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Tuesday 10.45 - 12.15
Workshops
Business practices - FIDIC Activities

FIDIC Business Practices Committee

FIDIC 2001 Quality of Construction Survey

Akihiko Hirotani

This presentation summarises the introduction to the discussion of the FIDIC 2001 quality of construction survey at the Business Practices Workshop held during the FIDIC 2001 Annual Conference. Also included is a summary of the outcome of roundtable discussions held during the workshop.

See FIDIC.org Resources Quality of Construction SITE >> for the FIDIC quality of construction position paper RTF FORMAT >> and FIDIC 2001 quality of construction survey form RTF FORMAT >>. A news item has been released NEWS >>

1. PURPOSE OF SURVEY
2. PROPOSED PROCEDURE
3. TARGET – GUIDELINES/POLICIES FOR QUALITY OF CONSTRUCTION
4. SURVEY
5. WORKSHOP/ROUNDTABLES DISCUSSION OUTCOME

1. PURPOSE OF SURVEY - TO ELIMINATE:

• Adverse effect on quality of construction by squeeze on costs, for both construction and supervision 
• Consultant held responsible for quality
• Similar problems worldwide

2. PROPOSED PROCEDURE

• Confirmation of problem's existence ñ at both global and local levels following surveys and discussions at the workshop and among Member Associations (MAs)
• Guidelines and policies needed for use by MAs to talk with client to eliminate problems
• FIDIC to take a leading role with the international funding agencies.

3. TARGET ñ GUIDELINES/POLICIES FOR QUALITY OF CONSTRUCTION

• Contract provisions
• PQ processes
• Transparency in selection; Adoption of Business Integrity Management System
• Management capability of client: resources/experience
• Rendering full consultancy services
• Greater use of independent verifier, etc.

4. SURVEY - Survey of FIDIC Member Associations to verify the extent of problems

QUESTIONNAIRE 

• PART 1 - GENERAL
  • PART 1A - Information about the respondent
  • PART 1B - General comments on the Quality of Construction
• PART 2 - PARTICULAR PROJECTS
  • PART 2A - Respondents' projects over the last 5 years
  • PART 2B - Views on the Quality of Construction in the respondent's project

RESULTS

PART 1: GENERAL

- Part 1A: Information about the respondent

- Part 1B: General comments on the Quality of Construction

Quality change over the last 5 years (improving: blue - unchanged : red - decreasing: yellow)

Comments

- Prequalification

• Emphasis on similar project experience
• Require submission of certificates on quality (such as ISO)
• Fairness and transparency in PQ process
• Clear PQ evaluation criteria

- Tendering

• Proper QBS application
• Setting of minimum tender price
• Fairness and transparency in tendering process
• Clear tender evaluation criteria

- Contract Type

• Preference of unit price contracts
• Any types OK if properly managed
• Proper matching of contract types and specifications
• Unified contract responsible for design and contract administration
• Fair contract

- Contract Amount

• Appropriate tender price to maintain quality of construction
• Setting of minimum tender price
• Evaluation on a both technical and price basis
• Separation of QM cost and its appropriate evaluation

- Contract Duration

• Ensure appropriate duration to maintain quality
• Consultants should consider realistic duration of construction
• Accept bidderís proposal
• Maintain good communication among stakeholders
• Need careful evaluation on shortening construction period

- Liability Insurance

• Preparation of simplified form for LI
• Insurance for client should be paid by client
• Carried jointly by client and contractor
• Limit should be stated and cost of cover recoverable

- Construction Management

• Standardization of CM method and form
• FIDICís collaboration with governing body,ISO, PMI,etc.
• Quality requirements corresponding to the country concerned
• Introduction of International qualification for quality manager
• Quality of communication by electronic measures 

- Construction Workmanship

• Education and training of workmen
• Establishment of quality control system
• FIDICís collaboration with ISO to endure QA/QC procedures/activities
• Appropriate evaluation on good workmanship

- Construction Procedure

• Assurance on Independence/Integrity of CE by FIDIC Statute
• Implement consultancy to suit the site environment
• Standardizing format/specification/contracting/etc.
• Off-limiting un-suitable firms
• Project amount to justify the demand on quality
• Regulate client involvement from technical judgment

- FIDIC Role on Quality of Construction

• Assurance on Independence/Integrity of CE by FIDIC Statute
• Implement consultancy to suit the site environment
• Standardizing format/specification/contracting/etc.
• Off-limiting un-suitable firms
• Project amount to justify the demand on quality
• Regulate client involvement from technical judgment

PART 2: PARTICULAR PROJECTS

- Part 2A: Respondents' projects over the last 5 years

- Part 2B: Views on the Quality of Construction in the respondent's project

SEE SLIDE PRESENTATION >>

6. WORKSHOP/ROUNDTABLES DISCUSSION OUTCOME

Conclusion: there is an unjustified cost squeeze ñ the result is poor quality.

Who is affected: Client, Contractor, Consultant, User.

Why is there a cost squeeze?

What is practiced that leads to poor quality?

• unfair selection
• inexperienced contractor selection
• poor materials
• lack of workmanship

Poor quality arises when there is:

• a tight budget
• stake sharing among third parties
• tender competition

Who should be pressured to change the situation: Clients, Contractors, Consultants, Users, international funding agencies

How to secure appropriate costs:

• tight application of regulations
• close monitoring by the international funding agencies
• client effort
• consultant effort

What could be done for the Business Integrity Management System : transparency in selection

How to secure Full Consultant Services?

• monitor international funding agencies
• client effort
• consultant effort

What should FIDIC do?

• hold discussions with the international funding agencies
• publish guidelines for clients