Project Sustainability Management Quidelines_FIDIC

8/12/2019 Project Sustainability Management Quidelines_FIDIC

1/44

in the consulting engineering industry

INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS

S U S T A I N A B I L I T Y M A N A G E M E N T

2 0 0 4

Project Sustainability Management

Guidelines


2/44

f o r e w o r d

Many owners of projects aim to commit tothe principles of sustainable development by building orrefurbishing facilities and infrastructure that make moreefficient use of resources, protect ecological systems andaccount for community needs.

However, they need to know if their designsand project delivery processes make a genuine contribution

to sustainable development. They ask: How is the intent todeliver a project that makes a contribution to sustainabledevelopment translated into reality, and then measured?

Goals for sustainable development tend tofocus on broad problems and issues facing all of society,such as global warming, biodiversity, access to freshwater, and materials and energy use. While this whole-society focus is absolutely essential, it makes it difficultfor project owners to clearly define and specify therequirements for sustainable development.

FIDICs Project Sustainability ManagementGuidelines address this fundamental issue. In the ProjectSustainability Management (PSM) process, the projectowner and the consulting engineer balance the ownersproject vision against cost and available alternatives, byworking together to select appropriate project goals andindicators for sustainable development which are linkedback to higher level goals. Stakeholder input is soughtthroughout the process. Objectives for sustainabledevelopment are therefore addressed in much the sameway as other project objectives are addressed in theprojects quality management plan.

PSM enables project owners and consultingengineers to devise and customize indicators to meetstakeholder concerns and issues, while demonstrating arigorous, causal link to the fundamental concerns andgoals of sustainable development. The approach can beused by firms to demonstrate both their clientscommitment and their own commitment to meetingsustainability objectives. PSM also provides amethodology for benchmarking sustainable developmentproject performance, and for ensuring that advances inone dimension of sustainable development are notaccomplished at the expense of another.

FIDIC is proposing PSM as a new area ofknowledge management for use on projects, operatingin parallel to the conventional areas of quality, risk andbusiness integrity management. Firms will be able toadd a new dimension of value to their work by helpingclients not only apply new and more sustainableprocesses, systems and technologies, but alsodemonstrate effectively their contribution to sustainable

development in a way that encourages the sharing ofknowledge. It also will help establish an environment forinnovation so that all parties can cooperate in anatmosphere of openness, transparency and trust.

FIDIC has had a long and continuinginvolvement in sustainable development. The Federationhas published several guidance documents includingSustainable development in the consulting engineeringindustry: a strategy paper[1] and Business guidelines forsustainable development [2]. FIDIC contributed to theUnited Nations Environment Programme (UNEP) multi-

stakeholder consulting engineering industry sectorreport [3] to the 2002 World Summit on SustainableDevelopment, and sustainable development has been thefocus of several FIDIC annual conferences since 1990.Finally, FIDIC collaborates with UNEP, the InternationalChamber of Commerce (ICC)and the International Councilof Local Environmental Initiatives (ICLEI)in thedevelopment and dissemination of environmentmanagement systems for industrial facilities and forurban administrations.

The main drafters of this document were:Bill Wallace, Wallace Futures Group, USA; John Boyd,Golder Associates, Canada; Peter Boswell, FIDIC,Switzerland. They were assisted by other Task Forcemembers: Jeremy Boswell, Felehetsa Environmental Ltd,South Africa; Lorna Walker, Lorna Walker Consulting, UK;Helen Crosby, Arup, UK; Iksan Van der Putte, RPS Group,The Netherlands; and by Niels Erik von Freiesleben,COWI A/S, Denmark.

The Sustainable Development Task Forcewishes to thank the many organisations and individualswho have helped develop project sustainabilitymanagement. Special thanks go to: Professor Tomonari

Yashiro, Tokyo University; Dr Wim Bakens, InternationalCouncil for Research and Innovation in Building andConstruction (CIB), The Netherlands; Professor SteveHalls, Queensland University, Australia.


3/44


4/44

In response to the interest and demands ofstakeholders, many organisations in both governmentand industry are making commitments to the principlesof sustainable development. Changes in the way theymanage their operations and infrastructure investmentsdemonstrate these commitments. They are starting tobuild or refurbish facilities and infrastructure usingdesigns and methodologies that make more efficient use

of resources and energy, protect ecological systems, andtake into account the needs of communities.

As such activities increase in number andimportance, several questions arise. How should facilitiesand infrastructure be designed and implemented inorder to make a genuine contribution to sustainabledevelopment? How is the intent to deliver projectsthat make a contribution to sustainable developmenttranslated into reality, and then measured? How doesone convince stakeholders that true progress towardsustainable development is actually being achieved?

Unfortunately, there is little guidance aboutwhat constitutes a sustainable project. For instance,while adding environment-friendly features to a projectand increasing stakeholder involvement may improvepublic relations, they do little to address the real issuesof sustainable development.

In the absence of definitive guidance, manynon-governmental organisations and public interestgroups are applying their own notions about sustainabledevelopment to projects and organisations, based ontheir particular agenda and interests. As a result, projectowners, consulting engineers and stakeholders alikehave been exposed to a confusing array of indicatorsystems, each claiming to be a capable gauge of theprogress of sustainable development. Regrettably, thesesystems tend not to provide a clear connection betweenthe overall goals of sustainable development and theprojects that move society towards the goals.

1.1 Sustainability management

Recognizing these issues, FIDICsSustainable Development Task Force has developed aprocess for setting project goals for sustainabledevelopment and measuring progress towards the goals.Embodied in these Project Sustainability ManagementGuidelines, the Project Sustainability Management (PSM)

process ensures that a projects goals for sustainabledevelopment are aligned and traceable to goals andpriorities that are recognized and accepted by society asa whole. The process is also designed to align goals withlocal conditions and priorities, and to assist projectowners and consulting engineers in achieving andverifying progress toward sustainable development.

1.2 A long journey

Achieving sustainable development will bea long journey, spanning many decades. It will require

nothing less than a complete overhaul of our existingsystems, technologies and infrastructure, replacingthem with approaches that are less energy and resourceintensive, use less toxic materials, and protect theenvironment and society. All this must be accomplishedin a manner that is workable in both developed and less-developed countries.

Most of the systems, procedures andtechnologies needed for sustainable developmenthave yet to be invented. In the absence of major multi-national agreements and investments, progress willbe made project-by-project, driven by the objectives,motivations and actions of project owners. It will occurincrementally as new and more sustainable processes,systems and technologies are invented, tested andapplied on individual projects.

The retooling of the worlds systems,technologies and infrastructure for sustainabledevelopment is one of the greatest challenges andopportunities ever offered to the consulting engineeringindustry. Owners will, by necessity, not only call upon theindustry to help them with this conversion, but alsoexpect the industry to provide guidance and services for

the assessment of projects.

1 b a c k g r o u n d

o n e FIDIC 2004


5/44

A prerequisite for success is an environmentfor innovation: working conditions in which learning andcreativity are fostered and celebrated, where consultingengineers are encouraged to try out new approaches,test new technologies and replace old ways with new andmore sustainable alternatives. Openness andtransparency are essential ingredients of this

environment: engineers and their clients, whileobserving the achievements of others, must engagetheir stakeholders in dialogue throughout the projectdevelopment, design and delivery cycle. To make thisengagement an efficient and effective process, theparties must establish a working context based ontrust and collaboration.

1 b a c k g r o u n d

t w o


6/44

The concept of sustainable development ischanging the way people think about development andits effect on the environment and society. It defines apath forward, where society can maintain and improvethe quality of life without jeopardizing the ability offuture generations to do the same.

The need to make development sustainable

is based on sound evidence showing that we are usingup critical resources and ecological carrying capacityfaster than they can be renewed, replaced or replenished.This is happening at all scales, from local pollution ofstreams and lakes, to the loss of biodiversity and awarming of the Earth caused by human activities. At thesame time, competition for scarce resources involving,for example, water removal from major rivers andaquifers, deforestation and the depletion of fish stocks,causes socio-political conflicts within and betweencountries. The evidence is viewed by many as sufficientto change our approach to economic growth.

