FIDIC Conference 2019 - Infrastructure Intelligence International

September 2019 | FIDIC International Infrastructure Conference 2019 - Special issue | www.infrastructure-intelligence.com

Mexico City welcomes world’s engineers

DIGITAL CHANGE

FIDIC PRESIDENTS INTERVIEWED

CONTRACTS

FIDIC’s 2019 conference focuses on the impact of technology on the global industry.

Alain Bentéjac hands over to his successor Bill Howard.

How FIDIC contracts are creating a global language for successful projects.

page 4-5

page 14-15 and 20-21

page 28-29

September 2019 | Infrastructure Intelligence International 1

4-5 November 2019 The Institution of Engineering and Technology (IET) 2 Savoy Place, London, WC2R 0BL.

This is a unique C-level event attended by CEOs and senior business executives from across Europe. The conference combines a hard-hitting business programme with exclusive social and networking opportunities, including the European CEO Gala Dinner.

#CEOConf19

+44 20 7222 6557 events@acenet.co.uk

www.acenet.co.uk/events

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Contents 4: Impact of technology Why consultancy and engineering firms need to get into the thought leadership business.

6: Welcome from CNEC

FIDIC’s Mexican member association, CNEC, welcomes delegates to Mexico City.

7: FIDIC MA Excellence Awards Introducing the brandnew Member Association Excellence Awards.

8: Technology

How the technological revolution is a change driver for the industry.

10: Diversity

Interview with FIDIC’s diversity and inclusion task force chair, Michele Kruger.

12: Interview

Profile-raising talk from ACEC president and CEO, Linda Bauer Darr.

Technology

A change driver for the industry The technological revolution will disrupt firms operating in the infrastructure sector, so getting the inside track on how the industry should respond to new challenges will be crucial to business success.

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he impact of technology on firms working in the construction and infrastructure sector is set to be profound, not only affecting the way companies work but also changing how they are structured and handle information. The “Technology as a driver of change” session at the FIDIC conference will explore some of the issues in greater detail and two of the panel speakers shared their thoughts ahead of the discussions in Mexico City.

“We need to look at business models, how we work and how we get rewarded as consulting engineers,” said Richard Shennan, global digital business development director at Mott MacDonald.

“We are looking at starting to deliver value in different ways, particularly through-life operational performance of assets, getting better information from live information and drawing conclusions from that to make better decisions,” he said. According to Shennan, there is “a big shift towards thinking about the ultimate outcomes of projects - social economic and environmental rather than just focusing on getting the project over the line.”

Michael Gustafson, senior industry strategy manager at Autodesk, agrees saying: “How can consulting engineers start to be rewarded for the improvement

Michael Gustafson, senior industry strategy manager, Autodesk.

in performance in terms of value over the life cycle of the asset they are involved with is one of the things I want to discuss at the conference in Mexico City.”

Gustafson said that as engineers start to adapt to using automation processes to do the simple routine tasks that they do, this will then free up their time to focus on higher value tasks like exploring better design options, collaborating more with their clients and dealing with the increasing complexity on projects.

“There is a trend towards increased demand and adoption of outcomebased design. Project performance is being measured by a mix of economic, social and environmental factors and this is being driven by owners and is increasingly becoming important. For example, new types of design requirements are emerging as building service systems and components become more connected via the cloud.”

Richard Shennan said that building data models which can collect live data and inherit data from new projects will be significant. “This will enable engineers to start to build system-wide digital representations of assets that can then be interrogated, connected maybe to social data and then

“There is a trend towards increased demand and adoption of outcome-based design. Project performance is being measured by a mix of economic, social and environmental factors and this is being driven by owners and is increasingly becoming important.”

permanently adapted to meet changing needs.

“You can’t just apply Through-life thinking is going to be more important new technology to the and showing how that old process because connects to value,” Shennan you’ll only get half the said.

Of course, getting clients benefit. It’s the same to understand whole life with organisational costs and through that see the real value that data; you have to look consulting engineers at the organisation provide, has been an ongoing struggle for the itself and how it industry. Maybe, for the first time for a long time, shares data.” digital is opening up that area so that consultants are better able to demonstrate that value with more accuracy.

“That is definitely the case and it’s the technology that is enabling that to happen,” said Shennan. “We are starting to move away from the world of static reports. Technology now enables you to set up a structure where data is feeding into a cloud-based platform and being permanently updated, so what is pushed out is a dashboard which can then be tailored for individual roles and then you have transformed everything enabling better decisions to be made and performance optimised,” he said.

Gustafson said that software providers like Autodesk had an important role to play. “I see our customers looking at our values and how they align with theirs. They are looking at social responsibility and leadership that will shape our future

Richard Shennan, global digital business development director, Mott MacDonald.

world. As we see more technology like artificial intelligence in design, we need to be aware of our role as it relates to the issue of social responsibility and new expectations of software companies to be sharing the impact of our decisions on the world around us.

“New construction and building renovation projects need to be designed and built with less resources in order to scale up capacity to meet the future demand for our planet’s buildings and infrastructure. Together with customers and industry leaders, we need to reach a consensus on how to design more and better designs with less, and then share our conclusions on how to do this at scale,” Gustafson said.

So, what does all this all mean for the consulting firm of the future? Big changes according to both Shennan and Gustafson. “Firms need to be structured much more around connected data,” Shennan says. “There is lots of information locked inside firms and joining that up is key. If you can then join that up with other information externally then the rate of learning is speeded up,” he said.

Shennan said this will take a big effort in organisations as firms are historically divided up into vertical structures, when what was needed now was to connect across boundaries and share information.

“We need to look at organisational structures and process,” he said. “You can’t just apply new technology to the old process because you’ll only get half the benefit. It’s the same with organisational data; you have to look at the organisation itself and how it shares data,” said Shennan.

According to Gustafson, a key message to get across is that the role of engineers in the industry is changing. “There are new emerging threats and opportunities from the industry that are going to shape the future vision of their business and the journey for how they get there,” he said.

“Threats like the shortage of a talented workforce and the globalisation of teams are changing the landscape for engineers and how they deliver value on projects.

“Take artificial intelligence, which is on the cusp to disrupt our industry as both a threat and opportunity. It’s going to move so quick in the next two to five years that companies really need to be looking at how to factor it into their business strategy,” he said.

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8 Infrastructure Intelligence International | September 2019

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8: Technology

The president and CEO of FIDIC’s largest member association, Linda Bauer Darr, arrived at the helm of the American Council of Engineering Companies just over a year ago. Andy Walker spoke to Darr about her first 12 months in charge.

A

t last year’s FIDIC conference in Berlin, Linda Bauer Darr had only just arrived at ACEC. One year on, I asked her how her first year has been as the organisation’s new president and CEO and what she had discovered about engineers after working with them for the past 12 months. “It’s been a fabulous year and I hope my members are as happy as I am with the last 12 months,” she said.

“There’s been a bit of a learning curve for me, because although I’m not totally new to the infrastructure sector having worked in transportation, working for an industry that represents a specific profession, engineering, that has been new to me.”

Darr said she had spent her time at ACEC not only getting to know the organisation but also getting into the hearts and minds of engineers. She said it was an industry that has a real personality.

“Engineers are smart, logical, problem solving, not totally risk averse but aware of risk, but at the core they want to help people, to fix things and make things better. For me that speaks to the humanity of engineering and it’s been important for me to tap into this to be a convincing advocate for the industry,” she explained.

An interesting and perceptive take on the engineering psyche from someone who clearly thinks deeply about the

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industry she represents. So, what about the opportunities and challenges facing that industry? The biggest, Darr says, is the commoditisation of engineering. “This commoditisation of engineering is attached to so many of the challenges and issues we are dealing with that we call by other names – for example qualitybased selection – and it concerns how we value engineering and whether society appreciates the contribution of engineering as something that is unique,” she said.

“The question of the commoditisation of engineering resonates through everything that we do, all of our policy issues and to some extent it also touches on the personality of engineering because there is a genuine sense of humility amongst the engineers I have met. This humility runs very deep and there is a challenge for engineers because it doesn’t necessarily serve them well with their clients in a noisy environment like Washington DC, where so many important policy decisions are made that affect their businesses.

This humility is a blessing and a curse and it’s linked to engineers claiming their place in the business world and with clients. We need to find a way of using that to our advantage,” she said.

As the leader of FIDIC’s largest member association does Darr think that puts more responsibility on ACEC and its role within FIDIC? “I’m aware of the role that we play in FIDIC and I’m very

honoured to be part of the FIDIC group.

I’m very much a globalist and appreciate the challenges of being part of a global organisation. The opportunities are huge because of the perspective that you gain, but at the same time there are challenges because people are coming at these same issues from so many different perspectives.

FIDIC is such a unique and diverse group,” she said. “I also want to make sure that, especially in today’s political environment in the US, that I am a very strong representative of the United States,” said Darr.

Looking at the future, Darr said she was “thrilled that Nelson Ogunshakin was on board as CEO” and also very excited to have Bill Howard from the USA coming in a president of the organisation for two years.

“Bill is a very well-respected member of our industry in the US and it’s really very exciting for us to have someone tightly

ACEC president and CEO, Linda Bauer Darr, pictured in Washington DC.

Linda Bauer Darr with USAID administrator Mark Green and former ACEC chair, Manish Kothari (right).

plugged into the FIDIC agenda,” she said.

In terms of future focus, Darr again mentioned the value of engineering and fighting against the commoditisation of engineering. “As an industry across the world we are feeling the impact of people that don’t appreciate the work that we do and the impact of our history of not speaking up for ourselves perhaps as loudly as we could have in the past. We need to change. Our voice needs to change. Our voice needs to be stronger and we need to talk about things that resonate,” she said.

“The issues that the engineering industry deals with are central to societal issues that are making headlines in every paper across the world – resiliency, sustainability, extreme weather – all these things are what we do! We are thinkers, we are problem solvers. We really need to claim our place at the table as thought leaders. We need to be more bold and able to speak in terms that resonate with the average person and when we do that we can address this issue of whether or not people truly value engineering and this challenge of the engineering industry being commoditised in a world where it’s already really noisy and we see so much change and disruption.

We need to cut through all that,” said Darr.

Darr, who is due to chair one of the conference sessions in Mexico City, said she was excited to be attending the event with new ACEC chair Mitch Simpler and getting to know FIDIC better after a year in her new role. “Last year in Berlin I had only been on the job for a matter of weeks, so I don’t feel like I had the full exposure to FIDIC and its members. Now I am more settled in, I want to take the opportunity to meet more of the members of FIDIC. I’m excited and really looking forward to becoming part of the fabric of FIDIC,” said Darr.

Linda Bauer Darr co-moderating the infrastructure panel at the ACEC annual convention.

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12: Interview

his year’s FIDIC conference will build on the mobility and smart infrastructure themes of last year’s event in Berlin by looking at technology and the difference it is making. FIDIC’s chief executive Nelson Ogunshakin cannot wait for the event to start. “The theme of this year’s event, Technological innovation impacting the industry, could not be more relevant for delegates to discuss given the pace of digital change we are living through,” he said.

“With a population of 22 million people, a huge demand for infrastructure and also the critical need to use technology to enhance existing and new infrastructure, Mexico City is the ideal venue to host this year’s conference. For me, as CEO of FIDIC, I’m delighted that we’ve had the opportunity to work with our member association CNEC and that we are able to have Mexico City as a platform to debate the big issues that are impacting our industry,” Ogunshakin said.

The programme for the conference has been designed not only to highlight the big issues facing the industry but also to give delegates the best opportunity for discussion, debate and reflection on those issues with a view to mapping a way forward. “Day one of the conference will focus on industry leaders, business perspectives and how technology is going to impact our industry, our culture and

The FIDIC conference offers an ideal opportunity to debate the key issues facing the consulting engineering industry.

the way the industry is going to operate and be structured in the near future,” said Ogunshakin. “This is all critical, not only to Mexico but for the rest of the world too,” he said.

