Quality Based Selection The Best Practice for Selecting Professional Consultants [DATE]

The magic triangle The Challenge of Delivering Projects TIMELY DELIVERY BUDGET MANAGEMENT QUALITY & INNOVATION SOCIETAL NEEDS

How do we achieve greatest value?  Long-term savings through reduced life-cycle costs?  Timely delivery?  Quality and sustainability?  Innovation and added value?  Improved economic, social and environmental quality of life?  Taxpayer confidence?

How Does QBS Work?  The QBS model identifies the consulting team that best addresses client objectives and delivers the greatest value;  Professionals compete based on qualifications and understanding of the client’s needs;  QBS provides the opportunity for client and consulting team to discuss and confirm client objectives through interviews;  Consulting team has the opportunity to discuss innovation and the unique approach it would take to create a design that best addresses the client’s objectives.

How Does QBS Work?  Client ranks the competing teams: the highest ranked team is one that the client believes can design a project that will best address their objectives;  A detailed scope of services is then established in consultation with preferred team, including deliverables, that will produce the best results in achieving the client’s objectives;  Client and consulting team negotiate a fee and a realistic project schedule that will enable the consulting team to deliver the desired scope and quality of services.

How Does QBS Work?  Competitive: If negotiations with highest-ranked team cannot be completed successfully, client abandons negotiations with that team and opens negotiations with team ranked second;  Client will not renew negotiations with highest ranked team.

What’s Wrong With the Lowest Price?  Rewards firms for using fewer resources on behalf of the client (e.g. less experienced and less senior staff);  Disadvantages firms with greater appreciation of the client’s needs;  Disadvantages firms that accurately anticipate complications or that propose innovation;  Increase cost to client (more staff time and resources).

Best Practice is Good Policy  Competitive and transparent process focusing on merit, quality and long-term value;  Long-term savings realized over decades;  Encourages in-house expertise to represent the client’s and taxpayer’s interests;  Permits innovation and sustainable infrastructure;  Allows for creative risk management.

What’s in it for the Client?  Right team for right job  More realistic schedules and budgets  Fewer change orders and disputes  Better business relationship between client/consultants/contractors/external agencies  Better service, better quality & better value for taxpayers

Who uses this approach?  Legislated by the US federal government and 44 state governments  Municipalities across the US and Canada, including the City of Calgary and the City of London  The Government of Quebec has mandated its ministries and agencies to use QBS for architectural and engineering services

It Works: APWA Study (2009)  Georgia Institute of Technology and University of Colorado reviewed more than 200 projects across US;  93% of clients expressed high or very high satisfaction with consultants selected using QBS;  QBS reduced construction cost growth by 70 %;  QBS reduced construction schedule growth by 20%;  QBS provided better ability to address societal issues or stakeholder concerns;  All U.S. Federally funded projects must use QBS.

Selecting a Professional Consultant  An InfraGuide “Best Practice” (June 2006)  Developed by the public sector – for the public sector  Supported by extensive interviews and research  “The recommended consultant selection process is a competitive qualifications-based process”

About InfraGuide  National Guide to Sustainable Municipal Infrastructure:  Federation of Canadian Municipalities  National Research Council  Infrastructure Canada  Canadian Public Works Association  Recognized national network of experts in public and municipal infrastructure  Publisher of over 50 “Best Practice” documents supporting sustainable infrastructure decisions