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“Not everything that counts can be counted; and not everything that can be counted counts.” - Albert Einstein, Famous Genius
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Why the Best Clients Get the Best Consultants Presented by John Gamble, P.Eng. Canadian Public Procurement Forum Québec City 2011
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Association of Consulting Engineering Companies (ACEC) 500 firms collectively employing over 100,000 people Firms can include engineers, architects, planners, scientists, etc. Federation of 12 provincial and territorial associations Strategic priorities: –Image and profile –Advocacy and government relations –Business Practices
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What makes a consultant happy? Interesting projects Career satisfaction Recognition for good work Opportunity for innovation Opportunity for fair profit Good relationship with client
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What makes a good business opportunity? Return on investment (profit) Return on risk Opportunity to develop expertise Opportunity for more business
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What’s our mutual goal? The right team for the right job Realistic schedules and budgets Fewer change orders and disputes Better business relationship between parties Better service, better quality & better value for taxpayers
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A good procurement system… Clearly defines objectives and scope Evaluates what distinguishes proponents Meaningfully delineates scores Rewards proposals that add value Uses a short list where necessary – Proposals are expensive Considers project life-cycle Focuses on best value – not lowest price
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A bad procurement system… Sees itself as an ends unto itself – rather a means to an end Treats professional services as a commodity Has vague/open-ended objectives and scope Assumes all proponents are equal Takes extended period to award Is a charade to justify pre-decided outcome
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A good agreement… Clearly defines roles and responsibilities Clearly defines deliverables and payment Recognizes “owner’s risk” Fairly shares risk and reward Has a mechanism for project changes and allows for dispute resolution Uses industry recognized language Can be read and understood by humans
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A bad agreement… Is one-sided (in favour of either party) Assumes insurance is a contingency fund Claims intellectual property without compensation Holds consultant responsible for events and action outside of consultants control Is uninsurable
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No agreement… Is a really, really bad idea (for both parties) Is a factor in 80% of insurance claims against architects and engineering firms
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A good client… Is firm and fair about expectations Understands cost-benefit-risk relationships Sees process as a tool – not an objective Sees strategic value of consultants Uses industry recognized documents Will get good consultants
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A good client… Supports organizations like CPPC Engages with its stakeholders Thank you!
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Association of Consulting Engineering Companies of Canada 130 Albert St., Suite 420 Ottawa, Ontario K1P 5G4 Tel: 613-236-0569 info@acec.ca www.acec.ca Federation of Canadian Municipalities Sustainable Communities Website www.sustainablecommunities.fcm.ca
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