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TRANSCRIPT
Business Practice Tools
Rick Prentice, Chair
FIDIC BUSINESS DAY
Business Practice Tools Wednesday, 18 September 2013
13:00 – 15:00, Lecture Hall H2
TODAY’S AGENDA
Introduction Rick Prentice 5 min
Quality Based Selection
Fatma Colasan 25 min
Procurement Reform Panel Moderator Mark Steiner 60 min
Bernard Becq, Roger Fiszelson, Patrick Batumbya
Disaster Management Adam Thornton 15 min
Client Award Peter Rauch 10 min
Wrap up Summary Chris Newcomb 5 min
TERMS OF REFERENCE
• Seek input on key business issues
• Identify potential for original work.
• Develop best practice guidance and recommend
delivery mechanism
• Recommend creation of task groups
• Monitor developments in key areas and inform
• Communicate and promote FIDIC guides
• Monitor procurement guidelines
BUSINESS PRACTICE TOOLS
Examples:
• Quality Based Selection
• Definition of Scope
• Disaster Management
• Client Award Template
• International Aid Best Practice
COMMITTEE MEMBERS
Fatma Colasan, Turkey
Peter Rauch, Switzerland
Mark Steiner, U.S.A.
Kaoru Kariya Japan
Andreas Gobiet, Austria
David Delizza, U.S.A
Andrew Read, N. Z.
Adam Thornton, N. Z.
Samarjit Chatterjee, India
Jan van der Putin, Belgium
Italo Goyzueta, Secretariat
Enrico Vink, Secretariat
Rick Prentice, Canada Chair
Chris Newcomb, Canada, E.C. Liaison
CONFERENCE THEME
‘……….. Pressing issues confronting humanity …climate change, sustainable infrastructure, energy, urbanisation, water and waste
‘………… Global politics and financial uncertainties ... decision making process critical for investment in vital infrastructure
‘………… Implement the right projects ……. better financial options for funding key development
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‘………… Consulting engineers have skills and tools to direct development of sustainable infrastructure
‘……..…… key to successful and sustainable investment strategy and improving the many gaps still remaining in Quality of Life
MONDAY WE HEARD
Challenges and opportunities – comparisons – reflections – how have business tools changed over the past 100 years?
• Formula 1 – can’t compete on price - Fear factor
• Snowy Khoza – knowledge does not retire and knows no boundaries – knowledge never retires
• PPP – PEOPLE – PROJECTS - PROFIT
•Engineers without borders: 60% of all aid projects fail within 6mths
•Engineers monitoring the performance of the government in India
YESTERDAY WE SAID
What remains to be done? – based on the ideal situation
Randel Pinkett – Demonstrate value ……every day,
continuously
Plenary session on social entrenpreneurship
CEO Keith Howells – PRIDE Values
Progress, Respect, Integrity
Drive, Excellence
Mike Harcourt – Engineers are the Integrators, Innovators
and Implementers
THIS MORNING
Tools to assist in sustainable solutions – what is sustainability and how is it affected by our approach to
business practice?
Integrity, contracts, project finance, YP, Capacity building
RECURRING COMMENTS
• Quality of life – influenced greatly by quality of engineering
• Quality of life - our responsibility, OUR CHALLENGE
• Innovation & advancement occur frequently - what kind of client relationship fosters this?
• Our technical solutions may help find the answers.
• consulting engineers - as trusted advisor - need to be recognized
Question - How can we improve our business practice to better influence technical outcomes?
COMMON ELEMENTS FOR
SUCCESSS
• Well defined scope
• Appropriate qualifications
• Availability of resources
• Knowledgeable consumer
• The right team, the right project, the right time
QBS, Mrs Fatma Colasan
QBS, QBS MS, SELECTION
Mrs. Fatma Colasan, Task Force Leader
Partners & Managing Director
GEN-TES Eng. Ltd.
Ankara, Turkey
• Quality Based Selection
• Quality Based Selection Marketing Strategy
• Consultant Selection Update
Procurement Reform
Panel Moderated by Mr. Mark Steiner
PROCUREMENT REFORM
Mark E. Steiner, P.E., is Senior Policy Director with the American Council of Engineering Companies (ACEC), the voice of America's engineering industry. His focus is on leading initiatives to enhance designer impact on projects and programs, while improving the business,
regulatory, and procurement environment within which engineering firms operate.
