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International Federation of Consulting Engineers. Speaker: Richard Kell AM FTSE BE(Hons) HonFIEAust CPEng, Director, Cardno International Pty Ltd. FIDIC MDB Harmonised Construction Contract Conference. BILATERAL EXPERIENCE WITH MDB CONTRACT AusAID.
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International Federation of Consulting Engineers • Speaker: Richard Kell AM FTSE BE(Hons) HonFIEAust CPEng, Director, Cardno International Pty Ltd
FIDIC MDB Harmonised Construction Contract Conference BILATERAL EXPERIENCE WITH MDB CONTRACTAusAID Note: These comments are offered by way of personal observations by the author who is not an AusAID employee, and thus they do not represent an official AusAID position.
AusAID • AusAID holds a FIDIC MDB licence. • Executing Agencies managing projects funded by AusAID are free to make their own selection of the form of Contract. • Executing Agencies are increasingly turning to the FIDIC MDB contract. AusAID supports such a choice.
AusAID • AusAID enters into co-funding arrangements with MDBs, and in such cases, the policy of the MDB with respect to the form of contract will prevail, e.g. ADB requires the FIDIC MDB Version • AusAID has been entering into contracts where the Consultant undertakes Construction Management: The Consultant would be advised to adopt FIDIC MDB
AusAID and Infrastructure • * Infrastructure contracts: Covering: roads, water and sanitation, disaster mitigation, rail, schools, health clinics, etc. • * AusAID expenditure on infrastructure projected for FY 2012-13 at A$374 million • * AusAID focus for infrastructure is in the East Asia and PNG and Pacific Regions.
AusAID- ISSUES I • Quality Assurance • FIDIC 1999 and MDB Versions are QA Contracts and not QC Contracts, by S/Clause 4.9; • Contractor to provide QA Plan. Contract documents to provide clear statement and outline content of the Contractor’s QAP (S/Cl 4.9); • Engineer is to audit the Contractor’s QAS – needs an audit plan and sufficient staff to do this. AND • This aspect of FIDIC Contracts not understood by all Users. • Recommended: * FIDIC to issue a Guide on QAP, and * Clauses for conversion to QC Contract if appropriate.
AusAID Contracts Issues II • Failure to Understand and/or Apply the Rules. • Employer interferes on details, overrules Engineer; • Lack of compliance by Contractor is accepted; Recommended action by FIDIC: • Standard, separate Agreement between Employer and Engineer, which empowers Engineer. • Guide for reduced payments to Contractor for non-compliance; • FIDIC Seminars in the Region (at modest cost).
