Quality Based Selection

The Best Practice for Selecting Professional Consultants

[DATE]

The magic triangle

The Challenge of Delivering Projects

TIMELYDELIVERY

BUDGET MANAGEMENT

QUALITY &INNOVATION

SOCIETAL NEEDS

How do we achieve greatest value?

Long-term savings through reduced life-cycle costs? Timely delivery? Quality and sustainability? Innovation and added value? Improved economic, social and environmental quality of life? Taxpayer confidence?

How Does QBS Work?

The QBS model identifies the consulting team that best addresses client objectives and delivers the greatest value;

Professionals compete based on qualifications and understanding of the client’s needs;

QBS provides the opportunity for client and consulting team to discuss and confirm client objectives through interviews;

Consulting team has the opportunity to discuss innovation and the unique approach it would take to create a design that best addresses the client’s objectives.

How Does QBS Work?

Client ranks the competing teams: the highest ranked team is one that the client believes can design a project that will best address their objectives; A detailed scope of services is then established in consultation with preferred team, including deliverables, that will produce the best results in achieving the client’s objectives; Client and consulting team negotiate a fee and a realistic project schedule that will enable the consulting team to deliver the desired scope and quality of services.

How Does QBS Work?

Competitive: If negotiations with highest-ranked team cannot be completed successfully, client abandons negotiations with that team and opens negotiations with team ranked second;

Client will not renew negotiations with highest ranked team.

What’s Wrong With the Lowest Price?

Rewards firms for using fewer resources on behalf of the client (e.g. less experienced and less senior staff);

Disadvantages firms with greater appreciation of the client’s needs;

Disadvantages firms that accurately anticipate complications or that propose innovation;

Increase cost to client (more staff time and resources).

Best Practice is Good Policy

Competitive and transparent process focusing on merit, quality and long-term value;

Long-term savings realized over decades;

Encourages in-house expertise to represent the client’s and taxpayer’s interests;

Permits innovation and sustainable infrastructure;

Allows for creative risk management.

What’s in it for the Client?

Right team for right job

More realistic schedules and budgets

Fewer change orders and disputes

Better business relationship between client/consultants/contractors/external agencies

Better service, better quality & better value for taxpayers

Who uses this approach?

Legislated by the US federal government and 44 state governments

Municipalities across the US and Canada, including the City of Calgary and the City of London

The Government of Quebec has mandated its ministries and agencies to use QBS for architectural and engineering services

It Works: APWA Study (2009) Georgia Institute of Technology and University of Colorado reviewed more than 200 projects across US;

93% of clients expressed high or very high satisfaction with consultants selected using QBS;

QBS reduced construction cost growth by 70 %;

QBS reduced construction schedule growth by 20%;

QBS provided better ability to address societal issues or stakeholder concerns;

All U.S. Federally funded projects must use QBS.

Selecting a Professional Consultant

An InfraGuide “Best Practice” (June 2006) Developed by the public sector – for the public sector Supported by extensive interviews and research “The recommended consultant selection process is a competitive qualifications-based process”

About InfraGuide

National Guide to Sustainable Municipal Infrastructure:

Federation of Canadian Municipalities

National Research Council

Infrastructure Canada

Canadian Public Works Association

Recognized national network of experts in public and municipal infrastructure

Publisher of over 50 “Best Practice” documents supporting sustainable infrastructure decisions