PROCUREMENT REFORM
Introductions & Remarks Mark Steiner
Speaker # 1
Development Bank perspective
Mr. Bernard Becq (formerly World Bank)
15 m
Speaker # 2
Contractor perspective
Mr. Roger Fiszelson, CICA (Confederation of International Contractors' Associations)
5 min
Speaker # 3
Consultant perspective
Mr. Patrick Batumbya, Uganda
5 min
Speaker # 4
Client
General Feedback
5 min
Questions
20 m
World Bank Procurement Review
Why?
Capacity Development
Multiple Donors
About Time
Leadership Role
Value for Investment/Total Costs
Focus?
High Risk
Complex
High Cost
Disaster Management,
Adam Thornton
DISASTER MANAGEMENT
Adam Thornton
Director
Dunning Thornton Consultants Ltd
FIDIC Disaster Management Guide
Background
4 Rs of Disaster Management
Risk Reduction
Readiness
Response
Recovery
FIDIC Disaster Management Guide
Background
Marginal habitats
Increasing disasters
Increased impacts
Privatisation of engineering services
FIDIC Disaster Management Guide
Risk Reduction
Identification
Reduction
Mitigation
- Resilience
FIDIC Disaster Management Guide
Readiness
As individual engineers
As consultant companies
As Member Associations
FIDIC Disaster Management Guide
Response
Personal safety
Secondment
Rapid evaluations
Liabilities
Communications
FIDIC Disaster Management Guide
Recovery – Short Term
Immediate restoration
Data gathering
Planning
Direct appointment
Resources
Burnout
Evolving standards
FIDIC Disaster Management Guide
Recovery – Longer Term
Business as usual
Managing priorities
New regulations
Lessons learned
Client Award Template
Peter Rauch
CLIENT AWARD TEMPLATE
Peter Rauch, Switzerland
Swiss Association of Consulting Engineers | www.usic.ch
Swiss Association of Consulting Engineers (usic)
Client Award
Procurement of engineering services
Basic idea: A client award for good procurement practices
2010 - usic launches its first client award (Best Practice Award, BPA) for
good procurements of engineering and planning services by public
clients
4 general objectives
collect good procurements policies
develop a widely accepted „Best Practice“
improve the image of the national association and its member firms
improve lobbying activities with public clients
31 | September 2013
BPA concept 2010 - 2013
Past guidelines
only public clients
jury of 7 persons (4 engineers / 2 public clients / 1 politician)
assessment criteria:
– assessment of the procurement procedure
– assessment of the overall project
Past awards
2010: 11 participants
2012: 7 participants
32 | September 2013
BPA experiences 2010 - 2013
Positive
detection and illustration of good procurement methods and examples
new contacts between usic and representatives of public authorities
positive feedback from public clients (especially from the winner side)
positive PR-effect (at least to our own member firms)
Negative
clients must be convinced to participate hard work
low number of participants
evaluation of proposals is time-demanding and difficult
frustration on the side of the not-winning-participants
33 | September 2013
Modified concept
Client Rating: “Top 10 out of 100 clients”
Partnership for sustainable solutions
general evaluation of clients instead of specific projects
ongoing evaluation on a annual basis
rated through all member firms of our association and not through a specific jury
rating on basis of a predefined questionnaire; data collection through an annual online-
based survey
evaluating all aspects of client´s interaction with engineers (procurement, contract,
negotiations etc.) publication of the annual rating at a press conference
From project-based to a general rating-based system
34 | September 2013
Concept 2014: Opportunities and difficulties
Opportunities
no need to search for specific projects
standardized process leads to a simple, transparent and credible evaluation
less evaluation effort needed
the client rating is easy to understand and to communicate
the rating as an incentive for clients to improve their business practices
Difficulties
objectivity of the questionnaire
completeness of the questionnaire
35 | September 2013
Concept 2014: Next steps
October / November 2013: Development of the detailed concept
December 2013: Approval by the usic steering committee
2014: realization of the first rating according to the new concept
36 | September 2013
Questions to FIDIC and MA
Do have any experience with such kind of award/rating? – Please share
it with us.
Do you think that such kind of award/rating could be useful in your
country? – Yes / No
Should FIDIC prepare a guideline for MAs to establish such
award/rating? – Yes / No
Any other comments?
37 | September 2013
usic Client Award – Contact
38 | September 2013
www.usic.ch
Peter Rauch
Mario Marti
Chris Newcomb, EC
GO FORWARD STRATEGY
• Recognize the need to play a major role … ‘Change the game’
• Foster ‘facilitative’ business conditions among consultants
• Continue to refine best business practice
• Establish new guidelines for investors, procurement agencies and others involved in developing vital infrastructure
• Develop, market and use business practice tools