The task facing society is enormous.Achieving sustainable development will be a longjourney, requiring a total overhaul of the way we extractresources, produce and consume goods and services,and dispose of unwanted by-products. The foundation oftodays economic activity is a huge legacy of facilitiesand infrastructure: it will take a colossal investment andmany decades of the invention and deployment ofsustainable processes, systems and technologies toachieve sustainable development.

2.1 The journey towards sustainabledevelopment

The journey towards sustainable developmentwas first mapped at the 1992 Earth Summit in Rio deJaneiro. One of the key outcomes from the Summit wasAgenda 21 (see inset). FIDIC believes that the journey willbe accomplished incrementally, driven by individual andinstitutional objectives, international guidance andstakeholder influence. Without an organized, globaleffort to implement appropriate practices along withsubstantial technological breakthroughs, progress towardsustainable development will be achieved project-by-

project, delivered by project owners and the consultingengineering firms they engage.

Advances will be made by setting andachieving higher and higher levels of project performance.Each new project will build upon the achievements ofothers; goals will be set by combining experience andinnovation, reaching for improved levels of performance.Sometimes the goals will be achieved; sometimes they willbe missed. Nonetheless, each attempt will add to societyscollective knowledge about what worked and what did not

work, enabling it to make the appropriate adjustments.

2.2 Needed: a framework and a process

If progress toward sustainable developmentis to be achieved, it is essential to develop a frameworkand a process for setting project goals and measuringprogress. The framework ensures that a projects goalsare aligned and traceable back to the goals and prioritiesofAgenda 21; the process guides the planning anddelivery of projects. The process must:

Assist the project owner and the consulting engineer

in developing practical project goals for sustainabledevelopment, striking a balance between the ownersaspirations, stakeholder concerns and the issues ofcost and achievability.

Incorporate substantive stakeholder input throughoutthe project life-cycle, ensuring that all major issuesare addressed.

2 i n t r o d u c t i o n

[We] inhabit the Earth. And we must rehabilitateour one and only planet.Kofi Annan, United Nations Secretary General

If you dont know where you are going, any road willget you there.Lewis Carroll

Agenda 21

Agenda 21 [4] was a 40-chapter, 800-page document whichoutlined 120 action programmes for achieving sustainable

development. The importance ofAgenda 21 was that it detailedfor the first time a comprehensive set of goals and prioritiesfor resource, environmental, social, legal, financial andinstitutional issues. While not legally binding, it was adoptedby countries representing 98% of the worlds population.

Agenda 21 urged national governments as well as internationalgovernmental and non-governmental organisations to identifyand develop sustainable development indicators measureswhich would enable decision-makers to monitor, assess,diagnose and compare the factors relevant to sustainabledevelopment.Agenda 21 also urged local government toprepare Local Agenda 21, a plan of action aligned to theproblems and issues specific to their communities. By 2001,

over 6,000 local authorities in some 100 countries had eithermade a formal commitment to Local Agenda 21 or wereactively undertaking the process.

t h r e e FIDIC 2004


7/44


Be open and transparent in terms of goals, stakeholderinput and the expectations for project performance.

Provide mechanisms for feedback, the assessment ofresults, the benchmarking of sustainabilityperformance, and knowledge sharing.

An essential ingredient for the process is acomprehensive set of goals for sustainable development,

and their accompanying indicators, at the project level.These must cover the full range of sustainability issuesand enable consulting engineers to measure the specificcontributions to sustainable development, all tying backto the goals ofAgenda 21.

2.3 Critical: an environment for innovation

A prerequisite for success to achievesustainable development is the creation of an environmentfor innovation: working conditions in which learning andcreativity are fostered and celebrated. In this environment,

project owners, observing the achievements of others, areurged to set stretch goals, seeking to establish new andhigher benchmarks for sustainability performance. At thesame time, consulting engineers are encouraged to tryout new approaches, test new technologies, and replaceold ways with new and more sustainable alternatives.

Openness and transparency are the essentialingredients of this environment. Project owners andconsulting engineers must engage stakeholders indialogue throughout the development, design anddelivery of a project to ensure that stakeholder issuesand concerns are fully considered. This process operatesin two directions: stakeholders voice their issues andconcerns about a project so that they can be incorporatedthroughout the project life-cycle by the project owner andthe engineer; the project owner and the engineer informstakeholders on the current state-of-the-art and thelimitations of what is achievable. To make this anefficient and effective process, all parties must establishan atmosphere of trust and collaboration.

Progress is governed by the ability of engineersto innovate: to imagine, invent, develop, test and applynew processes, systems and technologies. However, in

the case of sustainable development, defining the

problem is elusive, driven as much by public perceptionsas by technological fact. In these changing conditions,progress will be marked by a series of fits and starts,triggered by events and politics, and by investments andaccomplishments. The role of the engineer is crucial,contributing logic and structure in a climate ofuncertainty and confusion.

2.4 The role of project indicators

While project goals set the direction, projectindicators provide the means to measure progress.They enable owners, engineers and stakeholders to gaugeprogress toward sustainable development by comparingthe performance achieved on a project with the intendedperformance. A comprehensive set of project indicators isalso an essential tool for measuring accomplishments,demonstrating transparency to stakeholders andbuilding a knowledge base for professionals. Thepurpose and use of indicators for sustainable

development are summarised in Appendix B.

To function properly, a set of indicators forsustainable development must be:

grounded in the overarching principles, goals andpriorities of sustainable development;

sufficiently comprehensive to cover all relevantaspects of sustainable development;

of a size that is manageable and effective forcommunication;

capable of being customized in order to align withlocal requirements and conditions using a process

which is open and transparent.

As shown in Figure 1, a project goal can berepresented on a sliding scale. Conditions of sustainabilityare achieved somewhere in the high range, at a goal thatvaries depending on local conditions, evidence aboutresources and carrying capacity, and any technologicaldevelopments that could alter the definition of sustainabledevelopment for this particular goal. For example, newknowledge of limitations to ecological carrying capacitycould shift the goal to higher levels. In contrast, theinvention of a low-cost, energy-efficient desalination

technology could alter dramatically the availability offresh water, and thus reduce the goal to a lower level.

f o u r


8/44

In setting project goals for sustainabledevelopment, the project owner has several choices.The owner may do nothing more than apply conventionaltechnology, directing the engineer to implement thecurrent state-of-practice, defined as procedures andtechnologies normally applied by engineeringprofessionals. In some cases, the state-of-practice oftenlies on the sliding scale just above some compliance level

defined by global treaties, and by local and national lawsand regulations. However, in many if not most cases,there are no laws, regulations or treaties associated withproject indicators for sustainable development.

The project owner may decide to make acontribution to sustainable development by applyingprocesses, systems and technologies that performsubstantially better than conventional approaches. Inthis case, the owner and the engineer may assess:

what others have accomplished on similar projects; new processes, systems and technologies that hold

promise for setting new levels of performance.

Once this assessment is complete, theproject owner and the engineer can set goals forperformance in one or more aspects of sustainabledevelopment, as measured by the correspondingindicators. Here, they may decide to match what othershave accomplished on similar projects. Alternatively,they may attempt to set new levels of performance usingnew, but relatively untried, approaches. As the project

progresses, the indicators will enable the owner and theengineer to measure and record performance.

Each success in the application of moresustainable processes, systems and technologies willraise incrementally the definition of the best-in-class.With repeated use, applications once consideredadvanced are reclassified as state-of-practice, driving upthe specification of the state-of-practice. Over time andgiven the right environment, the range of implementationchoices moves towards the high end of the scale,eventually achieving sustainable development.

Varies, based on new evidence andtechnological developments

Advances through innovation and risk takingwith new processes, systems and technologies

Advances through the application of best-in-class processes, systems and technologies

Represents the currentstate-of-practice

Varies, based on lawsand regulations

Range ofsustainable

developmentgoals for the

project owner

Sustainable development: goalfor sustainable development

New benchmark: set newperformance benchmark

Best-in-class:do what is achievable

State-of-practice:apply conventional

Compliance:achieve compliance

Range ofimplementationchoices for theproject owner

Fig. 1: Project goals for sustainable development

LOW

HIGH

f i v e FIDIC 2004


9/44

2.5 The FIDIC approach

Following the Earth Summit, the UnitedNations empowered its Commission on SustainableDevelopment (CSD) to develop a set of indicators forsustainable development to measure and calibrateprogress towards goals based on the issues, goals andpriorities identified inAgenda 21. The CSD created a list of

indicators organized according to a framework of themesand sub-themes that could be traced back toAgenda 21 [5].The CSD indicators aimed to translate theAgenda 21 goalsinto a form accessible to decision-makers at the nationallevel, to be used as guidance in crucial decision-making.

