International Federation of Consulting Engineers

FIDIC NewsOctober 2005
Online at FIDIC.org/news
Print friendly PDF

Activities
FIDIC conference hailed as a great success
FIDIC 2005 featured over 1000 participants, extensive recognition by government
authorities and leading speakers from major banks.
China laid out a red carpet for the world's consulting engineers
FIDIC conference testified to the growing importance of consulting engineers.
General Assembly hears of new members and a new focus
The 2005 General Assembly elected Executive Committee members from China,
India and the UK, and Dr Jorge Díaz Padilla as President.
Young professionals take centre stage
The consolidation of young professional activities at the FIDIC 2005 Beijing
conference will be carried forward in a revamped forum.
EventsSilvia Fossati, FIDIC's new Event Manager
Silvia Fossati described to the FIDIC 2005 General Assembly how the federation
aims to meet the growing global demand for its seminars and training courses.
Forthcoming visits and meetings
The year end takes FIDIC to Trinidad, Tanzania and Sweden.

Disputes
Trinidad
8-9 Nov 05
ORDER NOW
Disputes
Brussels
6-7 Mar06
ORDER NOW

ContractsDubai
15-16 Nov05ORDER NOWContracts
Contract translations hailed
Publication in Estonian of FIDIC's main works contracts signals their growing
importance as global benchmarks available online through FIDIC's Bookshop.
Proposed key elements of DBO contract discussed
Participants at a FIDIC 2005 Design-Build-Operate Contract Workshop
commented on key proposals for FIDIC's new DBO contract.

MDB Contract
ORDER NOW

Representation
Tunisia agreement covers workshops, capacity building and bank representation
FIDIC to organize a procurement and contracts workshop with ANBEIC-Tunisia
during a major North African business services exhibition.
Business development
Bank to support business integrity workshop
The African Development Bank's anticorruption initiatives are to support a
Business Integrity Management workshop at the FIDIC 2006 GAMA meeting.
Joint initiatives planned following bank visit
African Development Bank agrees on joint initiatives for consultant selection,
capacity building and combatting corruption.

Young
Professionals
2006

Coursesponsor

Image
World Bank head acknowledges FIDIC role
Incoming World Bank President indicates strong support for continued input from
FIDIC on sound procurement practice and policies.
Steep increase in business integrity system uptake
Fifty firms report that they have implemented, or will shortly implement, aBusiness Integrity Management System.
Notices to Member Associations
MA Notices: Oct 2005
Activities
FIDIC conference hailed as a great success [full item: 71Ac]
With over 1000 participants from more than 60
countries, the FIDIC 2005 Conference (Beijing;
8-11 September 2005). broke all records. DrJorge Díaz Padilla, who was elected as the 26thand first Latin American President of FIDIC at
the FIDIC General Assembly Meeting during theconference, echoed the participants' wishes in congratulating CNAEC-China andits Chairman, She Jianming, for the tremendous efforts in working closely with
FIDIC to achieve a spectacular conference.

Positions
Announced

China laid out a red carpet for the world's consulting engineers[full item: 74Ac]

In the few short years since CNAEC-China
gained FIDIC membership, the FIDIC brand has
gained major recognition. Police escorts forconference events through peak traffic testified
to the importance placed on the presence of theworld's leading consulting engineers. Theconference was opened with a flourish by Zeng
Peiyan, China's Vice-Premier (see photo). He applauded the consulting
engineering industry and its challenging goal of global leadership in sustainability.
China's rapid economic growth was providing challenges, with a scientificapproach being adopted to give greater consideration of the people and theapplication of sustainability principles. Consulting engineers were seen as leaders
who develop innovative approaches to infrastructure investment. The VicePremier offered support and commitment to working with the industry to achieve
its objectives. Later in the week, Wang Quishan, Beijing's Mayor, hosted a special
banquet, and invited participants to visit the city's magnificant sites.

