CMAdvisor Advancing Professional Construction and Program Management Worldwide For Small CM Businesses, The Best of Times? Using BIM to Create More Sustainable Buildings National Conference Tackles “Four Roles of the CM” July/August 2011 Volume XXX, No. 4 Contents 6 10 July/August 2011 Volume XXX, No. 4 For Small CM Businesses, The Best of Times? National data reveals a CM industry dominated by large firms. Yet sole proprietors and small CM businesses continue to thrive. Their secrets include “a strategic plan, the ability to cut your budget to the bone, and guts of steel.” National Conference Tackles “Four Roles of the CM” The 2011 National Conference & Trade Show will focus on the CM as Leader, Team Builder, Innovator and Manager… and draw 1,000 or more people to Washington, DC. CMAA’s Practitioner Assessment Tool 12Using BIM to Create More CMAA’s new CMpat™—makes it easy to: •Record and verify your experience for the CCM. •Convey your qualifications to employers and clients. •Plan your future professional development needs. 2 CMAdvisor July/August This simple, powerful career management tool helps you gauge where you are today, where you want to be, and how to get there. Sustainable Buildings How does one go from average CM to a “process leader” capable of wielding the power of BIM to achieve a sustainable delivery? One of the best ways is to identify successful projects and CM’s (industry leaders) and model your techniques after their success. COLUMNS 5 Chairman’s Report By David R. Conover, CCM 31 President’s Report By Bruce D’Agostino, CAE, FCMAA DEPARTMENTS 14Professional Practice Corner CMpat is available to CMAA members for just $75 annually. 18 Legal Corner 20 News See how CMpat works and start using it today! Cover photo: The Great Hall of the Library of Congress, once called “the most beautiful public building in America,” is the setting for a memorable CMAA Foundation event at the National Conference & Trade Show. 24 Foundation 25 Certification 26Roundup CMAdvisor July/August FEATURE 3 Introducing CMpat™ CMAdvisor Chairman of the Board David R. Conover, CCM HDR, Inc. President and Chief Executive Officer Bruce D’Agostino, CAE, FCMAA Editor John McKeon Going above and beyond, Contributing Writers Kathleen Davenport Martha Montague MWH Constructors’ commitment to sustainability is ever present Design TGD Communications, Inc. through our low-carbon and renewable construction practices. Through customized CM-at-Risk, CMAA is a construction industry association of 7,500 firms and professionals who provide management services to owners who are planning, designing and constructing capital facilities and infrastructure projects. design-build and construction management services, our focus is wet infrastructure…our goal is Building a Better World. SERVICES: CM-AT-RISK CONSTRUCTION MANAGEMENT CMAdvisor, published bi­‑monthly by CMAA, reports on and follows the industry as a service to its members. Submission of articles, ideas and suggestions is appreciated and encouraged. DESIGN-BUILD FOCAL.Point The Basis of Real Collaboration By David R. Conover, CCM, HDR, Inc. One of CMAA’s goals for the recent Owners Forum was to create a setting in which owners and service providers could talk candidly with each other about what works—and perhaps doesn’t work so well—in this critical relationship. These discussions revealed that collaboration among owners, their staff professionals, and their consultants is generally good, but is often marked by communications difficulties and misperceptions of each other’s roles and priorities. Many owners at the Forum described how they assemble and coordinate “blended teams” that include both their own employees and professionals who work for consultancies and other organizations. We also heard about in-sourcing, the trend for owners to re-assign to their own staff functions that were previously handled by consultants. Some owners expressed concern about whether their staff can handle this expanded workload. Others worried that their agencies’ constrained budgets could lead them to bring work in-house that really doesn’t match up well with the strengths of their personnel. Through all of these conversations, we heard one phrase again and again: Owners want a professional CM on “our side of the table.” The fact is, project teams increasingly come to the table from many different places, with different experiences and attitudes. Blending these teams together isn’t easy. These relationships aren’t perfect, and don’t always function smoothly. Team members may not be confident that can truly rely on each other, and may be hesitant to share control of key processes. The good news is, CMAA has the tools to make every project team better and more able to achieve the best results possible. Paramount among those tools are our Construction Management Standards of Practice (CMSOP), and the internationally recognized Certified Construction Manager (CCM) credential based on the CMSOP. CMAA ©Copyright 2011, ISSN 1084-75327 Reproduction or redistribution in any form is forbidden without written permission of the publisher. mwhglobal.com CMAA members receive this newsletter as a member benefit. For advertising information, contact Tom Egly at tom.egly@tgdcom.com. The principle underlying our SOPs is that the elements of good professional CM are the same regardless of the setting in which the functions are being performed or the affiliation of the practitioner. Our SOPs give owners, staff and consultants a common vocabulary and a full understanding of what CM is like when it’s “done right.” Whatever their backgrounds and internal organizational methodologies, a shared reliance on the SOPs enables everyone in the room to start from the same premises and move forward together. The CCM provides a clear and convenient way of identifying practitioners who have fully understood and committed to doing things “the SOP way.” This common language and commitment in turn fosters trust and respect across various dividing lines. Our SOPs are a proven tool to gain the trust and respect that are indispensable if blended teams are to work in true collaboration. CMAdvisor July/August 7926 Jones Branch Drive, Suite 800 McLean, Virginia 22102-3303 USA Phone: 703.356.2622 Fax: 703.356.6388 Email: info@cmaanet.org Web: www.cmaanet.org 5 STRATEGIC Our Mission is to Promote and Enhance Leadership, Professionalism and Excellence in Managing the Development