International Federation of Consulting Engineers

1. International Federation of Consulting Engineers • Richard KellSenior Consultant AM FTSE BE(Hons) Hon FIEAust CPEng

2. FIDIC MDB Harmonised Construction Contract Conference Management of Environmental and Social Impact Under FIDIC Contracts

3. FIDIC MDB Harmonised Construction Contract Conference Management Plans under FIDIC Contracts Quality Assurance System : S/Clause 4.9; • Environmental Management Plan : S/Clause 4.18; • Progress records : S/Clause 4.21 (part of QAS); • Health and Safety Plan: Clause 6; • Social and Gender Awareness Plan : Clause 6. • HIV-AIDS Prevention Plan : S/Clause 6.7; • Works Programme : S/Clause 8.3.

4. FIDIC MDB Harmonised Construction Contract Conference Management Plans under FIDIC Contracts II • Management Plans (MPs): advantages for all Parties; • FIDIC GCs have general references: Specific provisions are needed in Contract Specification or Particular Conditions for Management Plans; • Contractor has contractual obligations to produce MPs ; • Set time limits for MPs and penalties for non-compliance; • Payment for Management Plans: recommended as “paid items” in the BoQ, with a lump sum for provision and progress payments for implementation.

5. FIDIC MDB Harmonised Construction Contract Conference Quality Assurance System (QAS) Sub Clause 4.9 “ The contractor shall institute a quality assurance system to demonstrate compliance with the requirements of the Contract. The system shall be in accordance with the details stated in the Contract. The Engineer shall be entitled to audit any aspect of the system.”

6. FIDIC MDB Harmonised Construction Contract Conference QAS S/Clause 4.9 : 3 Points • FIDIC 1999 and MDB Versions are QA Contracts and not QC Contracts, by S/Clause 4.9; • The Contract hence Bid Documents are to provide a clear statement to this effect, and to outline the content and format of the Contractor’s QAS; • Engineer is to audit the Contractor’s QAS – needs an audit plan and experienced staff to do this. AND • These aspects of FIDC Contracts are not well understood by many Users.

7. FIDIC MDB Harmonised Construction Contract Conference Environmental Protection Sub Clause 4.18 : Protection of the Environment • “The Contractor shall take all reasonable steps…” • “Limit damage and nuisance..” • Makes reference to Specification • BUT • Clause 4.18 could be more comprehensive and robust; • Contractor is to establish an operational system for minimising/managing environmental impacts; • Compare with the “Social Clauses” of Section 6 – 6 lines vs 4 pages. • Opportunity to be more proactive – encourage Contractor to adopt sustainability principles via Special Provisions in the Bid Documents and Contract.

8. FIDIC MDB Harmonised Construction Contract Conference Contractor’s EMP – Content • Compliance with Environmental Study and Legislation; • Should Cover all aspects including • Safety of people and property; • Storage of materials, dealing with spillage ; • Contamination – avoidance and removal if it does occur; • Waste disposal and cleaning site and camp on completion; • Dust and noise; working hours; • Water, erosion, sedimentation; • Protection of trees, vegetation; • Monitoring and complaints procedures. • EMP – 1% to 3% of contract.

9. FIDIC MDB Harmonised Construction Contract Conference Proactive Environmental Management: Areas of Influence by FIDIC • Possible amendments to the FIDIC standard contracts which • Impose conditions that support sustainable practices on contractors • Apply sustainability weightings in the tender assessment process • Sustainable design criteria

10. FIDIC MDB Harmonised Construction Contract Conference FIDIC Contract – Suggested Revisions Consider revisions to the FIDIC contract to: • Develop and specify sustainable procurement procedures, for example: • Incorporate renewable energy; • Require a minimum percentage of sustainable and recycled building materials • Specify the product efficiency and longevity (i.e. options for reuse, repair, upgrade or modification, to increase product life) • Introduce procurement processes and procedures which are accredited with international standards for managing sustainable development (e.g. BS 8903, or FIDIC Guide)

11. FIDIC MDB Harmonised Construction Contract Conference Impose Conditions that Support Sustainable Practices on Contractors The contractor shall comply with the nominated (best) international and/or national government and/or FIDIC guidelines:Examples include: • Use of materials that have low or no VOCs and toxic materials • Use of recycled materials, or stabilised local materials, to avoid long cartage (base course) • Use of low embodied energy materials and locally sourced and manufactured parts where possible; • Consider renewable energy.

12. FIDIC MDB Harmonised Construction Contract Conference Apply Sustainability Weightings in the Tender Process • Invite Bidders to offer innovative sustainable practices; • Include points in the non-price evaluation for environmental and sustainability factors offered/benefits by Bidders • No penalization for the possible increase in price for sustainability measures • Life-cycle thinking • Consider long-term impacts of the project to get the best environmentally sustainable outcome

13. FIDIC MDB Harmonised Construction Contract Conference Environmentally Sustainable Design Criteria • Define the sustainable initiatives and designs required. For example: • 30% recycled material to be used • reducing greenhouse gas emissions; • Make use of local materials to minimise cartage; • Provide for features to reduce potable water use and recycling water where appropriate • Provide thermal mass to store heat and radiate heat at night in contracts for buildings. • Define relevant sustainability targets or performance standards, eg., BS8903., FIDIC Guide

14. FIDIC MDB Harmonised Construction Contract Conference Social and Gender Awareness Plan • Clause 6 : New sub clauses in MDB Version, 6.12 to 6.24: • Foreign workers treated fairly, workers’ rights recognised; • Alcohol and drugs banned; • Festivals and religious customs respected; • Forced Labour banned; • Child Labour banned. • Food and water provided. • Very important additions. MDB Strongly supported. • Stakeholder Committee, resolution of disputes with communities, landholders; • Preference for local employment – women and youths.

15. FIDIC MDB Harmonised Construction Contract Conference Health and Safety Plan • Provisions of Section 6. • 6.4 Labour Laws • 6.6 Facilities • 6.7 Health and Safety • 6.13Foodstuffs • 6.14 Water • Etc • OH&S Plan for Construction Sites. FIDIC could issue a Guide. • Traffic Safety Management Plan;

16. FIDIC MDB Harmonised Construction Contract Conference HIV - AIDS Preventative Measures Plan • Construction industry is No 3 propagator of HIV-AIDS in developing countries • Delivery is to directed by an Approved Provider engaged by the Contractor; • Continuous Awareness Campaign; • Local communities as well as workers; • Provision of free condoms, literature, counselling; • Certification by Approved Provider as condition of payment; • 1 to 3 % of cost; • Specific “pay item” in BOQ.

17. FIDIC MDB Harmonised Construction Contract Conference CONCLUSIONS I • Management Plans produced and implemented by the Contractor are an integral part of the FIDIC Contracts, and are called for in the Contract provisions; • Need to be addressed in the Special Conditions and the Contract Specification; • There is need for more guidance for Users; • Particularly relevant in QA contracts; • Valuable tools in the management and supervision of contracts, that is for Users of FIDIC Contracts. • “FIDIC is a very good project management tool” : Ronnie Thompson, URS, Singapore 2012.

18. CONCLUSIONS II • Management Plans as “paid items” within the Contract (BoQ) with penalties for non-compliance; • Environmental Protection (S/Clause 4,18) to be expanded and made more robust; • Sustainability principles and objectives to be introduced, in line with FIDIC Focus Area, to create a pro-active approach to Environmental Protection

19. FIDIC MDB Harmonised Construction Contract Conference Maharoa Bridge, 75 m Tied Arch