C O N F L I C T O F I N T E R E S T

FIDIC Policy Statement

INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS

Background Actions by others

The term "conflict of interest" is widely used EFCA

in commercial and legal transactions, and is
acknowledged in the codes of ethics of professional The European Federation of Engineering
bodies, including engineering associations, to identify Consultancy Associations (EFCA) has been involved in
behaviour that may be unacceptable. negotiations with the European Commission on the
conflict of interest issue with respect to the procurement
Despite international use of the term, a of consulting services. To date, the Commission is
great deal of confusion and serious problems, both real maintaining a very strict interpretation of conflict of
and perceived, have materialized because there is no interest contrary to the position of the consulting
universally accepted definition of conflict of interest. The engineering industry.
problem is amplified by the globalisation of the
consulting engineering industry leading to confusion, EFCA believes that cases of conflict of
with different interpretations of what constitutes conflict interest should be restricted to very well defined
in different countries and even within countries. circumstances, such as:
- conflict between consulting activities and the
There has been a number of major ethical procurement of goods or works;
breaches involving different industries in various
- certain conflicts within consulting assignments, for
countries. These have been of such a magnitude that
example the preparation of terms of reference and
domestic as well as international regulators are taking
participation in the resulting tenders;
action that can have a profound effect. FIDIC is
concerned that international actions may be applied - the execution of a project or study execution and the
across the board to all industries, with suppliers of evaluation of the same project or study;
consulting engineering services being drawn in and - the design of a project and the study of its impact on
maybe forced to comply with a series of actions ill suited the environment;
to the efficient conduct of their business. - advice given to both government and buyer in, for
example, privatization;
FIDIC is strongly committed to the avoidance - a conflict arising from family or other personal
of conflict of interest in the consulting engineering relationships.
industry, and to the concept that clear, transparent and
internationally accepted principles should be applied. EFCA further states that the fact that a
consultant has participated in a previous phase of a
The FIDIC Policy Statement Conflict of Interest was approved project, other than the preparation of the terms of
by the FIDIC Executive Committee in May 2004. Printed
reference, is not per se a conflict of interest as long as all
copies can be obtained from the FIDIC Bookshop, either
preliminary investigation documents are made available
individually or as inserts in the binder FIDIC Policy
Statements. Electronic versions are available from to all participants to ensure fair and transparent
www.fidic.org/policies. Reproduction is permitted provided procurement.
the source is acknowledged.

Conflict of Interest © FIDIC o n e

 OECD various cases. The document provides excellent
guidance for both borrower and consultants.
The OECD has had an initiative since the
late 1990’s dealing with the Principles for managing ethics In preparing this Policy Statement, input was
in the public service [2]. While this work is not directly received from individual specialists and from members
applicable to the case of consulting engineering, there is of the Conflict of Interest Task Group that formed part of
common ground on several of the principles, and with the FIDIC Business Practices Committee. All input is
the general objective of improving morality in public gratefully acknowledged. Needless to say, a great deal of
service. The OECD work is instructive for consulting information is published, although it is difficult to make
engineering industry concerns as evidenced by the direct links to the issue as it affects the consulting
following approved principles: engineering industry.
- Ethical standards should be clear and reflected in the
legal framework (Principles 1 and 2). Definitions
- The decision-making process should be transparent
The focus of this Policy Statement is Section
and open to scrutiny (Principle 6).
1.9 of the Guidelines: selection and employment of
- There should be clear guidelines for interaction consultants by World Bank Borrowers [6]. Other IFIs may
between the public and private sectors (Principle 7). or may not have similar guidelines, and a review of these
- Adequate accountability mechanisms should be in various procedures can be found in the task group work
place (Principle 11). undertaken by EFCA [1].
- Appropriate procedures and sanctions should exist to
deal with misconduct (Principle 12). A good definition of the concept of conflict
of interest is found in the opening paragraph of Chapter
International finance institutions Four of the World Bank’s Consulting Services Manual [5]:

The various international finance A consultant conflict of interest (COI) is a situation in

institutions (IFIs) have the conflict of interest issue which a consultant provides biased professional advice to
among their concerns, and ongoing consultation takes a Borrower in order to obtain from that Borrower an
place at several levels. For instance, comments were undue benefit for himself, herself or affiliates. Although
received by FIDIC from several IFIs during the FIDIC COI is an easily understood concept, to identify it and
2003 Annual Conference in Paris, and during various address its consequences, that is, the potential or actual
meetings with officials in Washington and other prejudice to the Borrower's interests, requires in practice
locations. The conflict of interest issue was also raised at particular attention and expertise. COI is a concern
the 1999 Biennial Meeting of the International Lending when the consultant is in a situation in which its own or
Agencies with the Consulting Industry (BIMILACI) and its affiliates' interests could prevail over the interest of
addressed by the British Consultants Bureau (BCB), now the client.
the British Consultants and Engineering Bureau (BCEB),
in the 1998 briefing paper World Bank conflict of interest A slightly simplified version that can serve
study [3]. This brief reviewed the background and also the as FIDIC's definition of conflict of interest is as follows:
practice of how to deal with conflict of interest at several
IFIs and in other industries. The brief concluded by A consultant conflict of interest (COI) is a situation in
offering several recommendations. which a consultant provides biased professional advice to
a client in order to obtain from that client an undue
Conflict of interest was subsequently benefit for himself, herself or an affiliate and in so doing,
addressed at other BIMILACI meetings. In 2003, places the consultant in a position where its own
Françoise Bentchikou presented a paper outlining the interests could prevail over the interests of the client.
World Bank position and gave a classification of the
types of conflict of interest, as seen by the Bank [4]. Problems often arise in the details. For
example, they arise in defining “affiliates” and in
The World Bank has also issued its attempting to distinguish actual as opposed to perceived
Consulting Services Manual [5]. Chapter Four of this conflict of interest.
document, entitled "Conflict of Interest", sets out clearly
the categories of conflict, giving examples of each and As advocated in FIDIC publications dealing
proposing actions to mitigate conflict of interest in the with Business Integrity Management [7], transparency is

t w o Conflict of Interest
an essential element and this requires full disclosure by a Conflict between consulting activities and
the consultant at one or more points in the project procurement of goods, works or services
formulation and delivery process. It also requires that
the client also practices full disclosure in the process, A firm that has been engaged by a borrower
particularly in the terms of reference and in the to provide goods, works or services for a project and any
instructions to the bidders. of its affiliates, shall be disqualified from providing
consulting services related to those goods, works or
There must also be clear measures outlined services, unless the potential conflict arising from this
for transgressions. Many potential problems in the situation has been identified and resolved in a manner
procurement process related to unfair or competitive acceptable to the client throughout the selection process
disadvantage can be avoided if the client states clearly in and the execution of the contract.
the terms of reference the preferences regarding:
Conversely, a firm engaged to provide
- follow-on work; consulting services for the preparation or
- the extent of the assignment; implementation of a project, and any of its affiliates,
- preferences based upon special expertise or shall be disqualified from subsequently providing goods
knowledge. or works or services resulting from or directly related to
the firm’s earlier consulting services, unless the potential
As long as these provisions are not in themselves conflict arising from this situation has been identified
anticompetitive and are approved by the client, then all and resolved in a manner acceptable to the client
potential service providers can make commercial throughout the selection process and the execution of
decisions. the contract.