and Construction of Projects and Programs. CHAIRMAN’S REPORT For Small CM Businesses, The Best of Times? By John McKeon Engineering News-Record’s recent listing of the 100 largest professional services firms reconfirmed a trend that has been shaping the CM/PM market for years: The 20 largest companies on the list commanded more than 87 percent of all the reported fee revenue for the year. CMAA’s membership, though, includes more than 350 sole proprietors or small businesses, i.e., companies with $5 million or less in annual fee revenue. How are these smaller players managing? Given the persistent national economic doldrums, can a small CM make a go of it these days? ICRC of Alexandria, VA, is a former small business that still relies heavily on partnering with small firms. “We believe that one-third of our future growth from a revenue perspective is dependent on good solid partnerships with small business,” says President and COO Carl E. Williams. He cites a little-appreciated factor in the current positive outlook for small companies: The federal government has lost significant numbers of experienced contracting officers. CMAdvisor July/August In fact, some CMAA members say small firms have significant advantages today in competing for and winning major jobs. “All you have to do is look at the majority of the government’s solicitations to see that their main focus is the small business sector,” says John R. Manning, PE, CCM, LEED® AP, principal of Kraus-Manning, Inc., in Orlando, Florida. “Being that the government has been and is currently the only major player in the construction industry, for the most part due to our country’s economic situation, I would say that those individuals who own a small business have an advantage compared to much larger firms.” 7 6 CMAdvisor July/August Yes, says Rebecca Jones, CEO of Safework, Inc., Woodland Hills, California, provided you have “a strategic plan, the ability to cut your budget to the bone, and guts of steel.” “The uncertainties in budgets tend to make the projects smaller and thus less attractive to the bigger players,” Williams says. “With a loss of acquisition talent, it is easier for the contracting officers to award to well qualified small businesses than it is to manage a more complicated full and open competition.” Personal service is another big plus small firms promote to potential clients and partners. “Flexibility, responsiveness, and person-to-person support,” says Chip Ossman of Ossman Project Management Consulting, Inc., Pasadena, California. “The owner has a relationship with a person, a responsible and capable individual, not just a large entity needing to keep a bunch of folks employed.” Adding Value Through Lower Costs Loy says, “As a sole proprietor and a CCM, I actually work on every project… the owner gets the benefit of my 35 years’ experience directly, not through two or three layers of employees between me and the project.” The CM/PM market will probably be even more dominated by large firms in the future, but hundreds of CMAA members are betting that their skills, attitudes, and energy as sole proprietors and small companies will enable them to continue finding clients and building business for years to come. Sound Teaming Strategies John McKeon is vice president of CMAA. He can be reached at jmckeon@cmaanet.org. “All you have to do is look at the majority of the government’s solicitations to see that their main focus is the small business section...those individuals who own a small business have an advantage compared to much larger firms.” Low cost, of course, can be a double-edged sword. “Our biggest challenges are occurring where CM firms are dramatically cutting professional service fees to maintain cash flow,” says Berry. “The competition for existing and new clients is constantly being ‘low dollar’ focused, rather than qualification or performance based.” 8 CMAdvisor July/August Sanford Loy, CCM, president of Construction Plus, Inc., in Knoxville, Tennessee cites another problem: “larger general contracting firms coming into my market claiming to be CMs when they really don’t understand CM services.” Plus…some owners are “taking advantage of the tough labor market to hire at lower salaries within, if they have steady workflow,” says Manning. But Loy points out there’s another side to this coin, as well: “For firms who are bullish on the recovery, it is a prime time to cherry-pick talent larger firms have shed during their cutbacks, which normally wouldn’t be available in the marketplace.” Ossman voices the same view. “Partnering possibilities are only as healthy as the market,” he says. “Sadly, very few large firms need a solo or small consultant, unless that small or solo is a minority/disadvantaged business, allowing the large firm to meet the social engineering goals of the major agencies.” Reaching out to other types of potential partners can also pay off. “The healthiest partnering opportunities, I believe, are with design firms such as large architectural or A/E firms who have visionary leadership that understands the infinite value of having a CM partner on a project to minimize their liability as well as simplify and streamline the construction process,” says Loy. Small CM firms and sole proprietors face the whole range of business challenges that go with an independent or almost-independent status. Rebecca Jones cites “providing a competitive benefit package to employees so that we can attract talent.” She adds: “Cash flow is always at the forefront, even if you have a great relationship with your banker.” Cash flow is also front-of-mind for Niemann. It “can be an issue especially is you are working as a second or third tier subcontractor,” he says “Each tier is multiplied by 30 to get the number of days at a minimum that you will see your paycheck.” The repercussions can be serious, says Manning. “Cash flow is directly related to landing jobs, and we are landing less jobs in part due to the fact that we have had to cut back in marketing. Many small firms have had to cut their marketing budgets and in doing so, it makes it harder to get their firms’ message out in a manner they would like to.” Expertise. Technology. Results. ENERGY AND SUSTAINABILITY MANAGEMENT CAPITAL BUDGETING AND PROGRAMMING SUSTAINABLE PLANNING AND DESIGN PROGRAM AND CONSTRUCTION MANAGEMENT CAPITAL ASSET MANAGEMENT www.mocasystems.com CMAdvisor July/August Skip Berry, president