FIDIC    International Federation of Consulting Engineers
FIDIC News
May 2009
Online at FIDIC.org/news
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FIDIC
  
Activities
 
Delivering sustainable solutions to global challenges
FIDIC 2009 London Conference to address global challenges to better position consulting engineers as leaders.
 
Industry associations adopting many different approaches
FIDIC associations around the world are organising a wide range of initiatives to help mitigate the effects of the financial crisis on member firms.
 
Business
  
Development
 
Design for safety guidelines planned
Industry design for safety guidelines to be developed to help ensure that designers are not blamed inappropriately.
 
Practice
 
Revised quality management requirements standard published
Impact of a revised quality management standard on consulting engineering sector guides to be assessed.
 
Contracts
 
Labour clauses in contracts to be revised
Construction industry stakeholders seek modified labour clauses in FIDIC contracts to progress social issues.
 
Industry
  
Representation
 
Gulf states confirm need to restructure
An industry delegation visiting the Gulf region confirmed that organisations to represent business interests remained the key to enhancing local capacity.
 
Image
 
FIDIC GAMA Africa conference takes stock of millennium goals
Consulting engineers needed to assume greater leadership in more extended partnerships if Africa's Millennium Development Goals are to be achieved.
 
FIDIC ASPAC conference envisaged a greater role
Nepal's Prime Minister and fellow ministers saw the role of consulting engineers extending to all aspects of project delivery.
 
Principles
  
Ethics
 
South African government urged to underwrite integrity
Further commitments from government officials sought following a statement by the CESA-South Africa President and a visit by the FIDIC President.
 
Construction industry condemns global corruption
FIDIC and the Confederation of International Contractors' Association have issued a statement condemning corruption and proposing new initiatives.
 
Sustainability
 
Infrastructure seen as the key to sustainable development
Uganda minister stressed the need to upgrade project skills so that infrastructure investments ensured sustainable development.
 
Outstanding contributions to project sustainability recognised
John Boyd, FIDIC President, received the ACEI-Ireland President's Award for contributions to project sustainability.
 
Sustainable construction assessment standard released
Draft ISO standard for environmental performance assessment reviewed.
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Announcements
   
FIDIC Conferences and International Training Programme
 
 
Executive reviewed strategies to meet centenary objectives  
Members
 
 
FIDIC - Activities
 
Delivering sustainable solutions to global challenges [full item: 107Ac]
 
London"Delivering sustainable solutions to global challenges", the theme for the FIDIC 2009 London Conference, takes on a whole new meaning in the light of today's financial crisis, for it is the backdrop to other major global challenges that need to be addressed as a matter of extreme urgency. These challenges include climate change, the increasing energy demand, the massive need for infrastructure investment, and mass urbanisation. To address the challenges effectively the world needs the leadership, experience and creativity of the consulting engineering industry. Consulting engineers must position themselves to take the lead, mobilise resources and apply their expertise and knowledge to deliver sustainable solutions to the challenges, and help lead the world out of recession. The conference will explore three sub-themes - Industry challenges and responses; Critical geographic and sector issues; Developing a more agile, responsive and high-profile industry - with the overarching goal to identify the key actions FIDIC, Member Associations and member firms should take to ensure that the industry leads the response to addressing the challenges. Business sessions will break down and examine each theme in detail, with daily wrap-up sessions leading to a final report that will be used to benchmark outcomes at the FIDIC 2010 New Delhi Conference.
 
Very attractive rates are available for accommodation at the main conference hotel, the five-star Grosvenor House on Park Lane in Mayfair, and for an extensive programme of optional tours, events and conference-organised post-conference tours to England, Scotland and Ireland. Several new FIDIC publications will be released at the conference, including the report FIDIC State of the World. There are also extensive programmes for accompanying persons and for young professionals. Full details are available on the conference website, www.fidic2009.org, where participants can register and make reservations.
 