In defining “affiliates”, there must be some b Conflict among consulting assignments

rational limit to the potential relationship. This is
important because the consulting industry responds to Consultants, including their personnel and
the pressures from globalization, with firms growing in sub-consultants, or any of their affiliates shall not be
size, geographic distribution and scope of disciplinary engaged for any assignment that, by its nature, may be
capabilities. The operative issue is control. When in conflict with another assignment of the consultants
minority ownership interests arise and management unless the potential conflict arising from this situation
control is strongly vested in the larger firm, with no has been identified and resolved in a manner acceptable
overlap in a firm’s Board or other policy body, then the to the client throughout the procurement and execution
relationship can be described as minor and may not phases of the project.
cause a problem that cannot be addressed by full, prior
disclosure and mutually acceptable mitigation measures. As an example, consultants engaged to
prepare engineering design for an infrastructure project
FIDIC policy on conflict of interest shall not be engaged to prepare an independent
environmental assessment for the same project, and
FIDIC’s policy on conflict of interest requires consultants assisting a client in the privatization of
that consultants provide professional, objective and public assets shall not purchase, nor advise purchasers
impartial advice, and at all times hold the client’s of such assets. Similarly, consultants hired to prepare
interests paramount, without any consideration for terms of reference for an assignment shall not be
future work and strictly avoiding conflicts with other engaged for the assignment in question.
assignments or their own corporate interests.
c Relationship with the client’s staff
Consultants shall not be selected for any
assignment that would a) be in conflict with their prior Consultants, including their personnel and
or current obligations to other clients, or b) may place sub-consultants, that have a business or family
them in a position of not being able to carry out the relationship with a member of the client’s staff or of the
assignment in the best interest of the client. Without project implementing agency’s staff may not be awarded
limitation on the generality of this rule, consultants shall a contract, unless the conflict stemming from this
not be engaged under the circumstances set out below: relationship has been resolved in a manner acceptable to
the client throughout the procurement process and the
execution of the contract.

Conflict of Interest © FIDIC t h r e e

 C O N F L I C T O F I N T E R E S T

References and resources

1 Conflict of Interest statements, EFCA, 2002, 2003: www1.fidic.org/resources/bimilaci/2003/Bentchikou_

www1.fidic.org/resources/bimilaci/2003/VanderPutten_ COINewGuidProvisions_IBRD.doc
Concerns%20withIFIs_EFCA.doc 5 World Bank Consulting Services Manual, 2001:
www.fidic.ch/internal/Documents/BPC/COITG/efca_coi_ siteresources.worldbank.org/PROCUREMENT/Resources/
statement_brussels_sep03.doc csm-final-ev3.pdf
2 Principles for managing ethics in the public service, 6 Guidelines: selection and employment of consultants by
OECD, 1998: World Bank borrowers, World Bank, revised 2002,
www1.oecd.org/puma/ethics/pubs/rec98/rec98.htm revised 2004:
3 World Bank Conflict of Interest study, British siteresources.worldbank.org/PROCUREMENT/Resources/
Consultants Bureau, 1998, BIMILACI’99: conguid-ev4.doc
www1.fidic.org/resources/bimilaci/1999/bcb.html 7 Guidelines for Business Integrity Management in the
4 F. Bentchikou, World Bank position and a classification consulting industry, Test Ed 2001
of the types of conflict of interest as seen by the World
Bank, BIMILACI’03, May 2003: Resources are available at www.fidic.org/policies/coi

Implementation guidelines the ability of the firm to hold the interests of the client
paramount, while not overlooking the interests of other
The statements given above recognize that parties identified in the code of ethics.
there is often subjectivity involved in matters of conflict
of interest, where the all-important “question of degree” There have been cases where consultants
must be addressed. acted in ways that would be, under normal
circumstances and in light of the above policies, clearly
Methods for avoiding or preventing conflict in a conflict of interest situation. However, in these cases
of interest as outlined in Chapter Four of the World either the client had special requirements that were
Bank’s manual for consulting services [5] are reasonable clearly spelled out at the onset of the project delivery
steps in the whole process. Several key principles are process, or the client and consultant negotiated a
also considered to be essential: procedure that offered a satisfactory mitigation
methodology.
Prior disclosure
A firm has an obligation to fully disclose any In any event, the nature of assignments,
potential or real conflict of interest at the earliest special requirements and client needs, and other factors
opportunity, and to continuously monitor developments necessitate the adoption of fair and reasonable
in the firm to ensure that subsequent events do not processes and guidance for their application. The risk of
affect their previously stated position. becoming involved in a serious conflict of interest
position and losing a firm’s long-developed reputation
Transparency and standing is too great to gamble with. Full disclosure,
A firm must at all times be able to provide full transparency, independence and adherence to a
evidence that it follows a recognized code of ethics and strong code of ethics should be by far the preferred
that the practice is universal throughout the firm. The choices for FIDIC members. The test should always be:
firm must be able to defend its actions, or lack thereof, Is it fair and reasonable? Is there full and prior disclosure
with documented evidence of conformity to the and full transparency?
conditions of engagement and the conduct of its
contractual obligations. FIDIC - International Federation of Consulting Engineers
World Trade Center 2, Geneva Airport
Independence Box 311, CH-1215 Geneva 15, Switzerland
Telephone: +41 22 799 49 00 Email: [email protected]
A firm must at all times maintain its
Telefax: +41 22 799 40 01 Web: www.fidic.org
independence from external influences that may affect

f o u r Conflict of Interest
 C O R R U P T I O N

FIDIC Policy Statement

INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS

Background FIDIC has taken a proactive role in joining

the worldwide effort to combat corruption by supporting
The disease of corruption is unfortunately international anticorruption initiatives, promoting high
spreading at the very time when world communications ethical standards, recommending the implementation of
are improving and the economies of nations are integrity management, and cooperating with agencies
becoming more interdependent as we move towards the investigating corruption.
global neighborhood. Corruption’s taint includes the
procurement of design and construction. Where corruption occurs

Corruption, that can be defined as “the Corrupt practices can occur at all stages of
misuse of public power for private profit”, is morally and the procurement process: in the marketing of
economically damaging. Firstly, it jeopardizes engineering services; during the design; in preparing
procurement processes, is always unfair, and is often tender documents (including specifications); in pre-
criminal: it saps money from required development qualifying tenderers; in evaluating tenders; in supervising
projects and adversely affects their quality. Secondly, and the performance of those carrying out the construction;
worse than being pragmatically wrong, in allowing while issuing payment certificates to contractors; and on
wasteful procurement corruption is basically wrong: it making decisions on contractors’ claims.
undermines society’s values, breeds cynicism and
demeans the individuals involved. It is more than Business development
stealing funds, it is stealing trust.
The selection of a consulting engineering
The consulting engineering industry which, firm is a most important task, and is the basis for the
as it should, has been motivated historically by concern essential and mutual client–consultant trust. The various
for the needs of society, must seek to both prevent and selection criteria advocated by FIDIC, to be applied in
react to the blight of corruption. FIDIC and its Member judging a firm’s suitability to carry out a project, are
Associations, representing the leaders of the consulting completely undermined if the selection process is
engineering industry will neither ignore nor acquiesce tainted by corruption. The preparation of a short list is
with the tide of corruption. Nor will they consider that an important part of the process, and must be carried
local corruption is cultural and unchangeable. The out openly.
member firms of FIDIC's Member Associations will
neither initiate nor accede to corrupt practices. Consulting engineering firms should
promote the availability and capability to perform
consulting services only on the basis of quality
The FIDIC Policy Statement Corruption was approved by the considerations. They should not seek work which calls
FIDIC Executive Committee in September 2003. Printed for expertise beyond their particular training and
copies can be obtained from the FIDIC Bookshop, either experience.
individually or as inserts in the binder FIDIC Policy
Statements. Electronic versions are available from
www.fidic.org/policies. Reproduction is permitted provided
A bribe of whatever form, intended to
the source is acknowledged. influence an evaluation committee during the
prequalification phase, or later during the final retainer

