International Federation of Consulting Engineers

International Federation of Consulting Engineers

Richard KellSenior Consultant AM FTSE BE(Hons) Hon FIEAust CPEng

Management of Environmental and Social Impact Under FIDIC Contracts

FIDIC MDB Harmonised Construction Contract Conference

Management Plans under FIDIC Contracts

Quality Assurance System : S/Clause 4.9;•Environmental Management Plan : S/Clause 4.18;•Progress records : S/Clause 4.21 (part of QAS);•Health and Safety Plan: Clause 6;•Social and Gender Awareness Plan : Clause 6.•HIV-AIDS Prevention Plan : S/Clause 6.7;•Works Programme : S/Clause 8.3.


Management Plans under FIDIC Contracts II

• Management Plans (MPs): advantages for all Parties;• FIDIC GCs have general references: Specific provisions are

needed in Contract Specification or Particular Conditions for Management Plans;

• Contractor has contractual obligations to produce MPs ;• Set time limits for MPs and penalties for non-compliance;• Payment for Management Plans: recommended as “paid

items” in the BoQ, with a lump sum for provision and progress payments for implementation.


Quality Assurance System (QAS)

Sub Clause 4.9“ The contractor shall institute a quality assurance system to demonstrate compliance with the requirements of the Contract. The system shall be in accordance with the details stated in the Contract. The Engineer shall be entitled to audit any aspect of the system.”


QAS S/Clause 4.9 : 3 Points


Environmental Protection

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


Contractor’s EMP – Content

• Compliance with Environmental Study and Legislation;• Should Cover all aspects including

• Safety of people and property;• Storage of materials, dealing with spillage ;• Contamination – avoidance and removal if it does occur;• Waste disposal and cleaning site and camp on completion;• Dust and noise; working hours;• Water, erosion, sedimentation;• Protection of trees, vegetation;• Monitoring and complaints procedures.• EMP – 1% to 3% of contract.


Proactive Environmental Management: Areas of Influence by FIDIC

• Possible amendments to the FIDIC standard contracts which • Impose conditions that support sustainable practices on

contractors• Apply sustainability weightings in the tender assessment

process• Sustainable design criteria


FIDIC Contract – Suggested Revisions

Consider revisions to the FIDIC contract to:•Develop and specify sustainable procurement procedures, for example:

• Incorporate renewable energy;• Require a minimum percentage of sustainable and recycled building

materials• Specify the product efficiency and longevity (i.e. options for reuse,

repair, upgrade or modification, to increase product life)•Introduce procurement processes and procedures which are accredited with international standards for managing sustainable development (e.g. BS 8903, or FIDIC Guide)


Impose Conditions that Support Sustainable Practices on Contractors

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


Apply Sustainability Weightings in the Tender Process

• Invite Bidders to offer innovative sustainable practices;• Include points in the non-price evaluation for environmental

and sustainability factors offered/benefits by Bidders• No penalization for the possible increase in price for

sustainability measures• Life-cycle thinking• Consider long-term impacts of the project to get the best

environmentally sustainable outcome


Environmentally Sustainable Design Criteria

• Define the sustainable initiatives and designs required. For example:• 30% recycled material to be used• reducing greenhouse gas emissions;• Make use of local materials to minimise cartage;• Provide for features to reduce potable water use and recycling water

where appropriate• Provide thermal mass to store heat and radiate heat at night in

contracts for buildings.

• Define relevant sustainability targets or performance standards, eg., BS8903., FIDIC Guide


Social and Gender Awareness Plan

• Clause 6 : New sub clauses in MDB Version, 6.12 to 6.24:• Foreign workers treated fairly, workers’ rights recognised;• Alcohol and drugs banned;• Festivals and religious customs respected;• Forced Labour banned;• Child Labour banned.

• Food and water provided.• Very important additions. MDB Strongly supported.

• Stakeholder Committee, resolution of disputes with communities, landholders;

• Preference for local employment – women and youths.


Health and Safety Plan

• Provisions of Section 6.• 6.4 Labour Laws• 6.6 Facilities• 6.7 Health and Safety• 6.13Foodstuffs• 6.14 Water• Etc

• OH&S Plan for Construction Sites. FIDIC could issue a Guide.• Traffic Safety Management Plan;


HIV - AIDS Preventative Measures Plan

• Construction industry is No 3 propagator of HIV-AIDS in developing countries

• Delivery is to directed by an Approved Provider engaged by the Contractor;

• Continuous Awareness Campaign;• Local communities as well as workers;• Provision of free condoms, literature, counselling;• Certification by Approved Provider as condition of payment;• 1 to 3 % of cost;• Specific “pay item” in BOQ.


CONCLUSIONS I• Management Plans produced and implemented by the Contractor are an

integral part of the FIDIC Contracts, and are called for in the Contract provisions;

• Need to be addressed in the Special Conditions and the Contract Specification;• There is need for more guidance for Users;• Particularly relevant in QA contracts;• Valuable tools in the management and supervision of contracts, that is for

Users of FIDIC Contracts.• “FIDIC is a very good project management tool” : Ronnie Thompson, URS,

Singapore 2012.


CONCLUSIONS II

• Management Plans as “paid items” within the Contract (BoQ) with penalties for non-compliance;

• Environmental Protection (S/Clause 4,18) to be expanded and made more robust;

• Sustainability principles and objectives to be introduced, in line with FIDIC Focus Area, to create a pro-active approach to Environmental Protection


Maharoa Bridge, 75 m Tied Arch