Industry associations adopting many different approaches [full item: 108Ac]
 
LondonReports from around the world point to an increased and accelerating investment in infrastructure as a means to stimulate economies affected by the drying up of credit. Announced stimulus packages amount to an additional 20 billion USD in industry turnover involving some 3% of industry staff (see Survey). FIDIC members are urging governments to ensure that investments are effective, and that the important role of consulting engineers is understood. As a snapshot of the wide ranging initiatives: AJCE-Japan has joined with sister organisations to lobby government for the rapid deployment of increased project funding for, with capacity building being stressed to help member firms enter global "sustainable solutions" markets of the type to be explored at the FIDIC 2009 London Conference (see www.fidic2009.org). CESA-South Africa is also organising special events for member firms to discuss the likely impact of the crisis on their business, complemented by a more thorough surveying of industry trends. VBI-Germany has been successful in having procurement procedures simplified to facilitate investment, with export guarantees now including consulting services. ACEC-Canada is working with other stakeholders to persuade the federal government to extend the deadline for completion of stimulus-related projects to avoid projects being of such low value that neither the consulting engineering industry nor Canadians will benefit. The ACEC-USA has sent a series of letters on economic stimulus to Congressional leaders arguing for specific provisions such as the suppression of an unfunded 3% withholding mandate. ACE-UK is working with government and agencies, nationally and locally, to ensure that investments are spent in the right areas. Syntec-France is partnering with government in planning full-time training given to engineers in selected disciplines to mitigate the impact of the crisis.
FIDIC 2009
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Conference
London
13-16 Sep09
 
ECV DAB Brussels
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Brussels
8-9 Jun09
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21-22 May09
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9-10 Jun09
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User Conference
Contracts
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Hong Kong
29-30 Jun09
 
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Business - Development
 
Design for safety guidelines planned [full item: 62De]
 
The health and safety of construction personnel is a topic of concern, with many countries introducing or strengthening legislation. In some cases, wide reaching laws effectively and inappropriately make consulting engineers responsible for the construction process. A common experience is that officials do not understand what designers do and so any accident with a "design cause" tends to be blamed on the designer, whether or not it is reasonable to do so, thus upsetting the delicate balance between duty of care and exposure to unreasonable or inequitable legal challenges. The FIDIC Business Practices Committee's Design for Safety Task Group is to draft a guide that defines the appropriate roles and responsibilities in relation to safety of all the key participants involved in design and construction. Given that the primary responsibility for construction safety should lie with the parties who are best able to control it, usually the contractor, the guide will also define the roles and responsibilities, in relation to construction safety, that are appropriately carried by consulting engineers.
 
Business - Practice
 
Revised quality management requirements standard published [full item: 80Pr]
 
With some one million certificates issued, the International Standards Organisation (ISO) 9001:2008 Quality Management (QM) requirements standard has replaced the 2000 version to make requirements clearer and to improve compatibility with other standards. Using a 9001:2008 table summarising changes, users should determine the impact of ISO 9001:2008 on their current interpretation of ISO 9001, as adjustments to QM systems may be needed, noting that from November 2010 ISO 9001:2000 certificates will be invalid. Users should also contact their certification body to agree an upgrading of certificates. Implementation guidance (available online) has been developed to help users during the co-existence period between the 2000 and 2008 versions.
 
Walter Painsi, FIDIC Quality Management Committee chair, participated in a late-February 2009 meeting of the ISO Technical Committee 176 steering committee responsible for further developing the ISO 9001 standard. Stakeholders will be asked to comment on the results of a brainstorming session on possible directions for a revision in about 2015. Meanwhile, the FIDIC committee will assess the impact of the new version on the FIDIC Quality Management Guide and the FIDIC ISO 9001:2000 Quality Management Interpretive Guide which are the consulting engineering industry's ISO-recognised sector guides.
 
Business - Contracts
 
Labour clauses in contracts to be revised [full item: 78Co]
 
