International Federation of Consulting Engineers

FIDIC

FIDIC and its activities … supporting its members and the industry

@FIDIC
 Agenda
Communications Young
professionals

Thinking global FIDIC contracts

Interesting
global facts

About FIDIC FIDIC awards

FIDIC annual
conference FIDIC Training

FIDIC in China

How FIDIC can

help

@FIDIC
Who is FIDIC

About FIDIC

@FIDIC
 FIDIC
Founded: 1913

Headquarters: Geneva

Vision: Work closely with stakeholders to

improve the business climate in which
members operate and enable them to
contribute to making the world a
better place to live in, now and in the
future

Mission: Enabling the development of a

sustainable world and to be
recognized as the global voice for the
consulting engineering industry

@FIDIC
 FIDIC
What FIDIC does
• Represent globally the consulting engineering industry
• Enhance the image of consulting engineers
• Maintain FIDIC Forms of Contract as best practice

What FIDIC offers the industry

• Be the authority on issues relating to business practice
• Promote the development of a global and viable consulting engineering industry
• Offering training and capacity building, and supporting Future Leaders

What are FIDIC’s governing principles

• Promote quality
• Actively promote conformance to a code of ethics and to integrity
• Promote commitment to sustainable development

@FIDIC
 Representation

40,000 consulting firms

Representing 1.5 million CE professionals
in more than 100 countries with over 6.5bn population

@FIDIC6
 FIDIC and its global reach

• 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.
• FIDIC member associations operate in over 100 countries with a combined population in excess of 6.5bn
people and a combined GDP in excess of $30tn.
• The global industry including construction is estimated to be worth over $22tn this means that FIDIC
member associations across the various countries are an industry are worth over $8.5tn .
• FIDICs member associations economies range from
approximately $3bn to over $19tn in scale,
demonstrating the global reach of FIDIC.

@FIDIC
 Global FIDIC

Regional ASPAC EFCA FEPAC GAMA

Member Member Member Member Member Member

National associations associations associations associations associations associations

Members Firms Firms Firms Firms Firms Firms Firms Firms Firms Firms Firms Firms Firms Firms

FIDICs members have corporate and social

responsibilities and engage with NGOs, governments etc

@FIDIC
 FIDIC Annual report 2018/19
Now available on the new FIDIC
website … www.FIDIC.org

@FIDIC
Did you know …

Interesting facts

@FIDIC
 Interesting facts
• China and India are the only countries in the world with more than one bn people
• Africa is the second most populous continent with about 16% of the world’s population
• Africa has approximately 30% of the earth’s remaining mineral resources.
• Australia, Japan, Luxembourg, Ireland, and the UK all receive their largest shares of FDI from US investors.
• There are fewer people with internet connections in Africa than there are in just New York City.
• India has the largest postal system in the world with more than 150,000 post offices
• Asia is home to seven of the world’s ten largest cities (by population).
• About 20% of Asia’s population lacks access to safe drinking water
• India has the second largest road network in the world
• ‘Zero’ in the number system was invented by
a mathematician from India
• The second largest pool of engineers and scientists is from India
• According to Encyclopaedia Britannica, the first recorded "engineer"
was Imhotep. He happened to be the builder of the Step Pyramid

Source: The Fact File IUCN Facts.net Encyclopaedia Britannica @FIDIC

Global drivers, trends and opportunities

Thinking global

@FIDIC
Global drivers

@FIDIC
 Global construction and opportunities
Global construction and opportunities

Global industry including construction is estimated to be worth over $22tn but studies have found the level
of investment in infrastructure to currently be insufficient
• The global infrastructure outlook found that global infrastructure
investment needs to be $94 trillion between 2016 and 2040,
which is 19 percent higher than the current trend
• The world will need to increase the proportion of GDP it
dedicates to infrastructure to 3.5%, compared to the 3.0%

• The World Bank since 2000 has invested in over 1700 projects
totalling an approximate amount of $200bn. Since 1947 it has
invested in 13,622 projects in 174 countries
• The IDB has over a $20bn project pipeline and has invested in
excess of $450bn since 1957

FIDIC has signed agreements with both the IDB and World
Bank and more are planned
@FIDIC
 Corruption remains a challenge
Transparency.org

Ratings of the five least corrupt Ratings of the five most corrupt
countries: countries:
• Denmark 88 • Somalia 10
• New Zealand 87 • Syria 13
• Finland 85 • South Sudan 13
• Singapore 85 • Yemen 14
• Sweden 85 • North Korea 14

