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ENGINEERING
The Future of Our World
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WORLD INFRASTRUCTURE & BUILT
ENVIRONMENT: FACTS
– Global estimates for infrastructure spending
requirements over the next quarter century
total more than $50 trillion. Ernst & Young 2011 Infrastructure
Report
– While 1.8 billion people have Internet access,
nearly one billion people lack access to
adequate amounts of fresh water Living Planet report by the
WWF and Global Footprint.
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INFRASTRUCTURE AND BUILT
ENVIRONMENT: CHALLENGES
Increasing demand for Food, Water,
Sanitation, Shelter, Health Services,
Transportation, and Energy.
Improvement in the Quality of Peoples’ Lives
Best use of Finite Resources in a World with a
growing population
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INFRASTRUCTURE AND BUILT
ENVIRONMENT PROJECTS:
IMPORTANT CONSIDERATIONS
 Understanding the Resource Limitations
 Articulating the Outcomes
 Defining the Scope
 Defining the Project’s Unique Challenges
MOST IMPORTANT DECISION
 Selecting the most appropriate Trusted
Advisors.
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TRUSTED ADVISOR: ATTRIBUTES
The success of any project depends upon
obtaining the most appropriate expertise
available in terms of:
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Skill
Knowledge
Past Experience
Managerial Abilities
Reputation
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TRUSTED ADVISOR:
INFLUENCE ON PROJECT
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Quality
Overall Cost
Success
Overall Value
Advisor cost a small portion of total life cycle cost of project
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TRUSTED ADVISOR: TECHNOLOGY
BASED INTELLECTUAL SERVICES
(CONSULTANT):
CRITICAL ATTRIBUTES
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Independence
Professional Competence
Managerial Ability
Availability of Resources
Professional Integrity
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TRUSTED ADVISOR:
SELECTION PROCESS
1. Define the Scope of the Project
2. Call for Statement of Qualifications
3. Shortlist Applications
4. Request Detailed Proposals (Focus on Desired
Results: features, benefits, technical challenges, schedule,
Life Cycle cost, technology transfer, sustainability, end users
etc)
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TRUSTED ADVISOR: SELECTION
PROCESS
5. Evaluate Proposals: (quality of team, methodology,
match of qualifications to scope, etc)
6. Select Preferred Applicant: Meet to fine tune scope,
method, team and commence price negotiations
7. Engage Selected Applicant: (If negotiations fail with
preferred applicant then negotiations commence with second
ranked applicant)
The process outlined above is known as Quality
Based Selection (QBS)
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WHY IS PRICE NOT INCLUDED
EARLIER IN THE SELECTION
PROCESS?
Client/Potential Advisor relationship is enhanced
– mutual trust develops
Project objectives and scope defined in detail –
then priced accordingly
Ensures focus on applicants attributes not on
the lowest price.
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QUALITY BASED SELECTION:
ADVANTAGES for PUBLIC WELFARE
 Higher quality and best value lead to
improvements in quality of life for all.
 Highest value per investment, less remedial
work, reduced chances of project failure thus
greater benefits to community.
 Results in capacity building which helps
countries develop.
 Encourages Innovation
 Considers emerging societal issues
 Encourages efficient and sustainable use of
resources.
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QUALITY BASED SELECTION:
ADVANTAGES for CLIENTS
 Best overall project value for money on wholeof-life basis
 Ensures a skilled and well resourced industry
 Encourages the provision of full service
lowering project risk.
 Life cycle costs considered
 Reduced project cost overruns
 Encourages involvement of most appropriate
applicants
FIDIC Resources
QUALITY BASED SELECTION:
ADVANTAGES for CLIENTS
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Supports knowledge growth (capacity
building)
Encourages best-for-project outcomes.
Encourages innovation
Consideration of emerging social issues.
Delivers the best services – project wide
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QUALITY BASED SELECTION:
ADVANTAGES for ADVISORS
 Scope of services best matched to project’s
needs
 Projects best matched to experience and
expertise
 Pricing best matched to scope of services
 Rewards excellence and discourages
services/cost cutting.
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FIDIC’s SELECTION TOOLS
 FIDIC “Guidelines for the Selection of
Consultants” 2011 edition
 FIDIC “Quality Based Consultant Selection
Guide” 2011 edition
 FIDIC ”Guidelines for Integrity Management in
the Consultancy Industry” 2011 edition
 FIDIC “Definition of Services Guidelines” 2009
edition
 Etc???????
FIDIC Resources
QUALITY BASED SELECTION
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Best Practice
Widely recognised around the world
Produces credible outcomes
Value for client and society
Focuses on quality and value
Fair and cost effective
Promotes a strong TEAM approach
Minimises risk
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QUALITY BASED SELECTION
Credits:
 Federation of Canadian Municipalities
 Consulting Engineers of Saskatchewan