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Training of Consultants in the Global Market Competition
Mr. She Jianming, Chairman of CNAEC

Since the world ushered in the 21st century, economic globalization and new technology revolution have become the two striking features of the times, and the competition faced by the engineering consulting industry has been increasingly enhanced: competition not only broken out from within the industry itself with more and more transnational and multi-regional characteristics, but also from outside industries. Management consultation, information consultation and science, technological, legal and financial consultation, etc. have been encroaching the traditional engineering consulting and taking larger and larger market shares. As the result of so-called "knowledge explosion", knowledge-based engineering consulting industry which provides intellectual services is facing tremendous pressure of knowledge renovation and technological advancement. Therefore, to enhance study and adhere to renovation is the fundamental channel for us to improve capability and meet the challenge. And how to improve and conduct the training of consulting engineers effectively has become the common task of FIDIC as well as its member associations, and that's why we rally here today to discuss about this topic. Dear friends, let me share with you what we have done on the training of consulting engineers in combination of the concrete conditions of China's engineering consulting industry. I will take the "FTC Training Center" (FTCTC) we jointly launched last April as an example, and share with you some of our views.

I. Shortcomings of Chinese Consulting Engineers in Knowledge, Skill and Experience
The development of engineering consulting industry in China owes a lot to the achievement of economic reform. At present, China has about 3000 engineering consulting agencies and more than 300,000 professionals. As you know, Chinese consulting industry took off late and has only two decades' growth, there is still a long way to go to catch up with the international level: At present, the total volume of China's cargo import and export of goods is about 4% of that of the world, and the service industry is about 2.8%. The service rate of engineering consulting in China is rather low, so our share of global engineering consulting industry is far less than 1%. It is estimated that the annual turn-over covering the whole process of construction is about 3% of project investment in our country, less than half of the average international level. Still, the international competitiveness of our engineering consulting industry is rather weak. Apart from the constraints of our domestic conditions and management systems, the comprehensive quality of our consulting engineers are urgently to be improved, otherwise it is difficult to adapt to the internationalized market competition.

As a developing country, the shortcomings of Chinese consulting engineers in knowledge, skill and experience are as follows:

* The conceptual outlook is lagging behind. Quite a number of consulting engineers have come from the transition period from the planned to market economy. Generally they are more used to emphasizing technology but neglecting marketing. Their sense of market development is rather poor, and they are not quite adaptable to cut-throat competition.

* They lack international experience. Very few Chinese engineering consulting firms are conducting overseas business. Most of the engineers serve only for domestic projects for years, and they have no business experience overseas. Therefore, they are generally not familiar with international norms and their international rivals or partners.

* Unbalanced structure of knowledge. In the past, university education system was established in reference to former Soviet model. The courses are too specialized, as a result, the Chinese consultants are quite well trained in technology studies, but are short of the study and training of economy, business, laws, and management, closely related to consulting service.

* Language difficulties. There are indeed few excellent Chinese consultants, who can do overseas business well and skillfully, but generally, the foreign language level of Chinese consultants is not very high, which is a constraint for their communicating with foreign counterparts, and a hindrance to their expanding cooperation.

II. FTCTC: A New Training Organization and its Management
To meet the challenge of the 21st century, especially to adapt to the new situation of China's entry into WTO, the Chinese consulting engineers need to become overseas-oriented and comprehensive professionals. Therefore we mapped out the strategy to cooperate with FIDIC and the leading university in China and to promote the construction of China's engineering consulting team. The first project as a model is FTCTC which is an acronym of the jointly launched Training Center by FIDIC, Tsinghua University and CNAEC. Taking this as a starting point, we plan to further establish a multi-layer and comprehensive training system, so as to train more capable engineers who can meet the requirements of modernization and adaptable to the international market competition.

CNAEC's idea aroused the interest of FIDIC and Tsinghua University. A Tsinghua delegation led by the executive vice president visited the headquarters of FIDIC in Lausanne. After a number of communications and discussions between the three parties, an agreement to jointly establish FIDIC training center was signed in February, 2001, and FTCTC was officially launched on April 30, 2001, in coincidence with the 90th anniversary of the founding of Tsinghua University. On that occasion, FIDIC president Mr. Eigil Pedersen, vice president Dick Kell and former president Mr. Wyne Bowes, and former managing director Dr. Mashall Gysi, FIDIC EC member Mr. Stanley Kawaguchi and Chairman of FIDIC ASPAC, etc. attended the launching ceremony in Beijing.