Perception of who is involved in corruption in different institutions:

• Police 36% • Prime Minister / President 32%
• Elected representatives 36% • Tax officials 32%
• Government officials 35% • Judges and magistrates 30%
• Business executives 34% • Religious Leaders 18%
• Local government 33%

Source: transparency.org

“Around the world nearly 1 in 4 said that they paid a bribe

when accessing public services in the last 12 months”
@FIDIC
 Operating structures differ globally ..
Hierarchical Holacratic
Flat

Key features: Key features: Key features:

• Linear work • No job titles • No ‘boss’
• Clear chains of responsibility • No seniority • Has some hierarchy but tries
• Administratively heavy • Everyone is equal to maintain advantages of
• Work is determined by employee confided flat structures

@FIDIC
 Ensuring quality infrastructure

Capacity Training and Efficient

Standardisation
building skills planning

Strategic Strategic
Strategic local Understanding
National Regional
policies risk
policies policies

Outcome Adequately
Well resourced Integrity
focused financed

@FIDIC
 Global Industry
Clients Asset Owners Banks Contractors Developers Governments Industrialists

Consultancy Services Projects Assets Outcomes

Advice Investigations Buildings Defence Outcomes
Planning Development Energy Environmental Durability
Design Construction Industrial Manufacturing Performance Quality
Management Maintenance Mining Power Reliability
Supervision Demolition Telecoms Transport Resilience
Oversight Water Safety
Verification Sustainability

Users People Communities Business Cities Governments

@FIDIC
 Best Business Practice
Responsibility

Governance, Leadership, Management

Performance
Values
Collaboration, Effectiveness,
Diversity, Ethics, Integrity,
Quality, Responsibility,
Business Success Efficiency, Excellence, Skill,
Strategy
Sustainability, Transparency

Capability
Compliance Finance People Quality Resources Risk
Technology

@FIDIC
 Influencers within the system
Political influences Policy influences Legal influences Company influences
• Institutional set up • Corporate governance • Property rights • Shareholder governance
• Orientation of government • Transparency of • Intellectual property • Staff training
• Budget transparency procurement process protection • Company values
• State or private capture • Tax policies • Efficiency of legal • Anti bribery and corruption
• Democracy • Procurement approach framework in challenging policies
• Government regulation regulations • Compliance
• Conflict of interest • Efficiency of legal • Auditing
General public regulation framework in settling • Whistle-blower policies
• Public perceptions • Strength of auditing and disputes • HR polices
• Freedom of the press reporting standards • Judicial independence • Risk assessments
• Transparency • Judicial stability
• Accessibility • Prevalence of crime and
• Accountability legal sanctions

@FIDIC
Data and information

FIDIC contracts

@FIDIC
 FIDIC contracts
New professional services contracts Works contracts

Procurement and best practice Harmonised Construction Contract

@FIDIC
 Why FIDIC contracts
• General conditions – fair, risk balances, world wide, accepted by MDBs and
international organisations
• Specific conditions are possible for MDBs in FIDIC contracts
• Development funded projects – bi and multi-lateral
• Reduce corruption – balanced, well understood
• International standard used extensively with a 50 year track record
• Private & public sector support
• Extensive training options
• Backed up by FIDIC best business practices .. E.g. - Risk, Integrity,
Sustainability, Capacity Building etc
• Adjudication service ingrained in FIDIC contracts

Source: African Development Bank Group @FIDIC

 Stakeholders and contract users
Private Sector Government MDBs

International organisations

@FIDIC
 Multilateral development banks
Collaboration with Multilateral Development Banks (MDBs) such as
the World Bank, Caribbean Development Bank and IDB are signing up to
use FIDIC contracts on their projects
And there are more to follow…..