The International Labour Organization (ILO), the Confederation of International Contractors' Associations (CICA) and the Building and Wood Workers International (BWI) examine every two years the contractual aspects of social issues in the construction sector. The February 2009 forum explored the use of contracts to ensure compliance with the social requirements of procurement. BWI anticipated, for example, that the requirements should be included in both contracts and technical specifications with a clear flow of responsibilities from the client to all those on site. The latest initiatives were aimed at not only private sector conditions of contract, notably FIDIC works contracts, but also the recently reviewed ILO Labour Clauses Convention, the Decent Work Agenda and Multilateral Development Bank (MDB) procurement. Enrico Vink, FIDIC Managing Director, argued that social considerations were best addressed in particular conditions of contract. Nevertheless, FIDIC contracts, notably the FIDIC MDB Harmonised Construction Contract, were perceived as instruments for advancing social issues. The MDBs have announced that the Harmonised Edition will be brought progressively into line with International Finance Corporation (IFC) performance standards that place significant new requirements on clients, some of which have been strongly opposed by authorities in some countries. The FIDIC Updates Task Group responsible for proposing updates to the 1999 editions of the FIDIC works contracts will examine the IFC standards for possible incorporation in general conditions. Separately, it is envisaged that FIDIC will work with CICA, ILO and BWI to develop guidance on contractual labour clauses.
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13-16 Sep09
 
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Brussels
8-9 Jun09
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21-22 May09
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29-30 Jun09
 
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Industry - Representation
 
Gulf states confirm need to restructure [full item: 63Re]
 
Breakneck growth in the Gulf region in recent years has encouraged authorities to strengthen instruments to improve regulation, notably in the construction sector. For instance, authorities have taken out licences to amend FIDIC conditions of contract in line with local requirements, thus eliminating the need to verify country-specific particular conditions. FIDIC has also responded by organising training events and by strengthening coordination with local organisations. While visiting six countries in the region in February 2009, Gregs Thomopulos, FIDIC President-Elect, and Peter Boswell, FIDIC General Manager, met local associations and government officials and participated in FIDIC Seminars presenting the status of consulting engineering. In spite of the global financial crisis leading to the closure of numerous, mainly private sector, construction projects, the demand for consulting services remained strong. Evident was a renewed urgency to organise the region's consulting engineering sector so as to make firms better able to met local needs. Most countries saw FIDIC membership as a vital step. Firms often did not have a clear-cut mandate and organisation to promote best practice and effective procurement. Instead, societies for individual engineers were expected to handle professional, regulatory and business aspects. The recommendation to FIDIC will be to continue to require FIDIC members to be an independent organisation with an elected board and voluntary membership that represented the business interests of firms. Significant progress was being made in this respect. The FIDIC delegation met with officials of the new Association of Kuwaiti Engineers, and the UAE Society of Engineers announced during the visit that it was to help establish an industry organisation. Society officials in Oman and Qatar indicated that they were mindful of the need to develop the capacity of local firms, but that legislation was needed to allow reorganisation. In these cases, the FIDIC delegation argued strongly for associate membership to allow a coherent approach in promoting FIDIC best practice.
 
Industry - Image
 
FIDIC GAMA Africa conference takes stock of millennium goals [full item: 45Im]
 
GAMAIn taking stock - Millennium Development Goals, are consulting engineers ready? - the FIDIC Group of Africa Member Associations GAMA 2009 Conference (Durban; 15-18 March 2009) echoed John Boyd, the FIDIC President: "In order to achieve social and economic growth it is most important that there is strong infrastructure in place". From a sectorial perspective, Raphael Mabenga, National Roads Agency, Zambia, gave his country's reformed road sector as an example of how achieving the goals relied heavily on transport infrastructure. Dr. Marlene Botha, DWAF-WISA African Partnerships, South Africa, went beyond this by arguing for the extension of sector-wide partnerships in the water sector to the regional level. From the financial perspective, African Development Bank representatives noted that the bank remained focussed on infrastructure-related public sector lending but that it had seen an increase in private sector lending through Public Private Partnerships. Thando Mhlambiso, ABSA Capital, South Africa, explained that a special unit had been set up to help channel private investment towards the USD 1 trillion needed to finance key industries in 12 African countries over the next 40 years.
 