Corruption © FIDIC o n e
discussions, whether directly or indirectly (using more likely a contract award which will be predicated
mechanisms such as scholarships, actions of agents, or upon proper factors. As quoted in the FIDIC document
currency exchange facilities) constitutes unethical Tendering Procedure, 2nd Ed 1994 [1], the key factors and
behaviour. method of evaluation should be established in the
introductions to the tenderers, in order that the
Design, specification preperation and subsequent evaluation will be objective and fair to all
pre-qualification tenderers.

In the preparation of designs, and later the Construction supervision and claims
specification documents, the consulting engineering
firm must pursue the best interests of the client. The During the course of construction, the
consulting firm must not accept remuneration from consulting engineering firm is charged with the
suppliers which are under consideration for responsibility of exercising discretion in accepting
incorporation into the design, and must avoid references materials, expressing satisfaction or approval,
to brand names. The consulting firm must not be determining quantities and value, and giving opinion,
influenced to use products or processes because they consent or decision. The proper and impartial exercise of
are owned or promoted by organizations with whom the that responsibility, in the client’s best interests, is at the
consulting firm may have an affiliation, except where the core of the consulting firm’s role, and is the essence of
consulting firm has a role, known to the client, as an the FIDIC system.
equity participant in, for example, a design and build
project. Consistent with the objectives of this policy
statement, it is noted that the FIDIC Plant and Design-
The delivery system or contractual approach Build Contract, 1st Ed 1999 [2], and the EPC/Turnkey
recommended to the client must be the most Contract, 1st Ed 1999 [3], as with the laws of many
appropriate for the project. Similarly, in evaluating countries, provide that bribery by the contractor is a
potential tenders during a prequalification period, the basis for contract termination, much like the more
best interest of the client must be paramount. This conventional bases for default.
usually means the fostering of competitive tendering.
The use of FIDIC forms of Conditions of Contract, which The consulting engineering firm must not
are balanced documents developed and revised in the offer or accept remuneration of any kind which may be
light of experience, is recommended. Even more perceived to, or in reality, attempt to influence the
importantly, a tendering and evaluation process selection or compensation procedure or affect the
conducted with transparency and expedition will make impartial judgement of the consulting engineering firm.

t w o Corruption
 Therefore FIDIC recommends as follows competitive tendering (see Tendering Procedures, 2nd
Ed 1994 [1]), respectively, should be used.
1 Member Associations and their members, both firms
and individuals, should internally develop and
maintain systems to protect their high ethical 6 In implementing particular projects, consulting
standards and codes of conduct. They should co- engineering firm should recommend to their clients
operate candidly with other organizations which seek the most appropriate and objective procurement
to reduce corruption. Member firms should associate process or delivery system, consistent with the
themselves only with other firms who share similar demands of the project.
high ethical standards.
7 Funding agencies should be kept fully informed by
2 Member firms should have a commitment to the consulting firm of the procurement steps as they
integrity through the implementation of a Business occur. The consulting firm shall notify funding
Integrity Management System (see Guidelines for agencies of any irregularities, in order that
Business Integrity Management in the consulting cancellation or other remedies may be exercised, in
industry, Test Ed 2001 [4]) involving all levels of accordance with the loan agreement.
management and every employee, focusing on
corruption prevention. 8 Member firms should be aware of local law regarding
corruption and should promptly report criminal
3 Members Associations should assist member firms behaviour to the proper law enforcement authorities.
in developing a Business Integrity Management
System, by providing guides, training and general 9 FIDIC Member Associations should take prompt
support. disciplinary actions against any member firms found
to have violated the FIDIC Code of Ethics. This could
4 Member firms should have access to an independent include, among other actions, expulsion and
evaluation of the Business Integrity Management notification to public agencies. Procedures should be
System with guidelines developed by the consulting established by Member Associations to assure that
engineering industry. the due process of law is afforded in such cases. The
procedure for determining whether the expulsion of a
5 To reduce the opportunities for corruption in the member firm is warranted,should be conducted
process of the procurement of engineering and confidentially but expeditiously.
construction services (see FIDIC Guidelines for the
selection of consultants, 1st Ed 2003 [5]), quality-based 10 Member Associations should foster and support the
selection procedures (see Quality Based Selection for enactment of legislation in their own countries, which
procurement of consulting services, 1st Ed 1997 [6]) and is aimed at curbing and penalising corrupt practices.

Corruption © FIDIC t h r e e
 C O R R U P T I O N

References and resources

1 Tendering Procedures, 2nd Ed 1994. Other relevant FIDIC publications

2 Plant and Design-Build Contract, 1st Ed 1999.
3 EPC/Turnkey Contract, 1st Ed 1999. - Model Representative Agreement, Test Ed 2004.
4 Guidelines for Business Integrity Management in the - Client/Consultant Model Services Agreement, 3rd Ed
consulting industry, Test Ed 2001. 1998.
5 Guidelines for the selection of consultants, 1st Ed 2003 - Joint Venture Agreement, 1st Ed 1992.
6 Quality Based Selection for procurement of consulting - Sub-Consultancy Agreement, 1st Ed 1992.
services, 1st Ed 1997. - Short Form of Contract, 1st Ed 1999.
- Construction Contract, 1st Ed 1999.
- The FIDIC Contracts Guide, 1st Ed 1999.
Resources available at www.fidic.org/policies/corruption - Conditions of Subcontract for Work of Civil Engineering
Construction, 1st Ed 1994.
- FIDIC Policy Statements, 2004.
- Capacity building: building the capacity of consulting
firms, 2001.
- Sustainable development in the consulting engineering
industry: a strategy paper, 2000.
- Engineering our future, 1998.
- Guide to Quality Management in the consulting
engineering industry, 2nd Ed 2001.
- Guide to the interpretation and application of the ISO
9001:2001 Standard for the consulting engineering
industry, 1st Ed 2001.
- Consulting engineers and the environmen: guide for
actions, 1st Ed, 1994.
- Risk Management Manual, 1st Ed 1997.
- Professional liability insurance: a primer, 1st Ed 1991.
- Insurance of large civil engineering projects, 2004.
- Amicable settlement of construction disputes, 1st Ed
1992.
- Construction, insurance and law, 1st Ed 1986.
- Mediation of professional liability claims, 1st Ed 1993.
- Risk Management expectations, 1st Ed 1991.

