activities- Business development- Human Resources Management- Financial Management- Client relationships and communications- Project execution- Risk Management- Quality Management- Business Integrity Management- Performance Management
Each module specifies:- Content- Resources- Case studies
Training Modules
Global Outlook and Trends - 1
Global Characteristics• population growth
• 7 billion today• 8 billion by 2040• more need for basic infrastructure
Global problems• warming/climate change• water scarcity & energy shortages• transport pressures• pressure of urbanisation
Emerging Regions & Hot Spots
Regions• Developing Countries and Emerging Economies• Significant opportunities in Africa, South America and Asia
Hot Spots• Energy, Mining, Water, Transport, (Urban Planning)• Most international projects with multiple players• Cross border activity increasing
Market Conclusion
In the current economic context Consulting Engineers can provide:
• Innovative solutions to global challenges, working closely with governments and multilateral institutions in defining new foundations for economic growth.
• Knowledge-based and technology-driven industry, playing a key role in making globalisation work for everyone.
• Share international best practices, and enhance collaboration in all regions
Market Conclusion
In the current economic context Consulting Engineers can:
• Standardise best practices; • Differentiate skills and experience; • Partner to influence debate on investment,
procurement, sustainability and integrity;• Speak out and tell their story• Attend THE Major Event in 2013………
FIDIC World Consulting Engineering Conference
Quality of Life – Our Responsibility
International Federation of Consulting Engineers
President Geoff French, UKPresident Elect Pablo Bueno, Spain
Secretariat FIDICWorld Trade Center 2Geneva AirportBox 311 CH-1215 Geneva 15 Switzerland Tel: +41 22 799 49 00Fax: +41 22 799 49 01
fidic@fidic.org www.fidic.org
Managing Director Enrico Vink