3. 2
1- FIDIC ORGANIZATION
FIDIC, the International Federation of Consulting Engineers, is the global
representative body for national associations of consulting engineers and represents
over one million engineering professionals and 40,000 firms in more than 100
countries worldwide.
2- FIDIC ESTABLISHMENT HISTORY
As a result of a search for independent expert consultants for the World Fair
Exhibitions in 1913, a number of consulting engineers met to discuss the
possibility of forming a global Federation. The meeting was a success in that it led
to the formal constitution on 22 July 1913 of FIDIC, Fédération Internationale des
Ingénieurs Conseils, or later, the International Federation of Consulting Engineers.
The founding principles adopted were Quality, Integrity, and Sustainability. There
were 59 participants at the inaugural meeting; official delegates from Austria,
Belgium, Canada, Denmark, France, Germany, Hungary, Netherlands, Russia,
Switzerland, the United Kingdom and the USA. Three countries, Belgium, France
and Switzerland decided to found the Federation. The other countries maintained
provisional links during the initial years. However, due to the World Wars and
other major political disturbances, FIDIC development was slow until the late
1940’s. The number of member countries changed constantly, and all came from
Europe. In 1959, they were joined by Australia, Canada, South Africa, and the
USA. This made FIDIC a truly international Federation
3- FIDIC VALUES (QUALITY, INTEGRITY AND
SUSTAINABILITY)
FIDIC’s key role and that of its Member Associations around the world is to
improve people’s quality of life through the promotion of quality, integrity and
sustainability in the infrastructure industry and the projects and services it delivers
on a global scale.
4. 3
3.1 QUALITY
To improve quality, the responsibility lies with all the stakeholders on a project,
including the investor, government, clients, contractors, suppliers, consultants and
operators. It requires a team effort, with all parties committed to achieving quality
and excellence in all that they do. FIDIC has long advocated for quality in the
consulting engineering industry. FIDIC has invested great resources in producing
quality management and best practice guidelines to help inform and assist the
industry.
FIDIC defines quality as all the key attributes of professional services including
skill, experience, innovation, integrity, sustainability and best business practice.
FIDIC’s Best Practice Committee (BPC) develops best practices guides and
recommends to the board the best delivery mechanisms for the guidelines. They
also monitor developments in key areas of the industry and provide relevant
information to Member Associations in areas such as risk identification and
management, insurance trends, practice management, quality-based selection,
quality management selection, etc.
FIDIC is committed to further spreading Best Practice within the industry by:
• Continually developing programs for capacity building, procurement,
sustainable management, which are tightly related to improving quality.
• Promoting quality-based selection for the selection of consulting services
within the multilateral development banks.
• Work in partnership with the MDBs and UN organisations to develop
special in-house training programs on best practices.
The key part of ensuring quality and best value from an infrastructure project is the
procurement of the consultant, who is best able to provide the solution to meet the
client’s requirements over the whole lifespan of the project. FIDIC has been
promoting quality-based selection for many years, as it emphasises the importance
of selecting consultancy firms on the basis of qualification, experience,
professionalism and integrity, rather than price. The advice of the consulting
engineer should be regarded as an asset investment, not a project cost.
FIDIC has also developed a policy statement to assist all Member Associations and
their member firms in the pursuit of their commitment to quality. It states:
“Member firms must have a commitment to the excellence through the
implementation of a Quality Management System involving all levels of
management and every employee, focusing on continuous improvement.”
5. 4
3.2 Integrity
FIDIC has been energetically promoting integrity within the industry for years.
There is evidence to support the idea that a formal and systematic approach
towards the management of integrity works better than sporadic efforts developed
by individual companies, yet the idea has been slow to achieve success in the
consulting industry. Combating corruption requires a concerted effort by all parties
involved in projects - clients, contractors, government procurement groups, and
funding agencies alike - in helping to prevent and not just to punish. The industry
cannot solve the problem without its partners.
FIDIC uses the term “integrity management” purposely. FIDIC advocates ethical
integrity to fight corruption and an integrated management system as an approach
to control and verify its performance in this regard. It begins with a firm’s
commitment to a code of conduct on behalf of all of its members and leadership
which demonstrates this commitment in a clear and visible way. The CEO must
lead in the formulation of the code of conduct and in the allocation of resources to
the integrity management initiative. There should be no misunderstanding that top
management demands compliance to integrity values and is prepared to take the
necessary actions for achieving integrity.
