1. FIDIC/ MDB Harmonised Construction Contract Conference S8: Social issues in contracts – labour and health RA Ulrich Paetzold Director General F I E C European Construction Industry Federation

2. CYPRUS NETHERLANDS IRELAND PORTUGAL NORWAY TURKEY DENMARK HUNGARY FINLAND SWEDEN SPAIN LUXEMBOURG BELGIUM ITALY GREECE BULGARIA SWITZERLAND CZECH REPUBLIC SLOVAKIA Full member Observer member ESTONIA ROMANIA AUSTRIA SLOVENIA CROATIA FRANCE LITHUANIA GERMANY www.fiec.eu MALTA 1905 1 st meeting 29 29 countries 33 33 federations Enterprises - of all sizes - active in all fields of building and civil engineering POLAND

3. sister organisation: EIC European International Contractors founder member of CICA Confederation of International Contractors' Associations F I E C international

4. Corporate Social Responsibility =  contractor’s individual commitment  over and above the respect of statutory and contractual obligations “Core Labour Standards” is misleading  there are no “CLS”, but only ILO Conventions  application requires ratification by sovereign states Social issues in MDB contracts Clarification

5. procurement directives proposed (12/2011) :  “classic” contracting authorities  “utilities”  PPP/ concessions “modernisation” understood by some as  increasing the use of social and “green” criteria  public to lead with good example Social issues in EU directives current state – “modernisation”

6. lively discussions pro and con EP “rapporteur” proposes further items:  joint and several liability of MC and all SCs  limitation of sub-contracting to 3 levels link to the object matter of the contract major difference to MDB approach:  EU addresses procurement rules  MDB address contract conditions Social issues in EU directives current state – “modernisation”

7. award to lowest bid?  risk that social security and H&S not respected  (nor quality, but not mentioned in the J.S.) CSR responsibility solely for contractor?  insufficient  necessary to involve also Owner and Engineer  focus on costs/ schedules is short-sighted Social issues in MDB contracts Joint BWI – CICA Statement (12/2006)

8. 1. Recommendations for tec specs/ bidding documents a. full information/ details of social requirements b. preferably measurable and priced items c. Owner’s commitment to pay Contractor d. commitment that such items will not be paid as “lumps sums” or part of overheads Social issues in MDB contracts Joint BWI – CICA Statement (12/2006)

9. 2. Suggestions (not limitative): examples for social requirements a. workers transportation b. health/ sanitary facilities on/ near site c. workers’ accommodation d. dwellings of staff on site and/ or organisation of shifts allowing decent family life by returning home e. H&S training, prevention, equipment f. recognise erecting scaffoldings as works Social issues in MDB contracts Joint BWI – CICA Statement (12/2006)

10. 3. compatibility with productivity/ innovation 4. need to adapt to individual project 5. increase involvement of Owner/ Engineer for these principles 6. create momentum for actual progress on site Social issues in MDB contracts Joint BWI – CICA Statement (12/2006)

11. most issues covered by the text,  in one way or another however, questionable whether real impact  without transparent control mechanisms, by Owner, Third Party or MDB  without sanctions for non-respect Social issues in MDB contracts BWI – CICA issues in Pink Book?

12. often only “The Contractor shall...”  where collaboration of others is required 6.7 HIV-AIDS prevention  should be included as priced items in BoQ 6.15 compliance with all regulations  is a general statutory obligation, not contractual 6.18/ 6.5 Festivals and Religious Customs  respect is a statutory obligation Social issues in MDB contracts Pink Book clause 6, some items

13. Contractors can and will do a lot  for the staff they employ  for the local communities where they work but absence of efficient public authorities  cannot be compensated by contractors  must not lead to responsibility being shifted contractually to the Contractor Social issues in MDB contracts conclusions

14. WWW.. EU