of the Louisville, Kentucky-based Wehr Constructors, notes that “with clients who still maintain the desire for performancebased selections, coupled with the lean professional administrative fees, the opportunities are numerous.” Likewise, many owners are coupling reductions in their in-house staff with an imperative to cut overall costs, notes Janet B. Cunningham, PE, president of JBC Associates, King of Prussia, Pennsylvania. “Smaller CM firms typically have the benefit of lower overhead rates that they can pass on to their clients…Owners can get the same level of service (as with a large firm) but at a lower cost, with a smaller CM.” Partnering with other firms is a perennial strategy for small CMs, but it’s important to look beyond the role of subcontracting to a larger firm. In fact, larger firms may not be the most promising team-building avenue. “My experience is that the teaming opportunities are greater with smaller, ‘startup’ CM firms than they seem to be with the larger corporations,” says Todd W. Niemann, CCM, of TWNiemann, Inc., San Clemente, California. 9 In addition to their ability to appeal to government owners, small businesses bring major financial and management assets to the table. “There are many qualified companies or teams that can pass the technical qualifications of a bid,” Williams says. “The federal government is really looking at the lowest cost once a set of technically qualified respondents is identified, so the key to winning is having the best price. Small businesses, with their lower rate structures, add value by reducing the price.” Niemann says, “The volatile market seems to wreak havoc on projects and funding, thus making projects literally moving targets.” And project delays—from budget, political or legal causes—can also squeeze cash flows. Loy comments, “The impact on cash flow is more severe than for larger firms because you may see a 30 to 50 percent reduction in revenues temporarily, if only one or two projects get delayed.” NOVEMBER 6 – 8 The CM As Leader The CM As Innovator • Building the 21st Century Construction Manager • Use of Innovative Risk-Based Engineering Approach and Automated Web-Based Solution to Manage Quality Assurance • Effective Leadership and Organizational Change: A Long-Term Project Success Story • Project and Program Leadership—Do You Have What It Takes? The 2011 National Conference & Trade Show will draw 1,000 or more people to Washington, DC in November for a program that includes a sold-out exhibit hall, 40 high-level educational sessions, extensive professional networking opportunities, and a keynote presentation by key executives of three of the most active federal transportation agencies. The overall conference theme is “Building on the Cornerstones of Professional Practice.” Sessions will focus on the four roles of a successful CM: • The CM As Team Builder • The CM As Innovator • The CM As Manager The full 40-session program is summarized on the opposite page. “We received nearly 100 proposals,” notes CMAA President Bruce D’Agostino, “which has enabled us to be highly selective in choosing the most timely and compelling presentations for this conference. Three Transport Execs Keynote Tuesday Lunch Tuesday’s awards and keynote luncheon will feature remarks by the deputy administrators of three key federal transportation agencies: • Gregory Nadeau of the Federal Highway Administration CMAdvisor July/August Spurred by the growth and success of recent trade shows, the 2011 exhibitors had completely filled the CMAA exhibit hall by June 1, the earliest date ever. • Karen Rae of the Federal Railroad Administration • Therese McMillan of the Federal Transit Administration Each of these leaders will update CMAA attendees on the latest policy and budgetary developments affecting his or her area, and describe current infrastructure construction and rehab projects. • Looking Into the Crystal Ball: Predicting Trends and Innovations in the Construction Industry • The Connected CM—Beyond Mobile Applications A “virtual trade show,” with descriptions of all exhibitors and links to their websites, is available here. • This Land Is Their Land: How Successful Communication and Outreach Programs Result in Sustained Public Funding for School Construction Exciting Technical Tours • Leveraging for Realignment: Best Practices for Troubled Projects I-495 HOT Lanes and Dulles Metro Corridor Mega Project Saturday, November 5, 2011, 2:00 – 4:00 pm plus travel time. Two major projects overlap in Northern Virginia: Adding HOT lanes to the Capital Beltway and extending the Metro subway system through Tysons Corner to Dulles International Airport. • The CM As Leader 10 Exhibit Hall Sells Out Early • Innovations in Sports Construction: Building, Technology and the Bottom Line • Sustainable Iraq: Knowledge Transfer and Professional Development Sidwell Friends Middle School Sunday, November 6, 2011, 1:00 – 2:00 PM plus commuting time. The facility demonstrates a responsible relationship between the natural and the built environment. Features include green roof, constructed wetland, passive solar design, wastewater reuse, and more. • How to Challenge our Newest CMs Lincoln Memorial Reflecting Pool Rehabilitation Sunday, November 6, 2011, 2:00 – 4:00 tentative The National Parks Service’s largest ARRA project includes a full replacement of the Reflecting Pool’s structural and water systems and comprehensive site upgrades to enhance the perimeter security, circulation, and accessibility in the surrounding area. • Construction Management and Integrated Project Delivery Martin Luther King, Jr. Memorial Project Monday, November 7, 2011, 1:30 – 3:00 plus commuting time. The memorial is a huge partnering success story. Four companies that made up the design/build team; additionally, there were challenges in working with the sculpture team in China. The experience of creating a national, design/build project on the National Mall will also be presented. • The Modernization of the GSA Headquarters: A Transformational Project National Zoo Seal and Sea Lion Exhibit Monday, November 7, 2011, 2:30 – 3:30 plus commuting time. This $28 million project represents a complete rebuilding of the two-pool Seals and Sea Lions exhibit facility, a state-ofthe-art upgrade to its animal life support systems, and a new wave machine. The project includes four holding pools and two exhibit pools. The CM As Team Builder • Applying