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About us Members Positions Issue November 2016
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Dear Reader,

All presentations and photos from the latest EIC conference, held in Brussels on 6-7 October 2016, are available for download on the EIC conference website. The upcoming EIC Spring Conference will be held in Copenhagen on 20-21 April 2017 with a workshop on “Sustainable Solutions for Urban Areas and Business Opportunities for European Contractors”. Save the date!

Sincerely,
Your EIC Team

Headlines
EIC and Korea's ICAK sign Letter of Intent on side-line of General Assembly
Headlines

EIC and the International Contractors Association of Korea (ICAK) signed a Letter of Intent to enhance collaboration in third markets on the side-line of the EIC Autumn Conference in Brussels. Read more...

Meeting of the EIC Working Group “Contract Conditions” 
Headlines

The EIC Working Group “Contract Conditions” met on 18 October 2016 in order to analyse the latest developments with respect to the update of FIDIC 1999 suite of contracts and the envisaged new Standard Form for Underground Works. Read more...

EIC Working Group CR meets to comprise publication on Corporate Responsibility 
Headlines

The EIC Working Group CR met to review the first draft of an EIC Position on Corporate Responsibility and the European Construction Sector's Role in achieving the Sustainable Development Goals. Read more...


News from Bruessels
EIC participates in EU Economic Mission to Iran

Represented by its Italian Board Member, Duccio Astaldi, EIC participated in the EU Economic Mission to Iran from 16-18 October 2016, led by EU Commissioner Elżbieta Bieńkowska. Read more...

EIC meets with EFCA’s European External Aid Committee

EIC met with EFCA’s European External Aid Committee for an exchange of views on the planned new EU PRAG rules for Design-Build and on the new EU External Investment Plan. Read more...

Brief Notices

EIC 2015 Statistics: International Turnover reaches new Peak 

International turnover of European contractors affiliated to EIC's Member Federations reached a new peak in 2015, rising to almost € 180 billion, up 9% compared with 2014. Read more...

EIB and AfDB jointly hold Africa Day 2016 

The European Investment Bank and the African Development Bank are jointly hosting the 2016 Africa day in Abidjan on 21 November 2016. Read more...

EY European Construction and Infrastructure Roundtable 2016

EY's 15th Annual European Roundtable for Construction, Engineering and Infrastructure brings together an exclusive network of senior company executives within the industry and offers the opportunity to share ideas and discuss current trends and developments, as well as network with peers. Read more...

 
Headlines

EIC and Korea's ICAK sign letter of intent at EIC Autumn Conference in Brussels 

Brussels   EIC and the International Contractors Association of Korea (ICAK) signed a Letter of Intent on the side-line of the EIC Autumn Conference in Brussels on 06 October 2016 in which an ICAK Delegation led by led by Chairman Park Kee-Poong took part. The Letter of Intent aims to promote the co-operation and the exchange of information between EIC and ICAK with respect to international construction activities in third countries.

Federations to explore options for closer relationship 

The two associations declared their willingness to explore the possibilities for fostering a closer relationship between European and Korean international contractors and facilitating their collaborative presence in the international construction market. This could comprise exchanging information on the activities of both associations; facilitating the exchange of information in the field of engineering and construction through the competent organisations; participating in each other’s annual conferences or organising joint meetings on matters of common interest and concern; promoting new business opportunities for member companies with regard to mutually beneficial civil engineering, plant construction, building and development projects in third countries; initiating joint lobbying activities on procurement and construction topics towards International Financing Institutions and International Organisations in close coordination with the Confederation of International Contractors' Associations (CICA).

A first step in implementing the agreement is the participation of EIC President Philippe Dessoy in the upcoming international conference hosted by Korea's Research Centre for Overseas Construction (KRC). The conference will be held in Seoul on 7 December 2016 and is titled "Industry 4.0: Transformation of Construction Industry - Challenges and Opportunities". The conference aims at sharing the latest experience on innovation trends and best practices in the international construction industry.

Links:
EIC-ICAK Letter of Intent

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Headlines

Meeting of the EIC Working Group “Contract Conditions”

Frankfurt /Main   The EIC Working Group “Contract Conditions” met on 18 October 2016 in order to analyse the latest developments with respect to the update of FIDIC 1999 suite of contracts and the new standard form for Underground Works. The group also held an initial meeting with NEC representatives to learn more about this collaborative contract model which is widely used in the UK.

FIDIC Suite of Contracts Update and Standard Form for Underground Works

The group discussed the draft update of the FIDIC DAB rules on which EIC is invited to comment and also analysed the proposed new concept of the FIDIC “Golden Principles”. In the light of the frequent misuse of its documents, FIDIC is considering a change of its policy on selling licences to the extent that bespoke licenced contracts could be prepared that comply with a set of “Golden FIDIC Principles”.

On the occasion, the group also met again with the Leader of the FIDC/ITA Task Force for a new Underground Works form. Despite the limited number of amendments to the “Yellow Book” standard, the Task Force has opted for a stand-alone contract form, instead of a simple plug-on, in order to prevent a possible misuse by clients. Before releasing the standard form for friendly review in autumn 2017, the Task Force considered it important to not only draft additional guidance for the preparation of the Particular Conditions but also for the preparation of Tender Documents.