If progress toward sustainable development isto be made on a project-by-project basis, then the CSDindicators must be translated into project-level indicatorswhich are comprehensive and contain all of the keycomponents of sustainable development. Omission of anyone of these components will distort the evaluation and call

into question the projects value and contribution. As anexample, a project might reduce the amount of water usedby increasing energy consumption or the quantity of toxicmaterials. So the failure to include all of the componentswould achieve one sustainability goal at the expense ofothers, resulting in minimal or negative progress.

While ensuring that progress in one aspectof sustainable development is not made at the expenseof others, project sustainability indicators also serve asguideposts and benchmarks, showing what others haveachieved, and inspiring everyone to set new and higherlevels of performance.

2.6 Status of sustainability indicators

Organisations including the United Nations,standards institutions, labour unions, national and regionalgovernments, local authorities, financial organisationsand public interest groups have understood that newmeasures and criteria on which to gauge the currentstatus and progress will be required if society is toadvance sustainable development. Many have proposedsets of indicators based onAgenda 21, but reflecting theirneeds and perceptions.

Some of these indicator sets, classified by the

intended purpose, are listed in the inset below. Some aim tomeasure whole-society conditions of sustainability. Othersare used as investment tools, where a firms commitmentand performance with respect to sustainable developmentare seen as leading indicators of financial performance.Still others are used to measure an organisations

Sustainable development indicator classifications

Name Description Examples

Whole-society indicators: sustainability of a particular geographic region or political unit

Global Overall assessment of the current state of the world, mapped UN CSD, PAGE, MillenniumtoAgenda 21 Assessment, Ecological Footprint,

Regional/local Response to LocalAgenda 21: assessment of factors determined Pastille, Sustainable Seattle,to be important for the local population Santa Monica, NRTEE

Organisation-based indicators: sustainability of the operations of an organisation

Industry/NGOs Indicators of how an organisation is performing in terms of Global Reporting Initiativea set of indicators for sustainable development

Investor-based indicators: correlation of corporate sustainability with financial performance

Project risk assessment Principles, processes and indicators for assessing project risk The Equator PrinciplesFinancial performance Any published index that tracks the financial performance of Dow Jones Sustainability Index

companies that have committed to sustainability principles FTSE4Good, Innovest, EcoValue21Green funds Funds holding investments in companies which they believe will have Domini Social Equity Fund,

better than market returns owing to commitment to sustainability Triodos Bank, SAMProject-based indicators: assessment of a projects contribution to sustainability

Project screening Indicators for screening projects as to their likelihood of achieving World Bank, The Equator

sustainability outcomes PrinciplesProject performance Contribution a project makes towards sustainable development SPeAR, CRISP, BEQUEST, LEED,

Includes efforts made in the construction phase CH2M HILLs 4-step screening


s i x


10/44

performance against its vision of sustainable development.Finally, indicators based on a qualitative rating of projectsare used to highlight areas of exceptional performance orneeding improvement. All of these indicator sets have anappropriate place and application. However, they do notexplicitly and fully connect projects back to the fundamentalissues, goals and priorities ofAgenda 21.

2.7 Project Sustainability Management

In relating whole-society sustainabilityindicators to project-level indicators, FIDIC hasrecognized that sustainable development:

Demands a whole-society conceptAny attempt to measure a projects contribution tosustainable development must be based on completeand accepted principles of sustainable development.

Represents a moving targetPerceived problems and issues will be alteredsubstantially by the course of events and the

emergence of new knowledge. Furthermore, it is likelythat changes will occur within the life-cycle of typicalprojects. Thus, both the quantitative magnitude of anindicator and the indicator itself that are establishedat the start of a project will likely be very differentfrom those found later at deconstruction,decommissioning or renovation.

Depends on the locationMany issues and impacts for sustainable developmentthat are significant in one part of the world may beunimportant in another. Others such as climate change,ozone depletion and deforestation are ubiquitous.

Requires an environment for innovationProgress can only be made if consulting engineershave the freedom to explore, invent, test, apply and

evaluate promising processes, systems andtechnologies that offer better and more sustainableperformance. This requires a high degree of opennessand transparency in order to foster understandingamong the stakeholders, and knowledge developmentand sharing among engineers.

These Project Sustainability ManagementGuidelines describe how project owners and engineers canincorporate the principles of sustainable development intoindividual projects. FIDICs Project SustainabilityManagement (PSM) system has two components:

A framework of goals for sustainable development andthe corresponding indicators, both of which map backto the issues, goals and priorities ofAgenda 21.

A process for setting and amending project goals andindicators, making them consistent with the vision andgoals of the project owner, compliant withAgenda 21, andtailored to local issues, priorities and stakeholder concerns.

Dimension

ThemesSub-themes

Indicators

EconomicEnvironmental Social

Fig. 2: Conceptual framework for sustainable development project indicators

s e v e n FIDIC 2004


11/44

FIDIC has therefore developed:

A set of core project goals and indicators forsustainable development, organized in a frameworkwhich aligns withAgenda 21.

A process to amend these goals and indicators,allowing them to be customized to actual projectconditions while retaining their link toAgenda 21. The

process addresses the life-cycle of the project, fromconcept development through to design, construction,operation, deconstruction and disposal. In this sense,project sustainability goals and indicators become partof the overall project delivery process.

The PSM framework is illustrated in Figure 2.Sustainable development issues are divided intodimensions: environmental, economic and social. Foreach dimension, the issues are organized into themesand sub-themes. Each sub-theme is associated with oneor more indicators of sustainable development, whereeach indicator is characterised by a sliding scale

referenced to to the current state-of-practice, applicablelaws and regulations, and goals. PSM differs from otherapproaches in that:

A user can customize the set of project indicatorsbased on an indicators relevance to the project scope,conditions and context while maintaining a closeconnection to the whole-society issues, goals, andpriorities of sustainable development.

The process takes into account advances in the state-of-practice, and the setting of new benchmarks forsustainable performance, through invention andsuccessful application leading to changes in thecapabilities of processes, systems and technologies.

The process provides a mechanism for establishingperformance benchmarks, comparing theachievements of others and setting ever higher goals.It therefore recognizes that although sustainabilityissues are well established, approaches for dealingwith them are evolving very rapidly.

2.8 Why use PSM?

For a project to make a valid and verifiablecontribution to sustainable development, it must be

designed and delivered in a way that produces ameasurable, net, positive impact across all dimensionsof sustainability throughout the project life-cycle. This is

not an easy task. In the absence of overall guidance,governments, NGOs, public interest groups and othershave produced many measuring systems for sustainabledevelopment. Being based on a narrow focus, they aredifficult to relate to the balancing of alternatives thattakes place in real projects, and may even createconflicting targets. In contrast, PSM starts with a broadset of goals and indicators, grounded in the widely

accepted principles of sustainable development. UsingPSM in conjunction with quality assurance and projectmanagement, project owners and their engineers canmodify the goals and indicators to reflect localconditions, as well as the range of potential solutions.

The value of PSM to a project owner issubstantial. The starting point the core set of goalsand indicators is virtually unassailable because it isfounded on the original concepts of sustainabledevelopment. Moreover, it recognizes the realities ofsustainable development:

The fact that progress will be incremental and

perfection elusive. It focuses on achieving incremental improvements

based on the accumulation of knowledge andexperience through innovation.

It allows the project owner to demonstrate acontribution to sustainable development in a way thatis both transparent and verifiable.

