THE ETHIOPIAN CONSULTING ENGINEERS AND ARCHITECTS SOCIATION (ECEAA)

Challenges, Opportunities & Accountability of the Ethiopian Consulting Engineers & Architects Association (ECEAA)

THE ETHIOPIAN CONSULTING ENGINEERS AND ARCHITECTS SOCIATION (ECEAA) • Outline of the presentation • Background on ECEAA 1.1 Statutes & Objectives 1.2 Code of Professional Ethics & Rules of Professional Conduct 1.3 Membership of ECEAA • Existing situation of ECEAA • Challenges & Opportunities • Consultants’ Accountability • The way Forward

Background of ECEAA Statutes: • ECEAA was established in December, 1999 • Registered under the new rules of Societies and Association Agency Objectives: • To provide reliable and complete consultancy services to customers • To work towards securing reputable consultancy services • To promote consultancy services to the Consulting Engineers and Architects • To cause the existence , strength, review and observance of the code of Ethics & Rules of Professional Conduct of the consultancy services of the Consulting Engineers & Architects

Background of ECEAAPowers and duties • To Cause Strengthening of the quality & reliability of consultancy services • To cause issuing and reviewing of the Code of Ethics & Rules of Professional Conduct, • To Cause promoting the horizon of the services, • To Exert all effort toward strengthening the ECEAA members cooperation, relationship and integrity • To Cause organizing meetings, conferences, workshops, seminars, Consultants’ Role in the Growth of the Construction Industry

Background on ECEAAPowers and duties (cont’d) • To cause submitting ECEAA’s constructive contribution in creating conducive operating environment for the consulting engineers and architects services, • To liaise with relevant stakeholders in order to ensure the legitimacy of the consulting engineers and architects services and the powers and duties of the ECEAA, • To Create and develop working relationship with other sister associations, • To arrange favorable condition for members of the ECEAA when engaged to work abroad, Consultants’ Role in the Growth of the Construction Industry

ECEAA Code of Professional Ethics & Rules of Professional Conduct • ECEAA has established the code of professional ethics & Rules of Professional conduct for its members since August 2000; • ECEAA Services require : Honesty, Impartiality, Fairness, Integrity, Competence, Equality and Dedication to the growth of the Construction Industry. • ECEAA Members shall perform under a standard of professionalism requiring adherence of high principles of ethical conduct to serve the public, clients and the profession Consultants’ Role in the Growth of the Construction Industry

ECEAA Membership • Membership is open to all consultants i) Road Consultants ii) Architectural Firms iii) Water Consultants iv) Sanitary and Mechanical Consultants v) Electrical Consultants • Members pay membership fee – annually • Members have to accept the code of professional ethics and rules of Professional Conduct

ECEAA Members Classification Consultants’ Role in the Growth of the Construction Industry

Existing Situations of the Construction Industry • The construction sector in Ethiopia is growing and taking on an increasingly significant role in the development of the Ethiopian economy. • Construction of roads, buildings, and development projects in the education and health sector, hydropower, irrigation, dams, agro-industries and agricultural activities are being undertaken all over the country.

Existing Situations…… (cont’d) Major current Construction Sector programs: • Road Sector Development programs by ERA and the Regional Road Authorities • The different Universities and higher education facilities being constructed all over the country • Urban Housing Construction projects being undertaken by MoUD and Construction • The 2000 km long railway currently being designed by local Consultants

Existing Situations (cont’d) • Services Rendered by Consultants Road Sector – Clients are government bodies like ERA, and Regional Road Authorities • Feasibility Studies, • Environmental and Social Impact Assessment • Detail Engineering Design Services, • Design Review and supervision services, • Supervision Services • Consultancy in the design/build services with contractors and clients.

Existing Situations……(cont’d) • Building Sector Clients are: i) Public/Government bodies ii) Private individuals iii) Others • Water Sector Clients are i) Ministry of Water Resources and Energy ii) Non governmental organizations iii) Regional water resources bureau

Road Sector --Performances and growth of Consultancy Services during RSDP I, II& III (13 yrs) • Out of 434 projects carried out in the past 13 years of RSDPs 64% were by local consultants with growth as follows • RSDP I ---- 63 projects by local consultants 52 projects by foreign consultants • RSDP II ----138 projects by local consultants 65 projects by foreign consultants • RSDP III --- 79 projects by locals 38 projects by foreign Consultants’ Role in the Growth of the Construction Industry

Road Sector -Performances and growth(cont’d) • According to ERA • Consultancy fees for the above projects were 1.6 billion Birr where as the value of the works contract was 21.3 billion. • Average consultancy fee 7% of the total project cost The fees are high because of foreign consultants. • Presently for local consultants Average design fee -- about 1 % Avg. supervision fee – less than 3%

RSDP IV Potential Over a period of the coming 5 years, ERA’s RSDP IV plan is expected to accomplish • Rehabilitation of trunk roads……………… 728 km • Upgrading of trunk roads ……………………1089 km • Upgrading of link roads……………………….3934 km • Construction of link roads …………………..4331 km • Periodic maintenance of roads…………….4700 km These figures do not include those carried out by Regional Road Authorities and Woredas. Consultants’ Role in the Growth of the Construction Industry

Total Projected demand in Billions ETBUnder the RSDP IV Program. • The estimated cost for the Road Sector works in the five year GTP is around 125 Billion Birr

Challenges of ECEAA The general state of the domestic construction industry in Ethiopia is characterized by : • According to the Licenses and Registration office renewed licenses for the current year include about 102 Highway and Bridge Consultants (HBC) and Consulting Architects and Engineers (CAE) with grades ranging from 1 to 5 • According to ERA in its recent introduction of RSDP IV the number of consultants participating in the road sector is 25 with a plan to increase their number to 50. • IS IT POSSIBLE TO DO SO?