As the FIDIC President noted, consulting engineers also needed to build their role as leaders along the lines discussed by Abdulhamed Abou Abdalla, Savings and Real Estate Investment Bank, Libya, and Ian Young, Kwezi V3, South Africa, who described how consultants in Libya had partnered with investment banks to provide turnkey solutions. A similar concept was proposed by Kribbs Moodley, PD Naidoo and Associates, South Africa, who had modelled the integration of engineering, business, local knowledge and networks to meet the millennium goals. Many of the conference's 170 participants, including representatives from 15 African countries, stayed for the GAMA General Assembly Meeting which elected Mayen Adetiba, Nigeria, as the GAMA chair, replacing Exaud Mushi, Tanzania, whose opening address stressed the need to tackle corruption (presentations are available at FIDIC.org/GAMA).The 2009 GAMA Executive Committee shown in the photo are, from the back left, Nabil Chater, Tunisia, Mwesigwa Kamulali, Tanzania, Ashraf Zaki, Sudan, Bob Izzett, Botswana, George Sitali, Zambia, Mayen Adetiba, Nigeria, and Arthur Taute, South Africa.
FIDIC 2009
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13-16 Sep09
 
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Brussels
8-9 Jun09
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21-22 May09
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Hong Kong
29-30 Jun09
 
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FIDIC ASPAC conference envisaged a greater role [full item: 46Im]
 
Making globalization work is a preoccupation now that the financial crisis is tending to reinforce trade barriers. The role of consultants is perhaps clearer given that infrastructure investments feature in many stimulus packages. The FIDIC ASPAC Asia-Pacific 2009 Conference (Kathmandu; 11-13 February) organised with the technical cooperation programme TCDPAP by SCAEF-Nepal addressed both topics with the aim to enhance the consulting engineering industry's effectiveness in developing global partnerships. Inaugurating the conference, the Nepalese Prime Minister Pushpa Kamal Dahal and three ministerial colleagues from public works, science and technology and finance departments stressed that their government relied upon consulting engineers not only to provide technical solutions but also to help identify what was needed, where the finance was to be found, what legislation would make solutions work, and how to get the job done. John Boyd, FIDIC President, Gregs Thomopulos, FIDIC President-Elect, and Aki Hirotani, ASPAC chair, reported that only 52% of the funding required for public works was government financed, with engineers very much involved in alternative financial sources. The Prime Minister noted that his government encouraged public-private partnerships as a matter of policy.
 
Aki Hirotani profited from the presence of 150 participants from 15 Asia-Pacific countries to review the status of consulting engineering and ASPAC activities (see presentation PDF). Economic growth and the demand for infrastructure remained strong, but the business climate had deteriorated. ASPAC currently focussed on securing a sustainable range of activities with an emphasis on capacity development through FIDIC and member association training programmes, an ASPAC Young Professionals Forum and regular networking via websites, a newsletter and regional conferences such as the ASPAC conference and the FIDIC Asia-Pacific Contracts Users Conference (Hong Kong; 29-30 June 2009).
 
Principles - Ethics
 
South African government urged to underwrite integrity [full item: 42Et]
 
CESAIn launching in February 2009 a new identity for the South African Association of Consulting Engineers, which now becomes Consulting Engineers South Africa (CESA), Felix Fongoqa, CESA President (see photo), gave as a major focus a "zero tolerance approach to all forms of corruption" which is "undermining the construction industry" in his country. An Anti-Corruption and Business Integrity Indaba is planned along with continued promotion of the FIDIC Business Integrity Management System (BIMS). CESA aimed to move from awareness to the implementation of BIMS within member firms as part of quality management. He also called for public sector clients to adopt the Government Procurement Integrity Management System (GPIMS) which ensured that a high level of integrity prevailed among those in positions of trust. He stated that, "As an organisation we will be lobbying government to adopt and underwrite this system as a matter of national policy with respect to the procurement of infrastructure". While visiting South Africa shortly after for the FIDIC GAMA-Africa Conference (see News item), John Boyd, FIDIC President, was in fact able to obtain a commitment from a senior Department of Transport official to advocate BIMS and to help set up meetings with officials in the Treasury and the Department of Public Works to broaden the initiative. As the President pointed out, regulatory bodies are the third party in corruption, often condoning what was done on the demand and supply sides.
 
