FIDIC    International Federation of Consulting Engineers
FIDIC News
November 2007
Online at FIDIC.org/news
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Activities
 
Singapore success
Participants from a record number of countries learnt about the key factors for successful business relationships.  
Executive proposed three new national members
The Executive Committee meeting just before the FIDIC 2007 Singapore Conference agreed to propose three new associations.  
Meetings made a vital contribution to the annual conference
All of FIDIC's committees were able to meet during the FIDIC 2007 Singapore Conference.  
FIDIC's 79th association voted at 2007 General Assembly
With new members from Jordan, Kazakhstan, Malawi, and Russia voted in, FIDIC now has 79 Member Associations.
 
Events
 
Forthcoming meetings and events
Late-2007 events include FIDIC contracts courses, training workshops and conferences.  
Young professionals: the future is today
The FIDIC 2007 Young Professionals Management Training Programme ended with a resounding success at the FIDIC 2007 Singapore conference.
 
Contracts
 
DBO contract launched
A series of events are providing vital feedback on the new FIDIC contract for Design, Build and Operate projects.
 
Business practice
 
Guide to Practice Training Manual update
FIDIC Capacity Building Committee seeks help to update FIDIC training manual modules
 
Business development
 
World Bank to pursue country systems mandate
While there is little direct impact on consulting engineering, the use of country procurement systems for bank funded projects raises many concerns.
 
Ethics
 
UN corporate citizenship summit makes history
Business leaders and their representatives, including FIDIC, called for greater cooperation.  
FIDIC collaborates on anticorruption programmes
FIDIC is partnering with organizations representing contractors to seek greater support for private sector initiatives.  
Industry anticorruption initiatives extended
FIDIC is extending initiatives with other organizations to help address the needs of funding agencies
 
Image
 
African Development Bank procurement proposals
FIDIC has thanked the African Development Bank for its decision to harmonise guidelines for consultants.
 
Notices to Member Associations
 
MA Notices: November 2007
 
 
Published every two months by FIDIC for distribution to members and to the consulting engineering industry via FIDIC's 79 national Member Associations. Copyright FIDIC 2007.
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Activities
 
Singapore success [full item: 96Ac]
 
BoydParticipants from a record breaking 69 countries who participated in the FIDIC 2007 Singapore conference on 9-13 September were able to hear keynote speakers from the Asian Development Bank, bilateral funding agencies (Japan International Cooperation Agency; Japan Bank for International Cooperation) and leading contractors (Leighton Asia) and consultants (Maunsell-AECOM) explore their changing relationships, especially within the construction sector which dominates investment decisions for infrastructure. The conference was opened by Mah Bow Tan, Singapore's Minister of National Development, following a magnificent welcome reception the evening before at the impressive Asian Civilisations Museum, which was hosted by the Association of Consulting Engineers Singapore. The Minister is seen in the photo being welcomed to the conference by Jorge Diaz Padilla, then FIDIC President, with John Boyd, the new FIDIC President on the left. The Minister, after being introduced by Lim Pheng Hong, the conference chair (photo below), reflected on globalisation and the relationships between countries in the development of modern economies. He stressed the major role played by consulting engineers, who are often leaders in bringing the benefits of best practice. New models for collaboration are being implemented as projects become larger and more complex. Roles within the project team are also changing, and new opportunities are being created through partnering to find innovative ideas to meet the challenging requirements for high quality projects.
 
LimOn the second day, some 37 speakers from 15 countries shared a wealth of views and experience in nine interactive workshops that addressed carefully selected topics. Presentations are available on the conference website, www.fidic2007.org. A highlight of the third day was an inspired presentation by the participants in the 2007 FIDIC Young Professionals Management Training Programme, see News item. Other highlights were seminars that demonstrated the practical application of sustainability, as captured in FIDIC's Project Sustainability Management guidelines (see FIDIC.org/PSM), and FIDIC's commitment to fight corruption through Business Integrity Management (see FIDIC.org/BIMS). Case studies demonstrated the commercial application of the FIDIC tools, both in raising the quality of services and in addressing stakeholder concerns. Numerous social activities entertained participants and their partners in between the busy schedule of meetings and workshops which helped chart a course for the industry, and introduced the topics that will be taken up at the FIDIC 2008 Quebec Conference (9 -11 September; www.fidic2008.org).
 