FIDIC also has a dedicated Integrity Management Committee (IMC) tasked with
the development of policies, guidelines and processes aimed at better
understanding and ‘managing’ risks of corruption. The IMC works with other
international organisations to achieve this objective to ensure that there is only one
standard used by the industry. The organisations that FIDIC works with include the
World Federation of Engineering Organisations, Transparency International,
Organisation for Economic Co-operation and Development, World Economic
Forum, International Organization for Standardisation, Confederation of
International Contractors’ Associations and the United Nations. The IMC liaises
with the international financing institutions for complementing and supporting
their anticorruption initiatives.
3.3 Sustainability
Sustainable infrastructure is vital to Quality of Life and the key advisors to help
determine the correct investment choice are consulting engineers. FIDIC, with its
partners, has proposed a new approach for sustainable urban development based
upon improved cooperation, new synergies and integrated systems. As confirmed
by several FIDIC and EFCA reports, to avoid irreversible damage to living
conditions, there is a very limited timeframe to change the trends arising from the
way people live today, resulting principally from the conditions under which
society operates. The FIDIC Sustainable Development Committee (SDC) drives
6. 5
the work of FIDIC on sustainability. The SDC is tasked with building a knowledge
base of project accomplishments and technology advances relative to sustainable
development, from which to share best practices and lessons learned. Also, to
encourage the incorporation of project sustainability management principles and
practices into industry policies procedures, procurement documents and quality
assurance programmes. FIDIC produces a range of best practice guides and
information documents on sustainability.
4- FIDIC COMMITTES AND PUBLICATIONS
4.1 Contracts Committee (CC)
The Contracts Committee (CC) recommend to the FIDIC Board which Conditions
of Contract and related documents should be prepared or updated by FIDIC. It
assists the Secretariat in establishing task groups as required, to monitor their work
at agreed intervals and to carry out a final review of the documents for submission
to the Board. Additionally, the CC assist the Secretariat in handling queries on the
interpretation of documents.
The Contracts Committee liaise, in conjunction with the Secretariat, with
organizations interested in FIDIC Conditions of Contract.
The Contracts Committee is supported at various times by different task groups as
needed. Some of the current Task Groups include:
• Task Group on DBO Form of Contract and Guide
• Task Group on Procurement Procedures Guide
• Task Group on Consultancy Agreements
• Task Group on Update of 1999 Suite
• Task Group on Update of Dredging & Reclamation Works Form of Contract
(with IADC)
• Task Group on Update of Short Form of Contract
• Task Group on YB/SB Subcontract Forms
• Task Group on Tunnelling Contract (with ITA)
• Task Group on ODB Form of Contract
• Task Group on Glossary of Terms
7. 6
4.2 Business Practice Committee (BPC)
The Business Practice Committee (BPC) seeks input from Member Associations
on business issues of key interest to their member firms. They then identify those
issues in which FIDIC can contribute original work or can coordinate and present
existing global knowledge on specific issues.
8. 7
The BPC develops best practice guidelines and publications, and recommends to
the FIDIC Board delivery mechanisms for the products. They recommend the
creation of task groups to develop products designed to effectively address issues.
The BPC provides relevant information to FIDIC Member Associations and
monitors developments in key areas such as Risk Identification and Management,
Insurance Trends, Practice Management, and Quality Based Selection (QBS).
Please note the Terms of Reference for the task groups are currently in the process
of being reviewed and will be updated soon.
4.3 Capacity Building Committee
Capacity building at FIDIC refers to enhancing the skills, knowledge and abilities
of consulting engineering firms and professionals within firms in the
management and development of successful consulting engineering practices.
For this purpose, FIDIC makes available to its members a number of training
courses, modules and best practice guidelines and documents.
9. 8
At the same time FIDIC has appointed a dedicated Capacity Building Committee
which, among other tasks, evaluates capacity gaps in Member Associations and
consulting firms, using objective criteria and available information wherever
possible; promotes capacity building for Member Associations and firms as an
important activity within FIDIC, and ensures that capacity building programs are
delivered at annual conferences; and advises FIDIC on information needs to
support capacity building initiatives.
The responsibility for acquiring these skills within firms rests with the owners,
managers and senior staff, and it is to these people that FIDIC addresses its
capacity building initiatives.
Recommended policy initiatives for FIDIC Member Associations
Several initiatives are recommended in order to create the policy and operating
environment, in which responsible, financially stable and competent
consulting firms can flourish. These are:
• Seek strong government support for the consulting engineering industry,
through its established CE industry association, as a recognised “high
technology” industry, worthy of positive public recognition and support
• Establish strong high-level liaison contacts within the industry through its
Member Association aimed at resolving differences over matters such as
procurement and contracting practices
• Encourage member firms to set funds aside from proceeds to educate, train
and mentor young graduates in particular, to create critical mass teams
within their own firm or elsewhere„ „
• Seek to implement a public policy with transparent procurement procedures
that favor quality-based selection and avoid cost-based selection
• Cooperate with the national consulting engineering association to develop
an understanding of anticipated government
requirements for services so as to assist the industry to adapt to changing
needs.
