ICEG: Unlike making trouble in construction, getting out of it requires professionalism

Ukraine has finally welcomed the FIDIC PROCUREMENT PROCEDURES GUIDE in Ukrainian language. The publication was initiated by the Interstate Consultants Engineers Guild (ICEG). The initiators state that applying the Guide in Ukraine will help mitigate corruption risks, improve the construction quality, and ensure funds saving through cost engineering during implementation of investment projects.

The edition was presented on April 19 in the Ukraine Crisis Media Center during a round table “International practice on the consulting services in construction market in Ukraine,” which was attended by representatives of leading national and foreign engineering companies, international financial institutions, international and national projects, and FIDIC accredited trainers.

International experts believe that a weak link in implementing investment projects on the Ukrainian territory is absence of an extensive network if consulting organizations able to resolve difficult issues professionally at various stages of project implementation.

To confirm such conclusion, the round table participants spoke about a low level of using IFIs’ credit resources when fulfilling infrastructure projects in this country. As an example, they cited results of analyzing 26 investment projects totaling to USD 2.5 billion and EUR 5.0 billion, which have been fulfilled in Ukraine together with IFIs. By June 30, 2018, the credit funds disbursement level has accounted for: approximately 48% for projects of the European Bank for Reconstruction and Development (EBRD), 27% – International Bank for Reconstruction and Development (IBRD), and 16% – European Investment Bank (EIB), while scheduled deadlines of project completion are not met.

As experts say, such challenges should be even more actively faced by an organized professional community that continuously performs functions of the most dynamic branch of public administration in countries with developed market economies. Ukraine is also seeing some shifts in this field. In particular, initiating amendments to the legislation and developing a methodical basis to create civilized conditions for the engineering services market functioning in Ukraine can be considered an achievement of professional non-governmental organizations.

Engineering in construction is a commercial business, and the service qualification level depends directly on the remuneration level. At the same time, inflexible procurement system that we currently have in this country makes the prospective contractors resort to dumping, mostly at the cost of quality. Experts emphasize that this situation must be rectified. In their opinion, it makes sense for Ukraine to introduce the global best practice of works and services procurement in construction.

That is why ICEG initiated and published the Ukrainian translation of FIDIC Procurement Procedures Guide – a practical guidance for employers, consulting engineers, contractors, financiers, and lawyers to be used in investment projects fulfillment. The book contains globally recognized comprehensive and progressive techniques which will promote holding transparent tender procedures and concluding quality contracts.

The Guide embraces procurement of engineering and construction works for projects of any scale and complexity. It includes recommendations for fundamental concepts and philosophy of procurement, and also defines the role of planning needed for sustainability and successful implementation of a project. The edition also contains detailed instructions for each stage of the tender procedure for all types of projects and provides general guidelines to select a relevant FIDIC standard form of contract.

“Publication of the FIDIC Procurement Procedures Guide in Ukrainian is a landmark event in a row of our Guild’s consecutive actions. In the near future, we are also going to publish a translation of the FIDIC Contracts Guide. Earlier, three methodical guides on engineering in construction were printed. We are currently working on a draft law “On public procurement.” Basically, while others are talking about creating a favorable investment climate, we put in practice. Development of consulting in construction requires two interrelated drives: introducing the expertise of technically advanced countries and enhancing the role and activity of professional non-governmental organizations in construction. Unlike making trouble in construction, getting out of it requires professionalism,” Oleksandr Nepomnyashchyy, ICEG President, pointed out.

For reference:

FIDIC – International Federation of Consulting Engineers, operating since 1913, represents interests of over a million professionals and 40 thousand firms in more than 100 countries.

ICEG – Interstate Consultants Engineers Guild, has been representing interests of the consulting engineering industry in Ukraine since 2015. It embraces over a thousand economic operators.

Interfax Ukraine