CMAA Standards of Practice and Partnering to Construct the US/Mexico Border Fence • How to Build an Environmental Project That Happens to Include 18 Miles of Highway • Logan International Airport Economy Parking Garage • M&A and Partnering Transactions that Combine Design and Construction—What You Need to Know • Rebuilding the Cornerstones of our Nation’s Capital; Managing Construction of Landmark Federal Buildings • Overcoming Adversity, Conflicts, and Time Constraints while Creating a World Class Construction Management Team: Case Studies of the San Francisco Oakland Bay Bridge Seismic Retrofit and the Alvarado Water Treatment Plant Expansion Programs • Year Four of the Ten Year Portfolio: Evaluating the Collaborative Effort to Modernize the DC Public School Facilities, the Sustainable Way • The Benefits of an Integrated Project Team in a Multi-Prime Delivery Approach • 4 CM Research Reports—Science for Use in the Real World (Two sessions, two research reports in each session.) • Leveraging BIM for Project Team Collaboration and Enhancing Campus Sustainability on Onondaga Community College’s Capital Program • Electronic Project Information Tracking from an Engineer and Owner Perspective • Beyond Construction—Leveraging Technology to Deliver BIM for Owners • The Role of the CM in Implementing BIM • Using Building Information Modeling to Create, Manage and Eventually Maintain Sustainable Projects The CM As Manager • How to Avoid Claims Against the Construction Manager • An Owner’s Guide to Construction Management on Large Programs • CMAA v. AIA v. ConsensusDOCS—A Comparison of Key Contract Provisions in Construction Management Contracts • The Construction Manager as a Facilitator in Dispute Resolution—An Ounce of Prevention Beats a Pound of Cure • Protecting Owner’s Interests by Effectively Teaming with Legal Staff • The Matthew Knight Arena Project: The Successful Completion of a Private Project Gone Public • The Great Resource Dilemma—How Did We Get Here and What Are We Doing About It? • What is Required to Justify a Time Extension & Some New Rules • Meeting Owners’ Expectations for Construction Managers to Minimize the Risk of Unanticipated Claims and Litigation • Managing Project Labor Agreements • Managing Project Close-Out More Effectively CMAdvisor July/August “FOUR ROLES OF THE CM” Building on the Cornerstones of Professional Practice REGISTER TODAY! 11 National Conference Tackles GRAND HYATT BIM software facilitates an improved way of working collaboratively, using a model created from coordinated and consistent design information. This process enables earlier decision-making, better documentation, and the evaluation of alternatives for sustainable design or improvements using analysis before construction begins. BIM data can be used to quickly analyze the various performance aspects of a facility including massing, DOE2 energy modeling, envelope analysis, and a number of other key performance areas, all to optimize energy efficiency. Two products currently on the market are Autodesk®Green Building Studio® and Autodesk Project Vasari. Green Building Studio® is a web based analysis engine allows the user to analyze the energy performance and carbon footprint of a design and to generate a number of design alternatives without ever modifying the original model. Project Vasari combines a BIM “eggshell” modeler with Green Building Studio and key Ecotect functionality all in one modeling product. Daylighting is another form of analysis that is made possible and even streamlined in the BIM process. Daylighting is a means of utilizing natural light to illuminate buildings and reduce light, heating, and energy loads. This analysis, once a costly or difficult venture for design firms given software availability, the complexity of calculations, or the added expense of hiring a consultant, is growing in popularity and application given current BIM software usability. With the emerging role of technological improvements in BIM software to enhance the design process, the role of Construction Manager (CM) must therefore change with the times. CMAdvisor July/August Using Building Information Modeling to Create More Sustainable Buildings So how does one go from average CM to a “process leader” capable of wielding the power of BIM to achieve a sustainable delivery? One of the best ways to gain an understanding of any topic is to identify successful projects and CMs (industry leaders) and model your techniques after their success. The National Oceanic and Atmospheric Administration (NOAA) Research Building in San Diego is a perfect example of how the successful integration of BIM can streamline the design and construction process resulting in a sustainable building. In 2007 the National Oceanic and Atmospheric Administration (NOAA) initiated the La Jolla Laboratory Replacement Project. NOAA selected a proven team of more than a dozen consultants working around the country. The architectural firm Gould Evans served as the architect of record and was responsible for coordinating the team’s efforts. To help maximize coordination amongst consultants, the team used Autodesk ® Revit ® Architecture, Structure®, Navisworks® and 3D Max® Design Software. The project team used BIM to solve a variety of complex owner issues. For instance, the end users had to understand if they would be able to move large pieces of marine equipment—such as ocean buoys or small submersible devices, through the facility and into the ocean tank. The designers used BIM to model the flow of the equipment through the building to discover any unanticipated barriers and corrected them on the computer before they had to deal with problems in the field. The design team also faced very challenging site conditions with an extreme slope on one side and a tight hairpin turn to contend with on the other. BIM modeling made it easier to accurately design the building and understand how the slope affected the building. The team felt that using the modeling tools not only helped the design process but also streamlined the construction process in the field, minimized mistakes, and ultimately reduced waste from construction. CM’s can also use BIM software to streamline the process of obtaining LEED® certification. For example at NOAA the team used Revit Architecture to perform area and volume calculations and speed up the quantity take-off process. They also used BIM to perform many of the calculations