III. Aim and Target of FTCTC
As the sole training center of FIDIC in the world, the aim of FTCTC is "through the training of FIDIC principles and relevant contents, to improve the capability and competitiveness of consultants and project managers in China and the Asia and Pacific region at large, and to cultivate excellent engineers for the construction industry of China and the Asia and Pacific region." Therefore, our training targets are mainly:
* engineering consultants
* project managers (including those of employers and contractors)
* young engineers, the youth is our future
* trainers, educators must be educated first
from the developing countries.
In order to ensure the quality of the training center, an advisory board of nine members was set up, consisting of a vice president of FIDIC, a FIDIC EC member, representatives of the three parties as well as State Development Planning Commission (SDPC), Ministry of Foreign Trade and Economic Cooperation (MOFTEC), Ministry of Construction and China's International Contractors Association, so as to supervise the training plan and to recommend instructors. The trainees who have fulfilled their courses successfully will obtain a certificate jointly signed by FIDIC president, vice president of Tsinghua University and Chairman of CNAEC. The photos and certificates holders are available on the website of FTCTC (www.ftctc.org).

IV. FTCTC's Principles and Mode of Training
High-level: To join together with the relevant highest-level professional and academic organizations, to invite the best experts and scholars from FIDIC and the world to be instructors, and to train candidates from senior management of engineering enterprises in Asia and Pacific Region.

Overseas-oriented: Mainly train comprehensive high-level professionals who are able to execute overseas engineering consulting and management, enhance merging with the international practice and bilingual teaching, and adopt the mode of "inviting to China and going abroad". We are to invite experts and scholars of international fame to give lectures or hold seminars and to train the trainers in China. And meanwhile we are to organize the trainees to go abroad to relevant countries to participate in specific projects and practice and to learn from advanced experience of developed countries.

High-standard: Persist in the style of study of Tsinghua University of running the school independently, with high standard and strict requirements, the training plan will be drafted by Tsinghua University, and supervised by the Advisory Board. The teaching management is strict, and the enrollment and examination of trainees will strictly conform to Tsinghua standards, and those who fail to pass the examination will not get the certificates.

Multi-types: We will adopt multi-types of school running, e.g. combination of long-term and short-term, combination of degree education and continuous education, combination of lectures and seminars, with certificate and without certificate, etc. For instance, long-term degree education of 1 - 5 years has been designated for young engineers to take advanced study of master's degree in engineering. After they accomplish all courses, they will be issued diplomas of engineering master or certificate of completing a postgraduate course. For training classes or seminars ranging from 3 days to 1 - 2 months, after passing the examination, the trainees can get a FTC for completing the course. For some lecture courses, no certificate will be issued. We sincerely hope to cooperate with foreign universities and colleges or professional training agencies to conduct training jointly, so that the trainees can get certificates overseas or joint certificates.

V. Training Contents and Topics
During FIDIC 2001 Annual Conference in Montreux, FIDIC initiated the topics of Capacity Building, Quality Management System, Sustainable Development, Integrity Management System and Young Professionals Forum, etc. The focus of FTCTC in 2001 and 2002 are mainly targeted at capacity building.

In October, 2001, we organized the first advanced seminar, with the main theme of "Competing in the Global Market - A Primer for Emerging Engineering Firms". Both the present and former FIDIC presidents, present and former managing directors as well as FIDIC EC members and FIDIC contract experts attended the seminar, which contributed to the full success of that seminar.

In May this year, we successfully organized a training course on "Urban Sustainable Development" in Shanghai. Two seminar courses on FIDIC's New (1999-edition) Contract Conditions were respectively organized in June (Tsinghua University) and September (Shenzhen). Considering the training of young engineers, we plan to open a postgraduate course for engineering masters and an advanced study course next year; 2 - 3 advanced seminar courses will be organized orienting at the leadership and decision-making level. We are also planning to cooperate with the National University of Singapore to extend our training to the engineering consulting and project training in Asia and the Pacific Region.

Knowledge renovation and training can not be once for all; it is also matter of sustainable development. Therefore, FTCTC has designed and worked out a module training plan: consisting of 6 fundamental courses and 15 professional courses, so as to meet the requirements of knowledge renovation and development of engineering consulting industry.

VI. Perspective Results
Firstly, to improve the quality and skill of individual trainees, including the ideas, code of ethics and business strategy;

And thereby to promote the image of engineering consultants as organizer and leader of projects and creator of social fortunes;

To further raise the capacity and competitiveness of consulting firms and create great economic benefits to the firms;

And the client and society at large obtain product and engineering in conformity with quality standard and sustainability from the high-quality consulting service.