Construction industry condemns global corruption [full item: 43Et]
 
CICAIn an unprecedented move, FIDIC and CICA, the international confederation representing the contracting sector, have issued a statement jointly condemning the negative impact of corruption on society in general, and on sustainable business practices in particular. Both noted that the private sector had implemented procedures designed to increase transparency and to curb unethical practices. However, these efforts had not been accompanied by corresponding initiatives from public stakeholders who, to a large extent, had not improved their internal procedures in order to manage integrity issues more effectively. Moving forward, FIDIC and CICA aimed to set up partnerships with international finance institutions, procurement agencies and organisations representing private clients that acknowledged the practical tools which had been developed to systematise integrity management.
FIDIC 2009
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Conference
London
13-16 Sep09
 
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Brussels
8-9 Jun09
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21-22 May09
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29-30 Jun09
 
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Principles - Sustainability
 
Infrastructure seen as the key to sustainable development [full item: 2Su]
 
The need to maintain infrastructure to ensure sustainable development was stressed by the Hon. John Nasasir, Uganda's Minister of Works and Transport, in his opening address at the UACE-Uganda FIDIC International Seminar (Kampala; 23 January 2009) "because the other sectors largely depend on the adequacy and quality of infrastructure". The seminar took place following a series of two-day FIDIC Contracts Training Courses which the Minister acknowledged as "the first such private sector led initiative in a long time". He noted that "the quest for sustainable development and value for money is focusing on increasingly shifting risks from the traditional adversarial parties in the classical forms of contract to centres that are best suited to handle them." He indicated that "the government has streamlined its resource mobilisation, leaving physical implementation and accountability to the private sector. It was therefore timely that UACE had embarked on training courses involving the effective management of projects". His ministry was working with stakeholders to sustain the gains from massive investments in infrastructure, notably roads: he expected consulting engineers to act as trusted advisors and contractors to adhere to their contractual obligations. With a clear mandate to help upgrade skills, FIDIC is entering into an agreement with the UACE to organise International Training Programme training courses.
 
Outstanding contributions to project sustainability recognised [full item: 3Su]
 
BoydDr John Boyd, FIDIC President, received the ACEI-Ireland President's Award for "outstanding contributions and dedication to the promotion of Project Sustainability Management within the global market" at the association's annual awards dinner in Dublin in February 2009. In his acceptance address, John challenged consulting engineers "to innovate in difficult times and by so doing create a more sustainable future for our society". The key to PSM were the goals for the seven issues to be addressed for a sustainable project in addition, of course, to timely delivery, according to budget, and suitable for the intended purpose. If the industry's clients considered these issues at all, it was in the context of conforming to the regulatory framework that existed at the project site. PSM was based on the premise that regulatory frameworks provided an inadequate set of targets: many regulations were too simple and ignored the fact that what was acceptable today may be unacceptable within a project's lifetime. Projects therefore inhabited the rocky ground between regulation and perfection defined in sustainability terms, with their contribution to sustainability measured by how closely they approached true sustainability. The President pointed out that PSM training courses organised under the FIDIC International Training Programme showed how these PSM principles were applied in practice.
 
Sustainable construction assessment standard released [full item: 4Su]
 
Buildings represent nearly 50% of greenhouse gas emissions so their environmental performance must be established in order to communicate their impact on sustainable development. International Standards Organization (ISO) standards aim to establish a framework for methods to assess the environmental performance of buildings that is applicable internationally. Such assessments are carried out within for scope of FIDIC's Project Sustainability Management. Basic principles, terminology and the assessment framework for environmental, economic and social aspects were laid out in ISO 15392, ISO/DTR 21932 and ISO/TS 21929-1, respectively. A more detailed standard for the framework for methods of assessment of the environmental performance of buildings has been issued for discussion as ISO/FDIS 21931-1 replacing ISO/TS 21931-1/2006 (a Part 2 for civil engineering works is under development). The bulk of the draft standard emphasises generic aspects, with a chapter dealing with explicit descriptions of assessment methods as the key component. These methods must recognise a building as an integrated assembly of products, as a place for various activities, and as a functioning system. Preliminary comments by the FIDIC Sustainable Development Committee noted that most of the core guidance relating to methods was in fact contained in appendices. More generally, FIDIC aimed to provide guidance on the application of sustainable construction standards as was done for environmental management. Meanwhile, FIDIC-iISBE Sustainable Building and Construction Education and Training (SBCET) courses organised by the FIDIC International Training Programme cover standards not only for assessment but also for the broader aspects of sustainable procurement.
FIDIC 2009
FIDIC
Conference
London
13-16 Sep09
 