DisputesTrinidad
8-9 Nov 05
ORDER NOW
DisputesBrussels
6-7 Mar06
ORDER NOW

ContractsDubai
15-16 Nov05
ORDER NOW

Ma Kei, China's Minister of the National Planning and Reform Commission, also
signalled full support for the participation of consulting engineers in the deliveryof vital infrastructure. Shengman Zhang, World Bank Managing Director, andLiqun Jin, Asian Development Bank Vice-President, both emphasized FIDIC's
fruitful dialogue with the multilateral development banks. As invited keynote
MDB Contract
presenters they, together with Richard Burrett, ABN-Amro Director, and Marcus
ORDER NOW
Lee, Millenium Ecosystem Assessment Director, set the conference theme byreviewing key issues impacting on the sustainability of infrastructure investments.
The speakers' perspectives converged: the demand for infrastructure far exceeds
the combined resources of public and private financing, so increased local input isenvisaged. Meanwhile, the world's ecosystems remain extremely fragile, requiring
increased collaboration between financiers and implementing agencies, with theinvolvement of independent advisors from FIDIC member firms becoming moreYoungcritical. While the challenges are many, the opportunities have never been
Professionals
greater. However, skills need continuous improvement and all parties must
become responsible for ensuring sustainable development. Conference reports are 2006
available at FIDIC.org/conference/2005/talks.
General Assembly hears of new members and a new focus [full item: 72Ac]
The FIDIC 2005 General Assembly Meeting saw the election ofXie Shaozhang (China), Subhash Mehrotra (India) and Geoff
French (UK) to the Executive Committee and farewells to theFIDIC President, Richard Kell (Australia), Axel Jaeger (Germany)and Yumio Ishii (Japan). Dick Kell's enormous contribution tothe industry and to FIDIC during his term in office has been
widely hailed as extraordinary, with visits to all corners of theworld opening numerous doors. Dr Jorge Díaz Padilla, FIDIC's new President (seephoto), accepted the challenge to build on the strong platform established by hispredecessors, highlighting how far FIDIC had come and how it had evolved tomeet shifting market demands. Dr John Boyd from Canada was elected VicePresident.
Two new Member Associations were elected - National Engineering Consulting
Society of Azerbaijan (NECSA) and the Association of Consulting Engineers ofBosnia-Herzegovina (ACEBH) - with the ACEBH President giving a shortpresentation of the association's recent origin and its role in consolidating FIDIC
in the western Balkans. The assembly then recognised Professional Services
Development Corporation, Malaysia, and Formosan Brothers, Attorneys at Law,
China-Taipei, as new Affiliate Members, and Kenana Engineering and TechnicalServices, Sudan, as a new Sustaining Member.
The meeting that took place at the FIDIC 2005 Conference venue in Beijing on 7
September 2005 gave FIDIC's Managing Director, Enrico Vink, the opportunity tohighlight the end of his first year with FIDIC with the keyword "communication":"Visibility is critical - people need to know what FIDIC is doing, otherwise efforts
have limited value". He emphasised through examples the many areas in which
FIDIC is now being more proactive so as to raise awareness with member firms
and international audiences. "Much has still to be done, and it will be done incollaboration with members."

CoursesponsorPositions
Announced

Young professionals take centre stage [full item: 73Ac]
Young professionals, the future leaders of this industry, featured strongly at theFIDIC 2005 Conference in Beijing, with a number of groups coming together. The
23 participants in the 2005 FIDIC Young Professionals Management Training
Programme (YPMTP) completed their course, and shared their findings with otherconference participants at a workshop. The recommendations to FIDIC (availablein the conference talks) highlighted the need for a stronger "brand" recognition ofFIDIC, Member Associations and firms since brand recognition implies a client's
awareness of the consulting engineering industry's long-term commitment tosupply quality services. YPMTP 2006 was launched at the conference, with online
registration and information at FIDIC.org/ypmtp.
The YPMTP young professionals and groups from the FIDIC and CNAEC-China
Young Professionals Forums (YPF) reported in plenary session, offering a
refreshing perspective on the conference outcomes and a view for the way
forward. Reports are in the conference FIDIC.org/conference/2005/talks.

Disputes
Trinidad
8-9 Nov 05
ORDER NOW
Disputes
Brussels
6-7 Mar06
ORDER NOW

ContractsDubai
15-16 Nov05
ORDER NOW

Young professionals will continue to share their experience and expertise througha revamped FIDIC YPF based on FIDIC.org/ypf. The aim is that they become moreclosely involved in FIDIC and Member Association activities, adding value in bothdirections and to their own professional development. The programme will besustainable and attractive to participants and their sponsoring firms, and serve asa guide for the associations.
EventsMDB Contract
ORDER NOW