The value of PSM to consulting engineers isalso substantial. In order to effectively respond to thechallenge of sustainable development and to meetproject owner needs, the engineer gains a deepunderstanding of a project owners objectives over aprojects entire life-cycle. This creates a closerelationship with the client, and an innovativeenvironment that enables the engineer to deliver serviceswhich are based on quality and a special knowledge ofsustainable practices and technologies. PSM also adds anew dimension of project management coveringprocesses related to indicator development andapplication, and operating in parallel with theestablished areas of cost, time, scope, human resources,risk, procurement, communications and quality

management. It expands the engineers scope ofservices, enabling the industry to add sustainabledevelopment to its portfolio of client service offerings.


e i g h t


12/44

3 P r o j e c t S u s t a i n a b i l i t y M a n a g e m e n t

Project Sustainability Management (PSM)offers a process for establishing, demonstrating andverifying a projects contribution to sustainabledevelopment. If a project owner wishes to incorporategoals for sustainable development into a project, PSMprovides a process by which the goals can be crediblyestablished in concert with accepted whole-society goalsand priorities. Progress towards the goals can be

measured and verified against the underlying socialissues, problems and priorities.

The process is designed to be highlytransparent in order to create and maintain stakeholdertrust. It is recognized that progress towards sustainabledevelopment will only happen if project owners,engineers and stakeholders work together, creating andapplying new and more sustainable processes, systemsand technologies.

PSM addresses a broad range of issues

(see inset). The management of these issues integratesnaturally with project management systems based onthe ISO 9001:2000 international standard for qualitymanagement. Such systems are process oriented,so incorporating the processes which are required forthe successful development and implementation ofproject indicators is simple and direct.

3.1 Project indicators

Indicators are observed or calculatedparameters that show the presence or state of a conditionor trend. They are the tools for measuring and monitoringprogress towards goals, providing a basis for judging theextent to which progress has been made, or correctiveaction is required. They are also an important managementtool for communicating ideas, thoughts and values. As theUnited Nations CSD observed, We measure what wevalue, and we value what we measure. The role andcharacteristics of indicators are summarised in Appendix B.

Indicators for sustainable development aretypically built in a two-step process. The first stepinvolves mapping goals for sustainable development tothe themes and sub-themes that will be addressed. The

framework therefore ties indicators for the variousthemes to overall objectives defined in the globalcontext. Such a framework helps in:

stimulating proposals about what should be measured; categorizing issues and organizing ideas; establishing a common vocabulary.

The second step uses a series of conceptualmodels to map themes and sub-themes to indicators,thus ensuring that indicators refer back to globalobjectives, but are project specific in detail. The models

describe the performance of the project for each sub-theme in terms of measurable parameters. Theseparameters summarise the cause and effectrelationships within the context of the project, andensure that the selected indicators measure projectperformance. Indicators are chosen for a particularproject if they influence outcomes and respond tochanged external factors.

As an example, the framework for a globalobjective of improved health might include the sub-theme Drinking water, with a conceptual model that,

if safe drinking water were available to a largerpercentage of the population, global health wouldimprove. The indicator then becomes The percentage ofthe population having access to clean drinking water. For aproject in the developed world, this would involve issuesrelated to maintaining the quality of water coming out oftaps in each building. For the developing world, the levelof improvement might be more rudimentary, perhapsinvolving a community source of clean water. For thelatter, it would clearly be advantageous to engage thecommunity in a dialogue about the feasibility andapplicability of the systems and approaches to be used,and the indicators that would be chosen to describe theoutcome of the project.

Project Sustainability Management issues

How to integrate a project owners goals for sustainabledevelopment into a project.

How to show the connection between the achievements ofa specific project and whole-society goals and priorities.

How to create and maintain transparency in thedevelopment of goals and indicators.

How to incorporate the goals and needs of a wide range

of stakeholders. How project goals and indicators affect project objectives

and design.

n i n e FIDIC 2004


13/44

Core project indicators

The starting point for PSM is a core setof themes, sub-themes and project indicators forsustainable development, derived from national andinternational goals and targets, tied to the originalwhole-society objectives ofAgenda 21, reworded andadjusted to make them relevant to projects.

The framework is the same as the UN CSDframework comprising four dimensions: social, economic,environmental, and institutional. The CSD applied themodel that indicators should define the driving force,state and response to each relevant issue for the fourdimensions. This model gave a set of 134 indicatorswhich was reduced to 65 indicators organized into38 sub-themes by applying a second model, namely thatindicators should relate directly to national policies [5].

3.3 Project-specific indicators

As summarised in Appendix A, the PSMcore set of 45 project indicators is obtained by applyinga further model, namely that each indicator must a)contribute significantly to Millennium Development Goals[6]; and b) be redefined in the project context in order tomake it relevant to project activities.

One outcome is that indicators for theinstitutional dimension do not appear in the PSM coreset since none of the CSD indicators for this dimensionare relevant to most projects. It should be noted, however,that the list of PSM core indicators in Appendix A includesthe original UN CSD indicators. Users can refer toAppendix A for additional indicators.

Another outcome is that the UN CSDindicator Percent of population living below the poverty lineis redefined as the PSM core project indicator Proportionof local workers or firms employed on the project. In thisexample, the project owner and the engineer can affectthe percent of the population living below the povertyline by employing local workers and firms.

In the PSM process, the list of core projectindicators can be modified and expanded in a series ofsteps, applying local indicators for sustainabledevelopment and stakeholder input. The process does

not, however, allow an indicator to be deleted ormaterially modified if it seen as being germane toproject sustainability.

3 P r o j e c t S u s t a i n a b i l i t y M a n a g e m e n t

t e n


14/44

The Project Sustainability Management (PSM)process for defining and implementing project goals andindicators for sustainable development can be referred toquality management for projects involving the classicPLAN - DO - CHECK - ACT cycle, illustrated in Figure 3.

The project owner and consulting engineerwork together at the early design phase of the project to

plan and develop a set of project-specific goals forsustainable development. As shown in the inset below,this first step takes place in three stages and involvesestablishing, adjusting and testing project goalsand indicators.

Once agreement is reached on a set ofproject indicators, the engineer and the project ownerdevelop and apply an implementation plan to satisfy theremaining steps in the quality management cycle. Theinset on page 12 describes how the implementation ofproject sustainability will have a major influence on all of

the main elements of a quality management system forprojects. It summaries, for each of the qualitymanagement processes, the impacts, issues andconcerns that must be taken into account when definingand implementing indicators.

The following sections describe in detail howindicators are developed in the three stages and thenapplied by drawing up an implementation plan.

4 P S M i m p l e m e n t a t i o n

PLAN

Use PSM to develop a set ofproject goals and indicators

for sustainable development

Make appropriateadjustments: record andreport on results; add to theproject knowledge base

ACT

DO

Start the project: set up aprogramme to monitor

and measuresustainability performance

Monitor and measureselected indicators for

sustainable developmentagainst goals

CHECK

Fig. 3: Incorporating PSM into project quality management

Project Sustainability Management process

Stage Activity

1 Establish project-specific goals and indicators for sustainable developmentEstablish the project scope and setting assumptionsDetermine the owners vision, goals and objectivesIdentify and engage key stakeholders

2 Adjust goals and project indicators to local conditionsIncorporate applicable safeguard policy considerationsIdentify and incorporate Local Agenda 21 or other local indicator development activities

3 Test and refine project goals and indicatorsTest project indicator functionalityRefine goals based on systems integration considerationsRefine indicators to align with applicable regulations, and protocols

4 Use project indicators during project implementation, operation and decommissioningIndicators are used for project management, feedback and adjustment, and for project evaluation

e l e v e n FIDIC 2004


15/44

Impacts on quality management

Quality element Description Sustainability impacts, issues & concerns

Strategic processes

Customer focus Meet project owner requirements Performance of sustainable processes,Strive to exceed expectations technologies is not fully predictableAchieve client satisfaction Need to carefully manage client expectations

Leadership Establish unity of purpose & direction Need to establish an environment for innovationFully involve people in the organisation inside the organisation & with project stakeholders

Process approach Manage activities & related resources as a process Traceability & documentation are importantIdentify & document for stakeholders for trust & transparency

Continuous Collect & analyze information gained during a project Critical component for improvingimprovement for use in a continual improvement process sustainability practices & technologies

Factual approach to Conduct project evaluations & closure reports Critical component for improvingdecision-making Use information on future projects sustainability practices & technologies

Mutually beneficial Work with suppliers Crucial knowledge about sustainability aspectssupplier relationships Benefit from supplier knowledge of materials, energy & product performance

