FIDIC Newsletter December 2013

A record 1200 delegates from 97 countries celebrated the centenary event with a special fireworks display at the conclusion of a sparkling gala dinner, where numerous contributions from the industry were warmly applauded and rewarded.  Some 45 infrastructure projects from around the world were recognised for their valuable contribution to the industry’s advancement, and the industry acknowledged the significant contributions made by stalwart pioneers such as Yutaka Kubota and Sir Ove Arup.

Increased demand for infrastructure and the internationalisation of the consulting industry, point to opportunities for collaboration on key global challenges such as Water & Waste, Energy, Transport and Urbanisation in particular.  Sustainability issues are seen as driving investment strategies in the future.  A number of new tools have been developed for use by the industry.

Further development of these themes is envisaged at the FIDIC International Infrastructure Conference in Rio de Janeiro from 28 September – 1 October 2014.  Details will be available at the fidic2014 website.

Development Effectiveness will be the new driver for proposed reforms to the Bank’s procurement strategy, reflecting the most significant change in the Bank’s 60 year history.  With a renewed focus on strengthening public procurement in borrower countries, integrated with integrity and sustainability, a more strategic approach to procurement is envisaged.

FIDIC, as a member of a small, but selective, advisory group, is assisting the Bank in the development of the new strategy.  As part of that process, FIDIC has also offered its own best practice guides as useful tools in the strategy.  In addition to the internationally accepted FIDIC contracts currently used in Standard Bidding Documents, other guides such the FIDIC Procurement Guide, Integrity Management (FIMS), Sustainability Management (PSM) and similar guides, are all seen as relevant tools in this important exercise.

Extensive consultations during 2012/13, plus an Independent Evaluation Group study pointed to the need for modernisation and greater innovation, and flexibility in the Bank’s operations, plus an expectation of greater support for Borrowers wishing to procure and oversee the investments in their infrastructure.  Phase II of the reform process will concentrate on the many details of the new policy, and the implementation requirements that will need attention.  FIDIC has offered its support as well as its own guidelines and best practice tools.

With it’s theme of Business Sustainability this important regional event will focus on collaboration in the Asia Pacific where Global Partnering becomes increasingly important in the delivery of vital infrastructure.

Despite the challenges of its broad coverage – from Central Asia to Australia and Japan, the region is strengthening its capacity to meet the diverse needs of the various markets.

Further details available at the conference website.

Reflecting on the significant growth opportunities in Africa, this regional FIDIC event will bring together many of the players involved in planning and delivering key infrastructure throughout the continent.

The conference will highlight a strong focus on collaboration between local and international expertise, bringing added value solutions to clients and communities across the continent. Investment finance has increased significantly in recent times, reflecting the improved economic conditions in Africa, and the string demand for key infrastructure to support economic development.

Further details the gama2014 website.

At its Barcelona meeting in September 2013, the FIDIC Executive Committee agreed to:

• Enhance the capacity building components of all FIDIC activities so as to add more value to the products and services provided by FIDIC.  In addition, greater support will be provided to member associations in the performance and management of their organisations, so that international best practices can be more readily translated to the national level.
• Launch the new 2014-16 Business Plan, with its ambitious programme for growth, combined with greater attention to adding value to membership services, and to strengthening connections with a number of international partners.
• Support the expansion of FIDIC’s regional strategy, which now encompasses Africa and the Middle East, with negotiations under way for a presence in Asia and South America.

FIDIC’s President, Pablo Bueno and Deputy Director, Italo Goyzueta, attended the Executive Committee meeting and General Assembly of the Pan-American Federation of Consultants (FEPAC).  FIDIC members from Brazil, Colombia, Chile, Mexico, Peru, Paraguay, Spain and Portugal discussed issues affecting the development of the industry in Latin America. Among the main topics were PPPs, risk management and national regulation issues.

New FIDIC member in Paraguay, CPC, raised the issue of surviving as an association of national consulting engineering firms competing with large international firms wishing to have a role in the Paraguayan governmental plans for infrastructure development. Such issues will be explored in more detail at the FIDIC Conference in Brazil in 2014.

