Move to standardise construction industry

THE practical use of the 1999 Federation of International Consulting Engineers (FIDIC) conditions of contract, which is now being utilised to govern the principles and practices relating to the relationship between the client, contractor and consultant in the construction industry, will be the main topic of a two-day workshop hosted by the Joint Consultative Council (JCC) at the TTMA Building in Barataria. The workshop, which began yesterday and ends today, is the first of a series being organised by the JCC to help members of the construction industry to better understand the new FIDIC conditions of contract, which is set to replace the older model used up to 1999.

At the workshop, issues relating to the contractor’s and consultant’s responsibilities with respect to time management and timely completion of contracts were discussed. Another workshop, focusing on dispute resolution under the new FIDIC form of contract, takes place in November. JCC President Winston Riley said the new policy will encourage greater management discipline at the level of consultants, clients and contractors. He noted that the training workshop would assist key players in the construction industry to better understand the policies set out in the new FIDIC, especially with the current boom in the industry.  However, even with buoyancy, with billion dollar highway transportation programmes, housing projects and massive projects being undertaken across the country, Works and Infrastructure Minister Franklin Khan believes that “all is not rosy with the planning and implementation of public sector programmes and projects that will ultimately consume billions of dollars of taxpayers money.”

Khan pointed out that the legal and contractual frameworks are common grounds for the initiation and actuation of activity within the construction industry. He noted that all stakeholders who are subjected to the law of contract, are supposed to produce the best results. Questioning the accuracy of the FIDIC conditions of contract, Khan explained that while the procedure may have been proven to be the best theoretical construction that can be used, he pointed out that when it came to the real world, he was “yet to be convinced that this system of contract governance does not put an inordinate burden on the client.” He noted that his assertion was based on his experience with the National Highways Programme, where engineers and contractors were “able to thumb their noses at a client who appeared powerless to defend itself.”

He said that the ministry needed to be reassured through the outcome of the workshops that there is balance in the contractual relationship between client, contractor and engineer/architect. Touching on the importance of standardisation, Khan said the success of the manufacturing and services industries are based on the standardisation routine. Developments in project management depended on the standardisation of best practice procedures, and a method of measurement. Practices for highway construction work also needed to be standardised. Khan stated that the need to standardise the form of contracts was in keeping with Government’s plan to set up a new procurement regime for all ministries and State-owned agencies, with the aim of bringing the country’s procurement procedures in line with best practices, saying that the use of approved standard forms of contract is a priority.