FIDIC CONFERENCE 2005, BEIJING Workshop 13 Design

1
FIDIC CONFERENCE 2005, BEIJINGWorkshop 13Design
Build - Role of Consulting Engineersin the
Tender Process

• Tse Yau Shing

2
Infrastructure Project Delivery

• Traditional
• Design - Bid - Build
• Growing Trend
• Design Build
• Buildings, transportation, utilities (water,
  wastewater, solid waste, power)

3
Why the Trend ?

• Clients wanting to transfer risks
• Government departments downsizing / eliminating
  in-house engineering capability
• Perceived shorter implementation period
• Contractors having more control in project
  implementation

4
Some Different Forms of DB

• EPC (Engineer, Procure, Construct)
• DBO (includes operations)
• DBOO / BOO (own operate)
• BOT (operate then transfer)
• BOOT (own, operate then transfer)
• etc

5
Possible Roles of Consulting Engineers

• For Owners (Purchasers)
• Initial planning, project definition
• Concept design
• DB tender document preparation
• DB tender evaluation
• Proof checking / design verification

6
Possible Roles of Consulting Engineers

• Also design verification roles for
• BOO developer (who appoints DB contractor)
• Financier to BOO developer

7
Possible Roles of Consulting Engineers

• Also design verification roles for
• BOO developer (who appoints DB contractor)
• Financier to BOO developer

8
Possible Roles of Consulting Engineers

• For Contractors
• Tender design
• Detailed design
• Construction management
• Commissioning

9
Issues during Tender Stage

• Contractors expecting CEs performing tender
  design at no (or very low) fee
• Short available time to produce tender design
• Tender design based on insufficient information
• Pressure to take design risks
• Contractors expecting CEs to guarantee tender
  design / quantities

10
Contractual Issues

• Back to back contract arrangement
• Fit for purpose
• Liquidated damages schedule
• Liquidated damages performance
• CEs professional indemnity insurance

11
Good Practices

• Must be paid for tender services
• Obtain commitment for appointment and fee level
  for a successful bid
• Consider success fee / gain share

12
Good Practices

• Clearly state limitations (sufficiency of data,
  time, design accuracy)
• Define tender design scope / responsibility
• Define exclusions (guarantees, fit for purpose)
• Involve contractor in design / decision process
• Document instructions / joint decisions

13
Makes Sense to Contractor

• Commitment from and motivation of both parties to
  win
• CE takes ownership of tender design
• A true DB team
• Minimise disputes
• CE remains in business for the next successful job

14
FIDIC Reference Material

• FIDIC Scoping definition ??
• FIDIC DB guide ??
• International form for DBO contracts (Draft)