70 - 150 sized Firms

Facilitator: Richard Kell

Facilitator: Zhang Gouzou,  PRC;  Recorder: Jim Lidner, USA; Observer:  Richard Kell, Australia.

1. ISSUES

Price based vs QBS

Image of engineers

Attracting bright people into engineering

Squeeze on mid-sized firms (forced into commodity bracket)

Fluctuation in work load (also mid-sized firm problem)

Sustainability

• Convincing clients to recognise/pay
• Education required
• Pollution issues

Application of FIDIC Contract Conditions

• Delays
• Training

Intellectual property

Corruption (not much interest)

2. PRICE BASED vs QBS

• Education of clients

• World Bank study (Peter Silbernagel) 2% design vs 98% construction

• QCBS - 2 envelope system is Hong Kong Housing Corporation policy
  • high competition results in low fees, but poor performance with inexperienced staff
  • use QBS on complex projects.
  • performance assessments provided
• Evaluation criteria and processes
  • FIDIC should provide training
• Michael Porter's book: Competitive advantage
  • low cost/price
  • focus
  • differentiation

3. IMAGE

• Commodity vs professionals

• Attract good young people

• Bill Lewis paper - Invisible Professionals: Recirculate

• Visit comprises

• Public education

4. INTERNATIONAL PRACTICE

• FIDIC guidelines

• Teaming JV guidelines

• Train employees

• Network : FIDIC and regional groups

• Training Workshops in FIDIC Contracts and Policies