needed to include in the LEED certification submittal. After construction is complete, the CM and the owner will be left with an accurate as-built record where the O&M database, which includes technical and warranty information, can be linked to the model. This record can be an invaluable tool in maintaining all of the green features incorporated into the building and yielding the anticipated performance. It is critical that the modern CM understands and develops skills for managing, leading and constructing that incorporate a solid foundation in BIM to create more sustainable outcomes for clients. While the composition of a project team may vary based on Owner needs, local laws and project requirements, the CM has a central role to play in the successful outcome of a project. To be effective, the modern CM needs to be aware of the tools and trends that will save time, reduce cost, mitigate risk and provide for a better end product. Moreover, the CM industry and organizations such as CMAA must promote the development and mastery of the skills required to manage the BIM modeling process through the development of standards, guidelines and practical learning opportunities. Equipping today’s CM with these essential skills is the key to creating real value for the customer, client and Owner which will translate to repeat business, greater profitability and a more sustainable building. Jen Creighton is a Project Director at McKinstry in the Energy and Facilities Division. Sarah Dreger is Director of Virtual Design and Construction at McKinstry. Marty Turner, CCM is the Program Cost Manager for McKissack & McKissack at the O’Hare Modernization Program. The National Oceanic and Atmospheric Administration (NOAA) Research Building in San Diego is a perfect example of how the successful integration of BIM can streamline the design and construction process resulting in a sustainable building. GOULD EVANS PHOTOS CMAdvisor July/August Have you heard a lot of buzz about Building Information Modeling (BIM) but are not sure what it all really means to a Construction Manager? You’re not alone. Once considered “emerging” or “cuttingedge” topics within the industry, both BIM and sustainability are fast becoming the norm for the modern construction projects. Today’s complex projects and sophisticated clients are looking for ways to innovate, reduce cost and save time while still creating lasting and sustainable buildings and systems. 13 12 By Jen Creighton, Sarah Dreger, & Marty Turner PROFESSIONAL PRACTICE CORNER Construction projects represent substantial investments at risk both for owners and contractors. Owners invest massive amounts of money to get a final product of acceptable quality, whereas contractors invest hugely to deliver a profitable product. Today’s construction operations rely on each contributor performing to the agreed upon work plan and schedule. And that work plan and schedule must be valid, reasonable, rational and achievable if the project is to be successfully and profitably completed. Today more capable scheduling hardware and software have made construction scheduling a highly sophisticated engineering specialty. Old practices have been replaced by complex practices, processes, and techniques. These factors contribute to create today’s situation in which construction schedule practices contain many misuses or omissions. For instance: 14 CMAdvisor July/August • Illogical activity logic and relationships are common. • Resources [the basis of all schedules] are either not considered or, if they are, then they are either not scheduled ‘forward’ to reduce usage peaks and valleys, or ‘backwards’ to prevent end-of-project buildups. (Only one in eight contractors even consider resources to develop their schedules.) • Earned Value and Earned Schedule concepts are infrequently used to monitor performance and progress. • Date constraints are overused, effectively forcing a workplan into a preconceived schedule. • Work calendars are used inappropriately. • Line-of-balance scheduling for specific trades is not considered; and • Outright abuses set the stage for future claims. Construction planning and scheduling practices have become more complex as they have matured and can produce a greater degree of management and control, but they also are vulnerable to incorrect procedures, illogical sequencing, misuse, and outright abuse. Even if supporting explanations and data are provided there can still be many hidden tricks and techniques that were used to develop the schedule. This means all of the underlying aspects of the construction schedule need to be checked and validated for the sake of transparency and contractual balance between the parties involved. In a world of increasingly complex projects, progressively tighter deadlines and shortage of available resources, validation and auditing are important tools to ensure the proper management of the schedule, and in increasing its transparency. If today’s construction schedules are properly prepared, Construction Managers, owners, suppliers, and subcontractors have an efficient and effective management tool to control complex construction projects accomplished by a diverse array of suppliers, and specialty subcontractors. However, the if needs to become when. And this means all of the underlying aspects need to be checked by an independent, qualified and experienced master construction scheduler’s validation-auditing team. It is routine to find investors resorting to second and third evaluations, e.g. due-diligence appraisals by mortgage investors, to gain a level of confidence in the outcome and the return on their investment. This typical process is not a common practice in construction, but owners and contractors can have solid benefits by adopting scheduling validation procedures and periodic progress audits. What is schedule validation? Schedule validation is a process by means of which owner and contractor resort to the expertise of a third party to validate the project schedule in all its features and components. Validation is thus an external analysis to ensure that a foremost contract instrument, the schedule, is correct in scope and assumptions, as well as free from all sorts of pitfalls and booby traps. The validated schedule should represent the model of how the contractor intends to carry out the work plan’s activities, and how the owner is supposed to get the project delivered. Once