The FIDIC conference provides a unique and unrivalled space for infrastructure professionals to get the low down on the latest trends and challenges affecting their businesses and FIDIC Mexico City 2019 will be no exception. “We have the opportunity to bring the leaders of the industry together to address key concerns like risk management, corporate ownership and also to look at the way that industry business models will change in the future,” Ogunshakin said.

FIDIC’s CEO was also very keen to stress the collaborative nature of an event that is set to attract more than 700 industry professionals from across the globe. “As well as debating the big issues, it is also important that the conference should provide the opportunity for delegates to network, exchange ideas and create a platform for

“FIDIC conference is a great opportunity to network and build relationships. I want to encourage people to take down the walls between countries and regions and use the event as a platform for collaboration.”

New FIDIC president Bill Howard prepares for office.

There are big opportunities for engineers as cities go smart.

24: Regional round-up An update as FIDIC reinvigorates its regional groups.

FIDIC launches its new Future Leaders group.

An unrivalled opportunity to share and learn FIDIC’s chief executive Nelson Ogunshakin, who has just completed his first year in post, looks ahead to the organisation’s annual gathering in Mexico City and the opportunity to meet members from across the globe.

FIDIC chief executive Nelson Ogunshakin.

collaboration for the future,” said Ogunshakin. “FIDIC conference is a great opportunity to network and build relationships. I want to encourage people to take down the walls between countries and regions and use the event as a platform for collaboration,” he said. Given that technology is so critical to effective and increased collaboration across the infrastructure sector, the conference theme is even more relevant.

Speakers in Mexico City will come at the issues from different perspectives and reflect the broad range of experience of an industry that impacts on the lives of millions of global citizens.

“Speakers have been chosen from the private and public sector and we also have representation from the multilateral development banks, with whom we have been engaging for the last 12 months with a view to making sure we have standard procurement procedures and standard contract documents,” Ogunshakin explained.

“Day one of the Some of the speakers very much reflect what FIDIC has done during the year and the conference conference will focus offers the opportunity to strengthen relationships with international stakeholders and also FIDIC’s on industry leaders, member associations. “We have seen a few changes business perspectives in those member associations at the CEO level so we will be welcoming those who are new to and how technology the FIDIC world and also those new members of is going to impact the board, who will take office at the end of the conference,” said Ogunshakin. our industry, our Mexico City will also see the launch of FIDIC’s culture and the way new MA Excellence Awards which Ogunshakin is looking forward to greatly. “This is a great initiative the industry is going to recognise FIDIC members. Historically we have to operate and be recognised projects, but these awards promote excellence in our MAs. I congratulate all those structured in the near members who have taken part this year and to those that haven’t, I really want to encourage them future.”

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to enter next year,” he said. In addition to the new MA Awards, the FIDIC Project Awards will also showcase a glittering array of fantastic infrastructure projects and the difference they make.

As befits a conference focusing on digital change, the event in Mexico City will see technology centre stage during the sessions with a live conference feed, interactive voting, social media participation and networking, onsite reporting by conference media partner Infrastructure Intelligence International and an excellent conference app that went down a storm last year in Berlin.

Much to look forward to for delegates then. So, what does Ogunshakin want those delegates to leave the conference with? “At the end of the conference, I would hope that delegates have not only had the opportunity to network and build relationships, but also to learn from each other about how different countries are dealing with technological impact on the industry so they can go back to their own countries and apply that learning to ensure that their business is fit for the future,” he said.

“Above all, FIDIC conference is a once-a-year opportunity for quality knowledge sharing and information exchange and I hope that delegates will grasp that opportunity with both hands,” said Ogunshakin.

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27: Procurement

The role of procurement in driving innovation.

28: Contracts

Creating a global language for successful projects.

16: FIDIC CEO FIDIC regional groups

14: FIDIC president

Alain Bentéjac bows out with confidence after two years in the hot seat.

Reinvigorating the regions FIDIC’s regional groups around the world carry out important work representing member associations in Asia-Pacific, Africa, Pan-America and Europe, as this regional round-up illustrates.

This year’s FIDIC-GAMA annual conference in Kampala, Uganda.

16: FIDIC CEO

Nelson Ogunshakin looks ahead to the conference in Mexico City.

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IDIC member associations around the world are grouped by region. These groups comprise GAMA, for African members, ASPAC, representing FIDIC associations in the Asia-Pacific region, the European federation, EFCA and FEPAC, the Pan-American federation. The four regional groups hold regular events and conferences and FIDIC closely collaborates with all of them.

Unsurprisingly, the groups face some common challenges.

“The two biggest challenges faced by the European consulting industry are low fees and a shortage of staff,” said EFCA president Kevin Rudden. “The laws of economics dictate that when a sector experiences a severe shortage of labour, cost inflation is inevitable. However, we are seeing a huge shortage of available staff in Europe, a consequential increase in salaries but no corresponding increase in professional fees. It’s neither logical or sustainable,” Rudden lamented.

Interestingly, said Rudden, digital transformation, which may be the key to reducing both production cost and

Read more at fepac.org

compensating for staff shortages, has risen to third place in the items which concern the European engineering sector. “As a sector we have invested significantly in digital technologies which have reduced our costs and increased our output. However, we have used these hard-won gains to increase our competitiveness by lowering our fees, effectively handing the return on our investment back to our clients rather than re-investing in our companies and staff. This is another unique quirk of our industry,” he said.

ASPAC chair, Irawan Koesoemo, said that unlike EFCA, his group’s geographical area was too wide and large to have a common consulting engineering community. “In ASPAC region where a lot of governments rely on state-owned enterprises to help navigate their economic course, consulting engineering firms in the private sector often lack the capacity to weather the storms of reform and they are also hit hardest by the dual threats of a slowing economy and extended trade war,” said Koesoemo. “In comparison with the state-owned giants, many private consulting firms lack the resources to withstand a slowdown.” It’s a situation which needs addressing, he said.

James Mwangi, chair of GAMA, said that unfair competition from abroad was an issue for firms in his region. “We have fierce competition from foreign firms, unfair competition (some of it due to corruption), lender’s conditions that tend to favour foreign firms, delayed payments especially by government and

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problems from unlicensed engineers arising from “In comparison with poor enforcement of the state-owned poor or absent legislation covering the engineering giants, many private profession,” he said. consulting firms Notwithstanding these challenges, the lack the resources regional groups have to withstand a had some success over the past year. Koesoemo slowdown. It’s a reported that, despite situation which needs economic difficulties in its region, ASPAC had addressing.” formed an active grouping of member associations Irawan Koesoemo, chair, ASPAC comprising more than half of its membership. “We have also been assisting the FIDIC secretariat with its new regional strategy and we now have a growing and organised young professionals’ forum,” he said. Mwangi said GAMA had unveiled a new strategic plan, improved the performance “This is a very of its GAMA secretariat and organised many FIDIC welcome strategy and training courses with it will bring better GAMA member. alignment between Rudden said that one of EFCA’s key successes FIDIC and the over the last 12 months regional groups who was the organisation’s ongoing lobbying efforts. can ride on the strong “We met, lobbied and brand of FIDIC.” organised debate with 51 individual officials James Mwangi, chair, GAMA of the EU Commission and its various agencies to positively influence legislation and policies to support the European engineering sector,” he explained. “We also participated in the development of the European industry’s policy statement on the use of cloud services, influenced the development of the international quality “We met, lobbied and standard governing organised debate with the organisation and digitisation of information 51 individual officials about buildings and civil of the EU Commission engineering works and also published our second and its various Future Trends Booklet agencies to positively on the possibilities and opportunities that influence legislation technology inevitability and policies to will create and the consequence of ignoring support the European it.” EFCA also increased its membership by 17% over engineering sector.” the year “an indication Kevin Rudden, president, EFCA that we are doing something right!” said

Irawan Koesoemo, chair, ASPAC.

Read more at fidic.org/ASPAC

James Mwangi, chair, GAMA.

Read more at fidic.org/GAMA

Kevin Rudden, president, EFCA.

Rudden.

A key task for FIDIC going forward is its new Regional Grouping Empowerment and Restructuring Strategy to be more effective in representing the industry through its regional groups. Rudden said that EFCA was fully behind the plans. “We fully support the development of a regional strategy for FIDIC. It is essential that an organisation which represents over 100 diverse countries consistently reviews how best to serve those members. Since 2010, FIDIC and EFCA have operated a co-operation agreement to coordinate the activities of both organisations to deliver the best possible level of service to our member associations and their members. This agreement was effectively a forerunner of the regional strategy and will inform the new strategy,” he said.

ASPAC chair, Koesoemo, said: “ASPAC region may have to slightly regroup to better reflect collaboration between countries and to be able to build capacity to advocate for the industry regionally.

In that way, we will support FIDIC’s policy of reflecting and respecting regional differences to support the industry regionally and globally in the most effective way.” Going forward, he said that ASPAC could provide valuable representation on FIDIC principles and services for member associations, undertake representations to organisations which operate exclusively in its region and develop an intra-regional commercial network for training and development to serve its members better.

GAMA chair James Mwangi also supported FIDIC’s plans for the regions.

“This is a very welcome strategy and it will bring better alignment between FIDIC and the regional groups who can ride on the strong brand of FIDIC. It will also encourage clearer relationships and engagement between regional groups for technology transfer, exchanging of experiences and the promotion of mutually beneficial partnership between firms across the regions,” Mwangi said.

So, positive feedback for FIDIC’s regional strategy and some encouraging signs for the future. All of the groups are sure to be involved in the evolving debate in Mexico around FIDIC’s strategy and will assist the organisation in the formulation and implementation of its policy.

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September 2019 | Infrastructure Intelligence International 25

30: Integrity management

Combatting the challenge of corruption.

31: FIDIC 2020 conference

Get set for a global gathering in Geneva.

24: Regional round-up

Contact us Editor: Andy Walker, +44 7791 997602

Reporter: Rob O’Connor +44 7790 585396

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Message from the editor

20: Interview

26: Industry future

Chief executive interview

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A celebration of outstanding engineering excellence.

22: Mega-cities

Interview – ACEC president and CEO

Be bold and claim our place at the table

18: FIDIC Project Awards

The views expressed in Infrastructure Intelligence international are not necessarily those of FIDIC or the Association for Consultancy and Engineering (ACE).

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I

’m so pleased to be writing the editor’s message in this special issue of Infrastructure Intelligence International, published to coincide with the FIDIC 2019 annual infrastructure conference in Mexico City. Consulting engineering professionals play such an important part in shaping the built and natural world we live in and it’s a privilege to write about their work.

It’s appropriate that the leaders of the international consultancy and engineering sector are meeting in one of the world’s most populous cities to discuss the key challenges arising from the impact of technology and digitalisation on the construction and infrastructure industry. Information makes the world go around, someone once said, and adding digital into that mix has made things go around a lot faster - and a lot smarter.

Businesses in our industry face complex and at times unpredictable challenges and the demand for consulting engineering services continues to evolve and grow.

Technology is also evolving rapidly, driving innovation and bringing with it new business models and ways of working. Many of the issues being discussed by FIDIC delegates in Mexico City are given an airing in the pages of this magazine and I hope you enjoy the read as much as we have enjoyed writing about the issues and people who make up this fantastic industry.

Have a great time in Mexico City and I look forward to meeting many of you during what I know will be an inspirational and illuminating conference.

