FIDIC Presentation

International Federation of Consulting
Collaboration in the Consulting Markets
Riga Conference, 24 May 2013
Enrico Vink, FIDIC MD
FIDIC Presentation
Vision: Enabling the
development of a
sustainable world, as
the recognised global
voice for the consulting
engineering industry
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
Founded in 1913
Headquarters in Geneva
Introduction to FIDIC
60,000 consulting firms
Representing 1.5 million CE professionals in 94 countries
Consulting Engineering Industry
•Consulting Engineering
US$ 627 b
- Civil Engineering, Architecture
& Engineering Services:
- Industrial Consultancy:
•Supplied by CE Industry:
•Industry staff :
1.5 million
•Consulting Firms:
•Construction Cost:
US$ 6,300 b
Consulting Engineering Sector
Global characteristics
International 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 characteristics
Role 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
What FIDIC does
Represent globally the consulting engineering industry
Enhance the Image of consulting engineers
Support the development of Young Professionals
What FIDIC offers the industry
Be the authority on issues relating to Business Practice
Promote the development of a Global and viable consulting engineering industry
What are FIDIC’s governing principles
Promote Quality
Actively promote conformance to a code of Ethics and to Integrity
Promote commitment to Sustainable development
FIDIC Principles
Quality Services
Value for the client
Cost efficiency
Selection by Ability
Quality of proposals
Skills and experience
Fair remuneration
Long-term perspective
Respect for the environment
Project-level focus
High Standards
Know how
Best Bractice
Standard contract documents
Policies and guidelines
Fair allocation of risks &
Capacity Building
International co-operation
Training and transfer of knowhow
FIDIC Activities
Annual Conferences
Provide a meeting place for clients,
contractors and consultants involved
in development
Establish best practice
Publish contracts for the
infrastructure industry
International Agencies
Keep the consulting engineering
industry’s concerns on the agenda
Strategic partnerships
Capacity building for the
Maintain communication between
members, committees and other
Distribute updated
information and services to
members and society
consulting industry in both
developed and developing
Introduction to FIDIC
Groups of Member Associations
GAMA Group of Africa Member Associations
ASPAC Asia-Pacific group
Regional Federations
FEPAC Panamerican Federation of Consultants
European Federation of Engineering
Consultancy Associations
Introduction to FIDIC
Membership Spread
17 members
22 members
23 members
12 members
OTHER (Nth America, Gulf, Non EU Europe etc)
20 members
15 countries
Regional Cooperation
Procurement Dominates the FIDIC Agenda
• MDBs & Bilateral Agencies
• 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
What Drives Procurement?
Public Accountability?
Fitness for Purpose?
Economics & budgets?
Track record
On time delivery?
Procurement & Business Practice - Policies
What Should Drive Procurement?
Value for money
Quality of solution
Millenium Development Goals
Capacity Building
But, what is “QUALITY”?
Procurement & Business Practice
Quality Procurement
Procurement policies and practices seem back to front
Define clearly the desired outcomes (in human terms, not technical)
Determine how to achieve these outcomes
FIDIC’s PSM and SOW can assist
Best practice principles
Green procurement
Social accountability
Capacity building
Poverty Alleviation
Procurement & Business Practice - QBS
Quality Based Selection
Quality 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 lifecycle cost, and yet the consultant’s work is key to the project success.
Best practice principles
Purchasers are dictated by so-called “objective”
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
To be the Authority on Procurement and Business Practice
Quality of Construction
Informed Purchaser
Consultant Selection
Tendering Procedures
Conflict of Interest
Scope of Services Definitions
Reviewing the Work of Others
Project Delivery
Consultants in Design-Build & PFI
Provision of OMS Services
Project Cost Estimates
Quality Management
Risk Management
Project Sustainability Management
Professional Liability Insurance
Insurance of Large Projects
Dispute Resolution
Procurement & Business Practice - Policies
Policy Statements and Resources
The role of the consulting engineer in design-build
The role of the consulting engineer during the execution of a project
Selection, engagement and remuneration of consulting engineers
Projects in which consultants have a financial interest other than a normal fee
Transfer of technology
Consulting engineers and the environment
Guarantees, bonds and retentions
HIV-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 Construction
Business Integrity
Informed purchaser
Collateral warranties
Contingent legal fees
The expert witness
Limitation of liability
Transfer of technology
Conflict of Interest
Informed purchaser
Business Integrity
Site safety
Procurement & Business Practice - Sustainability
Project Sustainability
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
- 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 2005
Multilateral 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
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
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
• 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
• 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
Geoff French, UK
President Elect
Pablo Bueno, Spain
World Trade Center 2
Geneva Airport
Box 311
CH-1215 Geneva 15
Tel: +41 22 799 49 00
Fax: +41 22 799 49 01
Enrico Vink