FIDIC - International Federation of Consulting Engineers

World Trade Center 2, Geneva Airport
Box 311, CH-1215 Geneva 15, Switzerland
Telephone: +41 22 799 49 00 Email: [email protected]
Telefax: +41 22 799 40 01 Web: www.fidic.org

f o u r Corruption
 H I V / A I D S I N C O N S T R U C T I O N

FIDIC Policy Statement

INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS

The HIV/AIDS epidemic increasingly hitting the bottom line. And if your business
does not feel the direct impact of the epidemic then I
The disastrous impact of HIV/AIDS on the appeal to your corporate sense of social responsibility. For
individuals and entire populations of many countries, whatever we can say about business’ very real financial
particularly on those persons least able to cope, that is interest in halting the spread of HIV/AIDS, this first and
the poor and children, is widely acknowledged. FIDIC foremost a humanitarian cause.
shares the worldwide concern on this scourge on
humanity. FIDIC also recognises that construction sites in Some facts are shown in the tables below
developing countries are potentially primary centres of (for 2001 – the situation has further deteriorated
HIV/AIDS. FIDIC member firms often have key roles on according to reports).
such sites and are thus in a position to make a difference.
UN Secretary-General Kofi Annan said in a
FIDIC member firms are by no means recent call to action:
immune from a serious involvement in respect to their
own employees. Infection rates of 25% or more are There is no more time for half-measures. In terms of life
reported in member firm offices in some countries. lost, children orphaned and the destruction of the social
and economic fabric of whole societies and whole
Ambassador Richard C. Holbrooke, the countries, AIDS is an unparallel nightmare. What is
President and CEO of the Global Business Coalition on more, its impact continues to grow. In the worst affected
HIV/AIDS, has stated on the issue “Why business must countries, where more than one in five adults are
respond to AIDS” [1]: infected, infrastructure, services and productive capacity
are facing total collapse. The challenge is enormous, but
When AIDS first appeared twenty years ago no one we are not powerless to face it.
could have predicted the impact it would have on our
world. Already over 20 million people have died (2001 AIDS in the construction sector
figure). Another 36 million live with the disease. And
although we know how HIV is transmitted, over 16,000 In the introduction to the Draft specification
people continue to be infected every single day. for HIV/AIDS awareness [2], the Construction Industry
Development Board of South Africa, says:
AIDS affects people, and therefore AIDS impacts our
business. For the last 20 years, AIDS has affected our Research indicates that the South African construction
employees, our managers, and our customers, and is industry has the third highest incidence of HIV/AIDS in
South Africa. The construction sector has a
The FIDIC Policy Statement HIV/AIDS in the construction predominantly migratory labour force, making it a prime
sector was approved by the FIDIC Executive Committee in contributor to the spread of HIV/AIDS. Labour camps
January 2004. Printed copies can be obtained from the are a breeding ground for the spread of HIV/AIDS and
FIDIC, Bookshop either individually or as inserts in the
Sexually Transmitted Diseases (STDs), this being
binder FIDIC Policy Statements. Electronic versions are
available from www.fidic.org/policies. Reproduction is
compounded by the situation where migrant workers on
permitted provided the source is acknowledged. contract generally ignore or are ignorant of the
consequences of casual sexual relationships.

HIV/AIDS in the construction sector © FIDIC o n e

 The prevalence of subcontracting, the emergence of 3 HIV voluntary counselling, testing and referral
many small contractors and the tendency toward labour- services.
only subcontracting increased the complexity of
4 Sexually Transmitted Infection (STI) diagnosis and
developing an effective HIV/AIDS strategy that targets
treatment.
the full spectrum of those employed in construction. This
level of complexity places a special responsibility on 5 Monitoring of outcomes, in collaboration with
clients, the professions and industry leaders. national HIV/AIDS authorities.

The construction sector has the potential to play an These strategies are designed to build an
important role in the country’s inter-sectoral approach to HIV resilient workforce as well as HIV resilient
coping with the epidemic. The sector also provides entry- communities associated with the workforce, i.e.,
level local jobs, which may be crucial to the survival of communities that are able to draw on thieir own capacity
youth-headed households and extended families in areas to prevent further transmission of HIV, minimise the
hard hit by the epidemic. Construction sites can impact of the HIV/AIDS epidemic, and talk about
accordingly provide a convenient location for HIV/Aids HIV/AIDS.
programmes to both construction workers and rural
communities. The objectives of these strategies are to:
- Reduce the risk of transfer of the HIV virus between
FIDIC and FIDIC member firms have a
and among construction workers, their families and
corporate social responsibility, and FIDIC recognises that
the local community;
member firms can make a significant difference, because
- Raise awareness amongst construction workers and
they have already done so in a number of countries.
the local community of the risk of infection with the
HIV virus;
For these reasons, FIDIC has developed this
- Promote the benefits of abstinence/avoidance;
policy on HIV/AIDS in the construction sector.
- Promote voluntary early diagnosis; and
- Assist affected individuals to access care and
FIDIC Policy on HIV/AIDS in the
counselling.
construction sector
HIV/AIDS Clauses for inclusion in contract
FIDIC recommends that:
documents
FIDIC member firms should at all times use their
FIDIC has prepared HIV/AIDS Clauses
influence, position and strengths to reduce the impact of
aimed at meeting the above objectives, and
HIV/AIDS on their own employees and those of
recommends that these Clauses be included in
contractors, and their families, and for the wider
construction contracts wherever there is the slightest
community particularly, located at or related to
risk of HIV/AIDS infection relating to activities or the
construction sites on which a member firm is engaged.
construction site.
Five strategies for engineering and
It is recommended that the following Sub-
construction works contracts
Clause be added to Clause 6, Staff and Labour, of the
Particular Conditions of the FIDIC Conditions of Contract
The responses of FIDIC firms in showing
for Construction, 1st Edition, 1999 [4]:
leadership and advocacy will normally comprise the
following five strategies recommended for implementation
EXAMPLE SUB-CLAUSE
in engineering and construction works contracts [3]:
HIV/AIDS Prevention
1 Raising awareness about HIV/AIDS.
The Contractor shall conduct an HIV/AIDS Awareness
- increased understanding about the disease, Programme via an Approved Service Provider, and shall
through dissemination of information and by undertake such other measures as are specified in this
generating discussion. Contract to reduce the risk of the transfer of the HIV virus
- promote the benefits of abstinence/avoidance. between and among the Contractors Personnel and their
families and the Local Community, to promote voluntary
2 Ensuring that construction workers have access to
early diagnosis, and to assist affected individuals.
condoms.

t w o HIV/AIDS in the construction sector

 HIV/AIDS Technical Clauses Monitoring

HIV/AIDS Technical Clauses are provided in FIDIC member firms working either as an
Annex 1. These are drafted for use with the FIDIC Employer or when acting as Project Manager or Site
Conditions of Contract for Construction 1st Edition, 1999 Supervisor, are in a position to monitor the take up and
[4], as Clauses within the Contract Technical effectiveness of anti-AIDS measures. FIDIC recommends
Specification, although the Clauses could be adapted to that they do so. Examples of indicators to be monitored
any form of Contract. would include:
- HIV related absences amongst staff;
In drafting these Clauses, FIDIC has drawn
- frequency of attendance at training seminars
upon the publications of South Africa’s Construction
- take-up of condom use;
Industry Development Board [2] and the International
- understanding of the anti-HIV/AIDS messages
Labour Organization [3].
amongst staff.
The intent of these Clauses is that the
measures specified to be undertaken by the Contractor
are to be measured and priced in the tender Bill of
Quantities, and subsequently paid for on completion or
progressively as measurable (pay) items in accordance
with the General Conditions (Clause 12 of the FIDIC
Conditions of Contract for Construction, 1st Edition, 1999).