Executive proposed three new national members [full item: 97Ac]
 
JordanThe Executive Committee tackled once again a broad range of strategic and management issues. It approved publication of the Pre-Press Seminar Edition of the FIDIC Design, Build and Operate Contract (see News item), noting that other committees would be asked to give feedback before the First Edition is published in 2008. Other efforts to increase collaboration between committees would focus on the Guide to Practice Training Manual, with various committees being asked to update training modules (see News item). The Capacity Building Committee which is responsible for the manual would continue to address the dissemination of international best practice rather than, for example, the development of the consulting industry in countries with poorly developed consulting sectors. It was agreed that the FIDIC List of Mediators should be reinstated to support appointments of mediators under the FIDIC Client/Consultant Model Services Agreement, and that while lists of dispute board adjudicators established by Member Associations would continue to be supported indirectly, FIDIC's main focus would continue to be the President's List of adjudicators (see FIDIC.org/dab). Regarding sustainable development, a strategy group will be asked to report on how FIDIC can best help enhance the role of consulting engineers in taking the lead on project sustainability where there is a tendency for other industry sectors to assume a greater role, and risk.
 
Decisions affecting governance issues such as statutes revisions, membership fees, finances and representation were reported to the Member Association Presidents and Directors Meeting and the General Assembly Meeting (GAM) that were held during the conference (see News item). The photo shows, on the right, Jorge Diaz Padilla, the retiring FIDIC President, receiving a plaque from Wael Saqqa, President, Jordan Engineers Association, on behalf of the Jordan Architects and Consulting Engineers Council, that was admitted to membership at the GAM.
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Meetings made a vital contribution to the annual conference [full item: 99Ac]
 
An important stream of activities that ran in parallel to the FIDIC 2007 Singapore Conference programme included meetings of all of FIDIC's nine committees, as well as meetings of committees working on future FIDIC conferences. Meetings were also held with representatives of the Japan Bank of International Collaboration, which seeks closer collaboration, particularly in the area of training and standardised contracts, and of the major multilateral development banks, primarily to review the outcomes of the BIMILACI meeting in Washington in May 2007. It has been noted that given the number of critical issues affecting both the consulting engineering industry and funding agencies, there is value in meeting annually instead of every two years.
 
FIDIC's 79th association voted at 2007 General Assembly [full item: 98Ac]
 
ECThe FIDIC 2007 General Assembly Meeting (GAM) during the FIDIC 2007 Singapore Conference saw the election of Dr John Boyd as the FIDIC President for 2007-9; Gregs Thompoulos, USA, was elected Vice-President. In his acceptance address (available on www.fidic2007.org), John stressed that consulting engineers need to be not only trusted advisors to clients but also trusted advisors to society - a theme on the industry's role in society that will be taken up by the FIDIC 2008 Quebec Conference in his own country, Canada. Dr Boyd is a senior Principal, Golder Associates Corp., Canada, based at the company's headquarters near Toronto. John has been focussing recently on business and management training both within Golder and externally, especially on sustainable development. His most recent position in the company was Vice-President, Operations.
 
The new members elected to the Executive Committee to succeed Bayo Adeola, Nigeria, Jorge Diaz Padilla, Mexico, and Maxime Mazloum, France, were Patrick Batumbya, Uganda (on the left in the upper photo, Pablo Bueno Tomas, Spain, and Adam Thornton, New Zealand (on the right in the photo; CVs available on FIDIC.org). The GAM acknowledged Knowles, UK, as a new Affiliate Member, approved Tunis as the venue for the FIDIC 2011 conference, and unanimously approved the Association of Consulting Engineers Malawi (ACEM), the Jordan Architects and Consulting Engineers Council (JACEC), the Kazakhstan Association of Consulting Engineers (KACE), and the Russian Association of Engineering Consultants (RACE) as members, bringing the number of FIDIC Member Associations to 79.
 
PrangeyWith Maxime Mazloum, the retiring Treasurer, reporting record Bookshop sales, significant new income from events and licences, an excellent recovery of membership fees, and a surplus for the FIDIC 2006 Budapest Conference, the GAM accepted the Executive Committee's recommendation not to increase the unit fee for subscriptions, and noted that Flemming Bligaard Pedersen, Denmark, had taken over as FIDIC Treasurer. The GAM also approved revisions to the FIDIC Statutes and By-laws that simplify membership by merging Sustaining Members with Affiliate Members, and by replacing Correspondents with a new Associate Member category. Finally, in appreciation of the remarkable contributions by volunteers to committee work, Axel Jaeger, Germany (on the right in the photo), and Tonny Jensen, Denmark (on the left), received the Prangey Award, FIDIC's only award, for their contributions to the drafting and promotion of FIDIC contracts and quality management documents, respectively (citations are available on www.fidic2007.org in PDF).
 