VII. Problems to be Solved in Priority
The main problems faced by FTCTC at present are mainly: finance, instructors, teaching materials, practice in construction projects and certificate.

Finance: As our training is non-profit, and the expenses of inviting foreign senior experts are high, therefore we have to seek for financial aids from the society, the consulting firms or relevant government agencies.

Instructors: A database of various experts and instructors is under construction. Of course they should be the best and most authoritative in the world, and we sincerely hope more volunteers come to contribute their expertise. However, we can arrange them free accommodation and an excellent tour in ancient and beautiful city of Beijing. Experts from FIDIC, World Band and UNEP have provided us valuable assistance and helped in this regard, they made lectures in FTCTC without lecture fees and travel expenses. Here I'd like to take this opportunity to extend our sincere thanks to them.

Teaching materials: We hope that FIDIC and relevant organizations could provide us the updated materials and relevant books. Because of language problem, we hope the invited overseas instructors could provide their teaching notes before the lectures so that we can have enough time to translate into high quality Chinese and the students can get the materials beforehand. It is conducive to better class discussion and responsive teaching.

Practice in construction projects: Practice is very important for teaching, but it is difficult to choose a proper project for practice free of charge, esp. for overseas projects. Considering our trainees are quite experienced in professional skills, but not so acquainted with international practice and procedures, through practice they can create more values for the firms, and in this sense it is win-win activity of mutual benefit.

Certificate: After fulfilling the course and passing the examination, the trainees will be issued FTCTC certificate. But they are desirous of the functions of such certificate. Therefore, we hope FIDIC could discuss with WB, ADB and relevant financial institutions, so that they can take this factor into consideration in their selection of consultants for their projects.

The training market in China is very big indeed. We have ample reasons to believe that, through the leading position of FIDIC in international engineering consulting, combined with the superior educational resources of Tsinghua University and the rallying force of CNAEC in the engineering consulting industry of China, FTCTC will definitely have a bright future. We sincerely hope that FIDIC MAs and our overseas colleagues will strongly support the work of FTCTC, so that it can develop rapidly and soundly, making more contributions to the development of international engineering consulting, esp. that of the developing countries.

Topics of the Course of the First Advanced Seminar of FTCTC
October, 2001, Beijing

Competiting in the Global Market - A Primer for Emerging Engineering Firms
---Prepared by Sanley Kawaguchi, FIDIC EC member
---Given by E. Pedersen, FIDIC President

FIDIC and FIDIC Principles in the Global Market
---Given by Daniel Ivarsson, FIDIC Managing Director

Leadership VS Management
---Prepared by Stanley Kawaguchi, FIDIC EC member
---Given by Dick Kell, Vice President of FIDIC

FIDIC in 21st Century --- Challenge and Opportunities
---Given by Wayne Bowes, former FIDIC president

Education and Training of Engineers
---Given by Fang Dongping, Associate Prof, Tsinghua University

Organization and Running of Firms --- Establish a Firm with Western or International Mode
---Given by Dick Kell, FIDIC Vice president

Quality Management in Engineering Consulting
---Given by Wayne Bowes, former FIDIC president

Business Development in the Global Market
---Given by Daniel Ivarsson, FIDIC Managing Director

Consultancy in the Construction of Ertan Hydraulic Project
---Given by Meng Qingbin, Ertan Hydraulic Development Co. Ltd

FIDIC Principles and Main Conditions of 1999-edition FIDIC Contrancts
---Given by the late Mr. Peter L Booen, Chief of FIDIC Contract Committee

Application of FIDIC Contract Conditions
---Given by Tian Wei, Vice President of China Civil Engineering Group

Issues in International Project Management
---Given by Wang Qizheng, Professor of Tsinghua Unniversity

Chinese Design Institute to International Consulting Firms
---Given by Luo Hailei, General Manager, EPC China
Topics of the Course of the Second Advanced Seminar of FTCTC
May, 2002, Shanghai

Leadership VS Management
---Given by Stanley Kawaguchi, FIDIC EC member

Introduction to Sustainability and Quality Management
---Given by Peter Boswell, FIDIC General Manager

Urban Sustainable Development --- Concept, Strategy and Task
---Given by Xiaqing, Deputy Director, China Environment Science
Research Institute

Environment Management System (EMS)
---Dr. Hari Srinivas and Dr. Iksan Van der Putte from UNEP

Key Points of 1999-edition FIDIC Contracts and Their Relations
---Given by Wang Chuan, Contract Committee, CNAEC

FIDIC Contracts and Best Procurement Practice
---Given by Daniel Ivarsson, FIDIC Managing Director