Best Practice & Procurement

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1 Best Practice & Procurement Subject: Best Practice & Procurement Sebastian Hök, PHD (Göttingen) FIDIC Legal Advisor FIDIC Approved Adjudicator (FIDIC President s List) FIDIC Accredited Trainer FIDIC Best Practice 1

2 FIDIC Best Practice FIDIC Best Practice on Procurement 2

3 FIDIC Best Practice on Procurement FIDIC Best Practice on Procurement 3

4 FIDIC Best Practice on Procurement FIDIC Best Practice What FIDIC does? Represent globally the consulting engineering industry Enhance the image of consulting engineers Provide the industry with guidance on procurement and contract management What FIDIC offers the industry? Be the authority on issues relating to best practice in terms of procurement and contract management Promote the development of a global and viable consulting engineering industry What are FIDIC s governing principles? Promote quality Actively promote conformance to a code of ethics and to integrity Promote commitment to sustainable development 4

5 FIDIC Best Practice FIDIC Best Practice on Procurement 5

6 FIDIC Best Practice FIDIC Best Practice 6

7 FIDIC Contracts Advantages CLEAR, COHERENT FAIR, EQUITABLE THIRD PARTY COMPLETE, FLEXIBLE RECOGNISED Essential clauses. Detailed definitions. Consistent structure. Risk allocated to party best placed to control it, bear it, and deal with it. Drafted by consulting engineers who design and manage projects. Range covers most needs. Readily adaptable to fit requirements. Positive FIDIC image. World wide acceptance Tested for more than 50 years. FIDIC Best Practice 7

8 FIDIC Best Practice Professional Services Agreements FIDIC publishes model agreements for professionals services: Client/Consultant Joint Venture Sub Consultant Representative 8

9 Works Contracts Rainbow Collection FIDIC publishes internationally recognised forms of contract for infrastructure works. More than 40,000 copies supplied each year Procurement & Business Practice FIDIC Procurement Procedures Guide 9

10 Best Practice & Procurement Best Practice & Procurement

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18 Best Practice & Procurement Best Practice & Procurement Base Date Submission of Tender TOC Application End of Time for Completion? Performance Certificate 28 Days Contract Date 14 Days 14 Days 1 Year Pre Contract Construction DNP As Built Docs Tests Red Book Timeline Taking-Over Substantial Completion Certified Taking Over Date Taking Over Certificate 18

19 Best Practice & Procurement Employer s Claim Sub-Clause 2.5 Sub-Clause 2.5 and Sub-Clause 3.5 Event Start as soon as practicable as soon as practicable without undue delay the event occurs the Employer becomes or should have become aware of the event and considers himself to be entitled the Employer shall give notice and particulars condition precedent the Employer shall send a claim which includes full supporting particulars the Engineer makes a determination in accord. with with Sub- Clause 3.5 Determinations Contractor s Claim Best Practice & Procurement Sub-Clause 20.1 Sub-Clause 20.1 and Sub-Clause 3.5 Contemporary Records accessible to the Engineer start within 28 days within 42 days within 42 days Event the event occurs the Contractor became or should have become aware of the event as soon as practicable and considers himself to be entitled the Contractor shall give notice and particulars describing the event giving rise to the claim latest within 28 days cut-off period the Contractor shall send a fully claim which includes full supporting particulars of the basis of the claim the Engineer shall respond with approval or disapproval in accordance with Sub- Clause 3.5 Determinations 19

20 Best Practice & Procurement Employer organisational chart RB/YB Engineer Contractor Design / Planning Dispute Adjudication Board Build / Construction

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22 International Federation of Consulting Engineers President Vice-President Jae-Wan Lee, Korea Dr. John M Boyd, Canada Secretariat World Trade Center 2 Geneva Airport Box 311 CH-1215 Geneva 15 Switzerland Tel: Fax: fidic@fidic.org Managing Director Enrico Vink Commercial Director François Baillon 22