Challenges of ECEAA (cont’d) To obtain licenses it is required to have the following professionals for the different categories and grades of consultants. The question is are there sufficient number of professionals for 50 Consulting Firms.

Professionals needed in Licensing of Consultants Highway and Bridge Consultants

LICENSING REQUIREMENTS • Grade 1-5 Consultants need • Practicing Professional Highway Engineer • Professional Material Engineer • Grade 1-3 Consultants need additional • Professional Bridge Engineer • Professional Photogrammetrist (required for Gr. 1&2)

Challenges of ECEAA • Shortage of Qualified Professionals and lack of commitment, • Deficiencies in technical, managerial, financial and entrepreneurial skills, • Limited experiences and participation in road and bridge works, or provision of related consulting services. • Low Service fees & absence of minimum fee rates • Difficulties in managing design or supervision assignments due to the shortage of experienced engineers/or staff leaving before the end of a project without valid reasons

Challenges of ECEAA • Inadequate availability of references • Topographic maps, EMA maps are more than 60 years old. • Geological Maps, • Soil and Geotechnical related information • Lack of modern equipment & instrument in the local market, • Lack of investment incentive(duty free privileges ) for consultants to import the necessary 4x4 field vehicles, laboratory & surveying equipments, software and computers, instruments and publications. • Lack of comprehensive capacity building interventions for the Consulting Industry

Challenges of ECEAA • Client – Consultant Relationship is aggravated by • Lack of professionalism • Shortage of qualified Staff • Unreasonably low price • Consultant – Contractor Relationship • Not healthy • Not professional and • Unethical • Evaluation of Consultants by ERA (Will be dealt with later)

ECEAA Opportunities • Growing market in the construction sector – roads, building, water , power telecom • Growing market share of National consulting Engineers in the consulting business • Development of the construction sector policy. • Development of encouraging private-public Dialogue and partnership with the stakeholders, • Development of the special consultative meetings of ECEAA with ERA to design common working procedures and streamline issues arising in the implementation of projects • Improving enabling environment in the construction sector.

Consultants Accountability • Brief Notes on ERA’s Proposal on Consultants’ accountability ERA is saying that Consultants should be accountable for their performances and out put in areas of :- i) Surveying works, ii) Estimation of quantities, iii) Poor Quality of design iv) Improper Contract Documents

Consultants Accountability (cont’d) • ERA is making consulting firms and professionals accountable for their inadequate design and supervision and the costly output as a result. • ERA requires from Consultants risk free designs, • ERA requires no errors in surveying works and , • Requires Consultants to be custodians of GPS and BMs until construction begins. • ERA requires earthwork quantities, structures, and other BoQ items to be worked out accurately. • No increases or decreases of quantities are accepted – No safety factor or “ No Factor of Ignorance is allowed.”

Consultants Accountability (cont’d) • ERA requires water tight contract documents, • ERA requires designs to have no cost overrun • ERA requires designs not to result in extensions of contract time. • If a consultant commits any of the above errors • ERA is proposing punitive measures that will bar consultants and professionals from participating in the sector for as much as 1 - 3 years.

Consultants Accountability (cont’d) • What do Consultants think about “ the Proposal on Accountability” • Consultants say there can not be a 100% problem or error free design. • Consultants can not be responsible for the well being of survey GPS and BMs monuments after completion of designs. • Consultants say major factor in producing designs with problems is INSUFFICIENT TIME given for designs • Lack of feeling of partnership b/n ERA & Consultants • Lack of healthy communication b/n ERA & Consultants

Consultants Accountability (cont’d) • Steps showing where the punishment is Initiated and where It is getting approval. • Starts at project Counterpart desk and goes up to the DG. • Consultants are not in the picture and hence seems no chance of defending themselves or their work. Director General DDG Engineering Director Regions Director Project Counterpart

The way forward • Collaborate with government & development agencies in designing a comprehensive and practical capacity building scheme for the development of the Domestic Construction Industry (DCI) • Creating various opportunities for the development of ECEAA members through training, diversification and networking • Be provided on – the – job training and advisory services to the consultant Engineers(CE) involved in the multi-year construction – capacity building program. ● Actively engage in public-private Dialogue for addressing ECEAA issues and constraints by taking advantages of the conducive atmosphere created. • Strengthen consultative committee of ERA and ECEAA to discuss in detail the accountability issues. WE ARE READY.

Thank you for your attention !!!! Consultants’ Role in the Growth of the Construction Industry

THE ETHIOPIAN CONSULTING ENGINEERS AND ARCHITECTS SOCIATION (ECEAA)