Transcript Document

Quality Based Selection
The Best Practice for Selecting
Professional Consultants
[DATE]
The Challenge of Delivering Projects
TIMELY
DELIVERY
BUDGET
MANAGEMENT
SOCIETAL
NEEDS
QUALITY &
INNOVATION
The magic triangle
How do we achieve greatest value?
 Long-term savings through reduced life-cycle costs?
 Timely delivery?
 Quality and sustainability?
 Innovation and added value?
 Improved economic, social and environmental quality of life?
 Taxpayer confidence?
How Does QBS Work?
 The QBS model identifies the consulting team that best
addresses client objectives and delivers the greatest value;
 Professionals compete based on qualifications and
understanding of the client’s needs;
 QBS provides the opportunity for client and consulting team
to discuss and confirm client objectives through interviews;
 Consulting team has the opportunity to discuss innovation
and the unique approach it would take to create a design that
best addresses the client’s objectives.
How Does QBS Work?
 Client ranks the competing teams: the highest ranked
team is one that the client believes can design a project that
will best address their objectives;
 A detailed scope of services is then established in
consultation with preferred team, including deliverables,
that will produce the best results in achieving the client’s
objectives;
 Client and consulting team negotiate a fee and a realistic
project schedule that will enable the consulting team to
deliver the desired scope and quality of services.
How Does QBS Work?
 Competitive: If negotiations with highest-ranked team
cannot be completed successfully, client abandons
negotiations with that team and opens negotiations with team
ranked second;
 Client will not renew negotiations with highest ranked team.
What’s Wrong With the Lowest Price?
 Rewards firms for using fewer resources on behalf of the
client (e.g. less experienced and less senior staff);
 Disadvantages firms with greater appreciation of the
client’s needs;
 Disadvantages firms that accurately anticipate
complications or that propose innovation;
 Increase cost to client (more staff time and resources).
Best Practice is Good Policy
 Competitive and transparent process focusing on merit,
quality and long-term value;
 Long-term savings realized over decades;
 Encourages in-house expertise to represent the client’s
and taxpayer’s interests;
 Permits innovation and sustainable infrastructure;
 Allows for creative risk management.
What’s in it for the Client?
 Right team for right job
 More realistic schedules and budgets
 Fewer change orders and disputes
 Better business relationship between
client/consultants/contractors/external agencies
 Better service, better quality & better value for taxpayers
Who uses this approach?
 Legislated by the US federal government and 44
state governments
 Municipalities across the US and Canada,
including the City of Calgary and the City of London
 The Government of Quebec has mandated its
ministries and agencies to use QBS for architectural
and engineering services
It Works: APWA Study (2009)
 Georgia Institute of Technology and University of Colorado
reviewed more than 200 projects across US;
 93% of clients expressed high or very high satisfaction with
consultants selected using QBS;
 QBS reduced construction cost growth by 70 %;
 QBS reduced construction schedule growth by 20%;
 QBS provided better ability to address societal issues or
stakeholder concerns;
 All U.S. Federally funded projects must use QBS.
Selecting a Professional Consultant
 An InfraGuide “Best Practice” (June
2006)
 Developed by the public sector –
for the public sector
 Supported by extensive interviews
and research
 “The recommended consultant
selection process is a competitive
qualifications-based process”
About InfraGuide
 National Guide to Sustainable Municipal Infrastructure:
 Federation of Canadian Municipalities
 National Research Council
 Infrastructure Canada
 Canadian Public Works Association
 Recognized national network of experts in public and
municipal infrastructure
 Publisher of over 50 “Best Practice” documents supporting
sustainable infrastructure decisions