International Federation of Consulting Engineers
Richard Kell
Senior Consultant
AM FTSE BE(Hons) Hon FIEAust CPEng
FIDIC MDB Harmonised Construction Contract Conference
Management of Environmental and
Social Impact Under FIDIC Contracts
FIDIC MDB Harmonised Construction Contract Conference
Management Plans under FIDIC
Contracts
Quality Assurance System : S/Clause 4.9;
• Environmental Management Plan : S/Clause 4.18;
• Progress records : S/Clause 4.21 (part of QAS);
• Health and Safety Plan: Clause 6;
• Social and Gender Awareness Plan : Clause 6.
• HIV-AIDS Prevention Plan : S/Clause 6.7;
• Works Programme : S/Clause 8.3.
FIDIC MDB Harmonised Construction Contract Conference
Management Plans under FIDIC
Contracts II
• Management Plans (MPs): advantages for all Parties;
• FIDIC GCs have general references: Specific provisions are
needed in Contract Specification or Particular Conditions
for Management Plans;
• Contractor has contractual obligations to produce MPs ;
• Set time limits for MPs and penalties for non-compliance;
• Payment for Management Plans: recommended as “paid
items” in the BoQ, with a lump sum for provision and
progress payments for implementation.
FIDIC MDB Harmonised Construction Contract Conference
Quality Assurance System (QAS)
Sub Clause 4.9
“ The contractor shall institute a quality assurance
system to demonstrate compliance with the
requirements of the Contract. The system shall be in
accordance with the details stated in the Contract. The
Engineer shall be entitled to audit any aspect of the
system.”
FIDIC MDB Harmonised Construction Contract Conference
QAS S/Clause 4.9 : 3 Points
• FIDIC 1999 and MDB Versions are QA Contracts and not QC
Contracts, by S/Clause 4.9;
• The Contract hence Bid Documents are to provide a clear
statement to this effect, and to outline the content and
format of the Contractor’s QAS;
• Engineer is to audit the Contractor’s QAS – needs an audit
plan and experienced staff to do this.
AND
• These aspects of FIDC Contracts are not well understood by
many Users.
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Environmental Protection
Sub Clause 4.18 : Protection of the Environment
• “The Contractor shall take all reasonable steps…”
• “Limit damage and nuisance..”
• Makes reference to Specification
• BUT
• Clause 4.18 could be more comprehensive and robust;
• Contractor is to establish an operational system for minimising/managing
environmental impacts;
• Compare with the “Social Clauses” of Section 6 – 6 lines vs 4 pages.
• Opportunity to be more proactive – encourage Contractor to adopt sustainability
principles via Special Provisions in the Bid Documents and Contract.
FIDIC MDB Harmonised Construction Contract Conference
Contractor’s EMP – Content
• Compliance with Environmental Study and Legislation;
• Should Cover all aspects including
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Safety of people and property;
Storage of materials, dealing with spillage ;
Contamination – avoidance and removal if it does occur;
Waste disposal and cleaning site and camp on completion;
Dust and noise; working hours;
Water, erosion, sedimentation;
Protection of trees, vegetation;
Monitoring and complaints procedures.
EMP – 1% to 3% of contract.
FIDIC MDB Harmonised Construction Contract Conference
Proactive Environmental Management:
Areas of Influence by FIDIC
• Possible amendments to the FIDIC standard contracts which
• Impose conditions that support sustainable practices on
contractors
• Apply sustainability weightings in the tender assessment
process
• Sustainable design criteria
FIDIC MDB Harmonised Construction Contract Conference
FIDIC Contract – Suggested
Revisions
Consider revisions to the FIDIC contract to:
• Develop and specify sustainable procurement procedures, for example:
• Incorporate renewable energy;
• Require a minimum percentage of sustainable and recycled building
materials
• Specify the product efficiency and longevity (i.e. options for reuse,
repair, upgrade or modification, to increase product life)
• Introduce procurement processes and procedures which are accredited
with international standards for managing sustainable development (e.g.
BS 8903, or FIDIC Guide)
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Impose Conditions that Support Sustainable
Practices on Contractors
The contractor shall comply with the nominated (best)
international and/or national government and/or FIDIC
guidelines: Examples include:
• Use of materials that have low or no VOCs and toxic materials
• Use of recycled materials, or stabilised local materials, to
avoid long cartage (base course)
• Use of low embodied energy materials and locally sourced
and manufactured parts where possible;
• Consider renewable energy.
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Apply Sustainability Weightings in the Tender
Process
• Invite Bidders to offer innovative sustainable practices;
• Include points in the non-price evaluation for environmental
and sustainability factors offered/benefits by Bidders
• No penalization for the possible increase in price for
sustainability measures
• Life-cycle thinking
• Consider long-term impacts of the project to get the best
environmentally sustainable outcome
FIDIC MDB Harmonised Construction Contract Conference
Environmentally Sustainable Design Criteria
• Define the sustainable initiatives and designs required. For
example:
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30% recycled material to be used
reducing greenhouse gas emissions;
Make use of local materials to minimise cartage;
Provide for features to reduce potable water use and recycling water
where appropriate
• Provide thermal mass to store heat and radiate heat at night in
contracts for buildings.
• Define relevant sustainability targets or performance
standards, eg., BS8903., FIDIC Guide
FIDIC MDB Harmonised Construction Contract Conference
Social and Gender Awareness Plan
• Clause 6 : New sub clauses in MDB Version, 6.12 to 6.24:
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Foreign workers treated fairly, workers’ rights recognised;
Alcohol and drugs banned;
Festivals and religious customs respected;
Forced Labour banned;
Child Labour banned.
• Food and water provided.
• Very important additions. MDB Strongly supported.
• Stakeholder Committee, resolution of disputes with
communities, landholders;
• Preference for local employment – women and youths.
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Health and Safety Plan
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Provisions of Section 6.
6.4 Labour Laws
6.6 Facilities
6.7 Health and Safety
6.13Foodstuffs
6.14 Water
Etc
• OH&S Plan for Construction Sites. FIDIC could issue a Guide.
• Traffic Safety Management Plan;
FIDIC MDB Harmonised Construction Contract Conference
HIV - AIDS Preventative Measures Plan
• Construction industry is No 3 propagator of HIV-AIDS in
developing countries
• Delivery is to directed by an Approved Provider engaged by
the Contractor;
• Continuous Awareness Campaign;
• Local communities as well as workers;
• Provision of free condoms, literature, counselling;
• Certification by Approved Provider as condition of payment;
• 1 to 3 % of cost;
• Specific “pay item” in BOQ.
FIDIC MDB Harmonised Construction Contract Conference
CONCLUSIONS I
• Management Plans produced and implemented by the
Contractor are an integral part of the FIDIC Contracts, and are
called for in the Contract provisions;
• Need to be addressed in the Special Conditions and the
Contract Specification;
• There is need for more guidance for Users;
• Particularly relevant in QA contracts;
• Valuable tools in the management and supervision of
contracts, that is for Users of FIDIC Contracts.
• “FIDIC is a very good project management tool” : Ronnie
Thompson, URS, Singapore 2012.
CONCLUSIONS II
• Management Plans as “paid items” within the
Contract (BoQ) with penalties for non-compliance;
• Environmental Protection (S/Clause 4,18) to be
expanded and made more robust;
• Sustainability principles and objectives to be
introduced, in line with FIDIC Focus Area, to create a
pro-active approach to Environmental Protection
FIDIC MDB Harmonised Construction Contract Conference
Maharoa Bridge, 75 m Tied Arch