Andy Walker, Editor, Infrastructure Intelligence International +44 7791 997602 awalker@infrastructure-intelligence.com

September 2019 | Infrastructure Intelligence international 3

Impact of technology

Getting into the leadership busin

As the pace of technological advancement quickens, engineering businesses have an opportunity to diversify their offering, see the bigger picture and start leading the industry, say two of the speakers at FIDIC Mexico City 2019.

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he central theme of the FIDIC International Infrastructure Conference in Mexico City is the impact technological innovation is having on the industry. One of the business leaders offering a corporate board perspective on the subject at the conference is Keith Howells, who until recently was the chairman of leading international consultancy, Mott MacDonald.

“What happens to consulting engineers in a digital age is the thrust of what I’m going to be talking about,” said Howells.

“We’re all going to carry on running businesses that are about creating and managing infrastructure and supporting social and economic development, but it’s going to change,” he said. “The big question is how quickly will we adopt the new digital tools and what impact will that have on the business,” he said.

Mitch Simpler, managing partner of Jaros, Baum & Bolles and the current chair of FIDIC’s USA member association ACEC, agrees with Howells. “Technology today is changing at a rate faster than it has ever changed in the history of mankind and particularly for the boardroom it is a very difficult subject to get your mind around because it is changing so rapidly,” he said. “The question is, where are the real changes taking place and what is the risk-reward that you are going to be faced with?”

Howells thinks that automation and a common data environment are opening up cost and programme information and creating significant possibilities for data mining. “There’s some interesting

Mitch Simpler, managing partner of Jaros, Baum & Bolles and chair of ACEC.

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stuff coming out of this where people start using data to identify bottlenecks to make process improvements and this is all improving collaboration, whether that’s between designers or the designer and the client or contractors,” Howells said. “The approval process is much faster as a result.

It’s been interesting on the Thames Tideway project, where the model-based approval ‘workshopping’ approach has shaved a good chunk of time off the programme and many things have been right first time,” he said.

Simpler said that automation had real potential to move the engineer away from commoditised service provision to a much more exciting (and productive) area of thought leadership. “What we need to do as an industry is to look at automation tools - this

“Technology today is changing at a rate faster than it has ever changed in the history of mankind and particularly for the boardroom it is a very difficult subject to get your mind around because it is changing so rapidly.”

thought ness makes our employees more productive and enables more thought leadership work,” he said.

In doing so, Simpler said it was also important for technology to be designer friendly so that engineers enjoyed using it as that would attract more talent into the industry. “We have to come up with ways that make our industry feel exciting to the younger generation. The idea is to make the industry and the firms that work in it more “The approval process forward-thinking and is much faster as attractive. We also have to be in front of the innovation a result. It’s been curve and lead our clients,” interesting on the said Simpler.

Given the innate ability Thames Tideway of engineers to see the project, where the connections between issues and processes, could model-based approval more technology play to ‘workshopping’ engineers’ strengths?

Howells clearly thinks so. approach has shaved “Undoubtedly there will be a need for someone a good chunk of time to provide the bigger off the programme and picture,” he said. “My view is that businesses in the many things have been infrastructure space need to start thinking hard about right first time.” what other services they might provide beyond design. That could be around programme and project management or it could be environmental and social impact or smart asset management. Businesses will have to think about broadening their offering,” said Howells.

But, are clients forward thinking enough to embrace the new ways of working and take advantage of what technology has to offer? Both Howells and Simpler think that it’s a mixed picture but that leadership is crucial. “Some clients are, and some aren’t,” Howells said. “Some need their eyes opening about the possibilities, some are still quite nervous and some are enthusiastic. It’s a mixed bag; a bit like it was with BIM more than ten years ago,” he said.

“Part of our role of the consulting engineer is to educate their client and say: ‘the way things were done is not the way it can be done and will be done in the future’”, Simpler said. “We need to be able to lead the clients in what technology is either emerging or what will be required in the future. And, leadership is crucial. It always has been and it always will be,” he said.

Keith Howells, former chairman, Mott MacDonald.

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Technology is creating some big challenges for the boardroom and more and more it’s being discussed by industry leaders. “It’s definitely being talked about in the boardroom and there are a couple of major implications for businesses,” Howells says. “One is, when we are doing in a day what we used to do in a month, how do we get paid for that properly? We need to think about how we do that and also avoid the risk of a race to the bottom. Extracting value is a key question,” he said.

“The other big boardroom issue is the people side of it,” said Howells. “People will have to have the right attributes to cope with relentless change over the coming years and that’s where leadership comes in – motivating people to change and helping them by investing in skills,” he said.

Simpler sees an important role for FIDIC in all this. “FIDIC and its member associations can take the engineer out of the commodity business and put them into the thought leadership business,” he said.

So, what would his advice be to firms grappling with technology and its effects on the business? “To be open minded and be a thought leader,” Simpler said. “Our key role is to be able to communicate with each other, bring these technologies out into the open and allow the industry to become comfortable with them to improve performance across the whole industry,” he said.

September 2019 | Infrastructure Intelligence International 5

Host member association interview

Welcome to Mexico City from CNEC

The host association for FIDIC Mexico City 2019 is the Mexican National Chamber of Consulting Companies (CNEC). We spoke with CNEC president Marco Gutierrez as his organisation prepares to welcome the world’s engineers to his country’s capital city.

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ow does it feel for CNEC to be hosting the premier global gathering for the consultancy and engineering industry?

We are delighted to be welcoming more than 700 delegates from all over the world. We are proud to be part of FIDIC and honoured to host such an important event in a mega-city with so many people and infrastructure challenges.

What are you looking forward to most about hosting the conference?

We are really looking forward to some in-depth discussions on topics and issues relevant to infrastructure development and consultancy, specifically for developing countries. Technology is a key element in achieving a more efficient infrastructure that can trigger more affordable public services. As a developing country, we look forward to those discussions that involve the social and environmental impact of projects and technology and talking about integrity issues and the challenge of change.

Marco Gutierrez, president, CNEC.

Are there any must-sees that FIDIC 2019 delegates should not miss while they are in Mexico City?

You can’t miss the city’s main square, Zocalo, Revolution Monument or try a Sunday stroll or jog down Paseo de la Reforma, the avenue that runs across the heart of the city. Enjoy the sun and if you fancy a change take a trip to San Miguel de Allende or Oaxaca. Both cities, along with Mexico City, are in the top ten destinations for the year ahead.

Most of all, talk to people and enjoy their hospitality - you’ll be surprised how friendly Mexicans can be. Saludos!

Tell our readers more about CNEC – it’s size and scale and the market sector in Mexico?

CNEC represents the consultancy sector in Mexico, including engineering consultancy. We have been in Mexico for 34 years.

Our affiliated firms include small, medium and large consultancy companies and we are the voice of more than 4,000 individual consultants and specialists in Mexico.

How is the industry doing currently in Mexico? Is the market healthy?

A new six-year political administration in Mexico took office in December of last year. The main challenges for our industry are to fight corruption and to develop new infrastructure projects that trigger regional development. Those projects include a 1,500km train line around the Yucatan peninsula currently seeking private investment, a virtual canal by road and train that connects the Pacific and Atlantic oceans to complement the Panama Canal, a new refinery to process 340,000 barrels per day and a new airport in Mexico City.

What are the key challenges facing engineering businesses in Mexico?

Key challenges are the fight against corruption and providing financial certainty to investors. The changes of the new administration are delivering unclear signals towards new investment and rating agencies. Projects must be backed by engineering and well-supported technical, financial and legal feasibility studies.

6 Infrastructure Intelligence International | September 2019

Mexico City is playing host to engineers from more than 100 countries.

FIDIC MA Excellence Awards

Celebrating and rewarding membership best practice

FIDIC’s brand-new Member Association Excellence Awards recognise, reward and highlight the achievements and successes of FIDIC’s international member associations. The winners will be announced in Mexico City, as Rob O’Connor reports.

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truly global range of groundbreaking campaigns, achievements and successes of FIDIC’s international member associations are set to be recognised as part of a brand-new awards programme at the FIDIC annual conference in Mexico City.

The first ever FIDIC Member Association Excellence Awards will recognise, reward and highlight the achievements of FIDIC’s global member associations, paying tribute to the inspirational work that the organisation’s members do in representing the global consulting industry.

Set to become a permanent fixture on the FIDIC calendar, the awards have five categories and the judging panel of senior industry figures have been hugely impressed by a strong and diverse field of excellent entries showing the great work being done by FIDIC member associations around the world.

Entries from India, the USA and Denmark in the Best Publication or Website category.

The five categories are: ∙∙ Best advancement of a cause, advocacy campaign or event. ∙∙ Best publication or website. ∙∙ Best diversity and inclusion initiative. ∙∙ Member Association of the Year. ∙∙ Lifetime achievement.

The Member Association of the Year Award will go to a FIDIC member that shows excellence in all areas of its work.

There’s a very strong line up of entries, with FIDIC associations in America, Japan, Georgia, China, Finland, Mexico, Russia, Vietnam and South Africa. The winner of this award will certainly deserve their success as they will be judged across a range of areas including demonstrable

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evidence of recent successes, value for money for members, increased association profile, strong leadership and positive feedback from member firms.

The Best Advancement of a Cause category also has a strong list of entries including South Africa’s CESA Engineering Excellence Awards. Still going strong after 47 years, the awards are recognised as the ones to win in the engineering industry in South Africa. Other strong nominations include ACEC’s Canadian #20DaysofExcellence social media campaign, ACEI’s EFCA 2019 GAM and Conference in Dublin in May and the successful establishment of the National Association of Construction Engineering Consultants in Russia.

Elsewhere, Consult Australia nominated the Science and Infrastructure Development School in two categories - Best Diversity and Inclusion Initiative and Best Advancement of a Cause.

Established in Brisbane in 2012 by WSP Australia, in partnership with Queensland University, the school supports the future leaders of tomorrow in STEM education and careers, particularly those from indigenous backgrounds. The school won a Gold Award for corporate social responsibility at the 2018 Consult Australia Awards for Excellence.

Also shortlisted in the Best Diversity and Inclusion category is the Association of Consulting Engineers New Zealand (ACENZ) campaigning Diversity Agenda, an ambitious call to action that asks industry leaders to commit to a goal of 20% more women in engineering and architecture by 2021. Launched in April 2018, ACENZ now has 93 organisations signed up and the number is still growing strong.

Winners of the FIDIC Member Association Excellence Awards will be announced at the gala dinner event during the FIDIC International Infrastructure Conference in Mexico City on Monday 9 September 2019.

September 2019 | Infrastructure Intelligence International 7

Technology

A change driver for the industry

The technological revolution will disrupt firms operating in the infrastructure sector, so getting the inside track on how the industry should respond to new challenges will be crucial to business success.

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he impact of technology on firms working in the construction and infrastructure sector is set to be profound, not only affecting the way companies work but also changing how they are structured and handle information. The “Technology as a driver of change” session at the FIDIC conference will explore some of the issues in greater detail and two of the panel speakers shared their thoughts ahead of the discussions in Mexico City.

“We need to look at business models, how we work and how we get rewarded as consulting engineers,” said Richard Shennan, global digital business development director at Mott MacDonald.

“We are looking at starting to deliver value in different ways, particularly through-life operational performance of assets, getting better information from live information and drawing conclusions from that to make better decisions,” he said. According to Shennan, there is “a big shift towards thinking about the ultimate outcomes of projects - social economic and environmental rather than just focusing on getting the project over the line.”

Michael Gustafson, senior industry strategy manager at Autodesk, agrees saying: “How can consulting engineers start to be rewarded for the improvement

Michael Gustafson, senior industry strategy manager, Autodesk.

8 Infrastructure Intelligence International | September 2019

in performance in terms of value over the life cycle of the asset they are involved with is one of the things I want to discuss at the conference in Mexico City.”

