International Federation of Consulting Engineers

FIDIC NewsMay 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

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Development
Design for safety guidelines planned
Industry design for safety guidelines to be developed to help ensure thatdesigners are not blamed inappropriately.
Practice

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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.

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Industry
Representation
Gulf states confirm need to restructure
An industry delegation visiting the Gulf region confirmed that organisations torepresent business interests remained the key to enhancing local capacity.

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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
EthicsSouth African government urged to underwrite integrity
Further commitments from government officials sought following a statementby 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 haveissued 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 forcontributions to project sustainability.
Sustainable construction assessment standard released
Draft ISO standard for environmental performance assessment reviewed.

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Coursesponsor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]"Delivering sustainable solutions to global challenges", thetheme 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 beaddressed as a matter of extreme urgency. These challenges
include climate change, the increasing energy demand, the massive need forinfrastructure investment, and mass urbanisation. To address the challenges
effectively the world needs the leadership, experience and creativity of theconsulting engineering industry. Consulting engineers must position themselves totake the lead, mobilise resources and apply their expertise and knowledge todeliver sustainable solutions to the challenges, and help lead the world out ofrecession. 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 ensurethat the industry leads the response to addressing the challenges. Businesssessions 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.

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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]

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Reports from around the world point to an increased andaccelerating investment in infrastructure as a means to
Coursestimulate economies affected by the drying up of credit.
sponsorAnnounced 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 ensurethat investments are effective, and that the important role ofconsulting 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, withcapacity 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 theirbusiness, complemented by a more thorough surveying of industry trends. VBIGermany has been successful in having procurement procedures simplified tofacilitate 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 toavoid 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 withgovernment 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 impactof the crisis.

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 reachinglaws effectively and inappropriately make consulting engineers responsible for theconstruction process. A common experience is that officials do not understandwhat designers do and so any accident with a "design cause" tends to be blamedon the designer, whether or not it is reasonable to do so, thus upsetting thedelicate balance between duty of care and exposure to unreasonable orinequitable legal challenges. The FIDIC Business Practices Committee's Design for
Safety Task Group is to draft a guide that defines the appropriate roles andresponsibilities in relation to safety of all the key participants involved in designand 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.

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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 improvecompatibility with other standards. Using a 9001:2008 table summarisingchanges, users should determine the impact of ISO 9001:2008 on their current
interpretation of ISO 9001, as adjustments to QM systems may be needed, notingthat 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 lateFebruary 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 theimpact 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 theconstruction sector. The February 2009 forum explored the use of contracts toensure compliance with the social requirements of procurement. BWI anticipated,for example, that the requirements should be included in both contracts andtechnical 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 andMultilateral Development Bank (MDB) procurement. Enrico Vink, FIDIC Managing
Director, argued that social considerations were best addressed in particularconditions of contract. Nevertheless, FIDIC contracts, notably the FIDIC MDBHarmonised 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, someof 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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CoursesponsorIndustry - Representation
Gulf states confirm need to restructure [full item: 63Re]
Breakneck growth in the Gulf region in recent years has encouraged authorities tostrengthen instruments to improve regulation, notably in the construction sector.
For instance, authorities have taken out licences to amend FIDIC conditions ofcontract in line with local requirements, thus eliminating the need to verify
country-specific particular conditions. FIDIC has also responded by organisingtraining 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 statusof consulting engineering. In spite of the global financial crisis leading to theclosure 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 andeffective 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 thisrespect. 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

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FIDIC GAMA Africa conference takes stock of millennium goals[full item: 45Im]

In taking stock - Millennium Development Goals, areconsulting 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 thefinancial perspective, African Development Bank representatives noted that thebank 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 roleas leaders along the lines discussed by Abdulhamed Abou Abdalla, Savings andReal Estate Investment Bank, Libya, and Ian Young, Kwezi V3, South Africa, who
described how consultants in Libya had partnered with investment banks toprovide turnkey solutions. A similar concept was proposed by Kribbs Moodley, PD
Naidoo and Associates, South Africa, who had modelled the integration ofengineering, business, local knowledge and networks to meet the millennium
goals. Many of the conference's 170 participants, including representatives from15 African countries, stayed for the GAMA General Assembly Meeting whichelected 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.

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CoursesponsorFIDIC ASPAC conference envisaged a greater role [full item: 46Im]
Making globalization work is a preoccupation now that the financial crisis istending 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 theconference, the Nepalese Prime Minister Pushpa Kamal Dahal and three
ministerial colleagues from public works, science and technology and financedepartments 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-Pacificcountries to review the status of consulting engineering and ASPAC activities (seepresentation 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]
In 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 theconstruction industry" in his country. An Anti-Corruption andBusiness 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 theinitiative. As the President pointed out, regulatory bodies are the third party incorruption, often condoning what was done on the demand and supply sides.
Construction industry condemns global corruption [full item: 43Et]
In an unprecedented move, FIDIC and CICA, the international
confederation representing the contracting sector, have issued astatement jointly condemning the negative impact of corruption on society ingeneral, and on sustainable business practices in particular. Both noted that theprivate sector had implemented procedures designed to increase transparency
and to curb unethical practices. However, these efforts had not been accompaniedby 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 withinternational finance institutions, procurement agencies and organisations
representing private clients that acknowledged the practical tools which had beendeveloped to systematise integrity management.

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CoursesponsorPrinciples - Sustainability
Infrastructure seen as the key to sustainable development [full item: 2Su]
The need to maintain infrastructure to ensure sustainable development wasstressed 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 andquality of infrastructure". The seminar took place following a series of two-day
FIDIC Contracts Training Courses which the Minister acknowledged as "the firstsuch private sector led initiative in a long time". He noted that "the quest forsustainable development and value for money is focusing on increasingly shifting
risks from the traditional adversarial parties in the classical forms of contract tocentres that are best suited to handle them." He indicated that "the government
has streamlined its resource mobilisation, leaving physical implementation andaccountability 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 agreementwith the UACE to organise International Training Programme training courses.
Outstanding contributions to project sustainability recognised[full item: 3Su]

Dr 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 oursociety". The key to PSM were the goals for the seven issues tobe 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 theregulatory framework that existed at the project site. PSM was based on thepremise 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 therocky ground between regulation and perfection defined in sustainability terms,
with their contribution to sustainability measured by how closely they approachedtrue 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 theirenvironmental performance must be established in order to communicate theirimpact 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 arecarried out within for scope of FIDIC's Project Sustainability Management. Basicprinciples, terminology and the assessment framework for environmental,
economic and social aspects were laid out in ISO 15392, ISO/DTR 21932 andISO/TS 21929-1, respectively. A more detailed standard for the framework formethods of assessment of the environmental performance of buildings has been
issued for discussion as ISO/FDIS 21931-1 replacing ISO/TS 21931-1/2006 (aPart 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 core guidance relating
to methods was in fact contained in appendices. More generally, FIDIC aimed toprovide guidance on the application of sustainable construction standards as wasdone 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 forassessment but also for the broader aspects of sustainable procurement.

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Coursesponsor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

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Executive reviewed strategies to meet centenary objectives [full item: 4No]
With a global crisis on everyone's doorstep, a cautious approach to budgeting, theunprecedented 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 ofdrafting 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 wasapproved (Module 0, Professional Services Agreements, started in mid-March2009). 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.

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Coursesponsor

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 abalanced scorecard was allowing FIDIC to better measure its performance inmeeting 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 theseissues 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
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