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1、,Quality Outcomes The FIDIC Perspective Presented at BIMILACI 2005 Washington, DC April 7, 2005 Gregs G. Thomopulos, P.E., FACEC,The Issue,General observation that the quality of the constructed project has been deteriorating. This observation is confirmed by the Banks Project Managers, Executing Ag

2、encies and International Consultants. It is also perceived that good International Consultants are losing interest in Bank-funded projects. The current trend in diminished Quality Outcome of the constructed project needs to be reversed.,What are the causes of deterioration in Quality?,A major cause

3、is the diminished quality of design. Lower quality design results in lower quality construction and increased variation orders, resulting in increased cost of the project. Other factors contribute as well, including: Corruption; Incompetent Contractors; Poor Project Management; Lack of Resources to

4、Manage Contractors.,Background,For several decades, FIDIC, the Banks and the consulting industry achieved good Quality Outcomes by focusing on the life-cycle cost of the constructed projects. This alignment was achieved through the use of quality procurement procedures. More recently, the focus on c

5、ost has shifted from the projects life-cycle cost to the cost of design. The focus on the cost of design has resulted in lesser quality design.,“It is unwise to pay too much, but its worse to pay too little. When you pay too little, you sometimes lose everything because the thing you bought was inca

6、pable of doing the thing you bought it to do.,“The common law of business balance prohibits paying a little and getting a lot it cant be done.”,“It is unwise to pay too much, but its worse to pay too little. When you pay too little, you sometimes lose everything because the thing you bought was inca

7、pable of doing the thing you bought it to do.,John Ruskin (1819-1900) British Poet, Scientist and Philosopher,“Price has no meaning except in terms of the quality of the product.”,Dr. W. Edwards Deming (1900-1993),What is a Quality Outcome?,A Quality Outcome is a completed project that: Successfully

8、 achieves the Owners vision for the project; Incorporates the long-term developmental needs of the local populace and the global environment; Accomplishes the above at the lowest possible life-cycle cost. A Quality Outcome is significantly more likely when a project is executed using Quality-Based P

9、rinciples.,The FIDIC Strategy,“During all phases of the project life-cycle, the overriding concern should be the quality of the services provided.”,Quality-Based Principles,Informed Purchaser; Quality-Based Selection of Consultants; Employer/Consultant and Monitoring of Outcomes.,Informed Purchaser,

10、An Informed Purchaser is an Owner who either has the in-house technical expertise or engages outside experts necessary to: clearly convey project vision; evaluateand selectconsultants; understand the risks and procedures inherent in project execution; and follow through with proper O Sustainability;

11、 and Monitoring of Outcomes.,Procurement of Engineering Services,The procurement of engineering services is one of the most important aspects of, and has the greatest impact on, ensuring quality in the constructed project. The Clients challenge is to get a good “return on investment” in design servi

12、ces.,Quality-Based Selection of Consulting Engineers,Quality Outcome is significantly more obtainable when QBS is employed. This is true for all projects. The QBS/QCBS decision is not a matter of which procurement process leads to greater quality; it is a matter of to what degree quality matters. To

13、 achieve a Quality Outcome, Life-Cycle Cost must be considered; QBS results in lower Life-Cycle Costs.,The procurement of consulting engineer services has the greatest impact on the Life-Cycle Cost of the project, yet is the least costly component. The Owners challenge is to get a good “return on in

14、vestment” in design services.,Quality-Based Selection of Consulting Engineers,The QBS process also provides a greater opportunity to successfully realize the project vision through: Innovation. The negotiation phase provides the Owner with the opportunity to consider alternative approaches, which ca

15、n improve the project and save costs. Greater public safety and welfare. The more qualified the consultant, the greater the assurance that the project will promote and protect the public health, safety and welfare.,Quality-Based Selection of Consulting Engineers,Quality-Based Selection of Consulting

16、 Engineers,The QBS process generally includes the selection of the best qualified firm by objective criteria and then negotiates scope of work and price. Refer to FIDIC Guidelines for the Selection of Consultants. The best qualified firm is selected; A scope of services fully understood by both part

17、ies is negotiated; A fair and reasonable fee is negotiated; Failing agreement, negotiations are terminated and an invitation offered to the next-ranked firm to negotiate.,Result of Good Quality Outcome,QBS produces quality designs. Quality designs produce quality projects. Quality projects have fewe

18、r variation orders during construction. Fewer variation orders result in lower construction costs. Quality designs and lower construction costs result in lower life-cycle costs. QBS is in the Owners best interest.,Result of Poor Quality Outcome,High maintenance costs. Projects fail, e.g., road pavem

19、ents collapse. Cost and time overruns. Disputations and litigation. Contractors default and do not complete projects.,“ selection of an Architect or Engineer solely on price-competition basis provides the potential for reductions in quality due to initial underestimation of the costs and resources r

20、equired to adequately perform the work.” U.S. House of Representative Subcommittee Report on Structural Failures,CONTRACTS(Employer/Consultant and Employer/Contractor),Fair to both parties. Transparent and plain language. Harmonized (standard forms). Risks and responsibilities clearly identified. Me

21、ticulous in identifying scope/extent.,Business Integrity Management,Corruption undermines the achievement of a Quality Outcome, and the practice of business integrity is crucial to fighting corruption. FIDIC recommends that consulting engineers adopt the FIDIC Business Integrity Management System (B

22、IMS), and that Owners have regard to this policy during selection.,Business Integrity Management,BIMS is a practical internal tool designed to prevent corrupt behaviour and encourage integrity by focusing on: A clear commitment by leadership demonstrated, among other ways, through adoption and requi

23、red adherence to a BIMS. Involvement of staff. A planned process approach that anticipates potential opportunities for corruption, incorporates preventative measures, and requires documentation of the administrative management of each activity.,Capacity Building,Improves the Quality Outcome of the c

24、onstructed project. Fee competition is detrimental to Capacity Building. As a result of fee competition, local firms are not adequately compensated. Banks may want to examine the need for “set-asides” of projects for local consultants. The procurement for such “set-asides” should be based on quality

25、 principles.,Sustainability,Sustainability integrates the environmental, economic, and social dimensions of development, and is therefore fundamental to a Quality Outcome. The FIDIC Project Sustainability Management (PSM) process provides a framework for the Owner and Engineer to balance project vis

26、ion against cost and available alternatives, and select appropriate project goals and indicators for sustainable development. The indicators are linked back to higher level goals such as global warming, biodiversity, access to fresh water, and materials and energy use.,Quality-Based Project Manageme

27、nt,FIDIC recommends that consulting engineers adopt a Quality Management System, and that Owners have regard to this policy during selection. A Quality Management System is a formalized project management structure that incorporates: Customer-focused leadership and organization; Employee involvement

28、; A process and factual approach to decision making; Continuous improvement; and Mutually beneficial supplier (sub consultant) relationships.,Quality-Based Construction,Quality principles extend to the tendering and construction phase. Means to incorporate quality principles include: Prequalification of contractors; Quality-based construction management procedures; and Documentation of contractor performance.,Monitoring of Outcomes,A

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