Gustafson said that as engineers start to adapt to using automation processes to do the simple routine tasks that they do, this will then free up their time to focus on higher value tasks like exploring better design options, collaborating more with their clients and dealing with the increasing complexity on projects.

“There is a trend towards increased demand and adoption of outcomebased design. Project performance is being measured by a mix of economic, social and environmental factors and this is being driven by owners and is increasingly becoming important. For example, new types of design requirements are emerging as building service systems and components become more connected via the cloud.”

Richard Shennan said that building data models which can collect live data and inherit data from new projects will be significant. “This will enable engineers to start to build system-wide digital representations of assets that can then be interrogated, connected maybe to social data and then

“There is a trend towards increased demand and adoption of outcome-based design. Project performance is being measured by a mix of economic, social and environmental factors and this is being driven by owners and is increasingly becoming important.”

permanently adapted to meet changing needs.

“You can’t just apply Through-life thinking is going to be more important new technology to the and showing how that old process because connects to value,” Shennan you’ll only get half the said.

Of course, getting clients benefit. It’s the same to understand whole life with organisational costs and through that see the real value that data; you have to look consulting engineers at the organisation provide, has been an ongoing struggle for the itself and how it industry. Maybe, for the first time for a long time, shares data.” digital is opening up that area so that consultants are better able to demonstrate that value with more accuracy.

“That is definitely the case and it’s the technology that is enabling that to happen,” said Shennan. “We are starting to move away from the world of static reports. Technology now enables you to set up a structure where data is feeding into a cloud-based platform and being permanently updated, so what is pushed out is a dashboard which can then be tailored for individual roles and then you have transformed everything enabling better decisions to be made and performance optimised,” he said.

Gustafson said that software providers like Autodesk had an important role to play. “I see our customers looking at our values and how they align with theirs. They are looking at social responsibility and leadership that will shape our future

Richard Shennan, global digital business development director, Mott MacDonald.

world. As we see more technology like artificial intelligence in design, we need to be aware of our role as it relates to the issue of social responsibility and new expectations of software companies to be sharing the impact of our decisions on the world around us.

“New construction and building renovation projects need to be designed and built with less resources in order to scale up capacity to meet the future demand for our planet’s buildings and infrastructure. Together with customers and industry leaders, we need to reach a consensus on how to design more and better designs with less, and then share our conclusions on how to do this at scale,” Gustafson said.

So, what does all this all mean for the consulting firm of the future? Big changes according to both Shennan and Gustafson. “Firms need to be structured much more around connected data,” Shennan says. “There is lots of information locked inside firms and joining that up is key. If you can then join that up with other information externally then the rate of learning is speeded up,” he said.

Shennan said this will take a big effort in organisations as firms are historically divided up into vertical structures, when what was needed now was to connect across boundaries and share information.

“We need to look at organisational structures and process,” he said. “You can’t just apply new technology to the old process because you’ll only get half the benefit. It’s the same with organisational data; you have to look at the organisation itself and how it shares data,” said Shennan.

According to Gustafson, a key message to get across is that the role of engineers in the industry is changing. “There are new emerging threats and opportunities from the industry that are going to shape the future vision of their business and the journey for how they get there,” he said.

“Threats like the shortage of a talented workforce and the globalisation of teams are changing the landscape for engineers and how they deliver value on projects.

“Take artificial intelligence, which is on the cusp to disrupt our industry as both a threat and opportunity. It’s going to move so quick in the next two to five years that companies really need to be looking at how to factor it into their business strategy,” he said.

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September 2019 | Infrastructure Intelligence International 9

Diversity and inclusion

Diversity is good for business

No professional consulting engineering firm can be successful without addressing diversity in the workplace. Chair of FIDIC’s diversity and inclusion task force, Michele Kruger, offers her thoughts on an issue that is growing in importance across the industry.

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arlier this year, FIDIC set up a new diversity and inclusion task force to actively support representation and inclusion from more diverse groups so they can become leaders and influencers in the consulting engineering sector.

The task force plans to hit the ground running by launching a major survey of FIDIC’s 102 international member associations and also company representatives who have attended the annual FIDIC conference over the last five years to gain feedback on global trends on current diversity management practices, diversity regulations or targets being used, additional statistics on the current status quo, success stories and potential pitfalls to look out for.

The survey will inform FIDIC initiatives to address areas needing attention and all feedback will be communicated to and shared with the industry.

Michele Kruger, chair of the FIDIC diversity and inclusion task force, and associate director at CSVwater Consulting Engineers in South Africa, said: “Our task force aims to actively support representation and inclusion from more diverse groups and support our members by showing why diversity and inclusion matters to business, what the benefits are and the most effective, practical measures

Michele Kruger, chair of the FIDIC diversity and inclusion task f

to enhance diversity and inclusion.”

The new task force began its work with a completely fresh agenda and stemmed from a number of comments and conservations from last year’s FIDIC conference in Berlin, said Kruger. “There was a lot of conversations that came out around gender diversity. We’d previously started a movement called Women of FIDIC, but it wasn’t outcomes based, so we decided there was enough interest to warrant setting up a task force dedicated to diversity,” she explained.

“We didn’t want it to be a typical committee, we “There was a lot of wanted it to be a fresh team and more agile. The whole point of the task team is not to be gender or conversations that religion based – it’s more diversity and inclusion came out around based. If you’re sitting around a boardroom and all people look exactly the same or are saying the gender diversity. We’d the same things, there will be no new ideas. In fact, research shows that the more diverse your team, the previously started better your cashflow and the better your revenue. a movement called And, if you take it from that point of view, it means Women of FIDIC, but it that you can actually grow your business if you look to diversify your team,” said Kruger. wasn’t outcomes based, Describing the initial feedback from the task force’s initial work, Kruger said: “There’s a lot of so we decided there research out there that we are currently collecting, was enough interest to all of which points to multiple benefits of diversity.

Most of the benefits are commercial actually and warrant setting up a though people often think that diversity will cost task force dedicated to them more, in actual fact it will make more money,” she said. diversity.”

And, said Kruger, FIDIC conference delegates in Mexico will be able play an important and active Michele Kruger, chair of the FIDIC diversity role in the task force’s ongoing research. “We’re and inclusion task force.

10 Infrastructure Intelligence International | September 2019

force, at last year’s FIDIC annual conference in Berlin.

launching the initial results of research at the conference in Mexico and we’ll be continuing to ask people what they have done that was successful and what have they done that didn’t work. That research will continue and the expanded survey results will then be unveiled at next year’s FIDIC conference in Geneva,” she said.

Kruger also stressed that, though people were occasionally slow to grasp the potential of diversity, the positive results for both current and future business prospects, both nationally and globally, are there for all to see.

“I’ve already had a negative backlash personally, with some people thinking I’m part of a feminist movement. I’m not.

I want companies to do well in a global environment. And, if you are working on an international stage, or even just a national stage, you cannot decide that almost all of your staff must be uniform.

“By being more diverse you’ll have all these amazing points of view – and I’m also talking diversity about age as well.

When you’re looking at a team, you have to have young people who aren’t afraid of the fourth Industrial Revolution, AI, big data, or new technology that will help digitalise and grow your business. So, for me, the more diverse – age, race, gender religion, you name it – get it as diverse as possible

and it will help improve your business,” said Kruger.

Kruger’s passion for diversity has also been evident in her work as part of FIDIC’s Future Leaders training programme, where she is inspiring young professionals around the world with a mix of online and face-to-face seminars.

“Capacity building and helping to develop the talents of young people is a passion of mine,” said Kruger. “It’s been such an honour to train some of the best young engineers around the world and I’m so looking forward to seeing them in Mexico,” she said.

A STEM book worth reading The FIDIC conference in Mexico City also coincides with the launch of Michele Kruger’s new book, The Development of Women and Young Professionals in STEM Careers.

The book is co-authored with Hannelie Nel, managing director of Tennelli Industries. An international author and speaker, in 2017 Nel was invited to join the International Women’s Forum, a global organisation of senior businesswomen.

Kruger and Nel’s book works through the fears and ambitions of young

people new to STEM careers in the professional environment, encouraging young professionals and women in STEM to know that they are not alone. The book provides key insights into their ability to deal with the stress of developing into a successful professional.

Order The Development of Women and Young Professionals in STEM Careers: Tips and Tricks, by Michele Kruger and Hannelie Nel (CRC Press) from www.crcpress.com

September 2019 | Infrastructure Intelligence International 11

Interview – ACEC president and CEO

Be bold and clai our place at the The president and CEO of FIDIC’s largest member association, Linda Bauer Darr, arrived at the helm of the American Council of Engineering Companies just over a year ago. Andy Walker spoke to Darr about her first 12 months in charge.

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t last year’s FIDIC conference in Berlin, Linda Bauer Darr had only just arrived at ACEC. One year on, I asked her how her first year has been as the organisation’s new president and CEO and what she had discovered about engineers after working with them for the past 12 months. “It’s been a fabulous year and I hope my members are as happy as I am with the last 12 months,” she said.

“There’s been a bit of a learning curve for me, because although I’m not totally new to the infrastructure sector having worked in transportation, working for an industry that represents a specific profession, engineering, that has been new to me.”

Darr said she had spent her time at ACEC not only getting to know the organisation but also getting into the hearts and minds of engineers. She said it was an industry that has a real personality.

“Engineers are smart, logical, problem solving, not totally risk averse but aware of risk, but at the core they want to help people, to fix things and make things better. For me that speaks to the humanity of engineering and it’s been important for me to tap into this to be a convincing advocate for the industry,” she explained.

An interesting and perceptive take on the engineering psyche from someone who clearly thinks deeply about the

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industry she represents. So, what about the opportunities and challenges facing that industry? The biggest, Darr says, is the commoditisation of engineering. “This commoditisation of engineering is attached to so many of the challenges and issues we are dealing with that we call by other names – for example qualitybased selection – and it concerns how we value engineering and whether society appreciates the contribution of engineering as something that is unique,” she said.

“The question of the commoditisation of engineering resonates through everything that we do, all of our policy issues and to some extent it also touches on the personality of engineering because there is a genuine sense of humility amongst the engineers I have met. This humility runs very deep and there is a challenge for engineers because it doesn’t necessarily serve them well with their clients in a noisy environment like Washington DC, where so many important policy decisions are made that affect their businesses.

This humility is a blessing and a curse and it’s linked to engineers claiming their place in the business world and with clients. We need to find a way of using that to our advantage,” she said.

As the leader of FIDIC’s largest member association does Darr think that puts more responsibility on ACEC and its role within FIDIC? “I’m aware of the role that we play in FIDIC and I’m very

ACEC president and CEO, Linda Bauer Darr, pictured in Washington DC.

12 Infrastructure Intelligence International | September 2019

im table

honoured to be part of the FIDIC group.

I’m very much a globalist and appreciate the challenges of being part of a global organisation. The opportunities are huge because of the perspective that you gain, but at the same time there are challenges because people are coming at these same issues from so many different perspectives.

FIDIC is such a unique and diverse group,” she said. “I also want to make sure that, especially in today’s political environment in the US, that I am a very strong representative of the United States,” said Darr.

Looking at the future, Darr said she was “thrilled that Nelson Ogunshakin was on board as CEO” and also very excited to have Bill Howard from the USA coming in a president of the organisation for two years.

“Bill is a very well-respected member of our industry in the US and it’s really very exciting for us to have someone tightly

Linda Bauer Darr with USAID administrator Mark Green and former ACEC chair, Manish Kothari (right).

plugged into the FIDIC agenda,” she said.

In terms of future focus, Darr again mentioned the value of engineering and fighting against the commoditisation of engineering. “As an industry across the world we are feeling the impact of people that don’t appreciate the work that we do and the impact of our history of not speaking up for ourselves perhaps as loudly as we could have in the past. We need to change. Our voice needs to change. Our voice needs to be stronger and we need to talk about things that resonate,” she said.

