ENGINEERINGThe Future of Our World

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WORLD INFRASTRUCTURE & BUILT ENVIRONMENT: FACTS

– Global estimates for infrastructure spending requirements over the next quarter century total more than $50 trillion. Ernst & Young 2011 Infrastructure Report

– While 1.8 billion people have Internet access, nearly one billion people lack access to adequate amounts of fresh water Living Planet report by the WWF and Global Footprint.

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INFRASTRUCTURE AND BUILT ENVIRONMENT: CHALLENGES

Increasing demand for Food, Water, Sanitation, Shelter, Health Services, Transportation, and Energy.

Improvement in the Quality of Peoples’ LivesBest use of Finite Resources in a World with a

growing population

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INFRASTRUCTURE AND BUILT ENVIRONMENT PROJECTS: IMPORTANT CONSIDERATIONS

Understanding the Resource Limitations Articulating the Outcomes Defining the Scope Defining the Project’s Unique ChallengesMOST IMPORTANT DECISION Selecting the most appropriate Trusted

Advisors.

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TRUSTED ADVISOR: ATTRIBUTES

The success of any project depends upon obtaining the most appropriate expertise available in terms of:

Skill Knowledge Past Experience Managerial Abilities Reputation

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TRUSTED ADVISOR:INFLUENCE ON PROJECT

Quality Overall Cost Success Overall Value

Advisor cost a small portion of total life cycle cost of project

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TRUSTED ADVISOR: TECHNOLOGY BASED INTELLECTUAL SERVICES (CONSULTANT):CRITICAL ATTRIBUTES

Independence Professional Competence Managerial Ability Availability of Resources Professional Integrity

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TRUSTED ADVISOR: SELECTION PROCESS

1. Define the Scope of the Project

2. Call for Statement of Qualifications

3. Shortlist Applications

4. Request Detailed Proposals (Focus on Desired Results: features, benefits, technical challenges, schedule, Life Cycle cost, technology transfer, sustainability, end users etc)

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TRUSTED ADVISOR: SELECTION PROCESS

5. Evaluate Proposals: (quality of team, methodology, match of qualifications to scope, etc)

6. Select Preferred Applicant: Meet to fine tune scope, method, team and commence price negotiations

7. Engage Selected Applicant: (If negotiations fail with preferred applicant then negotiations commence with second ranked applicant)

The process outlined above is known as Quality Based Selection (QBS)

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WHY IS PRICE NOT INCLUDED EARLIER IN THE SELECTION PROCESS?

Client/Potential Advisor relationship is enhanced – mutual trust develops

Project objectives and scope defined in detail – then priced accordingly

Ensures focus on applicants attributes not on the lowest price.

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QUALITY BASED SELECTION: ADVANTAGES for PUBLIC WELFARE

Higher quality and best value lead to improvements in quality of life for all.

Highest value per investment, less remedial work, reduced chances of project failure thus greater benefits to community.

Results in capacity building which helps countries develop.

Encourages Innovation Considers emerging societal issues Encourages efficient and sustainable use of

resources.

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QUALITY BASED SELECTION: ADVANTAGES for CLIENTS

Best overall project value for money on whole-of-life basis

Ensures a skilled and well resourced industry Encourages the provision of full service

lowering project risk. Life cycle costs considered Reduced project cost overruns Encourages involvement of most appropriate

applicants

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QUALITY BASED SELECTION: ADVANTAGES for CLIENTS

Supports knowledge growth (capacity building)

Encourages best-for-project outcomes. Encourages innovation Consideration of emerging social issues. Delivers the best services – project wide

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QUALITY BASED SELECTION: ADVANTAGES for ADVISORS

Scope of services best matched to project’s needs

Projects best matched to experience and expertise

Pricing best matched to scope of services Rewards excellence and discourages

services/cost cutting.

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FIDIC’s SELECTION TOOLS

FIDIC “Guidelines for the Selection of Consultants” 2011 edition

FIDIC “Quality Based Consultant Selection Guide” 2011 edition

FIDIC ”Guidelines for Integrity Management in the Consultancy Industry” 2011 edition

FIDIC “Definition of Services Guidelines” 2009 edition

Etc???????

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QUALITY BASED SELECTION

Best Practice Widely recognised around the world Produces credible outcomes Value for client and society Focuses on quality and value Fair and cost effective Promotes a strong TEAM approach Minimises risk

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QUALITY BASED SELECTION

Credits: Federation of Canadian Municipalities Consulting Engineers of Saskatchewan

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