Resource management

Resource planning Identify resource needs The use of recycled & non-conventional materials & and control Ensure sufficient resources are available employing new processes & technologies from

non-traditional sources adds riskPersonnel Create an environment where personnel can contribute Need to establish an environment for innovation

Encourage effective communication inside the organisation & with project stakeholdersManage relationships with customers & stakeholders Effective communication with stakeholders is

important for building trustRequires new skill sets involving sustainability

Product realization

Project management Establish a project management plan & a quality Need to clarify expected resultsplan plan to fulfill contract requirements. Processes & technologies employed are

Plans to monitor progress new & unconventionalChange management Identification, evaluation, authorization, Implementing new, processes & technologies

documentation, implementation, control of for sustainable development is a learning process:change activities expect change; set up a programme to learn from

unexpected resultsClosure Close out project processes Detailed reports about the implementation of

Review & document project performance sustainability processes & technologies are animportant component of learning

Scope Document project requirements, scope, activities, Scope can extend throughout the projectduration, schedule life-cycle: development, planning, design,

construction, operation, de-constructionCost Cost estimates should consider all information, Cost estimates for new processes & technologies

trends, past experience for sustainable development are generallyEstablish cost control system not available or highly variable

Communication Establish appropriate communication processes Communication with multiple stakeholdersUnderstand audiences Need to build trust & transparencyIdentify & manage information needs Create an environment for innovation

Risk technologies Risk identification, assessment, treatment Working with new processes & controlPerformance information is not well documented,

or may be unknownDeveloping performance information may be a

project objective

Measurement, analysis & improvement

Measurement & analysis Effective data measurement, collection & validation Essential for judging & validating sustainabilityperformance of processes & technologies

Continual improvement Collect relevant information on performance Essential step in learning & transferring

Validate & verify knowledge about the levels of sustainableHighlight experience that can be used elsewhere performance achieved & the lessons learnt

t w e l v e


16/44

Stage 3Test and refine projectgoals and indicators

Stage 2Adjust project goals andindicators to local conditions

Stage 1Establish project-specific goals and indicators forsustainable development

Identify &engage key

stakeholders

Stage 3finalproject-specific

goals andindicators forsustainable

development

Achievementsof others

New processesand technologies

PSM coreindicators

Determine theowners vision,

goals &objectives Stage 1

project-specificgoals andindicatorsbased on

whole-societygoals for

sustainabledevelopment

Incorporatesafeguard

policyconsiderations

IncorporateLocalAgenda 21

& other localindicators forsustainable

development

Include systemsintegration

considerations torefine goals

Test projectindicator

functionality

Refine indicatorsto align with

applicable rules,regulations &

protocols

Stage 2project-specificgoals andindicatorsadjustedto local

conditions

Stakeholder engagement

Fig. 3: The Project Sustainability Management process: goal and indicator determination

Scope of work

Establish theproject scope

& settingassumptions


4.1 Establish project-specific goals andindicators for sustainable development

During the early planning and designphase of the project, the project owner and the engineerwork together to incorporate goals for sustainabledevelopment into the project scope, and to align thegoals to the owners overall vision for the project. Key

stakeholders are identified and engaged and the ownerand the engineer review what others have achieved interms of goals for sustainable development, and the newprocesses, systems and technologies that have emerged.

Establish the project scope and setting assumptions

This stage aims to obtain a detailedunderstanding of the nature of the project, its scope,setting, intended use, etc, and of its potential economic,

environmental and social impacts. The work carried outassumes that the project owner has conducted a projectrisk analysis and has determined that there are no knownor anticipated conditions or circumstances that couldstop the project.

The project manager uses the PSM core setof goals and indicators for sustainable development as achecklist to make sure that the project is sufficientlywell defined in order to assess all aspects of projectsustainability. Some aspects concern physical features ofthe project, for example the constructed works, including

t h i r t e e n FIDIC 2004


17/44


Impacts of planning and design decisions at various phases of the project life-cycle on sustainable development

the expected usable life, operation, maintenancerequirements, and disposition at the end of theconstructed works life. Others refer to materials andenergy flows. Still others refer to the behaviour of users.A partial list of these information requirements is given inthe inset below.

Determine the owners vision, goals and objectives

What does the project owner want toaccomplish in terms of sustainable development?The engineer should work with the project owner todetermine the economic, environmental and social goalsfor the project. The owner may have specificsustainability goals in mind, such as saving water,

providing a variety of mobility options, or employingalternative energy resources.

In this stage, the project owners vision, goalsand objectives for project sustainability are comparedagainst the PSM core set of project indicators to make surethat the elements of sustainable development the ownerintends to pursue can be matched to the indicators. It isimportant to recognize that project planning and designdecisions made at this stage will have impacts (see insetbelow) during the project life-cycle, that is, throughconstruction, operation, and deconstruction and disposal.

Since progress toward sustainabledevelopment will be accomplished by individual projects,the project owner may wish to stretch the projects goalsbeyond what has been accomplished, creating newbenchmarks for performance in one or more dimensionsof sustainable development. To these ends, the ownermay want to make improvements on current sustainableperformance, that is, apply some new process, system or

Information requirements

Detailed project scopeSystem boundaries, both physical and temporal (life-cycle)Affected environments, habitats or other environmentally

sensitive areasGroups affected, both positively and negatively, by e.g.,

employment, involuntary displacement or resettlement, etc.Affected cultural heritage sites

Life expectancy of the constructed worksRequirements for servicing, maintenance and refurbishmentDemolition, deconstruction, recovery, recycling, disposalEnergy consumption and related impacts such as

greenhouse gas emissionsMaterials usageEnergy changes and evolution of energy chainsExpected use of the facilityAccess to transport

Project life-cycle phaseDevelopment

DecisionLocationFunctionPartnershipsFinancingCost

ImpactAccessQualityUser-occupant efficiency

User-occupant comfortCommunity contribution

Planning, siting, design

Recycled materials useOpenness of designNatural lighting useAccess to transport

Materials intensityEnergy efficiencyUser-occupant efficiency

User-occupant comfort

Construction

RecyclingDisposition of

construction waste

Recycled materials useConstructionenvironmental footprint

Operation

Energy efficiencyIndoor air qualityMaterials use

Occupant efficiencyOccupant productivity

Deconstruction, disposal

Building reuseAbility to recycle

building materials

Resale valueRedevelopment potential

Adapted from [7]

f o u r t e e n


18/44

technology which achieves higher performance than hasbeen achieved previously.

If the project owner is seeking to advancecurrent levels of sustainable performance, the consultingengineer and the owner should work together to:

Benchmark the performance of other projects

Locate other relevant projects and learn what othershave achieved; identify the indicators and methods ofmeasurement used to track performance.

Evaluate proposed processes, systems & technologiesPerform an evaluation of the selected new approachbased on the principles of sustainable development.

Incorporate the appropriate performance indicatorsAdd or modify the current set of project indicators forsustainable development to accommodate thebenchmarking indicators for the proposed technologyapplication. Additional indicators may be needed tocapture important performance information regardingthe application of a new technology or technique.

In working together early in the designphase, it may be useful for the engineer and the projectowner to apply the concepts of eco-efficiency to thedesign of the project (see inset below). It is also valuableto undertake an interdisciplinary planning processinvolving the key stakeholders (called a design

Reduce the material intensity of goods and servicesCan the consumption of water be reduced?Would the use of higher quality materials create less waste at

the later stages of the project?Can waste be reused on site or transported elsewhere for reuse?Can products or services be combined to reduce overall

materials intensity?Can packaging be reduced or eliminated?

Increase the service intensity of productsCan one work with project owners to improve the service

intensity of their business model, i.e., find ways to sell more

services associated with the product instead of selling theproduct itself?Can one add more knowledge content to the services being sold?Can one leverage knowledge of the owners business to

reduce the owners costs or reduce waste?Can one expand the scope of services to meet increased

stakeholder needs?

Enhance material recyclabilityCan waste be remanufactured, reused or recycled?Can one specify products with high-recycled content?Can one design the facility or infrastructure giving

consideration to reuse, flexibility or recycling?Can one consider ease of deconstruction and materials

recovery in the design and operation of the facilityor infrastructure?