“The issues that the engineering industry deals with are central to societal issues that are making headlines in every paper across the world – resiliency, sustainability, extreme weather – all these things are what we do! We are thinkers, we are problem solvers. We really need to claim our place at the table as thought leaders. We need to be more bold and able to speak in terms that resonate with the average person and when we do that we can address this issue of whether or not people truly value engineering and this challenge of the engineering industry being commoditised in a world where it’s already really noisy and we see so much change and disruption.

We need to cut through all that,” said Darr.

Darr, who is due to chair one of the conference sessions in Mexico City, said she was excited to be attending the event with new ACEC chair Mitch Simpler and getting to know FIDIC better after a year in her new role. “Last year in Berlin I had only been on the job for a matter of weeks, so I don’t feel like I had the full exposure to FIDIC and its members. Now I am more settled in, I want to take the opportunity to meet more of the members of FIDIC. I’m excited and really looking forward to becoming part of the fabric of FIDIC,” said Darr.

Linda Bauer Darr co-moderating the infrastructure panel at the ACEC annual convention.

September 2019 | Infrastructure Intelligence International 13

Outgoing FIDIC president interview

Bentéjac bows out with confidence Outgoing FIDIC president Alain Bentéjac has seen the organisation through significant changes during his two-year term of office. He spoke to Infrastructure Intelligence International as he prepared to hand over the baton to his successor.

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lain Bentéjac has led FIDIC with a quiet determination and no little distinction since he took over as president of the federation two years ago. In an industry sector undergoing significant change, Bentéjac has piloted FIDIC through some challenging times and seen the organisation emerge strengthened and better placed to face the future. Typically, though, he is selfeffacing when talking about his role.

“I think it has been two very active years, where we have tried to make a lot of changes to adapt FIDIC to a changing world and a changing industry,” he said.

“When I took over as president, my main goal was to implement the new FIDIC strategic plan and in the short term I had three important actions. The first was to review and modernise the governance of the federation, the second to find a new FIDIC CEO and the third was to strengthen FIDIC’s secretariat,” Bentéjac explained.

FIDIC needed to update its statutes and bylaws to improve transparency and participation in its activities and these were updated at the FIDIC general assembly meeting in Berlin last year. The organisation has also established new board committees to improve governance and transparency and resolved the long-standing issue of its dialogue with FIDIC member association directors and secretaries with the establishment of the

FIDIC president Alain Bentéjac speaking at last year’s FIDIC International Infrastructure Conference in Berlin.

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D&S advisory board. One representative from that body is invited to all board meetings which has been a big step forward, said Bentéjac.

Bentéjac’s second key aim was the selection and appointment of a new CEO, a key task for any organisation facing change. “The title of CEO was important because we previously used the term managing director and the name change reflects the fact that we have a more proactive leader who has introduced some key changes to the organisation,” he said.

“We were very happy to have found Nelson Ogunshakin, who arrived in July last year, and he is a very visible leader and someone who will drive the changes FIDIC wants to see,” he said.

The third short-term action was to strengthen and restructure the FIDIC secretariat in Geneva to better support FIDIC’s committees and its member associations. Significant progress has been made in this area. “We are hiring new staff and increasing our resources in the area of our events and conferences, communications and FIDIC’s policy capability,” said Bentéjac. “We have also improved our communications with a new

Nelson Ogunshakin, CEO, FIDIC.

website and strengthened our IT systems, which is very important. There is still some work to do and additional resources to find, but real progress is being made,” he said.

As well as reviewing FIDIC’s internal processes, revamping committees and appointing a new CEO, Bentéjac’s time as president has also seen the publication of the new FIDIC 2017 suite of contracts, the Alain Bentéjac, president, FIDIC strengthening of the organisation’s links with key stakeholders like multilateral development banks and some big gains in China, with the successful pilot of the FIDIC Certified Consulting Engineers Programme (FCCE).

“The FCCE pilot programme has been a significant success, training around 1,000 Chinese engineers in the FIDIC system,” said Bentéjac. “We are in the process of establishing a permanent presence for FIDIC in China to support this programme and we also need to think about extending the programme to other countries where there is a need for training and capacity building. There is a demand for this too, which is good news,” he said.

Bentéjac has also overseen the review of FIDIC’s regional strategy and engagement with its regional groups which cover Latin America, Asia, Africa and Europe. Although still a work in progress, the organisation has been reaching out to those regional groups to improve the way it works with them.

“We are trying to define a more global approach with all our large FIDIC groupings, to regionalise more and find the right approach at all the levels we operate on,” said Bentéjac. “We still have some work to do, but things are progressing well. We are expecting feedback from member associations at the conference in Mexico City and we hope to be able to define a new FIDIC regional strategy by the end of the year, he said.

More than ever, FIDIC looks like an organisation that seems to be more visible and outgoing. Has it been a conscious strategy to raise FIDIC’s profile and be more engaged with the industry? “For sure, yes,” said Bentéjac. “Compared to other industries, our industry has a lack of visibility and given that we think our role for society is very beneficial and very important, we need to strengthen the image of FIDIC to better represent the industry globally,” he said.

As he prepares to end his term as president, how confident and optimistic is Bentéjac about the industry, its future and the engineer’s place within society? “When you look at the future needs of society you see that there is more and more need for infrastructure and for sustainable development, which offers huge potential for us in providing that infrastructure to support society in a sustainable way,” said Bentéjac.

“This offers huge potential for our profession, so for that reason alone I am very confident about the future. Of course, the industry will need to adapt to the changes we face – on the sustainability front and also with the growing digital transformation agenda – but I see big potential for our industry in the future as we grapple with the key challenges the world faces and implement solutions to address them.”

It’s a confident conclusion to a successful two years as president.

Bentéjac has certainly left the organisation in good health as he hands over the presidential baton to his successor, Bill Howard.

“We were very happy to have found Nelson Ogunshakin, who arrived in July last year, and he is a very visible leader and someone who will drive the changes FIDIC wants to see.”

September 2019 | Infrastructure Intelligence International 15

Chief executive interview

An unrivalled opportunity to share and learn FIDIC’s chief executive Nelson Ogunshakin, who has just completed his first year in post, looks ahead to the organisation’s annual gathering in Mexico City and the opportunity to meet members from across the globe.

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his year’s FIDIC conference will build on the mobility and smart infrastructure themes of last year’s event in Berlin by looking at technology and the difference it is making. FIDIC’s chief executive Nelson Ogunshakin cannot wait for the event to start. “The theme of this year’s event, Technological innovation impacting the industry, could not be more relevant for delegates to discuss given the pace of digital change we are living through,” he said.

“With a population of 22 million people, a huge demand for infrastructure and also the critical need to use technology to enhance existing and new infrastructure, Mexico City is the ideal venue to host this year’s conference. For me, as CEO of FIDIC, I’m delighted that we’ve had the opportunity to work with our member association CNEC and that we are able to have Mexico City as a platform to debate the big issues that are impacting our industry,” Ogunshakin said.

The programme for the conference has been designed not only to highlight the big issues facing the industry but also to give delegates the best opportunity for discussion, debate and reflection on those issues with a view to mapping a way forward. “Day one of the conference will focus on industry leaders, business perspectives and how technology is going to impact our industry, our culture and

The FIDIC conference offers an ideal opportunity to debate the key issues facing the consulting engineering industry.

the way the industry is going to operate and be structured in the near future,” said Ogunshakin. “This is all critical, not only to Mexico but for the rest of the world too,” he said.

The FIDIC conference provides a unique and unrivalled space for infrastructure professionals to get the low down on the latest trends and “FIDIC conference is challenges affecting their businesses and FIDIC a great opportunity Mexico City 2019 will be no exception. “We have the opportunity to bring the leaders of the to network and build industry together to address key concerns like risk relationships. I want management, corporate ownership and also to look at the way that industry business models will to encourage people change in the future,” Ogunshakin said. to take down the walls FIDIC’s CEO was also very keen to stress the collaborative nature of an event that is set to between countries and attract more than 700 industry professionals regions and use the from across the globe. “As well as debating the big it is also important that the conference event as a platform for issues, should provide the opportunity for delegates to collaboration.” network, exchange ideas and create a platform for

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FIDIC chief executive Nelson Ogunshakin.

collaboration for the future,” said Ogunshakin. “FIDIC conference is a great opportunity to network and build relationships. I want to encourage people to take down the walls between countries and regions and use the event as a platform for collaboration,” he said. Given that technology is so critical to effective and increased collaboration across the infrastructure sector, the conference theme is even more relevant.

Speakers in Mexico City will come at the issues from different perspectives and reflect the broad range of experience of an industry that impacts on the lives of millions of global citizens.

“Speakers have been chosen from the private and public sector and we also have representation from the multilateral development banks, with whom we have been engaging for the last 12 months with a view to making sure we have standard procurement procedures and standard contract documents,” Ogunshakin explained.

“Day one of the Some of the speakers very much reflect what FIDIC has done during the year and the conference conference will focus offers the opportunity to strengthen relationships with international stakeholders and also FIDIC’s on industry leaders, member associations. “We have seen a few changes business perspectives in those member associations at the CEO level so we will be welcoming those who are new to and how technology the FIDIC world and also those new members of is going to impact the board, who will take office at the end of the conference,” said Ogunshakin. our industry, our Mexico City will also see the launch of FIDIC’s culture and the way new MA Excellence Awards which Ogunshakin is looking forward to greatly. “This is a great initiative the industry is going to recognise FIDIC members. Historically we have to operate and be recognised projects, but these awards promote excellence in our MAs. I congratulate all those structured in the near members who have taken part this year and to those that haven’t, I really want to encourage them future.”

to enter next year,” he said. In addition to the new MA Awards, the FIDIC Project Awards will also showcase a glittering array of fantastic infrastructure projects and the difference they make.

As befits a conference focusing on digital change, the event in Mexico City will see technology centre stage during the sessions with a live conference feed, interactive voting, social media participation and networking, onsite reporting by conference media partner Infrastructure Intelligence International and an excellent conference app that went down a storm last year in Berlin.

Much to look forward to for delegates then. So, what does Ogunshakin want those delegates to leave the conference with? “At the end of the conference, I would hope that delegates have not only had the opportunity to network and build relationships, but also to learn from each other about how different countries are dealing with technological impact on the industry so they can go back to their own countries and apply that learning to ensure that their business is fit for the future,” he said.

“Above all, FIDIC conference is a once-a-year opportunity for quality knowledge sharing and information exchange and I hope that delegates will grasp that opportunity with both hands,” said Ogunshakin.

September 2019 | Infrastructure Intelligence International 17

FIDIC Project Awards

Celebrating outstanding The FIDIC Project Awards celebrate outstanding projects where FIDIC member firms have had a major involvement and highlight the work of consulting engineering firms and the vital contribution they make to people’s quality of life worldwide.

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he entries in this year’s FIDIC Project Awards showcase more than 50 construction and infrastructure projects from around the world and include many examples of high-quality engineering and construction which promote the use of international FIDIC best practices and resources. Award winners will be presented at the gala dinner during the FIDIC International Infrastructure Conference in Mexico City on Monday 9 September and judging by the standard of the entries submitted, competition will be fierce.

The entries, drawn from 15 countries, highlight some amazing work. They include an environmental and wellbeingfriendly office project in Australia, a new automotive and battery plant in Brazil, a nuclear decontamination plant

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in Bulgaria, Canadian highways and flood management work, a new embassy building in London, an array of Chinese infrastructure projects spanning nuclear, bridges, rail, airport, hydropower, culture and environmental projects, regeneration and light rail work in France, water, road and commercial construction in Iran, Kuwait, Mexico and Russia and a strong showing of projects from the United States and Vietnam.