Wider use of HIV/AIDS Clauses

The FIDIC HIV/AIDS Clauses (Annex 1) have

been drafted specifically for use with FIDIC Standard
Contracts, drawing upon the sources referenced in [2]
and [3].

However, FIDIC suggests that the Clauses

may be adapted for wider use, including:
- with other forms of Contract;
- in designing anti-HIV/AIDS strategies in other
applications such as other industries and community
awareness generally;
- specifically in campaigns within the offices of
member firms operating in AIDS-prevalent
situations.

HIV/AIDS in the construction sector © FIDIC t h r e e

 Annex 1 1.2 It shall be a requirement of the contract that the
Contractor:
HIV/AIDS Clause for inclusion in the FIDIC
Construction Contract, 1st Ed 1999 1.2.1 sub-contracts with an Approved Service
Provider to provide an HIV Awareness
1.1 For the purpose of this Clause: Programme to the Contractor’s Personnel and
the Local Community as soon as practicable
“an Approved Service Provider" means a person or after the Contractor’s Personnel arrive at the
entity approved by the National HIV/AIDS Authority Site but in any case within two weeks after the
to provide the HIV Awareness Programme;” Contractor's Personnel arrive at site, and to
repeat the HIV Awareness Programme at
the “Contractor’s Personnel” or “Construction intervals not exceeding four months;
Workers” means, without prejudice to any other
definition contained in the Contract, all personnel, 1.2.2 gives any representative of the Approved
who are under the Contractor's control and on the Service Provider, the Employer and the
Site in connection with the Contract, including any National HIV/AIDS Authority all reasonable
workers who are under the control of any person or access to the Site in connection with the HIV
entity to whom the contractor has sub-contracted Awareness Programme;
any of this obligations under the Contract other
than those responsibilities set out in this Clause; 1.2.3 if the National Aids Authority has not
provided the names of available Approved
"the HIV Awareness Programme" means an HIV Service Providers within two weeks after being
awareness programme [as set out in the Project asked the Contractor may select its own
documentation / in compliance with the HIV service provider after consultation with the
Awareness Programme curriculum and guidelines appropriate UNAIDS and/or National
published by UNAIDS and/or National HIV/AIDS HIV/AIDS Authority office;
Authority];
1.2.4 instructs the Contractor’s Personnel to attend
“the Local Community” means the communities the HIV Awareness Programme in the course
local to the Site most likely to have contact with the of their employment and during their normal
Contractor’s Personnel and, in particular, vulnerable working hours or any period of overtime
groups and sex workers in those communities; provided for in the relevant employment
contracts and uses all reasonable endeavours
“National HIV/AIDS Authority” shall mean the to ensure this instruction is followed;
authority in the country where the Site is located
designated by the relevant national government to 1.2.5 provides suitable space for delivery of the HIV
have responsibility for preventing and/or combating Awareness Programme and does nothing to
HIV-AIDS; dissuade the Contractor’s Personnel from
attending the HIV Awareness Programme;
“UNAIDS” shall mean the agency of the United
Nations of that name or the United Nations 1.2.6 as soon as practicable, notifies the National
Regional Task Force on mobile population and HIV HIV/AIDS Authority of its sub-contract with
vulnerability. an Approved Service Provider to facilitate the
National HIV-AIDS Authority’s audit of
Abbreviations: Approved Service Providers;

- STI: Sexually Transmitted Infection 1.2.7 gives all reasonable co-operation to the
- HIV: Human Immunodeficiency Virus National HIV/AIDS Authority if it exercises its
- AIDS: Acquired Immune Deficiency Syndrome right to audit the provision by the Approved
Service Provider of the HIV Awareness
Programme.

1.2.8 makes condoms complying with the

requirements of ISO 4074 available to all

f o u r HIV/AIDS in the construction sector

 contractor’s employees at readily accessible 1.5 Where a clinic is provided on behalf of the
points on the site, suitably protected from the Contractor on site, the Contractor shall ensure that
elements, for the duration of the Contract; such clinic provides to the Contractor’s Personnel,
on request and without charge:
1.2.9 either place and maintain HIV/AIDS
awareness posters of size of not less than A1 1.5.1 counselling and advice on AIDS in
in areas which are highly trafficked by compliance with UNAIDS or National
construction workers, or provide construction HIV/AIDS Authority guidelines; and
workers with a pamphlet, in languages largely
understood by construction workers, which 1.5.2 condoms that comply with either the current
reinforce the outcomes of the HIV Awareness ISO standard or WHO/UNAIDS Specification
Programme stated in 1.2.1; and guidelines for condoms, 1998, or any more
recent equivalent publication by the National
1.2.10 encourages voluntary HIV/STI testing, and HIV/AIDS Authority.

1.2.11 provides information on services concerning 1.6 The Contractor shall be entitled to be reimbursed by
counselling, support and care of those that the Employer for any payments made under a sub-
are infected. contract made on either cost incurred for the
purpose of Sub-Clause 1.2 in accordance with the
It is not a requirement of this contract for the relevant provisions in the Contract, and in
Contractor to undertake or pay for treatment or particular, for the amounts included in the Bill of
medication for personnel found to be suffering from Quantities.
HIV/AIDS. Such personnel shall not be
discriminated against however. 1.7 Where the Contract does not provide for
reimbursement of named costs, the amount paid by
1.3 The outcomes of the HIV Awareness Programme the Contractor to the Approved Service Provider
shall as a minimum, result in Contractor’s Personnel shall be added to any lump sum to be paid by the
exposed to such a programme being able to: Employer to the Contractor under the Contract and,
before such lump sum is paid, the Contractor shall
a communicate the existence of problems of provide to the Employer evidence of:
HIV and be able to outline the consequences
of transmission of HIV to or from the Local 1.7.1 payment of the amount claimed to the
Community; Approved Service Provider; and
b recall and communicate the mode of HIV
transmission and preventative measures 1.7.2 provision of the HIV Awareness Programme
including the proper use of the condom; (e.g., a Compliance Report issued by the
c be aware of the advantages of Approved Service Provider - refer to Annex 3).
abstinence/avoidance.
1.8 Where the Contractor sub-contracts any of its
1.4 Reporting obligations under the Clause of the Contract it shall
require any sub-contractor to comply with Sub-
1.4.1 The Contractor shall prepare and attach to his Clauses (1.2.2 to 1.2.11) of the Contract as if it were
claims for payment a brief report which the Contractor.
outlines how the actions taken by the
Contractor in the period for which payment is
claimed satisfy the requirements and a
schedule which lists the names, identity
numbers, trade/occupation and name of
employer of all construction workers exposed
to the programme.
1.4.2 The Employer’s representative shall certify the
report and schedule described in 1.4.1
whenever a claim for payment is issued to the
Employer.

HIV/AIDS in the construction sector © FIDIC f i v e

 Annex 2

Bills of Quantities pricing data

FIDIC recommends that the HIV/AIDS awareness requirements contained in the standard Clauses should
be identified as separate items/activities and be included in the Bills of Quantities, or in activity schedules as a single
item or a group of items.

Example

Item Description Unit Rate Amount

1 Conduct HIV/AIDS Awareness Programme

on Site for Contractors personnel inclusive
of all direct and indirect costs.