Encounter with NEC practitioners

NEC practitioners briefed EIC about the basic features and aims of the NEC contract form. They emphasised the flexible use of the contract family, the clarity and simplicity of its wording and, most importantly, the stimulus to pro-active and good contract management. The NEC form was intended to provide a mechanism for employers, designers and contractors to work collaboratively.

EIC acknowledged NEC’s intention to stimulate pro-active co-operation between both parties. The group questioned, however, the readiness of international employers to co-operate with the contractor in the way it is required by the NEC form and practice in the UK. In any case, contract administration under NEC demands a higher investment in staffing on both sides in order to manage the process properly.

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Headlines

EIC Working Group CR meets to comprise publication on Corporate Responsibility

Brussels   The EIC Working Group CR met on 20 October 2016 to review the first draft of an EIC Position on Corporate Responsibility and the European Construction Sector's Role in achieving the Sustainable Development Goals (SDG).

Working Group identifies “Top CR Aspects” for contractors

At the meeting, participants from Belgium, France, Germany, Netherlands, Spain and Sweden discussed the EIC position on the most important CR aspects such as health & safety, transfer of know-how, supply chain management, engaging with stakeholders, greening of operations, climate change or business ethics.

The 10 most relevant CR aspects from the viewpoint of European international contractors will be grouped into four categories, namely “People”, “Planet”, “Prosperity”, and  “Governance”. Good practice examples will illustrate how European construction companies have incorporated the various aspects of Corporate Responsibility into their international operations.

EIC aims to publish its position on CR by summer 2017

The The EIC paper will target a broad range of stakeholders, including international clients which need some technical advice to incorporate CR aspects into their tenders. This new EIC publication is scheduled to be released in summer 2017.

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News from Bruessels

EIC participates in EU Economic Mission to Iran

Teheran   Represented by its Italian Board Member and Past President, Duccio Astaldi, EIC participated in the EU Economic Mission to Iran from 16-18 October 2016, led by EU Commissioner Elżbieta Bieńkowska, responsible for Internal Market, Industry, Entrepreneurship and SMEs.

The aim of the mission was to advance co-operation and to create mutual business opportunities for companies in Europe and Iran. The EU is committed to expanding its economic ties with Iran and the mission aimed at meeting Iranian authorities and business representatives and finding solutions enabling a business environment that can bring European and Iranian businesses together. The visit was part of the gradual engagement with Iran as agreed at the EU High Level visit in April.

During the mission, Commissioner Bieńkowska delivered an opening speech at the EU-Iran Conference on Economic, Industrial and Investment opportunities alongside Mr Mohammad Reza Nematzadeh, Minister of Industry, Mining and Trade. Meetings were also scheduled with the Vice President of Iran as well as the Ministers of Foreign Affairs and of Economic Affairs and Finance.

EIC seeks clarification from the EU on US Sanctions Policy

Ahead of the mission, EIC had informed the European Commission about the interest from European international contractors to shed more light during the visit on the actual legal situation in the field of remaining sanctions vis-à-vis Iran. Following the release of the final report by the International Atomic Energy Agency in January 2016 all nuclear-related sanctions imposed by the EU and the UN have been lifted. At the same time, however, some bilateral US sanctions against Iran remain in place with the effect that few trade deals are going through.

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News from Bruessels

EIC meets with EFCA’s European External Aid Committee 

Brussels   EIC Director Frank Kehlenbach met on 26 October 2016 with EFCA’s European External Aid Committee for an exchange of views on the planned new EU PRAG rules for Design-Build and on the new EU External Investment Plan. Contrary to EIC, EFCA as the representative of the engineering consultancy industry in Europe, has not yet been consulted by the European Commission's DG DEVCO on the proposed procurement documents for EU financed Design-Build projects in developing countries.

Mr. Kehlenbach informed EFCA and FIDIC, which also participated in the meeting, about EIC's critical assessment of the draft General Contract Conditions for Design-Build. Whilst they are based on the conventional General Contract Conditions for Works, the EU Commission had obviously adapted some of the concepts of the FIDIC “Silver and Gold Books” which, as currently drafted, comprised an excessive risk transfer to contractors. Against that background, EIC calls upon EFCA to develop its position and submit it to DG DEVCO.

EIC and EFCA reservations on the new EU External Investment Plan

EIC also informed EFCA about its assessment on the new External Investment Plan (EIP) launched by the European Commission in September in order to support private investment in Africa and the European Neighbourhood region.

EIC welcomes that the Plan has a particular focus on infrastructure, including energy, water, transport as well as social infrastructure and establishes a new guarantee instrument with the objective to leverage additional financing, in particular from the private sector, by means of first loss guarantees and guarantees covering specific risks in development projects. However, the level of language seem to be far too optimistic and the envisaged guarantees were not sufficient to promote privately financed transport infrastructure projects. Instead, they would need a high amount of upfront subsidies.

Since EFCA also holds some reservations on the EIP, both federations agreed to jointly lobby the European Commission with the aim of making the initiative more accessible for European contractors and consultants. Given the positive experience in the years 2009 and 2012, it is also considered to organise once again a joint Roundtable with the European Commission.

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Picture Credits: lfrabanedo / fotolia.com; EIC; FIDIC / ITA; CSR - Corporate social responsibility by mattz90




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