Reduce the energy intensity of goods and servicesCan one find ways to employ renewable energy?Would the use of different materials reduce energy usage?Can one use waste heat from one process to supply another?Can building energy use be monitored and controlled?Can transport needs be reduced or systems made more efficient?

Reduce toxics dispersionCan toxic substances be totally eliminated from a process?Can waste and emissions be reduced during the project

construction phase?Are there ways to better handle harmful materials during the

construction phase?Can one specify products with a low toxic or harmfulsubstance content?

Maximize the sustainable use of renewable resourcesCan one specify products made with resources certified as

sustainable?Can one design facilities and infrastructure making maximum

use of passive heating and cooling?Can one employ renewable energy sources in the design?

Extend product durabilityCan one incorporate durability considerations in designs?Can one design the facility and infrastructure for ease

of maintenance?Can one design in a high degree of flexibility?

Eco-efficiency checklist

The seven principles of eco-efficiency are a useful starting point for embarking on the journey towards sustainable development.They offer new perspectives and ways of rethinking how products are made or services are delivered. The table lists ideas forinnovation based on the principles.

Adapted from [8]

f i f t e e n FIDIC 2004


19/44

charrette, see inset below). New ideas generated from thiseffort may require new or modified goals and indicatorsto track performance.

Identify and engage key stakeholders

In the past, companies recognized a limitednumber of groups shareholders, employees, regulatory

agencies, the financial community, and a few others aslegitimate stakeholders. Today, the situation has changedconsiderably. Enabled by information technology andtelecommunications, many non-governmentalorganisations and activist groups are emerging with newpowers of communication and information acquisition.If they see fit, these organisations can use the power ofthe media and the Internet to communicate what theyperceive as misbehaviour. In effect, these groups set thede facto standards for governmental and non-governmental behaviour. They can have a strong impacton an organisations reputation, and a corresponding

impact on its financial performance.

It is the same situation with projects. Theorganisational performance of the project owner isjudged in part by the projects the owner commissions,constructs and operates, and can thus be the subject ofinquiry for stakeholder groups. It is therefore importantthat the owner and the engineer identify early on the keystakeholders for a project, understand their issues andinformation needs, and establish a set of project

indicators which meets the needs. Situations where theinterests of local stakeholders run contrary to theperceived interests of society as a whole are a recognizedsource of conflict. Some useful tools for stakeholderengagement are provided in Appendix E.

4.2 Adjust project goals and indicators tolocal conditions

Goals and indicators established in the firststage are modified to reflect local conditions and concerns,particularly those of low and middle income countries.

Incorporate applicable safeguard policy considerations

If the project is located in a low or middleincome country defined by The World BankDevelopmentIndicators Database [10] as incorporated in The EquatorPrinciples (see Appendix C), then additional indicatorsshould be developed to reflect the special concerns and

policy safeguards applicable to developing countries.These concerns include natural habitats, pestmanagement, forestry, dam safety, indigenous peoples,involuntary resettlement, cultural property, child andforced labour, and international waterways [11].

In addition to safeguard policies, additionalconsideration should be given to local resources and thecapacity to understand and apply policies pertaining tosustainable development. Without this understanding,


Design charrettes

A design charrette is an intense and rigorous planning anddesign process conducted over a relatively short period oftime. It involves a group of professionals from the projectdisciplines working together in a collaborative process tocreate a workable design.

Openness and stakeholder involvement are essentialingredients. Cross-disciplinary teams working withstakeholders produce design solutions that are the product ofmany views and much experience. The compressed timeschedule inspires creativity and discourages debate that is notrelevant. A well-run design charrette can bring about significant

change as the participants come to a new understanding of theproblems and issues involved in the project.

National Charrette Institute

The US National Charrette Institute [9] recommends a four- toseven-day session in order to accommodate severalstakeholder testing and feedback sessions.

After initial research and preparation, the process starts with apublic workshop designed to educate all participants and elicitthe stakeholders vision of the project. The charrette team(charrette comes from the French word meaning cart)then develops several alternative designs and presents themin a second public meeting. Input is used to refine thealternative designs into a single design and implementationplan. Additional planning and stakeholder meetings are

conducted after the charrette is completed in order tocontinue to refine the plan.

s i x t e e n


20/44

certain categories of issues may dominate discussionswith stakeholders, perhaps to the exclusion of all others,no matter what their importance to sustainabledevelopment happens to be.

In working in low and middle incomecountries, consulting engineers should be carefulto understand the context in which PSM is applied,

making sure that local priorities are being addressed,but within the context of the core project indicators forsustainable development.

For example, in some countries, many if notmost project owners and engineers have not beenequally exposed to all aspects of sustainabledevelopment. Currently, social and socio-economicissues are receiving considerable attention whileenvironmental issues are not.

Incorporate local indicator activities

The locality in which the project will bedelivered may have developed its own set of whole-society indicators in accordance with Chapter 40 ofAgenda 21 (see [12] for a survey of LocalAgenda 21processes). If this is the case, the consulting engineershould locate the indicator set and use it to developproject-specific indicators. The engineer compares thelocal indicators for sustainable development to the PSMcore indicators, adding any local indicators that are notpresent in the core set, or modifing the set to obtainbetter agreement with the local indicators.

Even if no LocalAgenda 21 processes areunderway, the engineer should still check with localgovernment officials and organisations representingstakeholders to identify other activities related to localindicators for sustainable development

The outcome of this stage is a set ofindicators for sustainable development based on thePSM core set of indicators, but modified to make themrelevant to local problems and conditions. The indicatorsmust have a substantial level of endorsement from localgovernment officials and/or key stakeholder groups.

4.3 Test and refine project goals and indicators

The project owner and the engineer will haveestablished a set of project goals for sustainabledevelopment and a corresponding set of projectindicators, reflecting the owners vision of the projectand modified to reflect local conditions and sustainabledevelopment goals. In the third stage of the PSM

process, the owner and the engineer will make threeadditional refinements to these goals and indicators.

Test project indicator functionality

Once the indicator set is complete, the projectowner and the engineer should review the set and test eachindicator to see if the PSM process has produced asensible and workable set. The Pastille Consortium [13]three-part analysis (see inset below) stimulates different

The Pastille analysis

Characterise the indicator profileAt what level are the project indicators in use: strategic,programme, project?

Within which tools are the indicators operating?What is the indicator typology?What is the purpose of the indicator system?Who are the stakeholders relevant to the projects indicator

system?What is the role of the project indicators?Are stakeholders supportive, neutral or obstructive?How can stakeholders become more supportive of theprojects indicators?

Define the arena of action

Define the extent of the arena for action, to betterunderstand the factors, both positive and negative,that affect the use of the indicators. Issues include:- stakeholder identification, engagement,

communication, trust and cooperation;- ease of data collection;- indicator linkage to targets and thresholds;- how indicators are used to make decisions.

Illustrate the arena of actionInterpret and present the results of the analysis by plottingresults on a radar chart as a way of comparing eachdimension of the evaluation.

The analysis may reveal problems with the set of project

specific indicators. The consulting engineer and the projectowner should conduct a final review of the indicator set andmake any necessary modifications.

s e v e n t e e n FIDIC 2004


21/44


ways of thinking and a better understanding of the contextin which the indicators will operate, and ultimately identifyindicator strengths and weaknesses.

System integration considerations to refine goals

In the design and delivery of a project thatadvances the state-of-practice across all dimensions of

sustainable development, the consulting engineer willdraw upon several processes, systems and technologies.It is important for the engineer to consider how theseindividual elements will work together to achieve thedesired outcome. The elements are cross-checked tomake sure that the interferences are minimized. It maybe necessary to change the goals for sustainabledevelopment established earlier to accommodate theseintegration considerations.

Refine indicators to align with applicable rules,regulations and protocols

For some projects, client organisations,associations, local authorities and other institutions mayrequire the application of existing project indicator setsthat relate to sustainable development. Furthermore,for reasons of overall image and reputation management,competitiveness, or as part of the overall enterprisestrategy of the organisation, the project owner may wantto apply a specific reporting or appraisal protocol(the inset below gives examples).

4.4 Use project indicators during projectimplementation, operation and decommissioning

The plan to implement project-specificindicators consists of methods and schedules formeasuring and assessing numeric quantities forindicators, and reporting the results to a definedconstituency. The reporting schedules should match

other reports related to sustainable development that theproject owner produces.