the baseline schedule developed by the contractor is submitted to its client, the “validators” run a general sanity check, assessing the reasonableness of the schedule in terms of observance of the milestones and completion date[s], productivity rates and resource allocations, and the contract’s logical work sequence. The validating team then checks if the entire scope of work is contemplated in the schedule, the means and methods proposed, requests adjustment of some assumptions, raises questions to the contractor and points out problems regarding the form and/or the content of the schedule to both the contractor and owner. In the validation process the electronic database used to prepare the proposed schedule is broken down to reveal all of the date constraints, resource restraints, tools, processes, and techniques applied to the work organization, and schedule activities. All of this information is analyzed given the contractor’s means and methods. Standard practices and experienced judgment are then used to validate the correct application of schedule preparation and development principles and then determine the reasonableness, realism, and risk of the proposed work plan and schedules. The final product, or deliverable, of the validation process is the validated baseline, a schedule that can efficiently serve as a reference for monitoring and controlling the progress of the project. The contract management issues such as delays and claims resolution can then be carried out based on the validated baseline schedule. What is schedule auditing? As progress proceeds, auditing of performance in relation to the planned schedule baseline must be done. Typically a construction schedule is statused at least monthly. It is the contractor’s responsibility to assess the status of progress, enter that status into the current schedule database and analyze its outcome. In each one of these reviews deviations from the original plan invariably occur, due to fluctuations of labor and/or equipment productivity, unforeseen and differing site conditions, labor shortages, external interferences, design defects, change orders, owner-directed or contractor-initiated accelerations, and force majeure. “In a world of increasingly complex projects, progressively tighter deadlines and shortage of available resources, validation and auditing are important tools to ensure the proper management of the schedule, and in increasing its transparency.” The current schedule database is audited for the correct entry of actual dates, resource utilization, and performance as to both productivity and in relation to the planned schedule. A comparison of actual start and finish dates to the planned dates is made and actual versus planned resource histograms are charted. In addition, the earned value charts for all significant resources (earnings, man-days, pacing resources, and/or material placement) are statused with the progress and performance as of the audit date, and a current earned schedule analysis is prepared. This is why the initial validation alone is not enough. The validation process also calls for a schedule auditing procedure that complements it and keeps transparency in the schedule. CMAdvisor July/August By Earl Glenwright, PE, MBA, PSP Before you begin on your construction journey, it is better to know where you are really going, rather than later learning where you were (and wish you weren’t). 15 The Case for Construction Schedule Validations and Periodic Audits PROFESSIONAL PRACTICE CORNER The main questions to be made by the schedule auditors are: • Schedule validation and auditing can be used to minimize the impact of construction conflicts because it can detect the issues at the beginning or in due time to allow corrections and negotiations. • Has the project reasonably proceeded according to plan? • Have the change orders approved by the owner been incorporated into the work plan and schedule? “From the owner’s point of view, it is necessary to know that the contractor’s plan and schedules are realistic and achievable as these documents also indicate what actions the owner must accomplish in order not to delay the contractor’s progress while avoiding submittal review and approval overload.” • Is their scope of work reasonably described in terms of new activities (or adjustment to planned activities)? • Has the progress in the current period impacted the project completion date? 16 CMAdvisor July/August • Have all changes and impacts been documented and addressed to the owner? Who can benefit from schedule validation and audits? Owners and contractors will both benefit from schedule validations and audits. From the owner’s point of view, it is necessary to know that the contractor’s plan and schedules are realistic and achievable as these documents also indicate what actions the owner must accomplish A valid, reasonable, and rational work plan and schedule minimize the inherent risks of budget overruns and late delivery of the project’s product. For owners, some of the benefits are: • Upon being validated and audited, the schedule becomes more reliable and technically stronger to preserve the contractor’s and owners rights when preparing claims and requesting compensation; A second time for auditing and reappraisal is when the erection of structures are “complete” and the finishing work done by multiple specialty trades can begin. At this point a new “estimate to complete” and “estimate at completion” can be made. • The presence of validators/auditors induces the contractors to better plan and control the job. The final time when an audit is desirable and/or required is at the completion of the project to document the as-built schedule. When validation and auditing are performed, analysis of schedule related claims and their resolution becomes a quick process. When should validation and audits be done? • Assurance of adequate timing and phasing of the contract scope of work; Validation occurs when the original work plan and the project schedule developed by the contractor, sub-contractors and suppliers is submitted to the owner prior to the start of any construction field-site work, with the possible exception of mobilization, site preparation, ordering of long-lead time equipment or materials, permits, excavation, and installation of in-ground site utilities. It is then evaluated by and approved as valid, reasonable, rational, and achievable: • Minimization of schedule manipulation by claim-oriented contractors; • Valid, to be accepted and recognized as an official instrument of communication and commitment; • Assurance of proper project progress status; • Reasonable, because based on assumptions that do not go beyond the limits of common sense; • Assurance of a valid, reasonable, rational and feasible schedule; • Assurance of proper documentation and traceability; • Better information for contemporaneous project analysis; • Immediate detection of delays, deviations, and trends; • Issues are raised in time to allow for corrective and preventive measures, analysis of alternatives, scope adjustments, etc; • Less susceptibility to late claims by contractors; • Less need of arbitration as a last resource to solve disputes. Contractors also need to know that their subcon‑ tractors and suppliers can perform as needed and promised, and also that the contractor’s own forces can function effectively and efficiently. For contractors, subcontractors and suppliers, some of the major benefits are: • Detection of errors in scope definition, relationships between activities, milestones, resource allocations, etc; • Rational, because it incorporates proper construction methods, production rates, calendars and resource availability compatible with the environment and location of the project; and Conclusion Construction work scheduling has become a complex process as it attempts to model the real world of building a project Consequently a schedule becomes vulnerable to inappropriate practices, misuse, abuse, and gamesmanship. Contractors and owners have too much invested to ignore the benefits of an independent baseline validation and periodic audits. The validation expense is nominal: the return on investment is large. Earl Glenwright, PE, MBA, PSP can be reached at earl_csss@yahoo.com. • Achievable, because its goal is meeting the construction of the project’s requirements in terms of scope, time and resources. Validation is an extensive process and can be time consuming both initially and after each re-submittal of the proposed baseline ‘planned’ construction schedule until a valid baseline schedule is accepted by all significant stakeholders: owner, contractor, subcontractors, suppliers, financing entities, and permitting agencies. Auditing must occur several times during the execution phase of the contract. The first such audit should be done at about 20 percent completion to recheck the initial durations, resources, and productivity estimates. This audit may coincide with the completion or near completion of the excavation and installation of the in-ground utilities. At that point the major ‘unknown unknowns’ and risks are resolved. In consideration of the actual results, a revised work plan and development of a new baseline schedule in accordance with the known conditions and better estimates can be made. CMAdvisor July/August in order not to delay the contractor’s progress while avoiding submittal review and approval overload. 17 Whereas the focus of the initial schedule validation was on quality, completeness and adequacy of form, in auditing the focus shifts to performance. Statusing a schedule is all about monitoring how much modification it has undergone since the previous review. The modifications can be in scope, logic, durations and project completion date. LEGAL CORNER When Is a Small Business Contractor Really “Small?” An Overview of Improper Affiliations Under SBA Regulations By Adam M. Tuckman, Esq. Watt, Tieder, Hoffar & Fitzgerald, LLP 18 CMAdvisor July/August “An affiliation may exist when a small business acts as the prime contractor in name only and essentially delegates essential project responsibilities to a large subcontractor. An affiliation of this type is prohibited under the SBA regulations.” Central to any size determination, SBA regulations define an “affiliation” to exist when one entity has the power to control the other, or a third party has the power to control both. The consequences of a “affiliation” finding may be severe. When a contractor is affiliated with another entity, the SBA will impute the size of the affiliate to the contractor seeking the award of the prime contract. Thus, when the combined size of the bidding contractor and its affiliated entity exceeds the applicable size standard for a project, the contractor is considered to be other than “small,” and therefore, ineligible for the small business set-aside contract. The SBA examines numerous Informing prospective business decisions, the SBA regulations provide numerous indicia of affiliation to serve as guideposts for industry participants to consult in advance of entering into relationships that may later lead to disqualification from a small business set-aside award. For instance, with a few exceptions, contractors comprising a joint venture are deemed affiliated with each other, as well as the joint venture itself, by virtue of their relationship. Contractors also will often be considered affiliated when the same individual(s) share ownership or management interests in both firms. In addition, an affiliation may likely be found if a familial relationship exists between the owners or managers of the contractors being considered. Moreover, contractors are presumed to be affiliated when a former key employee establishes a new business and receives assistance from the former employer. SBA regulations forbid affiliations of this kind under the “Newly Organized Concern Rule.” Evidence demonstrating a “clear line of fracture” between the newly organized concern and the former employer is necessary under the SBA regulations to rebut the presumption of an affiliation. Lastly, an affiliation may exist when a small business acts as the prime contractor in name only and essentially delegates essential project responsibilities to a large subcontractor. An affiliation of this type is prohibited under the SBA regulations by the “Ostensible Subcontractor Rule.” Under this rule, a small business will be found affiliated with a large subcontractor on the project that is performing “primary and vital” requirements of the contract. Primary and vital requirements can include performing contract management, technical responsibilities, a large percentage of actual labor, and providing financial and bonding assistance. It is essential for a Construction Manager, or any company considering entering into a relationship