Highlights from the projects entered include the Inuvik Tuktoyaktuk Highway, the first all-weather road to the Canadian Arctic coast, connecting Canada’s highway network from coast to coast to coast.

Opened late last year, the project’s biggest contributions to engineering relate to the design and construction of roads and bridges in a thaw-sensitive, continuous permafrost environment. The design team addressed some very difficult challenges and came out on top.

There is some amazing engineering on display in the entries from China for the Ship Lift Project of the Three Gorges Project, the Wuhan Yingwuzhou Yangtze River Bridge, Yunnan-Guangxi High Speed Railway and the Fusong Section of Hegang-Dalian Expressway, while the Zhuhai Opera House simply takes your breath away with its beautifully engineered design and execution.

A project which applies an ecosystem approach to the integrated management of the Helleh Wetland in Iran is worthy of note. The work undertaken has provided a sustainable development plan for the wetland area which has led to increased public participation, establishing

The Dinh Vu to Cat Hai bridge, part of the Lach Huyen port infrastructure construction project in Vietnam.

18 Infrastructure Intelligence International | September 2019

The Sarah Mildred Long Bridge, w

g engineering excellence

which provides a road and freight rail link between Maine and New Hampshire.

The magnificent Zhuhai Opera House in China.

social justice for citizens, producing sustainable employment, alleviating poverty, optimising the utilisation of natural resources and developing the tourism industry in the area.

Another entry which catches the eye due to its sheer scale is the Atotonilco Wastewater Treatment Plant in Mexico, the largest sewage and wastewater treatment project in the country responsible for treating and cleaning wastewater from a population of 12.6 million people in Mexico City. The plant, the third largest water treatment facility in the world, has delivered significant environmental benefits to the region and improved the lives of more than 700,000 citizens through the sanitation and ecological restoration of the Tula river and the Endho dam reservoir.

The new Sarah Mildred Long Bridge, which provides a regional road and single-track freight rail link between Maine and New Hampshire is another entry in the awards. The 2,800-foot-long vertical lift bridge approaches introduces unique and innovative design features allowing it to efficiently carry vehicular, pedestrian and freight rail traffic. Another interesting project from the USA also entered in the awards is the Prickly Pear Creek Realignment in Montana. The project helped to successfully solve a century-old environmental problem immediately adjacent to a city, homes, farms, and residents by relocating a creek and isolating remaining on-site waste sources. Post-project monitoring has showed almost immediate improvements to groundwater quality, bringing great benefits to the local population.

Elsewhere, there are eight projects from Vietnam entered in the awards where highlights include the Phu Lac Wind Power Plant, the Ben Cat Substation in Binh Duong province and several major bridge projects including the Dinh Vu to Cat Hai, Dong Tru and the Bach Dang Bridge Construction at Hai Phong City.

All the projects entered in this year’s FIDIC Project Awards show how the construction and infrastructure industry delivers real and lasting improvements to people’s quality of life on a worldwide scale. The professionals who work on these projects are very well deserving of the recognition they will receive at the FIDIC conference in Mexico City, when the winners of these prestigious awards are announced.

September 2019 | Infrastructure Intelligence International 19

Interview

New FIDIC president prepares for office As someone with decades of senior level experience in the global construction and infrastructure industry, Bill Howard is ideally qualified to be the next FIDIC president. He spoke to Infrastructure Intelligence International about his thoughts as he prepares to start his twoyear term of office.

O

ver a career spanning more than 50 years in global construction consultancy, Bill Howard has a wealth of international experience in executive leadership, quality management, training and risk management. He also has had a long association with FIDIC, starting as USA member association ACEC’s liaison to FIDIC in 2000 and serving on numerous committees since.

He takes over as FIDIC’s new president immediately after the Mexico City conference. In the run up to the conference, he took some time out to answer some questions about his new role and how he sees the future.

How does it feel to be taking over as president of an organisation that represents millions of engineering professionals and 40,000 firms in more than 100 countries worldwide?

FIDIC is fortunate to have had many excellent leaders who have sacrificed much of their precious time and provided the organisation with leadership and the wisdom of their thoughts. This is especially true of my immediate predecessor, Alain Bentéjac, who

Bill Howard, president-elect, FIDIC.

deserves our wholehearted thanks for his leadership during a time of significant change, which will continue during my term.

Fortunately, we have a dynamic strategic plan, approved by our general assembly, which, as a living document, can be readily modified to meet emerging and new challenges and provides a general road map to help move us forward. It gives me great comfort that the plan reflects our desire to represent the diverse interests of the 40,000 professional firms from our 100 member associations (MAs).

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20 Infrastructure Intelligence International | September 2019

You have had a long association with FIDIC. What changes have you seen and where do you see FIDIC now and its position in the industry?

Since 2000, we’ve increased our membership, strengthened the FIDIC staff and become more in tune with the diversity of our members and their different needs. I’ve also noticed an improvement in our working relationship with member

∙∙

∙∙ ∙∙ The integrated science and engineering complex at Northeastern University, where Howard is a trustee.

associations, professional engineering firms and FIDIC stakeholders. While we all do not agree on everything, I believe there is more receptivity to everyone’s views and, as a result, I’ve seen more constructive dialogue on matters that might be somewhat sensitive.

∙∙

You’ve had a distinguished career working in the global construction industry. What have you been most proud of?

I have been privileged to help my firm, CDM Smith, my profession and my alma mater, Northeastern University, grow during challenging times. At CDM Smith I have led some of our largest domestic and global units, and developed our quality, educational and project manager certification programmes during my time as chief technical and quality management officer. I’ve been honoured to work with ACEC and FIDIC during times of great change, including the implementation of strategic plans for both groups. As a trustee at Northeastern University, I’ve been able to ‘give back’ in some small way to the institution which did so much for me in the beginning.

What are the key challenges that FIDIC faces in the coming period?

First and foremost is helping our new CEO, Nelson Ogunshakin, get firmly established. While Nelson has been in the position for more than one year and is past his transition period, he is still new in the position. As FIDIC president, I need to do all I can to help him build a solid foundation upon which he can lead us for many years – long after I’ve migrated the ‘past presidents’ group’!

How does the organisation stay relevant in a rapidly changing industry and business landscape?

We need to lead by advocating our three central pillars of quality, integrity and sustainability in addressing the many complex and increasingly serious challenges associated with the world’s infrastructure needs. Once again, the FIDIC strategic plan, a living document with periodic updates, will help ensure FIDIC responds to an ever-changing international marketplace and is fit for the future.

What do you hope to achieve during your two-year term as president?

When I was elected as president elect in Berlin last year, I listed several goals. If we achieve them, or at least make significant progress towards them, we will address the challenges we face now and in the future.

Those items are as follows (with some modification): ∙∙ Restructuring the secretariat in the broadest sense, including not only staffing and office location decisions but also leveraging our MAs or groups of MAs with programmes of value to FIDIC. This may lead us to explore organisational changes to maximise FIDIC’s effectiveness. So, this goal will likely have short- and long-term elements; ∙∙ Dramatically improving our annual conference with more C-Suite participation and having 90% of attendees very satisfied; ∙∙ Building enviable robust training and capacity-

∙∙

building programmes with maximum benefit to attendees and FIDIC, focusing on contracts, the FIDIC body of knowledge and building on the China Certified Consulting Engineers initiative; Improving communication with our members on FIDIC activities, market conditions, infrastructure challenges etc using state-of-the-art IT systems; Synchronising the terms of reference of all committees and ensuring members are diverse and active; Energising our directors and secretaries advisory council to assist us with stakeholder buy-in and synchronisation; Seeking a reasonable return on investment (not just financial) before taking on a new initiative; and Adequately addressing the issues associated with the sale and use of FIDIC contracts.

“Since 2000, we’ve increased our membership, strengthened the FIDIC staff and become more in tune with the diversity of our members and their different needs.”

Bill Howard, president-elect, FIDIC

If you could change one thing about the industry in which FIDIC members operate, what would that be?

I’d like to see more professional engineering firms truly functioning as trusted advisers to their clients. This is in the best interest of everyone associated with improving infrastructure in our world. During my career, I have seen some avoidable disastrous outcomes of infrastructure projects which could be somewhat traced to the inappropriate limitation of the professional engineer’s role. In short, my elevator speech to a client is: “If you are satisfied with the services of your professional engineer, keep them involved in all phases of your project and keep them very close to you as your trusted advisor”.

September 2019 | Infrastructure Intelligence International 21

Mega-cities

Big opportunities With the UN predicting that 70% of the world’s population will live in large urban areas by 2050, it’s appropriate that FIDIC delegates in Mexico City will discuss mega-cities.

Andy Walker reports on the challenges facing Shanghai and London.

W

ith more and more cities going ‘smart’, a multimillion-dollar market is opening up that offers huge opportunities for consultancy and engineering firms. World mega-cities like Shanghai and London face some key challenges arising from population growth and the need for better and more efficient mass urban transport.

“As a large-scale city with a population of more than 24 million, comprehensive urban transportation is a top priority,” said Liu Chunjie, chief engineer of the Shanghai Shentong Metro Group. “The metro is the backbone system of public transportation, with average daily passenger use exceeding ten million people. With 17 operating lines and 415 stations, Shanghai Metro faces a number of key challenges as the city’s population grows. These include increasing

Transport for London commissioner, Mike Brown.

Tunnels on the Crossrail project in London.

22 Infrastructure Intelligence International | September 2019

passenger flow, new external security risks, the need to improve management systems, shortcomings in equipment system capability, network capacity issues and the need to attract the best talent to improve the workforce,” said Liu. Transport for London commissioner Mike Brown is familiar with such challenges. “London, like many of the world’s great cities, is growing. In the last ten years its population has grown from 7.9 million to 8.9 million and is expected to increase to ten million by 2030,” he said. “The challenge is to keep London moving safely, and more efficiently and sustainably than ever before, while renewing and maintaining our road and public transport infrastructure. To meet this challenge, we are transforming our transport network to make London a better place to live, work and visit. We are improving air quality through our ultra-low emission zone and by cleaning up our bus and taxi fleets. We’re also investing to make walking, cycling and using public transport more attractive than travelling by private car,” said Brown.

Housing has also benefited as in the last ten years London has added around 250,000 new homes. “This in great part has been supported by transport improvements, improving connectivity to more communities within London,” Brown said. “None of this is possible without steady and sustained funding. Although we are looking at new streams of revenue such as building housing on our land and an international consultancy business to sell our expertise, our current baseline level of funding – which comes from devolved business rates to London – is required to keep the capital city moving,” he said.

So, how are London and Shanghai working with stakeholders to deliver their transport infrastructure? “The Shanghai Metro

as cities go smart

Liu Chunjie, chief engineer of the Shanghai Shentong Metro Group.

actively connects with government departments, passengers, community and social organisations and other parties to coordinate and develop operations to achieve a win-win situation,” said Liu Chunjie.

Mike Brown said that it was important that transport should not be seen in isolation. “It is part of the fabric of a city and the facilitator of homes, jobs and economic growth,” he said. “In London, the mayor’s transport strategy is written alongside a spatial development strategy, the London Plan, and an economic development strategy. These strategies taken together ensure an integrated approach to the development of the city,” said Brown.

So, how important do the two transport leaders think that adding value to communities is when considering the smart city? “Smart Metro will enhance social value from the four aspects of improving safety, service, efficiency and benefit,” said Liu Chunjie. Internet of Things technology is also being used in Shanghai as passengers change from being seen as passive information receivers to active intelligent users. According to TfL’s Mike Brown. “Investment in walking, cycling and public transport infrastructure is vital to providing safer, easier, cleaner and more appealing communities for everyone to enjoy.