2 Provide, fill and maintain condom dispensers.

3 Provide and maintain HIV/AIDS awareness

posters.

4 Provide information regarding the voluntary

testing of construction workers and
counselling, support and care.

s i x HIV/AIDS in the construction sector

 Annex 3

Compliance Report

Contract number:

Payment claim number:

Period covered by payment claim:

1 Distribution of condoms (briefly describe where and how condoms are distributed):

2 Posters/pamphlets (briefly describe where posters were placed/how pamphlets were distributed):

3 Voluntary HIV/STI testing (briefly describe the actions taken/information provided to promote testing)

4 Counselling, support and care (summarise information provided):

5 Schedule of construction workers exposed to the HIV Awareness Programme

Name Identification number Trade/occupation Name of employer

I hereby declare the above to be a true reflection of actions taken to ensure compliance with the specification.

Name:

Position:

Date:

HIV/AIDS in the construction sector © FIDIC s e v e n

 H I V / A I D S I N C O N S T R U C T I O N

References and resources

1 Business action on HIV/AIDS – a blueprint, Global Annex 1 (HIV/AIDS Clause) refers to:
Business Coalition on HIV/AIDS, 2001:
www.businessfightsaids.org/pdf/blue_print.pdf “HIV Awareness Programme curriculum and
2 Specification for HIV/Aids awareness, Construction guidelines published by UNAIDS and/or National
Industry Development Board, South Africa, June HIV/AIDS Authority”.
2003:
www.cidb.org.za/initiatives/HIV%20specification.pdf The curriculum and guidelines are no longer available
3 Implementing labour standards in construction - a from UNAIDS, but they are referred to in various
sourcebook, Water, Engineering and Development UNAIDS publications including:
Centre, Loughborough University, UK, 2002.
wedc.lboro.ac.uk/publications/details.php?book= National AIDS Programmes: A guide to monitoring and
1%2084380%20017%209 evaluation, UNAIDS, 2000.
4 FIDIC Conditions of Contract for Construction, 1st Ed
1999. Resources are available at www.fidic.org/policies/hiv

FIDIC - International Federation of Consulting Engineers

World Trade Center 2, Geneva Airport
Box 311, CH-1215 Geneva 15, Switzerland
Telephone: +41 22 799 49 00 Email: [email protected]
Telefax: +41 22 799 40 01 Web: www.fidic.org

e i g h t HIV/AIDS in the construction sector

 Supplement

AusAID projects: clarrifications and ammendments

Reference is made to the FIDIC Policy ADDITIONS

Statement HIV/AIDS in the construction sector. The
following clarifications and amendments are proposed 4. Sub-Clause 1.6
for use in AusAID projects. Add new 2nd paragraph:
“The amount included by the Contractor in its
1 Contract agreement sub-clause priced Bill of Quantities for the HIV/AIDS
preventative provisions as defined in Sub-Clause
The sub-clause intended for inclusion in the Contract 1.2, shall be not less than 1.0% of the Contract
Agreement, Conditions of Particular Application, is Price.”
provided on page 2, at the bottom of the second
column: 5. New Sub-Clause 1.9
1.9 Attention is drawn to the obligation of the
HIV/AIDS Prevention
Contractor to give preference to the
The Contractor shall conduct an HIV/AIDS Awareness employment of labour from communities
Programme via an Approved Service Provider, and shall local to the site(s) of the Works.
undertake such other measures as are specified in this
Contract to reduce the risk of the transfer of the HIV virus 6. New Sub-Clause 1.10
between and among the Contractors Personnel and their 1.10 The requirements described in Sub-Clauses
families and the Local Community, to promote voluntary 1.2.1, 1.2.5, 1.2.9, 1.2.10, 1.2.11 and 1.4.1 shall
early diagnosis, and to assist affected individuals. be extended to include the local communities
as defined by the Employer. The cost of such
2 Annex 1 provisions to the local communities shall be
deemed to be included in the rates and
This section is intended for inclusion in the Contract amounts in the priced Bill of Quantities
Technical Specification, and requires some
amendments/additions 2 Annex 2: Bill of Quantities

ERRATA Add a Note:

i) The rates and amounts applying to these
1. Heading: should read: items are to include for provisions of services
“HIV/AIDS Clause for inclusion in the Contract to the local communities.
Technical Specification” ii) The total sum of this group of items shall be
not less than 1.0% of the Accepted Contract
1. Sub-Clause 1.4.1 line 2 Amount.
After “a brief report” add “in the form attached”.

3. Sub-Clause 1.6, line 3

Delete “on either”. Replace with “or other”.

HIV/AIDS in the construction sector © FIDIC s u p p l e m e n t

 I N F O R M E D P U R C H A S E R S

FIDIC Policy Statement

INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS

Informed purchasers - Purchasers should understand the negative implications

of procuring consulting services based on cost
It is an obvious fact that in any endeavour, a compared with the benefits of quality based selection.
well-informed team will produce results that are superior - Purchasers should understand the cost to
to those from a less informed or less capable team. consultants of proposal preparation.
Evidence shows that this is particularly true for - Purchasers should understand the importance of
engineering projects where the quality of the project providing complete, proper and accurate data for
team – that is, the client (or purchaser), the consulting bidding and implementation of projects.
engineer and other professionals, and the contractor – is
- Purchasers should understand and articulate what
paramount in producing the best value and most
they expect from the consultant, define the scope,
sustainable results. Each member of the team has a vital
work within that definition, and not expect extra
role to play, if the project is to succeed.
services without compensation.
At a roundtable discussion at the FIDIC - Purchasers should be technically competent in the
2002 Annual Conference in Acapulco, Mexico, on the subject of the project, and where lacking in-house
subject of informed purchasers, attended by consulting skills, be prepared to engage skilled advisors.
engineers and others from many countries, there was a - Purchasers need to understand the importance of fair
clear consensus that the skill level of the purchaser of and transparent processes for the selection of
services has a direct bearing on the quality of the end consultants and contractors, in achieving a best value
product. Delegates pointed out that this relates to both and sustainable outcomes.
public and private clients. Delegates and industry experts
also identified a worrying trend towards potentiallly less It should be noted that, even if worded with
informed purchasers, and quoted examples of resulting reference to a “project”, the points above and this FIDIC
problems. Points made by industry experts and the policy are equally relevant to larger investment
FIDIC delegates included the following. programmes or other endeavours.
- Purchasers should maintain a stable staff and core
Background
competencies.
- Purchasers should accurately assess their ability as FIDIC policy is that purchasers of consulting services
project managers and augment where necessary. should be fully informed on both the technical
- Purchasers should fully understand contract aspects of the specific project and on the proper
conditions. processes for the procurement and management of
consulting services.
The FIDIC Policy Statement Informed Purcahsers was
Also:
approved by the FIDIC Executive Committee in September
2003. Printed copies can be obtained from the FIDIC FIDIC policy is that purchasers of construction services
Bookshop, either individually or as inserts in the binder from contractors should be fully informed on both the
FIDIC Policy Statements. Electronic versions are available technical aspects of the specific project and on the
from www.fidic.org/policies. Reproduction is permitted
proper processes for the procurement of construction
provided the source is acknowledged.
services or the supply of plant or equipment.

