“Not everything that counts can be counted; and not everything that can be counted counts.”

- Albert Einstein, Famous Genius

Why the Best Clients Get the Best Consultants

Presented by John Gamble, P.Eng.Canadian Public Procurement Forum

Québec City 2011

Association of Consulting Engineering Companies (ACEC)

• 500 firms collectively employing over 100,000 people

• Firms can include engineers, architects, planners, scientists, etc.

• Federation of 12 provincial and territorial associations

• Strategic priorities:– Image and profile– Advocacy and government relations– Business Practices

What makes a consultant happy?

• Interesting projects

• Career satisfaction

• Recognition for good work

• Opportunity for innovation

• Opportunity for fair profit

• Good relationship with client

What makes a good business opportunity?

• Return on investment (profit)

• Return on risk

• Opportunity to develop expertise

• Opportunity for more business

What’s our mutual goal?

• The right team for the right job

• Realistic schedules and budgets

• Fewer change orders and disputes

• Better business relationship between parties

• Better service, better quality & better value for taxpayers

A good procurement system…

• Clearly defines objectives and scope

• Evaluates what distinguishes proponents

• Meaningfully delineates scores

• Rewards proposals that add value

• Uses a short list where necessary – Proposals are expensive

• Considers project life-cycle

• Focuses on best value – not lowest price

A bad procurement system…

• Sees itself as an ends unto itself – rather a means to an end

• Treats professional services as a commodity

• Has vague/open-ended objectives and scope

• Assumes all proponents are equal

• Takes extended period to award

• Is a charade to justify pre-decided outcome

A good agreement…

• Clearly defines roles and responsibilities

• Clearly defines deliverables and payment

• Recognizes “owner’s risk”

• Fairly shares risk and reward

• Has a mechanism for project changes and allows for dispute resolution

• Uses industry recognized language

• Can be read and understood by humans

A bad agreement…

• Is one-sided (in favour of either party)

• Assumes insurance is a contingency fund

• Claims intellectual property without compensation

• Holds consultant responsible for events and action outside of consultants control

• Is uninsurable

No agreement…

• Is a really, really bad idea (for both parties)

• Is a factor in 80% of insurance claims against architects and engineering firms

A good client…

• Is firm and fair about expectations

• Understands cost-benefit-risk relationships

• Sees process as a tool – not an objective

• Sees strategic value of consultants

• Uses industry recognized documents

• Will get good consultants

A good client…

• Supports organizations like CPPC

• Engages with its stakeholders

Thank you!

Association of Consulting Engineering Companies of Canada

130 Albert St., Suite 420Ottawa, Ontario K1P 5G4Tel: 613-236-0569info@acec.cawww.acec.ca

Federation of Canadian MunicipalitiesSustainable Communities Website www.sustainablecommunities.fcm.ca