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Course
Brussels
8-9 Jun09
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21-22 May09
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29-30 Jun09
 
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Announcements - Events
 
FIDIC Conferences and International Training Programme [full item: 63Ev]
 
FIDIC-FEPAC Seminar, Sao Paolo, 19 May 09
FIDIC-Cornerstone Workshop (Contracts), Johannesburg, 21-22 May 09
FIDIC-ECV Training Course (Claims), Vienna, 25-26 May 09
FIDIC-ECV Training Course (DABs), Brussels, 8-9 Jun 09
FIDIC-DBT Intensive Training Course (DABs), Sarajevo, 9-10 Jun 09
FIDIC-Cornerstone Workshop (Contracts), Budapest, 15-16 Jun 09
FIDIC Intensive Course (Management), Qatar, 23-25 Jun 09
FIDIC Asia-Pacific Contracts Users Conference, Hong Kong, 29-30 Jun 09
FIDIC Lebanon Seminar, Beirut, 7 Jul 09
FIDIC 2009 London Conference, 13-16 Sep 2009
FIDIC-ICC Contracts and Dispute Resolution Conference, Istanbul, 14-16 Oct 09
eFIDIC Online Training Programme (Agreements), mid-Oct 09 - mid-Feb 10
 
Announcements - Notices
 
Executive reviewed strategies to meet centenary objectives [full item: 4No]
 
With a global crisis on everyone's doorstep, a cautious approach to budgeting, the unprecedented demand for FIDIC services, a significant surplus for the FIDIC 2008 Quebec Conference and the recovery of surpluses for other events had ensured a healthy financial outcome for FIDIC for 2008. The FIDIC Executive Committee meeting in Kampala in late-January 2009 confirmed that additional investment was needed meet the growing demand for FIDIC services. The work of drafting groups for new or revised guides for Quality Based Selection, risk management, design for safety, scoping consulting services, Project Sustainability Management (PSM), and project procurement was consolidated. The executive confirmed the planned appointment of Philip Jenkinson to replace Axel Jaeger as the Contracts Committee chair, as were proposals for updating the 1999 FIDIC works contracts. For training, the proposal to launch eFIDIC online training programmes based on FIDIC Contracts and Business Practice modules was approved (Module 0, Professional Services Agreements, started in mid-March 2009). eFIDIC built upon the online Young Professionals Management Training Programme (www.fidic.org/ypmtp), now in its sixth year, which got underway in February 2009. Also approved was continuation of the Capacity Development Programme to accredit national trainers to the level required for the FIDIC International Training Programme, and support to develop PSM training modules in association with the International Initiative for Sustainable Built Environment (iISBE). An offer for the supply of annual conference services would be accepted, starting with some services for the FIDIC 2011 Tunis conference but targeting the FIDIC 2013 Centenary Conference, with details to be announced during the FIDIC 2009 London Conference, 13-16 September, www.fidic2009.org.
 
FIDIC aimed to bring the industry closer to clients through greater regional representation and direct contact with other industry sectors. The former called for a coordinated programme of visits and alternative approaches to subscriptions that recognised industry trends. These issues were to be analysed by a task force headed by Adam Thornton, FIDIC Treasurer. Benchmarking activities using a balanced scorecard was allowing FIDIC to better measure its performance in meeting strategic "Vision 2013" goals for integrity management, sustainability, procurement, capacity development, and industry representation. The Executive Committee noted progress in engaging with the development banks on these issues through a continuing programme of visits.
 
Members [full item: 5No]
 
Executive Committee, Sao Paolo, 21-22 May 09
MA Letters 01/09: EFCA Survey PDF
MA Letters 02/09: EC Nominations PDF
MA Letters 03/09: Asia-Pacific Users Conference PDF
FIDIC 2009
FIDIC
Conference
London
13-16 Sep09
ECV DAB Brussels
DAB
Course
Brussels
8-9 Jun09
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Cornerstone Contracts Jo'burg
Contracts
Workshop
Jo'burg
21-22 May09
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FIDIC Intensive Course
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Sarejvo
9-10 Jun09
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Contracts
User
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Hong Kong
29-30 Jun09
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