Source: African Development Bank Group @FIDIC

 Multinational development banks
We are engaged and talking to ….
• World Bank
• European Investment Bank (EIB)
• Islamic Development Bank (IsDB)
• Asian Development Bank (ADB)
• European Bank for Reconstruction and Development (EBRD)
• CAF - Development Bank of Latin America (CAF)
• Inter-American Development Bank Group (IDB, IADB)
• African Development Bank (AfDB)
• New Development Bank (NDB)
• Asian Infrastructure Investment Bank (AIIB)
• Caribbean Development Bank (CDB)
• Central American Bank for Economic Integration (CABEI)
• East African Development Bank (EADB)
• West African Development Bank (BOAD)
• Black Sea Trade and Development Bank (BSTDB)
• Economic Cooperation Organization Trade and Development Bank (ETDB)
• Eurasian Development Bank (EDB)

Source: African Development Bank Group @FIDIC

 Multinational development banks
FIDIC have signed agreements with ….
• World Bank
• European Bank for Reconstruction and Development (EBRD)
• Inter-American Development Bank Group (IDB, IADB)
• Caribbean Development Bank (CDB)
• Asian Infrastructure Investment Bank (AIIB)

Members can get further information at: http://fidic.org/multilateral-development-banks

Source: African Development Bank Group @FIDIC

FIDIC is improving its voice …

Communications

@FIDIC
Social media and press releases

@FIDIC
 CEO Update
Communications to members directly from the CEO

@FIDIC
Contract Users Newsletters

Available on the
FIDIC Website

@FIDIC
 FIDIC website

The future is now …

FIDIC.ORG

@FIDIC
 2019 Emerald book
The all-new Conditions of Contract for Underground Works,
which was launched at @WTCNapoli2019

You can order copies from: https://lnkd.in/ggKKKWA

@FIDIC
Recognising the achievement of Member Associations and the industry

FIDIC Awards

@FIDIC
 Project Awards
FIDIC Project of the Year FIDIC Client of the Year
This award is for any project procured under a FIDIC Contract. Entries should This award is for any client or organization that can give a description of best
give a description of best practice achieved on their FIDIC project(s) with practice achieved with their supply chain on their FIDIC project(s) with
emphasis on the 1999 or 2017 editions of the FIDIC contract form. emphasis on the 1999/2017 editions of the FIDIC contract form.

FIDIC MDB Procurement of the Year FIDIC Contractor of the Year

This award is to recognise the MDB with the best procurement policy and This award is for any contracting organization that can give a description of
proactive engagement with borrowers and stakeholders on capacity-building, best practice achieved on their FIDIC project(s) with emphasis on the
institutional strengthen and training. 1999/2017 editions of the FIDIC contract form.

FIDIC Legal Firm of the Year FIDIC Contract innovation through additional clauses
This award recognizes innovative additional clause drafting which meets
Given to reward best practice by a legal firm during the year based on business needs whilst maintaining the critical aspects of the contract,
outstanding contribution to the wider use of FIDIC contracts. including risk profile and mutual collaboration.

FIDIC Strategic Partners of the Year FIDIC Golden Principles Award

- This award is given to an organisation or a group of organisations to This award is granted to any person, organisation or group of organisations
recognise an outstanding development contribution to the effective use of for their strict compliance to the FIDIC golden principles on the execution of
the FIDIC contract. particular projects using any of the FIDIC contract suites.

@FIDIC
Source: Knoema, IMF
 MA Excellence Awards
Lifetime achievement / FIDIC Ambassador award
The Lifetime Achievement Award is bestowed upon any individual working for a member association or member firm for his/her substantial
contributions to FIDIC and/or the consulting engineering industry. Nominees can be made by member associations or FIDIC.

Recognising the achievements of an exceptional individual

Best advancement of a cause, advocacy campaign or event Best publication or website

Entries for this award should highlight an initiative which has achieved Entries for this award should demonstrate online or offline publications or a
demonstrable profile and/or benefits to the member association, its members website that engages its members and readers. Entries can be a single or
or the cause or campaign as a whole. multi-format publication.

Best diversity and inclusion initiative Member association of the year

Entries for this award should demonstrate a successful initiative of approach This award will be given to the member association that shows excellence in
that has advanced the cause of diversity and inclusion in the member all areas of its work and which demonstrates a clear strategy, staff and
association and/or the industry. member engagement, a proven track record and excellence in management.

Recognising the achievements of Member Associations

@FIDIC
Source: Knoema, IMF
Network and engage

FIDIC Annual conference

@FIDIC
 Programme for 2019/2020

Keep up to date with all FIDIC activities via the FIDIC

website: FIDIC.org

Contract Users Conferences the next being held in:

• London 3-4 December
• San Paulo, Brazil 10-11 February 2020

Join us in Geneva in 2020 register your interest:

fidic.org/node/24979

@FIDIC
Improving and developing the industry

FIDIC training

@FIDIC
 FIDIC Training

• FIDIC offers a wide range of high-quality

training conducted by FIDIC Accredited
Trainers
• The trainers are international experts with
thorough knowledge of FIDIC contracts and
business practices.
• They have extensive experience in the
practical use of FIDIC contracts in international
projects
• Training is delivered via stand-alone sessions,
or a series of sessions and can be online or
classroom-based.

