The BWI and International Contractors Association CICA agree to promote the adoption of improved health and safety and welfare standards in public contracts. Both organisations believe that the lowest price rule increases the risk that the statutory requirements on social security as well as health and safety are not fully respected.

The agreement was signed during the Contractors CICA/BWI/World Bank consultation, 27 - 29 November 2006 in Dubai. The meeting discussed the ongoing reform and harmonisation of procurement standards among the World Bank and other Multilateral Development Banks, as well as the World Bank infrastructure action programme and social objectives in construction contracts.

In 2003, CICA and the BWI already agreed on the need to recognise the key International Labour Standards of the ILO in Public Contracts, including the Core Conventions on Freedom of Association, Right to Organise and Collective Bargaining as well as the Conventions on Health, Safety and Welfare. Crucially, this new agreement highlights the mechanisms by which such social and labour requirements should be implemented.

CICA and BWI agreed on a joint statement on Corporate Social and Environmental Responsibility (CSER).

BWI and CICA agree that the Bidding Documents, contracts and technical specifications for Construction Work should include:

full and clear details of the social requirements that are to be met

as far as possible the costs of these requirements should be priced items in the Bill of Quantities

examples of social requirements include:

Workers transportation

Health facilities and toilets and washing facilities on or in the close vicinity of
the site;

Workers accommodation and related services;

Dwellings for the families of the permanent staff on the site and/or organization of shifts allowing workers to live a decent family life by returning home at reasonable intervals;

Training, collective prevention measures and personal protective equipment to ensure health and safety;

technical specifications regarding the safety of the workers.

"Contractors have control over employment and labour standards, but only within the parameters set by the overall design and budget of the project" says Fiona Murie, BWI Health and Safety Director.

There is intense competition for contracts and selection is based on the lowest price. Therefore, the BWI and CICA believe that it is essential that the client clearly identifies social objectives at the planning stage and incorporates them into the design. They must be included as mandatory components of the tender, and contractors should be asked to itemize the costs of compliance in the Bill of Quantities. Failure to itemize costs leads to failure to implement, monitor and enforce standards.

"So, for health and safety, when a construction project goes out for tender the client must ask contractors to provide their written their Health and Safety Policy, and a project specific health and safety plan that details the hazards they foresee and how they will comply with legislative and contractual requirements to protect the health, safety and welfare of the workers," explains Murie

There is little point including obligations in contract documents that require action on the part of the contractor unless the requirements have been considered at the design and planning stage, budgets drawn up accordingly and a method agreed for monitoring and enforcing compliance.

"The client has to pay, however the contractor has the responsiblity for the day to day implementation of the health and safety and welfare policy" states Assistant General Secretary Marion F. Hellmann.

For the full text of the agreement, click on "Related Information".



Related information