“Not everything that counts can be counted; and not everything that can be counted counts.” - ...
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Transcript of “Not everything that counts can be counted; and not everything that can be counted counts.” - ...
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“Not everything that counts can be counted; and not everything that can be counted counts.”
- Albert Einstein, Famous Genius
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Why the Best Clients Get the Best Consultants
Presented by John Gamble, P.Eng.Canadian Public Procurement Forum
Québec City 2011
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Association of Consulting Engineering Companies (ACEC)
• 500 firms collectively employing over 100,000 people
• Firms can include engineers, architects, planners, scientists, etc.
• Federation of 12 provincial and territorial associations
• Strategic priorities:– Image and profile– Advocacy and government relations– Business Practices
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What makes a consultant happy?
• Interesting projects
• Career satisfaction
• Recognition for good work
• Opportunity for innovation
• Opportunity for fair profit
• Good relationship with client
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What makes a good business opportunity?
• Return on investment (profit)
• Return on risk
• Opportunity to develop expertise
• Opportunity for more business
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What’s our mutual goal?
• The right team for the right job
• Realistic schedules and budgets
• Fewer change orders and disputes
• Better business relationship between parties
• Better service, better quality & better value for taxpayers
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A good procurement system…
• Clearly defines objectives and scope
• Evaluates what distinguishes proponents
• Meaningfully delineates scores
• Rewards proposals that add value
• Uses a short list where necessary – Proposals are expensive
• Considers project life-cycle
• Focuses on best value – not lowest price
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A bad procurement system…
• Sees itself as an ends unto itself – rather a means to an end
• Treats professional services as a commodity
• Has vague/open-ended objectives and scope
• Assumes all proponents are equal
• Takes extended period to award
• Is a charade to justify pre-decided outcome
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A good agreement…
• Clearly defines roles and responsibilities
• Clearly defines deliverables and payment
• Recognizes “owner’s risk”
• Fairly shares risk and reward
• Has a mechanism for project changes and allows for dispute resolution
• Uses industry recognized language
• Can be read and understood by humans
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A bad agreement…
• Is one-sided (in favour of either party)
• Assumes insurance is a contingency fund
• Claims intellectual property without compensation
• Holds consultant responsible for events and action outside of consultants control
• Is uninsurable
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No agreement…
• Is a really, really bad idea (for both parties)
• Is a factor in 80% of insurance claims against architects and engineering firms
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A good client…
• Is firm and fair about expectations
• Understands cost-benefit-risk relationships
• Sees process as a tool – not an objective
• Sees strategic value of consultants
• Uses industry recognized documents
• Will get good consultants
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A good client…
• Supports organizations like CPPC
• Engages with its stakeholders
Thank you!
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Association of Consulting Engineering Companies of Canada
130 Albert St., Suite 420Ottawa, Ontario K1P 5G4Tel: [email protected]
Federation of Canadian MunicipalitiesSustainable Communities Website www.sustainablecommunities.fcm.ca