ENGINEERING The Future of Our World FIDIC Resources

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. FIDIC Resources

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 FIDIC Resources

INFRASTRUCTURE AND BUILT ENVIRONMENT PROJECTS: IMPORTANT CONSIDERATIONS Understanding the Resource Limitations Articulating the Outcomes Defining the Scope Defining the Projects Unique Challenges MOST IMPORTANT DECISION Selecting the most appropriate Trusted Advisors. FIDIC Resources

TRUSTED ADVISOR: ATTRIBUTES The success of any project depends upon obtaining the most appropriate expertise available in terms of: Skill Knowledge Past Experience Managerial Abilities Reputation FIDIC Resources

TRUSTED ADVISOR: INFLUENCE ON PROJECT Quality Overall Cost Success Overall Value Advisor cost a small portion of total life cycle cost of project FIDIC Resources

TRUSTED ADVISOR: TECHNOLOGY BASED INTELLECTUAL SERVICES (CONSULTANT): CRITICAL ATTRIBUTES Independence Professional Competence Managerial Ability Availability of Resources Professional Integrity FIDIC Resources

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) FIDIC Resources

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) FIDIC Resources

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. FIDIC Resources

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. FIDIC Resources

QUALITY BASED SELECTION: ADVANTAGES for CLIENTS Best overall project value for money on whole- of-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 Supports knowledge growth (capacity building) Encourages best-for-project outcomes. Encourages innovation Consideration of emerging social issues. Delivers the best services – project wide FIDIC Resources

QUALITY BASED SELECTION: ADVANTAGES for ADVISORS Scope of services best matched to projects needs Projects best matched to experience and expertise Pricing best matched to scope of services Rewards excellence and discourages services/cost cutting. FIDIC Resources

FIDICs 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 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 FIDIC Resources

QUALITY BASED SELECTION Credits: Federation of Canadian Municipalities Consulting Engineers of Saskatchewan FIDIC Resources