Silvia Fossati, FIDIC's new Event Manager [full item: 44Ev]
Dr Silvia Fossati, FIDIC's new Events Manager, described at theFIDIC 2005 General Assembly Meeting (Beijing; 7 September2005) how the FIDIC Secretariat is now able to handle thegrowing demand for capacity building training workshops andcourses, and for FIDIC facilitated or endorsed seminars. The
demand is global and reflects the importance of FIDIC contract
documents, procurement policies and business practice manuals
and guidelines. A brochure summarising how FIDIC organizes
events with Member Associations and partner organizations is available in PDF.
Forthcoming visits and meetings [full item: 32Ev]
FIDIC-JCC-ECV Dispute Resolution Course, Trinidad 8-9 Nov 2005
UNCITRAL Procurement Working Group, Vienna, 7-11 Nov 2005
FIDIC-CEAI-CDC-ITC Contracts Course, New Delhi 10-11 Nov 2005
Arbitration and ADR in Construction Conference, Dubai, 13-14 Nov 2005
FIDIC-Cornerstone Contracts Workshop, Dubai 15-16 Nov 2005
STD-Sweden Seminar, Stockholm, 16 Nov 2005
EFCA Directors & Secretaries, Brussels, 18 Nov 2005
FIDIC-ECV Contracts Course, Brussels, 28-29 Nov 2005
FIDIC-Informa Contracts Seminar, London 8-9 Dec 2005
FIDIC Contract Course, Zagreb, 8-9 Dec 2005
FIDIC-ESCONE-CRCICA Contracts Seminar, Cairo, Dec 2005
ACET-Tanzania Capacity Building seminar, Dar es Salaam, Feb 2006
Contracts
Contract translations hailed [full item: 49Co]
Estonian translations of FIDIC's main works contracts werelaunched recently by EAACE-Estonia at a press conference inTalinn, with several ministries recognising the documents as theinternational benchmarks for infrastructure development. EAACE
also joins a growing list of organizations with resale agreementsthat allow FIDIC to offer electronic versions through
FIDIC.org/bookshop. This provides a vital service for users who
increasingly need convenient access to translations, either as
guides for use with the English version or in working contracts.
The translations service also allows FIDIC to monitor licences
and the quality of translations, for while FIDIC does not authorize translations
published under licence, it makes every effort to ensure their accuracy.

Young
Professionals
2006

Coursesponsor

Positions
Announced

Proposed key elements of DBO contract discussed [full item: 50Co]
The response to an invitation to participants at the Design-Build-Operate (DBO)
Disputes
Contract Workshop held during the FIDIC 2005 Conference (Beijing; 8-11
September 2005) to comment on key proposals for FIDIC's new DBO contract was Trinidad
8-9 Nov 05
lively and informative. Axel Jaeger, a member of the drafting task force chaired
ORDER NOW
by Michael Mortimer-Hawkins, explained that the new contract will be harmonisedwith FIDIC's 1999 suite of works contracts (Short Form; Construction; Plant andDisputes
Brussels
DB; EPC/Turnkey). It also aims to build upon the advantages of the DBO
6-7 Mar06
approach that combines design, construction and long-term plant and facility
ORDER NOW
operation and maintenance into a single contract with one legal entity, known as
the Contractor. The potential advantages for a client (e.g., more predictable timeschedules; financial compliance; single point of responsibility; appropriate riskallocation) are widely acknowledged. From the discussion is was clear that FIDIC
is entering new and exciting territory with the new contract, and that the drafting Contracts
Dubai
task force is making remarkable progress in responding to the challenge.
15-16 Nov05
ORDER NOW

Axel first described the envisaged typical sequence of principal events for agreen-field scenario, where a facility is designed and built and then operated.
They involve the letter of acceptance, the commencement date, site access,construction, the commissioning certificate, the retention period, return of theperformance security for the DB period, joint inspection, and the completion
certificate. The questions for the participants covered some of the more importantand relatively new concepts that are being proposed. Those interested should
consult the workshop presentation and a summary of the proposals at
FIDIC.org/news.
MDB Contract

ORDER NOW

Representation
Tunisia agreement covers workshops, capacity building and bankrepresentation [full item: 39Re]During a visit to Tunis in late-August 2005 (see thefront page of Tunisia's Le Temp), by the then FIDIC
President, Richard Kell, the ANBEIC-Tunisia President,
Nabil Chater, agreed on the details of an agreement
whereby FIDIC will help organize a workshop at themajor government-sponsored Salon International desServices, Tunis, 8 - 9 June 2006. Meanwhile ANBEIC
undertakes to help develop FIDIC Member Associations
in neighbouring countries and provide support to FIDIC in contacts with theAfrican Development Bank that is based in Tunis. The forum will provide a major
opportunity for firms to learn about business opportunities in North Africa while
the workshop, that will focus on procurement and the role of FIDIC contracts, will
help FIDIC disseminate best practices.