Events
 
Forthcoming meetings and events [full item: 56Ev]
 
FIDIC-Cornerstone Contracts Workshop, Warsaw, 3-4 Dec 07
FIDIC Contracts Users Conference, London, 6-7 Dec 07
FIDIC-Jordan Business Development Course, Amman, 8-9 Dec 07
FIDIC-Jordan Financial Management Course, Amman, 10-11 Dec 07
FIDIC-ECV Contracts (Module 1) Course, Dubai, 21-22 Jan 08
FIDIC-ICC Contracts and Dispute Resolution Conference, Monaco, 24-25 08
FIDIC-Spain PSM Seminar, Madrid, 30 Jan 08
FIDIC DBO Briefing Seminar, Copenhagen, 1 Feb 08
FIDIC-Egypt Contracts User Conference, Cairo, mid-Feb 08
FIDIC-ECV Contracts (Module 1) Course, Brussels, 3-4 Mar 08
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Young professionals: the future is today [full item: 57Ev]
 
YPMTP07Close to 50 enthusiastic young managers from 20 countries (see photo) ended the FIDIC 2007 Young Professionals Management Training Programme with training sessions and a Young Leaders Workshop at the FIDIC 2007 Singapore Conference (9-13 September; presentation available on www.fidic2007.org in PDF). The passion and interest shown by these future industry leaders to become more involved was clear to all. Senior colleagues in the audience confirmed their commitment to support young professionals, recognising that they would be leading their firms in the near future, for in the words on one participant "the future is today". An increasing number of FIDIC Member Associations and their member firms are encouraging and supporting future leaders, who think globally and act locally. Registration for the 2008 programme starting in early-February 2008 closes on 31 December 2007. Scholarships covering the registration fee and expenses for participating in the FIDIC 2008 Quebec Conference are available for participants coming from less-developed countries (full details at FIDIC.org/ypmtp).
 
Contracts
 
DBO contract launched [full item: 69Co]
 
DBOA special seminar attended by some 100 participants that was held immediately after the FIDIC 2007 Singapore Conference launched the long awaited FIDIC Design, Build and Operate Contract (see FIDIC.org/DBO). Animated discussions with Axel Jaeger and Michael Mortimer-Hawkins, the main drafters and seminar presenters, demonstrated the strong demand for this new, innovative form of contract. Thanks to the tremendous efforts of a dedicated task group, overseen by the FIDIC Contracts Committee, with strong support from the FIDIC Executive Committee and Secretariat, as well as the generous efforts of a team of international reviewers, it had been possible to publish a special Pre-Press Seminar Edition of the contract in time for the annual conference. The edition is available from the FDIC Bookshop in the usual printed and electronic versions (see FIDIC.org/bookshop). A second one-day briefing seminar was held in London on 11 October 2007, and a third seminar is planned for Copenhagen on 11 January 2008 (see FIDIC.org/DBO). In between there is the FIDIC Users Conference (London; 6-7 December 2007) which is one of FIDIC's main platforms for reviewing recent experience with all of the federation's contracts (see FIDIC.org/users). Input from these events will contribute to the task group's analysis of feedback from the marketplace prior to recommending any modifications which will be needed before publishing the complete First Edition of the DBO Contract in 2008.
 
Business practice
 
Guide to Practice Training Manual update [full item: 74Pr]
 
GuideAt its last meeting, the FIDIC Capacity Building Committee (CBC) decided to update and upgrade the FIDIC Guide to Practice Training Manual - The business of a professional services firm. Presented in modules, with each module covering a specific area of consulting engineering practice, the manual aims to provide basic knowledge of good practice. Its primary targets are firms in developing countries and the training of new intake in firms in developed countries. Each module involves a few training sessions, is not exhaustive and contains references for further reading. No more than three training sessions, each of two hours, is generally required. The modules do not compete with or replace the one- to three-day training courses on the different topics supplied by FIDIC that use the modules as the scope of the course content. Since several of the topics covered by the modules derive from existing documents prepared by FIDIC committees, the CBC thinks that the best approach for reviewing and updating existing modules and introducing new modules is to request committees to prepare or update their relevant modules, with certain modules being updated by CBC. Bayo Adeola, the CBC chair, has asked committee chairs to support this effort, which is planned to finish by the FIDIC 2008 Quebec Conference, www.fidic2008.org.
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Business development
 
World Bank to pursue country systems mandate [full item: 55De]
 
BanksThe World Bank aims to proceed with the development of a new programme aimed at assessing the capacity of borrowing countries for internal procurement management. This has long been one of the bank's (and indeed most multinational development banks') policies for the development of borrowing countries. Considerable effort has gone into addressing the concerns raised over the last two years from a number of stakeholders and organisations such as FIDIC. FIDIC has assessed the World Bank's latest proposal on the use of country systems. Although the direct impact on the consulting engineering industry is minimal, there are potential impacts on broader procurement in the countries selected for a pilot programme. Details on the Methodology for Procurement Country Systems Piloting Programme can be found at www.worldbank.org under "Consultations and Discussions", and comments were requested up to mid-November.
 
