Selecting
a Consulting Engineer
For best value, CEBC recommends that clients select a consulting
engineer based on qualifications and not price. Consulting engineers
design and provide management services for large expenditure items,
such as buildings, roads, environmental services and land use planning.
When a client wants to be successful, choosing the right services
from the best engineering expertise should be the primary consideration.
Studies have shown that engineering typically represents 1.5% of the
total cost of a project, while construction costs represent 16.5%
of the total cost, and operations are 82% of the total cost. By hiring
a consulting engineer at the beginning of the project, good design
can cut 10-15% of construction costs - and more in life cycle costs.
It is through engineering services that a client has the best opportunity
to manage and potentially reduce the remaining 98.5% of the project’s
life cycle costs. Qualification
based selection means selection according to:
• Technical competence
• Managerial ability
• Experience on similar projects
• Dedicated personnel available for the project's duration
• Proven performance
• Location and/or local knowledge
• Professional independence and integrity
Project Size
The project size influences the selection method. Projects can be
divided into small, medium and large measured by their fee value.
Their boundaries are a matter of judgement depending on the business
sector concerned, the frequency of contracts awarded, the size of
the client or project and the size of companies operating in that
sector. For example, a small project might be defined in the municipal
sector as being up to $50,000, medium $50,000-$200,000 and large
over $200,000. In the transportation sector however, a small project
may be up to $100,000 and large over $1 million.
Small projects should be kept simple and should
be sole sourced. Consultants are often retained based on referrals
and general reputation. To find the best consultant, CEBC recommends
seeking referrals from comparable clients, and obtaining references.
Medium Projects should have a detailed Terms of
Reference presented to a maximum number of four consultants who
have performed similar assignments. Further details are outlined
in the CEBC publication "Guide to Selecting a Consulting Engineer."
Large projects definitely need a Two Envelope System
for selection. Based on the Terms of Reference outline, project
owners should request a submission for credentials. At this initial
stage, they should expect ten or more submissions. From these submissions,
the owner should request proposals from a maximum of four consultants,
based on the detailed Terms of Reference. Further details are outlined
in the CEBC publication "Guide to Selecting a Consulting Engineer."
To successfully hire a consulting engineer CEBC recommends the contracts
found in the Business Pulse.
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