• Promote excellence in the education of engineers, technicians, scientists and
allied professionals
• Minimise the use of in-house government engineering units through
contracting out as much work as possible to independent privately owned
consulting engineering firms
• Recognise only those firms which subscribe to quality and integrity and
operate competitively within the private sector.
10. 9
4.4 Integrity Management Committee (IMC)
promotes and market the use of FIDIC’s Integrity Management System
(FIMS) and Government Procurement Integrity Management System
(GPIMS) as effective tools for curving the supply side of corruption. The
IMC is responsible for the update of FIMS and GPIMS and developing
friendlier and more marketable tools that can be adopted at least cost to the
firms and procurement agencies. They follow up and support FIMS and
GPIMS training and implementation programs among Member
Associations’ consulting firms and selected procurement units.
The IMC work with other international organisations: World Federation of
Engineering Organisations (WFEO), Transparency International (TI),
Organization for Economic Co-operation and Development (OECD), World
Economic Forum (WEF), International Organization for Standardization
(ISO), Confederation of International Contractors’ Associations (CICA) and
the United Nations (UN), in the development of policies, guidelines and
processes for the demand side of corruption. They also liaise with the
International Financing Institutions (IFIs) for complementing and supporting
their anti-corruption initiatives.
The IMC also improves awareness of integrity management within the
younger members of the FIDIC and global engineering community as an
effective and appropriate method of conducting the consulting business.
Lastly, they assist the Board and the Secretariat on matters related to
integrity management.
11. 10
4.5 Risk and Quality Committee (RQC)
The Risk and Quality Committee (RQC) identify significant issues impacting on
risk and quality for the consulting engineering industry, and formulate strategies to
address these. They monitor professional liability conditions and insurance world-
wide and periodically report significant trends to the FIDIC Board.
The RQC monitor worldwide and report on contractual trends, client risk
mitigation strategies and legislative frameworks. Base on their observations, the
RQC develop relevant best practice tools and guidelines on risk management,
liability and insurance.
The RQC assist the Secretariat in establishing Task Groups as required and
monitor their work for final recommendation to the FIDIC Board.
12. 11
4.6 Sustainable Development Committee (SDC)
The committee has to prepare and implement FIDIC general action plan on
sustainable development once approved by FIDIC board or representative of it, and
EFCA action plan on sustainable development to European institutions once
approved by EFCA board or representative of it.
Membership will be opened to any representative of member of EFCA or FIDIC,
appointed by one or the other federation, considering the need of a balanced
participation of all type of EFCA and FIDIC members.
The FIDIC and EFCA Boards will nominate jointly the chair of that committee and
members of the SD Committee board, who are in charge making decision on the
committee recommendation when no large consensus may emerge from the SD
committee members.
Observer members may be appointed.
Secretariat of the SD committee will be managed by EFCA staff which will work
in tandem with FIDIC staff which will be permanent invited member of the SD
Committee.
EFCA and FIDC boards will nominate one or more of their board members to
follow up the SD committee who will be permanent invited members of the SD
Committee. They will be informed by Secretariat of the SD committee of ongoing
works and be in charge to inform the committee of the Boards decision.
13. 12
Please note the Terms of Reference for the task groups are currently in the process
of being reviewed and will be updated soon.
Scope of works of the SD committee is based on 5 pillars
TOOLS: to develop tools for to the Consulting engineering industry practice on
sustainable development, and supports to their use.
TRAINING: to develop supports for training sessions dedicated to Sustainable
development and implement them with relevant partners.
COMMUNICATION: to prepare EFCA and FIDIC relevant communication on
Sustainable development, to be implemented by EFCA and/or FIDIC.
MONITORING AND LOBBYING: the European institutions (European
Commission, European parliament, CEN/CENELEC …) on issues related to
sustainable development, on behalf and with approval of the EFCA board.
MONITORING AND LOBBYING: the international institutions (UNEP, ISO,
ICC, etc) on behalf and with approval of the FIDIC board or of its representative.
GOOD PRACTICE; exchange between the committee members available to all
EFCA and FIDIC members.
14. 13
5 FIDIC CONTRACT TYPE SELECTION PROCESS
6 REFERENCES
1- http://fidic.org/