To support and help improve our communities we must design and manage our streets and rail systems so that more active travel becomes part of every journey now and into the future,” he said.

Londoners are seeing changes now from smart technology investment. “In London, we have a strong heritage of innovation and our contactless payment ticketing system, although only launched in 2012, now accounts for over half of all pay as you go journeys,” said Brown.

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“We have also embraced open data and have over 11,000 developers registered to use over 70 APIs. The annual value they bring to London has been estimated at £130m. In the future, we may see a growth in demand responsive transport and ride-sharing, principally through app-enabled services. I see these new services as complementing our existing public transport networks rather than replacing them,” Brown said.

There are clearly many opportunities for consultancy and engineering firms from the development of sustainable mega and smart cities. Liu Chunjie said that the construction of smart metro will provide work for firms in transitioning the system from a single transportation function to a comprehensive service urban metro network. Delivering datadriven facilities and intelligent service projects, such as smart voice ticketing and face recognition to enter stations, will provide passengers with customized travel planning and a new high-quality travel experience to passengers, he said.

Mike Brown said that TfL was keen to work together with consultancy and engineering firms more closely than ever before. “I’m looking for strong relationships and partnerships to help us build a better, more efficient and customer responsive transport network and make the case for steady and sustained investment in our city,” he said.

“Our new consultancy business is already partnering with a number of engineering and transport consultancies and we are always keen to explore new opportunities worldwide,” said Brown.

Smart technology on the Shanghai Metro.

September 2019 | Infrastructure Intelligence International 23

FIDIC regional groups

Reinvigorating the regions FIDIC’s regional groups around the world carry out important work representing member associations in Asia-Pacific, Africa, Pan-America and Europe, as this regional round-up illustrates.

This year’s FIDIC-GAMA annual conference in Kampala, Uganda.

F

IDIC member associations around the world are grouped by region. These groups comprise GAMA, for African members, ASPAC, representing FIDIC associations in the Asia-Pacific region, the European federation, EFCA and FEPAC, the Pan-American federation. The four regional groups hold regular events and conferences and FIDIC closely collaborates with all of them.

Unsurprisingly, the groups face some common challenges.

“The two biggest challenges faced by the European consulting industry are low fees and a shortage of staff,” said EFCA president Kevin Rudden. “The laws of economics dictate that when a sector experiences a severe shortage of labour, cost inflation is inevitable. However, we are seeing a huge shortage of available staff in Europe, a consequential increase in salaries but no corresponding increase in professional fees. It’s neither logical or sustainable,” Rudden lamented.

Interestingly, said Rudden, digital transformation, which may be the key to reducing both production cost and

24 Infrastructure Intelligence International | September 2019

Read more at fepac.org

compensating for staff shortages, has risen to third place in the items which concern the European engineering sector. “As a sector we have invested significantly in digital technologies which have reduced our costs and increased our output. However, we have used these hard-won gains to increase our competitiveness by lowering our fees, effectively handing the return on our investment back to our clients rather than re-investing in our companies and staff. This is another unique quirk of our industry,” he said.

ASPAC chair, Irawan Koesoemo, said that unlike EFCA, his group’s geographical area was too wide and large to have a common consulting engineering community. “In ASPAC region where a lot of governments rely on state-owned enterprises to help navigate their economic course, consulting engineering firms in the private sector often lack the capacity to weather the storms of reform and they are also hit hardest by the dual threats of a slowing economy and extended trade war,” said Koesoemo. “In comparison with the state-owned giants, many private consulting firms lack the resources to withstand a slowdown.” It’s a situation which needs addressing, he said.

James Mwangi, chair of GAMA, said that unfair competition from abroad was an issue for firms in his region. “We have fierce competition from foreign firms, unfair competition (some of it due to corruption), lender’s conditions that tend to favour foreign firms, delayed payments especially by government and

problems from unlicensed engineers arising from “In comparison with poor enforcement of the state-owned poor or absent legislation covering the engineering giants, many private profession,” he said. consulting firms Notwithstanding these challenges, the lack the resources regional groups have to withstand a had some success over the past year. Koesoemo slowdown. It’s a reported that, despite situation which needs economic difficulties in its region, ASPAC had addressing.” formed an active grouping of member associations Irawan Koesoemo, chair, ASPAC comprising more than half of its membership. “We have also been assisting the FIDIC secretariat with its new regional strategy and we now have a growing and organised young professionals’ forum,” he said. Mwangi said GAMA had unveiled a new strategic plan, improved the performance “This is a very of its GAMA secretariat and organised many FIDIC welcome strategy and training courses with it will bring better GAMA member. alignment between Rudden said that one of EFCA’s key successes FIDIC and the over the last 12 months regional groups who was the organisation’s ongoing lobbying efforts. can ride on the strong “We met, lobbied and brand of FIDIC.” organised debate with 51 individual officials James Mwangi, chair, GAMA of the EU Commission and its various agencies to positively influence legislation and policies to support the European engineering sector,” he explained. “We also participated in the development of the European industry’s policy statement on the use of cloud services, influenced the development of the international quality “We met, lobbied and standard governing organised debate with the organisation and digitisation of information 51 individual officials about buildings and civil of the EU Commission engineering works and also published our second and its various Future Trends Booklet agencies to positively on the possibilities and opportunities that influence legislation technology inevitability and policies to will create and the consequence of ignoring support the European it.” EFCA also increased its membership by 17% over engineering sector.” the year “an indication Kevin Rudden, president, EFCA that we are doing something right!” said

Irawan Koesoemo, chair, ASPAC.

Read more at fidic.org/ASPAC

James Mwangi, chair, GAMA.

Read more at fidic.org/GAMA

Kevin Rudden, president, EFCA.

Rudden.

A key task for FIDIC going forward is its new Regional Grouping Empowerment and Restructuring Strategy to be more effective in representing the industry through its regional groups. Rudden said that EFCA was fully behind the plans. “We fully support the development of a regional strategy for FIDIC. It is essential that an organisation which represents over 100 diverse countries consistently reviews how best to serve those members. Since 2010, FIDIC and EFCA have operated a co-operation agreement to coordinate the activities of both organisations to deliver the best possible level of service to our member associations and their members. This agreement was effectively a forerunner of the regional strategy and will inform the new strategy,” he said.

ASPAC chair, Koesoemo, said: “ASPAC region may have to slightly regroup to better reflect collaboration between countries and to be able to build capacity to advocate for the industry regionally.

In that way, we will support FIDIC’s policy of reflecting and respecting regional differences to support the industry regionally and globally in the most effective way.” Going forward, he said that ASPAC could provide valuable representation on FIDIC principles and services for member associations, undertake representations to organisations which operate exclusively in its region and develop an intra-regional commercial network for training and development to serve its members better.

GAMA chair James Mwangi also supported FIDIC’s plans for the regions.

“This is a very welcome strategy and it will bring better alignment between FIDIC and the regional groups who can ride on the strong brand of FIDIC. It will also encourage clearer relationships and engagement between regional groups for technology transfer, exchanging of experiences and the promotion of mutually beneficial partnership between firms across the regions,” Mwangi said.

So, positive feedback for FIDIC’s regional strategy and some encouraging signs for the future. All of the groups are sure to be involved in the evolving debate in Mexico around FIDIC’s strategy and will assist the organisation in the formulation and implementation of its policy.

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September 2019 | Infrastructure Intelligence International 25

Industry future

Launching FIDIC’s Future Leaders group

FIDIC’s newly renamed Future Leaders group promotes the next generation of engineering professionals who aspire to lead the industry.

Future Leaders chair, Cosmin Tobolcea, spoke about the group’s activities and its future plans, as Rob O’Connor reports.

Cosmin Tobolcea, chair of the FIDIC Future Leaders group.

A

spiring industry leaders from all around the world have a wealth of positive opportunities to develop their potential, with advice, mentoring and support from FIDIC’s newly established Future Leaders group.

Previously known as the Young Professionals steering group, the Future Leaders group will be launching at the FIDIC annual conference in Mexico City and members say that the new name reflects a much more aspirational approach for FIDIC’s bright and talented young professionals.

“The name change very much reflects what our members aspire to be – to be the future leaders of our industry,” said Cosmin Tobolcea, chair of FIDIC’s Future Leaders. “We are also rebranding ourselves, with a new website and we will be launching officially at the Young Professionals symposium at the FIDIC annual conference in Mexico. FIDIC CEO Nelson Ogunshakin will be present and I think it will be a very important moment for our transformation from Young Professionals to Future Leaders.

“When you are saying young professionals, you are only thinking young people. But a lot of young professionals have their own businesses, sometimes very big businesses. They are CEOs and leaders of their own companies and this is a platform for

them to develop and become future leaders of the industry,” said Tobolcea.

The fledging Future Leaders group has already been busy preparing the ground for the new set-up since last year’s FIDIC annual conference in Berlin. “We’ve had a lot of support from FIDIC, the board and all its committees and we work well together,” said Tobolcea. “We’ve been building and developing a range of networking opportunities, seminars, workshops and presentations around the world, both online and at regional conferences and events, including New Delhi.

“Now we’re looking forward to launching officially at the annual conference in Mexico. We’ll be presenting the first edition of our Future Leaders booklet, which brings together very exciting ideas and contributions from some of the most promising future leaders around the world,” he said.

Outlining the group’s future plans, Tobolcea said: “Networking is very import for us. It’s important to have platforms to connect future leaders to help nurture their development, to help companies collaborate, to work on great projects together and to become the big-hitters of our industry.”

Looking very firmly to the future, Tobolcea also encouraged any FIDIC member associations who don’t yet have a young professionals’ group to get in touch.

He said: “My message to member associations is to contact us and we will help them with everything they need to organise their group. We totally support anyone wanting to join us and we will help with all the communication and support a member association could need.”

Graduates from the 2018 FIDIC Young Professionals Management Training Programme with their certificates.

26 Infrastructure Intelligence International | September 2019

Procurement and technology

Innovation risk and reward What role can procurement play in driving innovation in the global infrastructure sector and what are the risks to consider? Maria Eugenia Roca from the Inter-American Development Bank offers her thoughts.

What are the potential benefits of digitalisation?

Better provision of services to citizens. There is a great potential in Latin America and the Caribbean to improve infrastructure services though innovation. This is a critical moment because technologies have evolved, becoming very competitive and creating opportunities to deliver sustainable infrastructure assets

What are the new risks that digital infrastructures, business and distribution models and customer solutions pose?

Given limited fiscal spaces for public investment, the difference in information between government and private sector, as well as the rapid obsolesce of technologies, are new risks. Digitalisation is both a difficulty and a helpful tool for governments. As governments embrace digital technologies, innovative solutions and become more interconnected with partner organisations and smart devices, this can be exploited by cyber attackers. Better data sharing provides a sophisticated means of combating threats, but citizens are becoming increasingly concerned about the way their data is being used.

Is cyber security and fraud an increasing risk as a result of more digitalization?

Access to the internet and broadband services increase productivity, national income, and employment.

Access to information catalyses growth.

But these opportunities come with risk. When digital technologies are not mature, they can be easily exploited by criminals and other antagonists.

The question for public policy is how countries can manage risk without sacrificing opportunity.

Y

ou’re speaking at the FIDIC conference session on “Innovation and the role of procurement in new technologies”. What are some of the key points you will make?

That public procurement represents a significant part of national economies, around 20-30% of GDP, and modern public procurement is a key field to use new technologies in order to improve the provision of services to citizens, increase transparency and introduce greater efficiency and economy.

and provide better services. Digitalisation can also help to improve urban planning by optimising routes for transport operators, reduce commuters’ journey times and provide educational support to students based on their individual learning needs. More transparency and more access to information to civil society reduces the risk of corruption, creating new solutions to transform the way governments usually operate, reducing bureaucracy. Innovation can be used in all stages of the project cycle.