FIDIC members in the region recognise and applaud the important role of FIDIC as a training provider, building the capacity of member firms and associations leading the industry. FIDIC was encouraged to continue efforts to provide courses online and to host a FIDIC resource platform online on the FIDIC website.  FIDIC plans are to develop in the near future an online platform which contains key documents and material that provide information, procedures, best practices, etc within associations and firms in 97 member countries. 

FIDIC reps and member associations attending FEPAC events also attended the 10th Infrastructure Congress of CCI taking place in Cartagena (20-23 November).  Some 3,000 professionals working in the infrastructure industry attended the congress.  For more information, visit http://www.infraestructura.org.co/10congreso/

As part of its new Agreement, FIDIC and regional federation EFCA, plan to focus on procurement issues as they impact on the consulting industry in Europe – especially where the use of FIDIC contracts is encouraged or supported ie Central Europe in particular.

The key issue for the industry relates to modifications to FIDIC contracts, so that the contract becomes unbalanced and difficult to implement.  In collaboration with the European contracting industry, further details on significant departures to the philosophy of FIDIC contracts will be collected, as well as guidance on the benefits of a balanced contract and the dis-benefits of shifting risk and responsibilities, or removing the ability of parties to participate in a positive manner as intended by FIDIC.

As a follow up on the long term relationship between the two organisations an MoU has been signed in Barcelona. The memorandum is the starting point of collaboration on joint training and publication efforts related to Sustainable City programmes:

• Support the development of tools and strategies under the Sustainable Building and Climate Initiative (SBCI),
• Develop workshops on sustainable buildings and construction in projects and programmes, 
• Develop publications to support implementation of sustainable development policies
• Strengthen the Global Initiative for Resource Efficient Cities (GI-REC)

The new collaboration has already begun through the development of a new training program.

The Consulting Engineering industry launched a new set of practical guides to assist clients and consultants in implementing sustainability practices when developing infrastructure. The launch took place under the theme of Quality of Life – Our Responsibility, during the Centenary Conference of FIDIC in Barcelona in September.

The Sustainability Pack comprises:
“Rethink Cities”- a white paper on societal challenges, developed with the strong support of the Swedish member association STD, in collaboration with the FIDIC-EFCA Sustainable Development Committee.
The White Paper clarifies that the increasing demands on sustainability are very often concentrated in cities. It demonstrates with many examples from engineering consulting firms, the benefits that can be gained when considering interrelationships between urban functions and advocates a systematic approach to cities.

"PSL Toolbox 2013" developed with the strong support of the French member association Syntec-Ingénierie and contributions from the FIDIC-EFCA Sustainable Development Committee.
It comprises four linked tools to support the implementation of sustainable requirements in a project or programme in the built environment. The main aim is to facilitate collaboration between stakeholders.
These four tools are incorporated in the PSL 2013 online platform, with the next update planned for mid-2014. 

The “PSL Project Sustainability Logbook” - 1st Edition 2013 in PDF format.
The aim behind the PSL is to accompany a built asset or a group of designated buildings, infrastructure facilities and physical plant of a component of the urban environment (for example, a city district or a city block, respectively) or is designed to meet a specific urban function (for example, public transport or water supply). The Logbook, comprising a series of tables, offers a method of defining and monitoring the issues and objectives of sustainable development for a specific project or program.

“Project Sustainability Management – Applications Manual”
This 2nd edition of the Project Sustainability Management, PSM II, is first and foremost a list of core issues that engineers should consider when carrying out projects in a sustainable way, backed up by a number of processes for the broad inclusion of stakeholder input. Each item on the list brings with it a set of perspectives, which are the sustainability considerations that affect the way these issues should be considered on the project. A good part of this manual consists of descriptions of these perspectives and an indication of possible project responses as well as logical links between the perspectives of different issues.

Also launched at the FIDIC Centenary Conference was the updated tool vital to the consulting industry in its global business, where risks in operating overseas often confront corrupt activities.  In response to new legislation introduced in markets such as the UK and USA, plus tougher sanctions from IFIs and others, this tool is one of FIDIC’s responses to mitigating such risks, and working toward compliance with new client and societal expectations.  Many consulting firms have already adopted FIDIC’s Integrity management System, and have welcomed the latest initiative.

