1. International Federation of Consulting Engineers
Collaboration in the Consulting Markets
Riga Conference, 24 May 2013
Enrico Vink, FIDIC MD

2. FIDIC Presentation
Vision: Enabling the development of a sustainable world, as the recognised global voice for the consulting engineering industry
Founded in 1913
Headquarters in Geneva
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

3. Representing 1.5 million CE professionals in 94 countries
Introduction to FIDIC
60,000 consulting firms
Representing 1.5 million CE professionals in 94 countries

4. - Civil Engineering, Architecture
Consulting Engineering Industry
Consulting Engineering US$ 627 b
- Civil Engineering, Architecture
& Engineering Services: 80%
- Industrial Consultancy: 20%
Supplied by CE Industry: %
Industry staff : million
Consulting Firms: ,000
Construction Cost: US$ 6,300 b

5. Global characteristics
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

6. Global characteristics
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

7. 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

8. FIDIC Principles High Standards Quality Services 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
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

9. FIDIC Activities Publications Annual Conferences Training
Provide a meeting place for clients,
contractors and consultants involved
in development
International Agencies
Keep the consulting engineering
industry’s concerns on the agenda
Strategic partnerships
Liaison
Maintain communication between
members, committees and other organisations
Publications
Establish best practice procedures Publish contracts for the infrastructure industry
Training
Capacity building for the
consulting industry in both
developed and developing economies
Distribute updated information and services to members and society

10. Groups of Member Associations
Introduction to FIDIC
Groups of Member Associations
GAMA Group of Africa Member Associations
ASPAC Asia-Pacific group
Regional Federations
FEPAC Panamerican Federation of Consultants
EFCA European Federation of Engineering
Consultancy Associations

11. Introduction to FIDIC Membership Spread GAMA 17 members
ASPAC members
EFCA members
FEPAC members
OTHER (Nth America, Gulf, Non EU Europe etc) 20 members
PROSPECTS countries

12. Procurement Dominates the FIDIC Agenda
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

13. What Drives Procurement?
Procurement & Business Practice - Policies
What Drives Procurement?
Public Accountability?
Transparency?
Fitness for Purpose?
Economics & budgets?
Track record
On time delivery?
Qualifications?
CVs?

14. What Should Drive Procurement?
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”?

15. 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
Integrity
Sustainability
Social accountability
Capacity building
Poverty Alleviation

16. 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 consultant’s 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?

17. 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.

18. 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

19. 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
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
Business Integrity
Site safety
Copyright

20. 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

21. Professional Services Agreements
FIDIC publishes model agreements for professionals services:
- Client/Consultant
- Joint Venture
- Sub-Consultant
- Representative

22. Works Contracts – Rainbow Collection
FIDIC publishes internationally recognised forms of contract for infrastructure works.
More than 40,000 copies supplied each year

23. 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

24. Business Practice Training Manual
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

25. Training Modules - The consulting industry
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

26. Global Characteristics
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

27. Regions Hot Spots Developing Countries and Emerging Economies
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

28. In the current economic context Consulting Engineers can provide:
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

29. In the current economic context Consulting Engineers can:
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………

30. Quality of Life – Our Responsibility
FIDIC World Consulting Engineering Conference
Quality of Life – Our Responsibility

31. 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:
Fax:
Managing
Director Enrico Vink