In addition to producing reports, additionaleffort should be made to review results periodically so thatthe project owner and the engineer can detect unforeseenproblems with either the indicators themselves or thevalues being generated. Unexpected results, or valuesgreatly out of line with pre-set thresholds, should be notedand reported to the project owner.

Throughout the course of the project,

indicators, methodologies and measuring schedules arereviewed regularly and the results assessed. Sustainabledevelopment issues and the corresponding indicatorframeworks are in a constant state of change because ofnew information, issues and values. The review processshould be incorporated into the project ownersmanagement processes. As an example, the lifetime of aproject, that is from project concept through design andconstruction to decommissioning, might be measured intens of years. It is a virtual certainty that the concepts ofsustainable development and what constitutesappropriate and sustainability technology will haveevolved considerably during the period.

Reporting and appraisal protocols

The set of PSM indicators may be adjusted to align withreporting and appraisal protocols. Global Reporting Initiative

Some clients have made it a policy to report theirsustainable development performance in conformance withthe Global Reporting Initiative guidelines [14].

LEED certificationThe project owner may want to achieve a certain certificationlevel for one or more of the buildings or facilities in theproject. The project indicators may therefore need to bemodified or suplemented to match, say, the LEED system(in the US, new facilities for the Department of Defence mustmeet a certain level of LEED certification [15]).

SPeAR

The project owner may want to modify the projectindicators to match the SPeAR appraisal model [16].

e i g h t e e n


22/44

5 t h e p a t h f o r w a r d

Project Sustainability Management can makea substantial contribution to progress towards sustainabledevelopment. Over time, PSM will provide valuable supportto consulting engineers when designing and deliveringprojects that improve conditions of sustainability.

However, these guidelines are by no meansthe final word on the subject. PSM is by its very nature

and construction an evolving system that will change associety improves its understanding of the issues ofsustainable development. FIDIC intends to follow thisevolution closely, making changes to PSM as knowledgeand experience improves.

FIDIC initiatives

Communication and collaboration with stakeholders

FIDIC will work with interested and affected stakeholdergroups, and continue to refine its core indicators as well asthe PSM process. Specifically, FIDIC seeks to improve theprocesses for engaging key stakeholders, creating andmeasuring indicators, developing sustainable developmentgoals, adapting sustainable development goals andindicators to developing world conditions, and testingindicator functionality.

FIDIC is especially interested in the work of national andinternational organisations engaged in developingsustainable development indicators, including the UnitedNations Commission for Sustainable Development, TheWorld Bank, the World Business Council for SustainableDevelopment, the International StandardizationOrganisation, International Council for Local EnvironmentalInitiatives, and the Global Reporting Initiative.

Expansion of the knowledge base

FIDIC will work to expand the knowledge base for sustainablepractices. One of the values of PSM is that it provides afoundation for expanding societys knowledge aboutsustainable development including: how to measure and assess progress; the performance of sustainable processes, systems

and technologies; lessons learned during implementation; experience in sustainable system integration; existing or proposed codes, regulations, policies

and protocols which affect progress towardssustainable development.

Such a database will be an invaluable tool for theconsulting engineering industry.

Education and dissemination

FIDIC will develop and disseminate, in conjunction withthese guidelines, a set of tools and training materials to beused in seminars for member firms. These seminars aim toeducate consulting engineers on how to apply the PSMprocess to their projects.

n i n e t e e n FIDIC 2004


23/44

r e f e r e n c e s

1 Sustainable development in the consulting engineeringindustry: a strategy paper, FIDIC, 2001.

2 Business guidelines for sustainable development,FIDIC, 2000.

3 Sustainable development in the consulting engineeringindustry: a unique capacity to address the priorities,FIDIC, 2002.

4 Agenda 21 Programme of Action for Sustainable

Development, United Nations Conference onEnvironment and Development, Rio de Janeiro,3-14 June 1992.

5 Indicators of sustainable development: Frameworks andmethodologies, DESA/DSD/2001/3, United NationsDivision of Sustainable Development.

6 Millennium Development Goals and Indicators Millennium Indicators Database, United NationsStatistics Division:millenniumindicators.un.org/unsd/mi/mi_goals.asp

7 Building Construction Sustainability in buildingconstruction, International Standardization

Organisation, SO/TC 59/SC 17 N 35, 2003.8 Eco-efficiency, Livio DeSimone and Frank Popoff,

The MIT Press, Cambridge, MA, 1997.9 National Charrette Institute:

www.charretteinstitute.org

10 Development Indicators Database, The World Bank:www.worldbank.org/data/countryclass/classgroups.htm

11 Guidance on policy safeguards, The Equator Principles:www.equator-principles.com/exhibit2.shtml

12 Survey of Local Agenda 21 processes; ICLEI:www.iclei.org/rioplusten/final_document.pdf

13 Indicators in action: a practitioners guide for improvingtheir use at the local level, Pastille Consortium, 2002.

14 Sustainability Reporting Guidelines, Global ReportingInitiative, 2002.

15 Green Building Rating System for New Constructionsand Major Renovations; LEED-NC Version 21,US Green Building Council.

16 SPeAR:www.arup.com/sustainability/services/services.cfm

t w e n t y


24/44

a p p e n d i c e s

FIDIC PSM core project indicators are derived from the UN CSD indicators which refer toAgenda 21 issues. The numbers in bracketsgive theAgenda 21 chapters for the social (SO), environmental (EN) and economic (EC) dimensions. The table also gives the themeand the indicator description for each UN CSD indicator. The FIDIC PSM core project indicators are labelled SO-01, etc. or areindicated as n/a if they are not applied.

A FIDIC Project Sustainability Management core project indicators

Equity

Equity

Equity

Equity

Health (6)

Health (6)

Health (6)

Health (6)

Health (6)

Health (6)

Health (6)

Health (6)

Health(6)

Humanrights

Contribution toemployment; hiring localfirms, workers

Owner & engineer havelittle or no controlContribution toemployment; hiring localfirms, workersEstablish hiring & wagepolicies on the projectduring planning & design;implement uponconstruction

Owner & engineer havelittle or no controlOwner & engineer havelittle or no controlOwner & engineer havelittle or no controlContribution toimprovement of sewagedisposal incorporated intothe projectContribution to access tosafe drinking waterincorporated into theprojectContribution to healthcarefacilities as part of theproject scopeOwner & engineer havelittle or no control

Owner & engineer havelittle or no controlSafety during construction

Use of child labour duringconstruction

Proportion of localworkers, firms employedon the project, ascompared to otherworkers, firmsn/a

See SO-1

Existence of hiring andwage policies related tominorities and womenemployeesProportion of minorities,women hiresWage comparison ofminorities, womencompared to standardsn/a

n/a

n/a

Proportion of populationwith access to adequatesewage treatment

Proportion of populationwith access to safedrinking water

Proportion of populationwith access to primaryhealth care facilitiesn/a

n/a

Record of safety

performance duringconstructionRecord of use of labourduring project construction

Poverty (3)

Poverty (3)

Poverty (3)

Gender equality(24)

NutritionalstatusMortality

Mortality

Sanitation

Drinking water

Healthcaredelivery

HealthcareDelivery

HealthcaredeliveryOccupational

health & safety

Child labour

Percent of populationliving below thepoverty line

Gini index of incomeinequalityUnemployment rate

Ratio of average femalewage to male wage

Nutritional statusof childrenMortality rate under5 years oldLife expectancy at birth

Percent of population withadequate sewage disposalfacilities

Population with access tosafe drinking water

Percent of population withaccess to primary healthcare facilitiesImmunization againstinfectious childhooddiseasesContraceptiveprevalence rateSystems, procedures for

managing and maintainingjob safety, healthUse of child labouron project

SO

SO

SO

SO

SO

SO

SO

SO

SO

SO

SO

SO

SO

SO

SO-01

SO-02

SO-03

SO-04

SO-05

SO-06

SO-07

SO-8

SO-9

Theme Relevance to projects Core project indicator Sub-theme Indicator descriptionDimension Code

twenty one FIDIC 2004


25/44

a p p e n d i c e s

Education(36)

Education(36)

Housing (7)

Security

Population(5)Population(5)