Another successful (26th) Users’ Conference was held in London with some 160 delegates from around the world.  The latest developments to the “Rainbow Suite” of FIDIC contracts were presented by the FIDIC Updates Committee. Senior FIDIC Committee Members and Task Force members working on new contracts or updating existing ones, spoke on important contract administration issues, pitfalls and dispute avoidance with inputs from real cases encountered in their professional life worldwide. Special session on Renewables Energy sector showed strong role for FIDIC contracts in the sector.

The 2nd FIDIC North American Users Conference took place in Washington on 22-23 October 2013.  The event gathered more than 75 attendees and speakers with strong support from local sponsors.  Increased participation from the Caribbean and Latin America was particularly noticeable.

Infrastructure demands in newly formed South Sudan are supported by international donors. FIDIC forms of contract are now a major player in development of new projects.  In association with two United Nations agencies, the World Food Program, UNOPS and USAID, FIDIC is organising the first business days in Juba.  Participants are invited to join the discussion on 20th January 2014, or to participate in the two days accredited training event on 21st and 22nd  January 2014.

Registration and information

In line with FIDIC’s regional development strategy, the opening of a regional FIDIC training centre was approved in September 2013 with the ETC, the Engineering Training Centre of the Jordanian Association of Consulting Engineers. The centre will arrange training opportunities in both Arabic and English, in support of FIDIC’s growing presence in the Middle East.

Abu Dhabi will welcome the 6th FIDIC Users’ conference in the Middle East. What are the challenges in the Middle East? FIDIC contract drafters will share their experiences from international and local projects.  Dispute Avoidace & Resolution and local legislation – how do they compare? DABs vs DRBs – which should you choose? Legal representatives and FIDIC special advisors will share their knowledge during some interactive sessions.  Registrations and information available online.

The FIDIC’s Young Professional Forum (YPF) has begun an ambitious webinar progamme aimed at providing YPs with the experience and insight of relevant industry members. The series is a hands-on and practical approach, where we aim to host a relevant speaker every month to share their skills and know how, followed by the opportunity to engage in a debate and Q&A with the audience.The webinars can be followed online, also on your smartphones and tablets. Just download the Gotomeeting app for iPhone, iPad or Android.
Two webinars have now taken place, with a further three in the pipeline.  Registration is possible through the LinkedIn YP group.

Starting up and developing a consulting engineering firm, getting the right international exposure and a developed network is, today, a big challenge.  Identifying motivated young professionals as future leaders with the necessary management skills is an intriguing exercise. These are aspects that the FIDIC Young Professionals Management Training Programme (YPMTP) will be focussing on during the 2014 programme.  FIDIC is proud to announce that the 2014 programme will be the 11th consecutive annual training programme and that, to date, over 400 Young Professionals have participated and successfully completed their on-line programme. Programme registrations are open until 30 December at: http://fidic.org/ypmtp2014

The successful experience is repeated in 2014, offering a course on Red and Yellow Books starting from February. The online course extensively discusses the practical use of the two main FIDIC contracts. Registrations are open until 30 January 2014 online.
A new advanced Module 1 course is additionally offered for the first time to online participants. This course will start in March 2014. It will provide more in-depth experience on the contracts based on case studies and inputs from two experts, including FIDIC accredited adjudicators from the well-recognised FIDIC President’s List. Registrations are open until 10 February online .

Some 3000 delegates attended the Open day hosted by French member association Syntec.  Looking at intelligent networks, the conference focussed on global partnering opportunities and the benefits that can result from strategic partnering.  1800 students from across Paris joined the special event, and many were able to meet consulting firm reps to learn more about the industry and potential employment opportunities.

In Moscow on October 17th, a special one day seminar proved very popular with a varied audience interested in learning more about the FIDIC international standards, with particular focus on FIDIC contracts. Robust discussion indicated the suitability of FIDIC contracts in the Russian market.

Following a number of regional events, ACE in the UK concluded its centenary celebrations with a conference in London, followed by a gala dinner attended by a number of European CEOs. Sir John Armitt was recognised for his valued contributions to the industry, and for the successful London Olympic project.