María Eugenia Roca, procurement advisor, vice presidency for Latin American and Caribbean countries, at the Inter-American Development Bank.

How is your organisation preparing for the digital future in the way that it works with partners?

The IDB has worked for the past few years, to support LAC countries on project pilots, knowledge development and research and capacity building and training. In infrastructure, for example, Bolivia created Infradinamica, a project that combines ‘BIM drones’ and crowdsourcing to monitor construction online. Another example is the use of big data in Metro de Quito, Ecuador, and AI to improve urban logistics. I will talk about more of this work at the conference in Mexico City.

September 2019 | Infrastructure Intelligence International 27

FIDIC contracts

Creating a global language for successful projects It’s been a busy year for FIDIC contracts, with new documents launched, links with partners strengthened and some exciting developments on the horizon over the coming months.

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IDIC’s contracts are an important area of the organisation’s activities and one of its most visible. With FIDIC standard forms used on many major global infrastructure projects, they are clearly held in high regard by clients, consultants, contractors and the international funding sector. The past year has seen some notable highlights, as FIDIC contracts committee chair Zoltán Záhonyi explained.

“The launch of the Emerald Book in May this year, our new underground works contract developed with the International Tunnelling Association, was a key highlight as was the longawaited FIDIC Golden Principles, said Záhonyi. I was also very pleased to see new agreements with several multilateral development banks to continue using the FIDIC conditions of contract. The strengthening of the FIDIC contracts committee with three new members has also been an important development.”

FIDIC’s signing of agreements with a number of leading financial institutions is significant says Záhonyi. “Signing up for the new editions is a result of these organisations’ positive experience of using FIDIC contracts,” he said. “These worldwide recognised forms of standardised construction contracts represent a kind of global language which FIDIC aims to be best practice in our industry. This is strong feedback from the market for FIDIC contracts to be used on successful projects.”

Aisha Nadar, the FIDIC board member responsible for contracts, agrees. “These funders are expanding their project delivery options for their borrowers by continuing to use FIDIC contracts. They provide clear risk allocation, are tried and tested over 60 years, provide the foundation for effective project management and answer the market’s needs by growing and expanding with market developments,” said Nadar.

Liu Luobing, vice chief engineer at Chinese engineering consultancy SICC and a FIDIC board member, highlighted the potential for FIDIC contracts in the burgeoning market in China. “With much more open policies from China government and the significant Belt & Road Initiative, there is great potential for FIDIC contracts in China and on its overseas projects,” he

28 Infrastructure Intelligence International | September 2019

Zoltán Záhonyi, contracts committee chair, FIDIC.

FIDIC board member Aisha Nadar.

said. “This is why FIDIC initiated its Certified Consulting Engineers (FCCE) pilot programme in China, in cooperation with the Chinese association CNAEC, which has to date trained around 1,600 professionals, with 979 certified, in FIDIC methods and guidelines,” said Liu. The launch of the FIDIC Emerald Book during the past year showed the organisation’s commitment to collaboration on contract development.

“It’s an example of partnering with industry and our continued commitment to collaboration with our international partners,” said Aisha Nadar. “We are taking a collaborative approach with our partners and investigating collaboration in collaborative contracting. The new venture with the Emerald Book is a joint production and I think there is space to grow that collaboration approach,” she said.

Building on the collaboration theme, Liu Luobing was keen to highlight the recently signed MoU with the

The newly-launched FIDIC Golden Principles guide.

China International Contractors Association which will “improve collaboration between international and Chinese businesses and increase the understanding and use of FIDIC contracts”.

Increasing that understanding and use is not without its pitfalls and that is why, in June this year, FIDIC launched its Golden Principles, which set out the essential characteristics of its general conditions of contract that should not be amended if the contract is to be regarded as a genuine FIDIC contract. “This was

FIDIC board member Liu Luobing.

The past year has also seen the launch of a new FIDIC Contract Users’ newsletter to engage better and improve dialogue with users and stakeholders and the first agreement signed with a European university, Kings College London, to teach FIDIC contracts. FIDIC is also re-engineering the credentialing programme for its training programme to make sure that it remains up to date and continues to build confidence in its contract training. Later this year will see the launch of the new FIDIC Contract Awards to recognise and showcase the important FIDIC global contracts community. “These will be formally launched at the FIDIC International Contract Users Conference in London and we see them as an important promotional activity for FIDIC’s global contracts community,” said Liu Luobing.

So, what else is on the contracts committee’s agenda for the coming year? Quite a bit, according to its chair Zoltán Záhonyi.

“The publication process never stops and we have quite a number

The new FIDIC Contract Users’ newsletter.

the product of a long period of work and was necessary to protect and preserve the best practices on FIDIC contracts,” said Záhonyi. “I have seen several occasions where it is claimed that a FIDIC contract is being used, but there have been many deviations from the original FIDIC form and as a result issues have arisen.

This situation is harmful for FIDIC’s reputation, so we had to take action to avoid this. The Golden Principles protect the integrity and values included in our forms of contract and warn users that if you go beyond these principles then you are courting big problems,” Záhonyi explained.

Read more online at www.infrastructureintelligence.com

FIDIC’s Conditions of Contract for Underground Works, the Emerald Book.

Aisha Nadar and Zoltán Záhonyi (centre and right) launching the FIDIC Emerald Book.

of documents about to be finished and published,” he said. “These include a new sub-contract form, finalising the operate-designbuild and operate Bronze Book for brownfield use, updating the Green Book short form of contract and a number of contract guides for the 2017 updates and the tunnelling contract. We are always looking at new and emerging areas for FIDIC contracts so there is a lot of work going forward,” said Záhonyi.

Looking ahead, Aisha Nadar said it was important to look beyond contracts and see the bigger picture of a changing industry. “We are continually focusing on the market and new project delivery systems and approaches that are emerging. FIDIC needs to be on top of those market developments. We do this by enhancing communications with our various FIDIC committees and the contracts users’ conferences and that’s why we have board liaisons on the committees. Cross collaboration between the various disciplines is crucial,” she said.

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Integrity management

Combatting the challenge of corruption

Technology is emerging as a key ally of transparency and a critical tool against corruption. Jorge Díaz Padilla, chair of FIDIC’s integrity management committee, highlights some of FIDIC’s work in this area.

T

he lack of integrity in infrastructure projects continues to be one of the major obstacles in the delivery of projects that meet quality, time, budget and sustainability objectives.

According to a 20-year database published by Transparency International, corruption is increasing and its impact on the infrastructure world is enormous.

Integrity practice used by the industry is haphazard and, in many cases, doesn’t follow best practice tools and recommendations. Several companies are “doing their best” to define and implement anti-corruption policies, but many lack consistency in their day-to-day business transactions and fail Jorge Díaz Padilla to obtain systematic feedback which may improve the process. is chair of the Companies (the supply side of corruption) and also owners (the integrity management demand side) and other stakeholders need to be involved in committee at FIDIC. combating this ailment.

Since its foundation in 1913, one of FIDIC’s basic governing principles has been a policy of zero tolerance on corruption.

During the last 15 years FIDIC has developed specific tools designed to prevent corrupt behaviour and to encourage integrity.

FIMS®, the FIDIC Integrity Management System, was designed to identify and manage risk factors and therefore combat corruption, minimising such risks within a firm’s operations while committing to fair play and integrity in business activities. FIMS Part I (2011) “Owners and lenders identify the policies and principles that should are key to achieving be adopted by all firms, regardless of their size, location, capacity, or the conditions in which they the widespread do business. FIMS Part II (2015) provides a practical use of integrity roadmap to allow a firm to design and operate a FIMS. management systems At FIDIC 2019 in Mexico City, FIMS Part by requiring their III (2019) will be launched. This will show how consulting engineering companies with usage in consulting a functioning FIMS can move towards the and construction adoption and eventual certification of an integrity management system incorporating an contracts.” anti-bribery framework under the ISO 37001 international management standard.

Jorge Díaz Padilla, chair of the integrity Owners and lenders are key to achieving the management committee at FIDIC

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widespread use of integrity management systems by requiring their usage in consulting and construction contracts.

This is a major pending task for stakeholders and ongoing discussions with the Inter-American Development Bank and the World Bank have been focused in this direction.

Emerging technologies in the infrastructure sector may also become effective in advancing the next generation of tools for integrity management. Two examples of these technologies are open data and blockchains. Open data could foster more clear integrity processes and support transparent delivery and assessment of infrastructure projects. It is an important tool in detecting acts of corruption because increasing the amount, sources, and quality of available data facilitates the measurement of corruption and its associated harms by providing a clear foundation from which analyses can be conducted.

According to the World Economic Forum, blockchains also have the potential to be powerful tools for tracking transactions, reducing corruption, increasing trust and empowering users by enabling the decentralised, secure storage and transfer of information. With unlimited transparency, organisations can identify opportunities, improve decision-making and track and trace the outcome decisions.

So, we can see how technology is emerging as a key ally of transparency and a critical tool against corruption.

FIDIC 2020 conference

A global gathering for FIDIC in Geneva The world’s premier global gathering for engineers moves to Europe next year, with Geneva the destination for the 2020 FIDIC International Infrastructure Conference.

S

wiss FIDIC member association Union Suisse des Sociétés d’Ingénieurs Conseils (USIC) is the proud host for next year’s FIDIC International Infrastructure Conference from 13-15 September 2020 in Geneva. The main conference theme of “Infrastructure governance and leadership” will give delegates the opportunity to discuss how major construction projects are run and led and also consider how best to engage with politicians to get the best results for society.

Mario Marti, director of USIC, can’t wait to welcome the FIDIC family to Switzerland. “The Swiss association is a founding member of FIDIC, which has its registered offices in Geneva, so we are very proud to host the FIDIC 2020 conference in Geneva,” said Marti. “As a truly international metropole, Geneva is the ideal host city for the FIDIC secretariat and also for the annual conference – as we like to say: ‘FIDIC is finally coming home!’”

USIC has around 1,000 member firms employing roughly 15,000 employees.

The association covers around 50% of the turnover of the engineering sector in Switzerland and represents members to government agencies, national business organisations and through Bauenschwiez, the umbrella organisation for the construction industry.

Marti is pleased with the main conference theme. “We believe that the FIDIC board has chosen a strong

Mario Marti, director, USIC.

Read more about USIC at www.usic.ch

theme. Governance and leadership are very close to our political commitment and, in fact, perfectly reflect the Swiss approach to infrastructure policy,” he said. “Switzerland has a coherent and sustainable business model for its main infrastructures, namely national roads and railway, and the financing and decision procedures for both are an excellent example of good governance and can only be possible under good leadership,” said Marti.

The USIC director hopes that hosting the FIDIC conference will provide a boost for the consulting engineering sector in Switzerland. “Swiss engineering expertise is world class and can bring great value to many countries and organisations, so we hope that the FIDIC conference can promote international projects to Swiss firms. We also believe the conference will have a positive marketing impact and help to further raise the profile of our profession,” Marti said.

So, what should FIDIC delegates and visitors expect when they visit Geneva for the conference in 2020? “A 360-degree experience,” said Marti. “Geneva is a very international city hosting many international governmental and non-governmental organisations and so our international guests will feel comfortable and well-received in Geneva - no worries whatsoever!

“Geneva is also a very beautiful city, located at the Lake of Geneva and close to the Swiss and French Alps. Visitors can enjoy a boat trip on or a dip in the lake, visit lovely vineyards, do exclusive shopping or go for a hike in the mountains. Geneva and its lake are must-sees and if there is time, delegates should visit other locations like Berne, Luzern and Zurich, or journey further afield to the mountains of Zermatt, Gstaad and Jungfrauregion,” Marti said.

So, it looks like all roads lead to Geneva next year!

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