International Federation of Consulting Engineers

Collaboration in the Consulting Markets

Riga Conference, 24 May 2013
Enrico Vink, FIDIC MD
 FIDIC Presentation

Vision: Enabling the Founded in 1913

development of a
sustainable world, as Headquarters in Geneva
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
 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: 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 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 FIDICs 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
Impartiality
Selection by Ability
Quality of proposals
Skills and experience
Fair remuneration
Sustainability
Long-term perspective
Respect for the environment
Project-level focus
High Standards
Performance
Know how
Integrity
Best Bractice
Standard contract documents
Policies and guidelines
Fair allocation of risks &
responsibilities
Capacity Building
International co-operation
Training and transfer of know-
how
Manuals
 FIDIC Activities

Annual Conferences Publications

Provide a meeting place for clients, Establish best practice

contractors and consultants involved procedures
Publish contracts for the
in development
infrastructure industry

International Agencies Training

Keep the consulting engineering Capacity building for the
industrys concerns on the agenda consulting industry in both
Strategic partnerships developed and developing
economies

Liaison
Maintain communication between www.FIDIC.org
members, committees and other Distribute updated
organisations information and services to
members and society
 Introduction to FIDIC

Groups of Member Associations

GAMA Group of Africa Member Associations
www.fidic.org.gama

ASPAC Asia-Pacific group

www.fidic.org.aspac

Regional Federations

FEPAC Panamerican Federation of Consultants

www.fepac.org.br

EFCA European Federation of Engineering

Consultancy Associations
www.efcanet.org
 Introduction to FIDIC

Membership Spread

GAMA 17 members
ASPAC 22 members

EFCA 23 members
FEPAC 12 members
OTHER (Nth America, Gulf, Non EU Europe etc) 20 members
PROSPECTS 15 countries
 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

What Drives Procurement?

Public Accountability?
Transparency?
Fitness for Purpose?
Economics & budgets?
Track record
On time delivery?
Qualifications?
CVs?
 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 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
FIDICs PSM and SOW can assist

Best practice principles

Green procurement
Integrity
Sustainability
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
life-cycle cost, and yet the consultants 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
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
HIV-AIDS
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
Informed purchaser
Consulting engineers and the environment
Collateral warranties
Guarantees, bonds and retentions
Contingent legal fees
HIV-AIDS in the construction sector
The expert witness
Consulting engineers and the environment
Limitation of liability
The consulting engineer in turnkey projects
Transfer of technology
Professional risk and responsibility
Conflict of Interest
Alternative dispute resolution
Informed purchaser
Quality management
Business Integrity
Quality of Construction
Site safety
Business Integrity
Copyright
 Procurement & Business Practice - Sustainability

Project Sustainability
Management

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 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 firms 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

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, UK

President Elect Pablo Bueno, Spain

Secretariat FIDIC
World Trade Center 2
Geneva Airport
Box 311
CH-1215 Geneva 15
Switzerland
Tel: +41 22 799 49 00
Fax: +41 22 799 49 01
fidic@fidic.org
www.fidic.org

Managing
Director Enrico Vink