YoungProfessionals
2006

Coursesponsor

Positions

FIDIC is preparing for the event by engaging francophone Member Associations in Announced
translations of the main FIDIC works contracts. The aim is to make training
courses and training materials on the contracts available in French, a languagethat is largely missing in FIDIC's extensive programme of training events (some15 in 2006 on contracts).
Business developmentBank to support business integrity workshop [full item: 43De]
During a visit to the African Development Bank (AFDB) in August 2005, it wasagreed with a FIDIC delegation that the bank would support a FIDIC Business
Integrity Management System workshop planned for the 2006 annual meeting ofthe FIDIC Group of African Member Associations (Tanzania, March 2006), see
FIDIC.org/gama. A bank focus group on combating corruption by developing
policies and procedures has drafted Guidelines for Preventing and Combating
Corruption in Bank Operations and recommended an Anti-Corruption and Fraud
Unit, an Oversight Committee for Corruption and Fraud, and a "whistle blower"
programme. Sanctioning will be adopted, and there was debate over naming
firms. FIDIC cautioned against blacklisting for poor performance or a lack ofquality without a thorough investigation (the bank saw poor performance aslinked to fraud). The delegation pointed out that selection based on quality greatly
alleviated the lack of quality and its link to corruption.

Joint initiatives planned following bank visit [full item: 42De]A FIDIC delegation comprising the then President,Richard Kell, Bayo Adeola, FIDIC Executive Committee
member, and Nabil Chater, ANBEIC-Tunisia President,
visited the African Development Bank (AFDB)
headquarters in Tunis in late-August 2005. Bayo is seenin the photo with Axel Jaeger, left, and Yumio Ishii,centre, whose terms of office on the committee ended in
September 2005. John Mensah-Quainoo, head of procurement, pointed out that
the AFDB now spends USD 2.5 billion annually, mostly via grants, loans andcofinancing. About 50% is for infrastructure with extensive use of the FIDIC
Construction and Short Form contracts, and licensing of the new MDB Harmonised
Construction Contract envisaged.
Following discussions it was agreed that FIDIC would announce project
opportunities and comment on draft revisions to the bank's consultant selection
guidelines. The FIDIC delegation pushed strongly for a significant involvement by
national consultants, with the bank recognizing that it needed several new policies
in the area.
The bank provided extensive training for borrowers through the African Training
Institute, and its Director, Karim Millett, pointed out that the quality of project
supervision remained a concern. It was agreed that FIDIC would submit aproposal for a partnership with the bank's Business Opportunities Seminar todevelop private-sector capacity building, which was missing.

DisputesTrinidad
8-9 Nov 05
ORDER NOW
DisputesBrussels
6-7 Mar06
ORDER NOW

ContractsDubai
15-16 Nov05
ORDER NOWMDB Contract
ORDER NOWImageWorld Bank head acknowledges FIDIC role [full item: 25Im]
World Bank Vice-President, James Adams, in responding on behalf of the bank's
incoming President, Paul Wolfowitz, to a letter from Richard Kell, then FIDIC
President, acknowledged the importance of the close working relationship. HeYoungreferred explicitly to the publication of the bank harmonised Construction Contract Professionals
for bank-financed projects, the biennial BIMILACI meeting that brings issues to2006
the fore, and visits and reports by FIDIC to brief bank officials on soundprocurement practices.
Steep increase in business integrity system uptake [full item: 26Im]
There has been a steep increase in the number of firms with a Business Integrity
Management System (BIMS). FIDIC's Integrity Management Task Force chairedby Felipe Ochoa reported at a FIDIC 2005 Conference workshop that a survey
undertaken during July 2005 had indicated that of the 90 respondents, 50 firms
based in 17 countries had implemented, or were shortly to implement, a BIMS
according to the FIDIC guidelines. Some 80% of the respondents from firms
without a BIMS were unaware of the requirements so FIDIC and its Member
Associations are taking steps to boost awareness. See FIDIC.org/bims for fulldetails.

CoursesponsorPositions
Announced

Notices to Member Associations
Meetings: see Events
FIDIC 2005 Beijing Presentations
Surveys
FIDIC Business Integrity Management Results
FIDIC GAMA Survey
MA Letters
17/05: GAM 2005 Minutes PDFThis email edition of FIDIC News is sent to FIDIC Member Associations, contacts and members of working
committees, groups, task forces and forums as a multipart formatted email message with an attached print
friendly PDF file. If difficulties arise, please download the newsletter from FIDIC.org/news. Member Associations
are urged to forward the newsletter to member firms. Advertising (logo with caption and web link appearing oneach page) costs Euro 800 for 5 consecutive appearances. See FIDIC.org/news/advert for details.
International Federation of Consulting Engineers
World Trade Centre II, Geneva Airport - Box 311 - CH-1215 Geneva 15 - Switzerland
Tl +41-22-799 49 00 - Fx +41-22-799 49 01 - fidic@fidic.org - FIDIC.org