FIDIC/ MDB Harmonised Construction Contract Conference

1. F I E C European Construction IndustryFederation FIDIC/ MDB HarmonisedConstruction ContractConference S8: Social issues in contracts – labour and health RA Ulrich Paetzold Director General

2. SWEDEN NORWAY www.fiec.eu FINLAND DENMARK • 1905 1st meeting • 29 countries • 33federations • Enterprises • of all sizes • active in all fields of building and civil engineering NETHERLANDS LITHUANIA ESTONIA POLAND IRELAND CZECH REPUBLIC GERMANY SLOVAKIA BELGIUM HUNGARY ROMANIA FRANCE LUXEMBOURG BULGARIA TURKEY SPAIN PORTUGAL GREECE SWITZERLAND Full member AUSTRIA CROATIA Observer member ITALY CYPRUS SLOVENIA MALTA

3. F I E Cinternational • sister organisation: EICEuropean International Contractors • founder member of CICAConfederation of International Contractors' Associations

4. Social issues in MDB contractsClarification • Corporate Social Responsibility = • contractor’s individual commitment • over and above the respect of statutory and contractual obligations • “Core Labour Standards” is misleading • there are no “CLS”, but only ILO Conventions • application requires ratificationby sovereign states

5. Social issues in EU directivescurrent state – “modernisation” • procurement directives proposed (12/2011): • “classic” contracting authorities • “utilities” • PPP/ concessions • “modernisation” understood by some as • increasing the use of social and “green” criteria • public to lead with good example

6. Social issues in EU directivescurrent state – “modernisation” • lively discussions pro and con • EP “rapporteur” proposes further items: • joint and several liability of MC and all SCs • limitation of sub-contracting to 3 levels • link to the object matter of the contract • major difference to MDB approach: • EU addresses procurement rules • MDB address contract conditions

7. Social issues in MDB contractsJoint BWI – CICA Statement (12/2006) • award to lowest bid? • risk that social security and H&S not respected • (nor quality, but not mentioned in the J.S.) • CSR responsibility solely for contractor? • insufficient • necessary to involve also Owner and Engineer • focus on costs/ schedules is short-sighted

8. Social issues in MDB contractsJoint BWI – CICA Statement (12/2006) • Recommendationsfor tec specs/ bidding documents • full information/ details of social requirements • preferably measurable and priced items • Owner’s commitment to pay Contractor • commitment that such items will not be paidas “lumps sums” or part of overheads

9. Social issues in MDB contractsJoint BWI – CICA Statement (12/2006) • Suggestions (not limitative):examples for social requirements • workers transportation • health/ sanitary facilities on/ near site • workers’ accommodation • dwellings of staff on site and/ or organisation of shifts allowing decent family life by returning home • H&S training, prevention, equipment • recognise erecting scaffoldings as works

10. Social issues in MDB contractsJoint BWI – CICA Statement (12/2006) • compatibility with productivity/ innovation • need to adapt to individual project • increase involvement of Owner/ Engineer for these principles • create momentum for actual progress on site

11. Social issues in MDB contractsBWI – CICA issues in Pink Book? • most issues covered by the text, • in one way or another • however, questionable whether real impact • without transparent control mechanisms,by Owner, Third Party or MDB • without sanctions for non-respect

12. Social issues in MDB contractsPink Book clause 6, some items • often only “The Contractor shall ...” • where collaboration of others is required • 6.7 HIV-AIDS prevention • should be included as priced items in BoQ • 6.15 compliance with all regulations • is a general statutory obligation, not contractual • 6.18/ 6.5 Festivals and Religious Customs • respect is a statutory obligation

13. Social issues in MDB contractsconclusions • Contractors can and will do a lot • for the staff they employ • for the local communities where they work • but absence of efficient public authorities • cannot be compensated by contractors • must not lead to responsibility being shifted contractually to the Contractor

14. .EU WWW.