Contractual and financial arrangements for major projects should be subject to greater standarisation, International Federation of Consulting Engineers (FIDIC) chief executive Nelson Ogunshakin has told the World Bank.
Ogunshakin made the case in front of a high-profile audience of government representatives, multilateral development banks, private sector investors and bankers at the World Bank Global Infrastructure Facility advisory council meeting in Singapore.
A Transport for London board member, Ogunshakin was awarded an OBE in the Queen’s 2010 Birthday honours for his contribution to the engineering and construction industry. He is also a former chief executive of the Association for Consultancy & Engineering.
Speaking ahead of the meeting, Ogunshakin said: “FIDIC represents 1.1M engineering professionals in more than 100 countries worldwide and it is clear from our global experience that the more we adopt a uniform approach in the area of contract and financial provision then the more efficient and effective final project outcomes can be.”
At the World Bank meeting, Ogunshakin highlighted the need for wider use of a standardised procurement contractual process which enables allocation of risk to those who are best capable, competent and positioned to manage it.
He also called for greater standardisation on financing documentations.
The FIDIC chief executive’s call for investors to work more closely with developers and consulting engineers has come after this week it was revealed that lending by British banks to UK construction companies has fallen at the most consistent rate since 2011.
This year, in each of the six months to August, outstanding loans to construction and civil engineering firms has declined. The total stock of loans fell by £1.5bn over the period, with declines in housebuilding, commercial construction and civil engineering.
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