Culture

Culture

Integrity

Atmosphere(9)

Atmosphere(9)

Atmosphere(9)

Atmosphere(9)

Land (10)

Contribution to K-12education by buildingfacilities and incorporatingauxiliary programmesinto the projectContribution to adultliteracy by buildingfacilities, incorporatingauxiliary programmesinto the projectContribution to improvedhousing (projectscope specific)Efforts to reduce crimerelated to the project,all phases

Owner & engineer havelittle or no controlContribution to improvingconditions in informal

settlements

Impacts on local cultureand historic buildings

Effects of project ondisplacement of localpopulationsReduction of bribery andcorruption associated withprojectsQuantity of GHGsemitted; part of

considerations in allproject phases.Quantity of ozonedepleting substancesused; part ofconsiderations in allproject phasesEffects of project on airpollution in urban areas

Effects of project onindoor air pollution

Effects of project on

arable and permanentcrop land area

K-12 facilities built, if partof project scopeAncillary programmes toimprove K-12 education

Facilities built related toimproving adult literacy aspart of project scopeAncillary programmes toimprove adult literacyProportion of personsliving with adequate floorarea per personSpecific development anddesign decision made toreduce crime rateImplementation activities

n/a

Change in number andproportion of populations

in formal and informalsettlements affected bythe projectAssessment of impactson local culture andhistoric buildingsDegree to which theproject displaces thelocal populationEfforts to monitor andreport bribery andcorruptionQuantities of GHGsemitted in all phases

of the project

Quantities of ozone-depleting substances usedin all phases of the project

Quantities of key airpollutants emitted in allphases of the projectQuantities of indoor airpollutants

Proportion of arable and

permanent crop landaffected by the project

Education level

Literacy

Livingconditions

Crime(36, 24)

PopulationchangePopulationchange

Cultural heritage

Involuntaryresettlement

Bribery andcorruption

Climate change

Ozone layerdepletion

Air quality

Indoor airquality

Agriculture

(14)

Secondary or primaryschool completion ratio

Adult literacy rate

Floor area per person

Number of recordedcrimes per 100,000population

Population growth rate

Population of urbanformal and informal

settlements

Protection of culturalheritage

Protection frominvoluntary resettlement

Reporting of bribery andcorruption

Emissions of greenhousegases

Consumption of ozonedepleting substances

Ambient concentration ofair pollutants in urbanareasAmbient concentration ofair pollutants inside thefacilitiesArable and permanent

crop land area

SO

SO

SO

SO

SO

SO

SO

SO

SO

EN

EN

EN

EN

EN

SO-10

SO-11

SO-12

SO-13

SO-14

EN-01

EN-02

EN-03

EN-04

EN-05

twenty two



26/44

Land (10)

Land (10)

Land (10)

Land (10)

Land (10)

Land (10)

Oceans,

seas &coasts (17)Oceans,seas &coasts (17)Oceans,seas &coasts (17)Fresh water(18)

Fresh water(18)

Fresh water(18)

Biodiversity(15)

Biodiversity(15)

Biodiversity

(15)

Effects of project on useof fertilizersEffects of project on useof agricultural pesticidesEffects of project onforest area

Effects of project on woodharvestingEffects of project on landaffected by desertification

Effects of project on thearea of urban formal andinformal settlements

Effects of project on

algae concentration incoastal watersEffects of project on thepopulation living incoastal areasOwner & engineer havelittle or no control

Use of water in relation tototal available water

Effects of project on BODin water bodies

Effects of project onconcentration of faecalcoliform in freshwater

What area of keyecosystems is affectedby project?How much of the areaaffected by the projectis protected?Effect of project on

abundance of selectedkey species

Quantity of fertilizers usedcompared to normsQuantity of pesticidesused compared to normsExtent to which forests areused or affected in thedevelopment, design &delivery of the projectExtent to which wood isused in all project phasesExtent to which landcovered by project isaffected by desertification.Measurements ofdesertification andimprovementscontributed by projectMeasurements of area offormal and informalsettlements affected bythe projectMeasurements of changes

in algae concentrations

Changes in populationsliving in coastal areas

n/a

Measurements of waterusage on project duringall phases

Measurements of BOD onwater bodies affected by

project during all phases

Measurements of faecalcoliform in freshwaterbodies affected by projectduring all phases

Proportion of areaaffected by the project thatcontains key ecosystemsSee EN-16

Measurements of the

affect of project on theabundance of key species

Agriculture (14)

Agriculture (14)

Forests (11)

Forests (11)

Desertification(12)

Urbanization (7)

Coastal zone

Coastal zone

Fisheries

Water quantity

Water quality

Water quality

Ecosystem

Ecosystem

Species

Use of fertilizers

Use of agriculturalpesticidesForest area as a percent ofland area

Wood harvesting intensity

Land affected bydesertification

Area of urban formal andinformal settlements

Algae concentration in

coastal waters

Percent of totalpopulation living incoastal areasAnnual catch by majorspecies

Annual withdrawal ofground & surface wateras a percent of totalavailable waterBOD in water bodies

Concentration of faecalcoliform in freshwater

Area of selected keyecosystems

Protected area as apercentage of total area

Abundance of selected

key species

EN

EN

EN

EN

EN

EN

EN

EN

EN

EN

EN

EN

EN

EN

EN

EN-06

EN-07

EN-08

EN-09

EN-10

EN-11

EN-12

EN-13

EN-14

EN-15

EN-16

EN-17

twenty three FIDIC 2004



27/44

a p p e n d i c e s

Economicstructure (2)

Economicstructure (2)Economicstructure (2)Economicstructure (2)Economicstructure (2)

Consumption& productionpatterns (4)







Effect of the project on theimprovement of GDP(could be the localdomestic product)Owner & engineer havelittle or no controlUse of local labour &materialsOwner & engineer havelittle or no controlOwner & engineer havelittle or no control

How has the project beendesigned & delivered toreduce use of materialsRecycling duringdemolition, disposal?How has the project beendesigned & delivered toreduce the energyconsumption?

How has the project beendesigned & deliveredto use renewableenergy resources?How has the project beendesigned & delivered toreduce the intensity ofenergy use?How has the project beendesigned & delivered toreduce industrial &municipal solid wastegeneration & disposal?

How has the project beendesigned & delivered toreduce hazardous wastegeneration & disposal ?

How has the project beendesigned & delivered toreduce radioactive wastegeneration & disposal?

Extent to which theproject provides economicbenefit to the localeconomyn/a

See SO-01

n/a

n/a

Extent of use of materialscompared to norms &other practices

Extent of energyconsumption comparedto norms & other practices

Extent of the use ofrenewable energyresources compared tonorms & other practicesSee EC-03

Quantities of industrial &municipal wastesgenerated compared tonorms & other practicesDisposition of industrial &municipal wastes

compared to norms &other practicesQuantities of hazardouswastes generatedcompared to norms &other practicesDisposition of hazardouswastes compared tonorms & other practicesQuantities of radioactivewastes generatedcompared to norms &other practicesDisposition of radioactive

wastes compared tonorms & other practices

Economicperformance

EconomicperformanceTrade

Financial status(33)Financial status(33)

Materialconsumption

Energy use

Energy use

Wastegeneration &management(19-22)Wastegeneration &management(19-22)

Wastegeneration &management(19-22)

Wastegeneration &management(19-22)

GDP per capita

Investment share in GDP

Balance of trade in goods& servicesDebt to GNP ratio

Total ODA given orreceived as a percentageof GNPIntensity of material use

Annual energyconsumption per capita

Share of consumptionof renewable energyresources

Intensity of energy use

Generation of industrial &municipal solid waste

Generation ofhazardous waste

Generation ofradioactive waste

EC

EC

EC

EC

EC

EC

EC

EC

EC

EC

EC

EC

EC-01

EC-02

EC-03

EC-04

EC-05

EC-06

EC-07

EC-08

EC-09

EC-10

twenty four



28/44





Institutionalframework

(38, 39)Institutionalframework(38, 39)Institutionalcapacity(37)Institutionalcapacity(37)Institutionalcapacity(37)Institutional

capacity(37)

How has the project beendesigned & delivered tomaximize waste recycling&

Project Sustainability Management Quidelines_FIDIC

Documents