Intense discussions in Paris in October 2007 with FIDIC (the photo shows John Boyd, FIDIC President, with Heads of Procurement, from the left: Ahmed Benbarka, AfDB; Dilek Macit, EBRD; Sabine Engelhard, IADB; Patricia Baquero and Bernard Becq, World Bank; Ignatius Santoso, ADB) and a special World Bank presentation demonstrated how FIDIC's concerns were being addressed. Details were provided on the selection criteria that will be used to assess borrowing countries taking part in a pilot programme. They are derived from the well understood OECD-DAC Methodology for Assessment of National Procurement Systems, available online in PDF and used by many countries, combined with checks and balances to ensure that only qualified countries participate, and that their systems are sufficiently robust. Particular concerns raised by FIDIC were reviewed at the 2007 BIMILACI (see FIDIC.org/BIMILACI) meeting with the banks. A related, and highly critical, issue for the banks is how best to address the capacity building needs of those countries which do not yet have the necessary capacity or skill to conduct their own procurement. This is where FIDIC also has an interest with its capacity building initiatives and several best-practice tools such as Business Integrity Management, the GPIMS version (see News item) for government agencies, and Project Sustainability Management. Workshops are planned for 2008 to look in more depth into the issues raised by the use of country procurement systems for bank funded projects before new programmes are implemented.
 
Ethics
 
UN corporate citizenship summit makes history [full item: 35Et]
 
The second UN Global Compact Leaders Summit (5-6 July 2007) at the UN Headquarters in Geneva gathered over 1000 chief executive officers, government ministers, heads of civil society and labour organizations, making it the largest event ever convened by the UN on the topic of corporate citizenship. The UN Secretary-General Ban Ki-moon, as co-chair, urged participants to work together to get their own houses in order so that, together, they might bring the fight against corruption to where it can make its greatest impact - in the way in which business is conducted, and the way in which the private sector interfaces with government procurement. FIDIC, as one of the few industry groups invited to participate, shared its views on procurement, and the challenges that institutional corruption present to meaningful reforms. The Government Procurement Integrity Management System (GPIMS) proposed by FIDIC (see News Item) was presented as a essential tool for government officials who lacked an understanding of corrupt practices and their impact on those who need the services offered by improved infrastructure. Participants adopted a declaration (available online in PDF) which spells out concrete actions for business and government.
 
FIDIC collaborates on anticorruption programmes [full item: 36Et]
 
Ongoing discussions with the Confederation of International Contractors' Association, CICA, has resulted in broad agreement on a joint statement on corruption. Acknowledging the evils of corruption and its negative impact on society, consulting engineers and contractors believe that more can be done, and should be done, by the world's leaders and by procurement officials. But while the latter need to face up to the root causes of corruption, they must also understand the importance of collaborating with industry in a more positive way. This should include recognition for industry's achievements and initiatives, including the development of tools designed to tackle and mitigate corruption in procurement.
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Industry anticorruption initiatives extended [full item: 37Et]
 
FIDIC is discussing an initiative to promote anticorruption activities with the World Federation of Engineering Organisations, WFEO, that represents professional engineering associations. A draft memorandum of understanding recognises that professional engineers have a professional duty to act with integrity, in both the private and public sectors. FIDIC in fact puts the case more strongly by stressing that there are also good commercial reasons for acting with integrity, particularly when it comes to procuring professional services, and to developing high quality, sustainable projects. It is anticipated that future initiatives with Confederation of International Contractors' Association, CICA (see News Item), WFEO and similar organizations will include collaboration and the implementation of tools, training and capacity building with funding agencies.
 
FIDIC's Managing Director, Enrico Vink, attended a meeting in November 2007 of the steering committee responsible for the Transparency International Business Principles for Countering Bribery. There is now a version for small and medium-sized enterprises and modified guidance document is being prepared (the full guide is available online). Both are being considered by FIDIC for some form of endorsement to reinforce FIDIC's anticorruption initiatives based on integrity management.
 
Image
 
African Development Bank procurement proposals [full item: 40Im]
 
In July 2007, the African Development Bank (AfDB) called for comments to revised Rules of Procedure for the Use of Consultants (see News item). As many of the proposed procedures are identical to those of the World Bank and other major development banks, in its submission in August 2007 FIDIC applauded the bank's decision to continue to harmonise procurement procedures. Responsible for some USD 8 billion per annum investment in Africa, the AfDB has recognised the value of aligning itself more closely with the other banks so as to facilitate the provision of goods and services. A comparison by FIDIC between the 2000 version and the new draft version is available online in PDF, together with comments by the FIDIC GAMA Group of African Member Associations and others on those changes which are unique to the AfDB document.
 
Notices to Member Associations
 
Meetings: see Meetings
Executive Committee, Madrid, 28-29 Jan 08
FIDIC-EFCA Task Force, Madrid, 30 Jan 08
 
MA Letters
11/07: GAM 2007 Minutes PDF
12/07: Young Professionals Training PDF
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