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FIDIC CONFERENCE 2005, BEIJING
Workshop 13
Design & Build - Role of Consulting Engineers
in the Tender Process
Tse Yau Shing
Infrastructure Project Delivery
Traditional
Design - Bid - Build
Growing Trend
Design & Build
Buildings, transportation, utilities (water,
wastewater, solid waste, power)
Sep 2005
Why the Trend ?
Clients wanting to transfer risks
Government departments downsizing /
eliminating in-house engineering capability
Perceived shorter implementation period
Contractors having more control in project
implementation
Sep 2005
Some Different Forms of D&B
EPC (Engineer, Procure, Construct)
DBO (includes operations)
DBOO / BOO (own & operate)
BOT (operate then transfer)
BOOT (own, operate then transfer)
etc
Sep 2005
Possible Roles of Consulting Engineers
For Owners (Purchasers)
Initial planning, project definition
Concept design
D&B tender document preparation
D&B tender evaluation
Proof checking / design verification
Sep 2005
Possible Roles of Consulting Engineers
Also design verification roles for :
BOO developer (who appoints D&B
contractor)
Financier to BOO developer
Sep 2005
Possible Roles of Consulting Engineers
Also design verification roles for :
BOO developer (who appoints D&B
contractor)
Financier to BOO developer
Sep 2005
Possible Roles of Consulting Engineers
For Contractors
Tender design
Detailed design
Construction management
Commissioning
Sep 2005
Issues during Tender Stage
Contractors expecting CEs performing tender
design at no (or very low) fee
Short available time to produce tender design
Tender design based on insufficient information
Pressure to take design risks
Contractors expecting CEs to ‘guarantee’
tender design / quantities
Sep 2005
Contractual Issues
Back to back contract arrangement
Fit for purpose
Liquidated damages – schedule
Liquidated damages – performance
CEs’ professional indemnity insurance
Sep 2005
Good Practices
Must be paid for tender services
Obtain commitment for appointment and fee
level for a successful bid
Consider ‘success fee’ / gain share
Sep 2005
Good Practices
Clearly state limitations (sufficiency of data,
time, design accuracy)
Define tender design scope / responsibility
Define exclusions (guarantees, fit for purpose)
Involve contractor in design / decision process
Document instructions / joint decisions
Sep 2005
Makes Sense to Contractor
Commitment from and motivation of both
parties to win
CE takes ownership of tender design
A true D&B team
Minimise disputes
CE remains in business for the next
successful job
Sep 2005
FIDIC Reference Material
FIDIC Scoping definition ??
FIDIC D&B guide ??
International form for DBO contracts (Draft)
Sep 2005