Informed Purchasers © FIDIC o n e

 I N F O R M E D P U R C H A S E R S

References and resources

1 Guidelines for the selection of consultants, 1st Ed 2003. 3 Quality of Construction - a guide for actions, 2004.
2 Quality Based Selection for procurement of consulting
services, 1st Ed 1997. Resources available at www.fidic.org/policies/informed

Well informed purchasers – whether competencies. It may be necessary to retain outside

government or private clients – are far more likely to expertise to perform project or programme development
undertake successful projects than purchasers who are tasks, including the procurement of consulting services
inadequately informed or who are lacking in expertise. and the procurement of construction or plant or
For a project to be successful in the best interests of the equipment. FIDIC member firms can provide suitably
purchaser, the consultants and the end user (the public), qualified and experienced experts to assist clients in
both the purchaser and consultant must have an preparing project designs, requests for proposal, terms
identical vision for the project. of reference and information to consultants and in
evaluating bids and negotiating agreements with
FIDIC is committed to the pre-eminence of consultants and contractors.
quality in the selection of the consulting engineers by
purchasers, and has made a series of recommendations In summary, a well-informed purchaser:
on best practice for selection in Guidelines for selection of - Has the technical knowledge to articulate and share
consultants, 2003 [1]. FIDIC recommends Quality Based the vision of the project.
Selection (QBS) as the preferred selection method [2].
- Has a clear understanding of the methodology
required to execute the project.
FIDIC is similarly committed to the principle
that quality should be a factor in the pre-qualification - Can evaluate the skills of consultants for projects
and selection of contractors, and makes a series of using a proper and transparent selection process,
recommendations to this purpose in Quality of based on quality.
Construction - a guide for actions, 2004 [3] - Understands the risks associated with the project and
is willing to allocate these in a fair and appropriate
Characteristics of the informed purchaser manner.
- Understands the adverse impact of demanding an
As the leader of the project team, the client earnest money deposit or a security deposit for
or purchaser should be informed, that is, knowledgeable consulting services.
and competent in all aspects of the project. This - Knows the significance of specifying a reasonable
knowledge and competency can be in-house or brought time frame for submissions and for approval of a
in for the project. A key part of the competency is the project, and the importance of project monitoring.
capacity to manage the project. - Understands the importance of specifying
unambiguous payment terms and methodology for
At the outset or conceptual stage of a approval of invoices.
project, purchasers should evaluate their in-house
- Knows the essential difference between a consultant
capabilities and assess whether they have the expertise
and a contractor.
to properly develop and manage their project or
programme. Proper expertise goes beyond the need for a - Has project management and technical skills, either
contract administrator who may not have the technical in-house or contracted in to support management.
understanding of the details required for a successful
project or programme. FIDIC - International Federation of Consulting Engineers
World Trade Center 2, Geneva Airport
Box 311, CH-1215 Geneva 15, Switzerland
With the downsizing of government
Telephone: +41 22 799 49 00 Email: [email protected]
departments around the world, it is particularly Telefax: +41 22 799 40 01 Web: www.fidic.org
important that government retain staff with core

f o u r Informed Purchasers
 Q U A L I T Y O F C O N S T R U C T I O N

FIDIC Policy Statement

INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS

Background Longer-term costs such as increased maintenance will

also be incurred.
The FIDIC 2001 survey on the Quality of
Construction within Member Associations confirmed FIDIC wishes to take a leading role in
that the failure to achieve an appropriate Quality of working with other industry stakeholders to address the
Construction was a worldwide problem. As could be potentially serious problem of inadequate Quality of
predicted, the pressure to reduce the costs of Construction.
construction and supervision were found to have had an
adverse effect on quality. The problem was serious, and FIDIC policy
was evident in both developed and developing countries.
FIDIC believes that construction should be
Within the conventional processes for the sustainable, and to this end, it is the policy of FIDIC that
procurement of construction contracts, contractors, who each party in the construction process should be
are keen to win tenders, can do so by submitting low committed to satisfying its obligations with respect to
prices, but at the risk of not being able to a) produce achieving Quality of Construction.
construction work which fulfills specifications, or b)
The FIDIC publication Quality of
meet standards for sustainable development. Likewise,
Construction: a guide for actions, 2004, recommends a
consultants may be under pressure to reduce the initial
best-practice approach to achieving proper Quality of
cost of construction and construction supervision so that
Construction, and proposes actions to be taken by each
contractors are unable to deliver the required quality.
party concerned.
Lack of Quality of Construction has been
Actions by government
manifested in poor workmanship, unsafe structures,
delays, cost over-runs and disputes in construction
Government as client
contracts.
Governments who, as clients, want to
Consultants are often appointed by a client
achieve Quality of Construction should consider the
to only render a partial service during the construction
following:
phase. This increases the risks to the client and the
consultant with respect to the quality and safety of - Adopt a Quality Management approach towards
construction, and frequently increases the overall cost of projects and construction. Quality Management
the project when account is taken of delays and disputes. should include Quality Management Systems such as
those based on the ISO 9001 Standard for their own
The FIDIC Policy Statement Quality of Construction was departments and as a prerequisite for suppliers of
approved by the FIDIC Executive Committee in January goods and services who want to do business with a
2004. Printed copies can be obtained from the FIDIC department.
Bookshop, either individually or as inserts in the binder - Adopting Quality Management may mean a
FIDIC Policy Statements. Electronic versions are available
fundamental review of the process by which
from www.fidic.org/policies. Reproduction is permitted
provided the source is acknowledged. government procures the services of consulting
engineers and contractors (for instance, changing

Quality of Construction © FIDIC o n e

 from an adversarial, “us versus them” approach to a - Previous track record: in the context of pre-
partnership-based, “we together” approach). qualification, while requiring a solid track record
- Recognise that Quality Management is a prerequisite may exclude possible new entrants and make the
for sustainable development, since a lack of industry less competitive, it is essential for
adherence to appropriate quality standards will lead ensuring capability.
to waste in goods and services, whether, for example, - An appropriate combination of price and non-price
through over-design, under-design or incorrect award criteria (also known as tender evaluation
design, or through faulty construction requiring criteria).
higher maintenance costs or early replacement. This selection process has the advantage that it can
- Adopt a sustainable development approach towards be extended to include separate sections for
construction by: sustainability dimensions such as the submission of
- Taking cognisance of the need to internalise total a social plan and an environment management
project cost as is pointed out in FIDIC's Sustainable plan. Depending on the nature of the contract, for
development in the consulting engineering industry - a example, routine as opposed to complex and high
strategy paper, 2000. For example, calling for risk, price could constitute 80% of the tender with
tenders to achieve lowest price may seem like an the remaining 20% used for the non-price award
attractive option, but once all external costs such criteria.
as tender preparation costs and future costs owing - Promote the adoption of standardised
to lack of quality are internalised, the outcome may documentation by all clients, especially government
be very different. departments and government authorities, for:
- Reducing the volatility in the construction industry - procurement procedures for consulting engineers
by, for example, overcoming boom-and-bust, or - procurement procedures for contractors
feast-and-famine, cycles. These notorious cycles - client/consultant agreements
increase the construction industry’s risk, with the - construction contracts
resulting loss of the most talented and highest - tender and construction documentation.
calibre staff, thus impacting negatively on Quality
of Construction and the industry’s sustainability. Government as regulator
- Insist that, for the purposes of ongoing management,
operation and maintenance, local capacity must be Government often has a second, very
developed on all projects. “Local” may have the important function in that it can create, through laws
meaning of local areas within a country or a larger and regulations, an enabling environment in which a
geographic region. Useful guides include FIDIC’s construction industry can flourish and often, as a
Capacity building: building the capacity of consulting consequence, the economy in general. Such an enabling
firms, 2001, and Improving transfer of technology: guide environment should provide more appropriate Quality of
for actions, 1992. Construction since the “rules of the game are known and
- Adopt a Quality Based Selection approach for the a good referee can help raise the quality of the game”.
procurement of consulting services, and include in
the selection criteria the need for consultants to have Legislative and regulatory action that
the following in place: government may need to consider includes the
following:
- Quality Management System
- Business Integrity Management System - Creation and application of effective anti-corruption
- Environment Management System policies and practices.
- Risk Management System - Creation of a specific set of construction activity
- Professional indemnity insurance targets.
- Membership of a recognized body representative - Formation of a body geared towards creating a more
of the profession or industry. enabling construction environment.
- Registration of professionally qualified firms and
- Adopt a quality-oriented selection process for the persons in their respective categories.
procurement of construction contracts, including: - Recognition of equivalent foreign qualifications and
- Pre-qualification: this is no guarantee of quality, registrations.
but it at least excludes those who are obviously
less likely to execute the contract successfully.