@FIDIC
Building future leaders …

Young professionals

@FIDIC
 YPMTP
• An intensive management training programme
based on case studies and discussions of
management issues within an international team
of participants and mentors.
• The programme provides international networking
and active participation in the annual FIDIC
conference meeting key representatives of the
world wide consulting industry.
• From February 2019 until the working sessions at
the Fidic 2019 Conference in Mexico City

Future Leaders Management Certificate is the

revamped version of the past YPMTP

@FIDIC
 Future Leaders
• The future leaders of the Consulting
Engineering Industry offering their vision
on Technological innovation impacting the
industry
• Case studies and insights from consulting
engineering decision makers
• Promoting and improving the industry
globally for the future
• The new programme will be effective
from February 2020
• Significant reduction in cost and
affordable
• Encourage wider participation
• Take advantage of digital online platforms
@FIDIC
Building the next generation of engineers …

FIDIC in China

@FIDIC
 FCCE programme in China
• FIDIC Certified Consulting Engineer Pilot Programme
developed over many years of discussion and negotiation
• Great support from NDRC and CNAEC
• 1600 candidates have attended the FCCE training course in
China
• 979 candidates have been designated as FCCEs and
awarded Certificates signed by the FIDIC President
• Next exam in expected in November 2019.
• Wide interest to extend the program.

@FIDIC
 FIDICs aspirations for China

• Interaction and communication to influence and implement change globally

• Promote the development of expertise and skills through training
• Support CNAEC and its engagement in FIDIC’s activities globally
• Deepen FIDIC’s engagement with the consulting industry in China
• Support FIDIC ASPAC and its engagement with China
• Support international businesses in China to engage with Chinese businesses and
associations
• Provide opportunities to engage with global consulting business leaders
• Assist access to international and multinational development bank opportunities
• Extend use of FIDIC’s standardised contracts in China to improve domestic
contracting and China’s access to the global market

Source: WEF @FIDIC

What, where, why and how

How can FIDIC help

@FIDIC
 How FIDIC can help

• Collaborate to create a consistent message to influence and implement change and standard
procurement documents
• Provide access and collaboration between global leaders
• Continue to develop and promote FIDIC contracts
• Continue to promote best practice globally
• Provide a conduit for access to FIDIC members (Global, Regional and National)
• Provide access to international opportunities, governments and multinational development
banks
• Provide access to consultancy, contracting and engineering expertise
• Focus on long term solutions over short term gain
• Provide institutional development and capacity building via training
• Facilitate a significant increase in bankable projects for private sector investment

@FIDIC
 Building a stronger industry

• Create a consistent message to influence and implement change

• Create a stronger association base to represent current member countries and
future member countries striving to improve conditions for all
• Aid the development of training and skills
• Provide access to global leaders for development opportunities
• Through improved interaction with MA’s and firms, provide better access to
international opportunities and multinational development bank projects
• Through training and advocacy programs provide engineering firms with
opportunities to improve profit margins which currently vary a great deal
geographically, by market sector and by delivery mechanisms

@FIDIC
 What we are doing

• Education of engineers to improve the development of STEM programmes

• Encourage apprentices and the development of core skills
• Helping to establish and promote a solid foundation for institutions to reduce
corruption
• Co-operation between MDBs, Bilateral agencies and governments to enable
harmonisation of contracts standards and approaches via FIDIC contracts
• Promoting a significant increase in investment in social and hard infrastructure to
meet population and energy challenges
• Promote and develop and coordinating in and out of crisis
• Ensure that operational and maintenance plans are put in place
• FIDIC wants to arrange annual meetings with stakeholders head of procurement to
ensure that the use of FIDIC contracts, training etc is going well and can be improved

Source: African Development Bank Group @FIDIC

Questions

@FIDIC
President William Howard, USA
Vice President Anthony Barry, Australia
Liu Luobing, China

Secretariat FIDIC
World Trade Center 2
Geneva Airport
Box 311
CH-1215 Geneva 15
Switzerland
Tel: +41 22 799 49 00
Fax: +41 22 799 49 01
[email protected]
www.fidic.org

Chief Executive Officer Dr Nelson Ogunshakin, OBE

@FIDIC