t w o Quality of Construction
 Actions by international agencies - procurement procedures for consultants
- procurement procedures for contractors
International funding agencies are often as - client/consultant agreements
powerful as government in setting the right climate for - construction contracts
what is expected from a construction project. Hence, the - tender and construction documentation.
actions for international funding agencies are similar to - Additional actions, which include:
those for government as a client. In summary, they are:
- Insisting on the implementation of effective anti-
- Adopt a Quality Management approach towards corruption policies and practices.
projects and construction. This may mean a
- Insisting on capacity building and technology
fundamental review of the process by which the
transfer, possibly using FIDIC guides for action and
agency procures the services of consulting engineers
guidelines.
and contractors.
- Taking cognisance of local economic cycles, and
- Recognise that Quality Management is a prerequisite
smoothing these cycles rather than exacerbating or
for sustainable development since the lack of
deepening them.
adherence to appropriate quality standards will lead
to waste in goods and services. - Reducing the project initiation period as continuity
of firms and their staff improves Quality of
- Adopt a sustainable development approach towards
Construction.
construction by:
- Reducing prolonged payment periods for claims
- taking cognisance of the need to internalise costs.
from consulting engineers and contractors as this
- reducing volatility in the construction industry.
reduces the incidence of unacceptable shortcuts,
- Insist that, for the purposes of ongoing management, and therefore improves the Quality of
operation and maintenance, local capacity must be Construction.
developed on all projects. Useful guides include
FIDIC’s Capacity building: building the capacity of Actions by industry
consulting firms, 2001, and Improving transfer of
technology: guide for actions, 1992. The various role-players in the construction
- Adopt a Quality Based selection approach for the industry, including FIDIC, FIDIC Member Associations,
procurement of consulting services, and include in member firms and contractors, are mainly on the supply
the selection criteria the need for consultants to have side of interventions intended to improve Quality of
the following in place: Construction.
- Quality Management System
- Business Integrity Management System FIDIC and FIDIC Member Associations are
- Environment Management System not direct providers of services, but have important roles
- Risk Management System to play in defining and disseminating best practice as
- Professional indemnity insurance facilitators, coordinators and providers of channels of
- Membership of a recognized body representative communication.
of the profession or industry.
FIDIC
- Adopt a quality-oriented selection process for the
procurement of construction contracts, including:
Actions for FIDIC include:
- Pre-qualification: at least excludes those who are
obviously less likely to execute the contract - Draw attention to the benefits of Quality of
successfully. Construction at all times.
- Previous track record: in the context of pre- - Continue liaison with international agencies.
qualification, a solid track record is essential for - Channel information between Member Associations.
demonstrating capability. - Facilitate the production, review and improvement of
- An appropriate combination of price and non-price appropriate documentation, including contracts.
award criteria. - Engage in education and training initiatives, and in
- Make provision on all construction projects for the production of appropriate materials for Member
adequate supervision by a consulting engineer. Associations and their member firms.
- Promote the adoption of standardised
documentation for:

Quality of Construction © FIDIC t h r e e

 Q U A L I T Y O F C O N S T R U C T I O N

References and resources

Quality of Construction: a guide for actions, 2004. Guide to Quality Management in the consulting
FIDIC Policy Statements, 2004. engineering industry, 2nd Ed 2001.
Engineering our future, 1998. Consulting engineers and the environment, 1st Ed 1994.
Capacity building: building the capacity of consulting firms, Sustainable development in the consulting engineering
2001. industry: a strategy paper, 2000.
Client/Consultant Model Services Agreement, 3rd Ed 1998. Quality Based Selection for procurement of consulting
Construction Contract, 1st Ed 1999. services, 1st Ed 1997.
Guidelines for Business Integrity Management in the Tendering procedures, 2nd Ed 1994.
consulting industry, Test Ed 2001.
Guidelines for the selection of consultants, 1st Ed 2003. Resources are available at www.fidic.org/policies/qoc

FIDIC Member Associations - Review the Quality of Construction after the

completion of projects for continuous improvement
Actions for Member Associations include: of the construction quality.
- Draw attention to the benefits of Quality of - Participate actively in Member Associations.
Construction at all times. - Assist with:
- Act as communication channels between FIDIC and - lobbying government
member firms, and between the firms and their - reviewing FIDIC documentation and its local
clients. equivalents
- Assist with the education and training of members. - providing feedback on systems and documents
promoted by FIDIC for future review.
- Assist with the implementation of improved quality
and quality-related systems such as Quality Based - Provide feedback to sub-consultants and contractors
Selection, Quality Management Systems, Business on performance regarding Quality of Construction.
Integrity Management Systems, Environmental Contractors
Management Systems, Risk Management and
professional indemnity schemes. Actions for contractors include:
- Lobby government for the adoption of the actions - Recognise the importance of Quality of Construction.
outlined in the section “Actions by Government”.
- Adopt Quality Management Systems.
- Assist in the development of standard specifications.
- Provide procedures for corrective action when quality
- Encourage the use of internationally accepted control and/or acceptance criteria are not met.
contract documents. - Provide feedback to consultants for improvement of
- Publicise examples of good and poor practice. Quality of Construction.
- Recruit, train and deploy a skilled work force.
Member firms
- Take measures to ensure that subcontractors are
qualified, and/or licensed as required.
Actions for firms include:
Further actions should be developed in
- Produce standard but comprehensive tender and
consultation with the representative bodies of the
contract documents of the highest quality using
international contractors.
established documentation.
- Include the requirement for project quality plans in FIDIC - International Federation of Consulting Engineers
bidding documents and contracts. World Trade Center 2, Geneva Airport
Box 311, CH-1215 Geneva 15, Switzerland
- Adopt Quality Management Systems, Environmental
Telephone: +41 22 799 49 00 Email: [email protected]
Management Systems, Business Integrity Telefax: +41 22 799 40 01 Web: www.fidic.org
Management Systems and Risk Management.

f o u r Quality of Construction