to pursue small business set-aside work, to consult the SBA regulations and obtain legal advice concerning its application when necessary. It is also important for Construction Managers advising federal agencies in their procurement of small business set-aside projects to fully understand SBA regulation of improper affiliations. A Construction Manager should carefully review the entirety of the SBA regulations bearing on these issues and confer with an attorney if questions remain. Adam Tuckman is an attorney at the law offices of Watt, Tieder, Hoffar & Fitzgerald, LLP in McLean, Virginia. Mr. Tuckman’s practice covers all facets of construction law, including complex dispute and claims resolution, contract administration, construction risk management, and government contracts. He can be reached at atuckman@wthf.com One Rigging Accident Could Cost You Million$ Our Customers Receive these Benefits at NO Additional Cost: Over 3,000 Contractors & Over 100,000 Ironworkers Can You Afford NOT to Hire Us? w w w. i ro n w o r k e r s . o rg 800.545.4921 w w w. i m p a c t - n e t . o rg Recognized as Construction Industry’s Highest Training Requirements Ironworker Qualified Signalman Training meets ASME (B30) Ironworker Qualified Rigging Training meets ANSI (A10.42) 80 Classroom Hours of Rigging & Crane Training 1,200 Hours Minimum of On-the-Job Training Trained & Verified by Professional Ironworker Instructors State-of-the-Art Training Materials Online Tracking System Network of over 150 Training Centers in the USA & Canada Certified by the U.S. Department of Labor Follow us on Facebook, Twitter & YouTube CMAdvisor July/August The expansion of opportunities for small business set-aside contracts has attracted many players. As might be expected, contractors are entering into business relationships to secure small business contracts. These relationships, however, must comply with stringent SBA regulations. The SBA requires contractors to comply with qualification requirements (when applicable) and certain size standards so that small business set-aside projects are only awarded to their intended beneficiaries. In addition to satisfying the particular socio-economic criteria, the SBA regulations also call for reviewing the size of the contractor as well as its affiliates. factors to determine whether small business contractors have affiliates. SBA regulations instruct that the SBA will consider each potential nexus point under a “totality of the circumstances” analysis. 19 Recently, the Federal Government has placed a spotlight on federal projects set aside for small businesses. The rationale for these set asides is to foster access to federal procurement among businesses of all sizes. The Small Business Administration (“SBA”) has reported that federal spending on small business contracts increased by $4 billion from FY 2008 to FY 2009. Further, according to SBA preliminary figures, approximately 30 percent of economic stimulus funding was directed to small business contracts from 2009 through 2010. NEWS Program Announced for Rising CMs Conference Directors, Officers Nominated CMAA has announced the program for the new, 1½ day Rising CMs Conference taking place November 5–6 in Washington, DC. The CMAA Board of Directors Nominating Committee, chaired by past Association Chair Gary Cardamone, has proposed a slate of three candidates to fill available positions on the Board of Directors. The proposed roster of CMAA officers for 2011–2012 is: The Committee’s recommended candidates are: Chair-Elect: Michael Potter, PE, CCM, RK&K • Jan Turner, LEED® AP, Vice President, Cotter Consulting, Chicago, Illinois. Jan has more than three decades of industry experience and has long been active in CMAA, including holding a number of Chicago Chapter offices, including president. Secretary-Treasurer: Judith Kunoff, AIA, CCM, LEED AP, MTA New York City Transit • CMAA: The Professional Community for CMs, a presentation focusing on CMAA’s Standards of Practice and professional development programs. • Industry Senior Executives Panel • From CMIT to CCM, an exploration of the best way to pursue the profession’s leading credential. • Recent CCMs Panel • In-Career CMITs Panel • “How to Win the Job” workshop • Owner Best Practices: U.S. Army Corps of Engineers • Three research project presentations by CMAA student chapters. CMAA has announced two additional incentives for attendance at the Rising CMs event. Any CMIT or student member who registers, at the normal rate, for the full National Conference will be able to attend Rising CMs at no additional cost, and attendees at the Rising CMs event will be welcome to attend National Conference educational sessions on Sunday afternoon. 20 CMAdvisor July/August Dave Conover, CCM of HDR, Chairman of CMAA, comments, “Launching the Rising CM Conference is part of a growing CMAA effort to address our industry’s long-term challenges in developing and recruiting the skilled professional workforce we will need. We hope not only to attract young people to the industry but to help them succeed right from the start.” “Our goal in organizing this new conference is to reach out to industry newcomers and prospective entrants, familiarize them with the career paths and opportunities available in the Construction Management profession, and put them in touch with companies and individuals who can guide them in their early careers,” says CMAA President Bruce D’Agostino, CAE, FCMAA. • Sandy Hamby, AIA, CCM, Vice President, MOCA Systems, San Antonio, Texas. Sandy chaired the highly successful 2011 Owners Forum, is past president of the South Central Texas Chapter and has served on CMAA National’s Professional Development and Regional Chapters Committees. • Julie L. Labonte, PE, Director, San Francisco Water System Improvement Program. Julie has more than 22 years of utility engineering and management experience both in the private and public sectors. In addition, the following directors are nominated for re-election: • Mike Griffin, PE, Hill International Vice-Chairs: Ray Brady, CCM, MWH Americas Bill Heitz, CCM, Heery International Milo Riverso, PE, PhD, STV Sam Sleiman, PE, CCM, Massachusetts Port Authority Nominations may also be made by the general membership. A petition to nominate an individual must be signed by at least 10 members of CMAA and submitted to the Nominating Committee at least 60 days prior to the Annual Meeting—i.e., September 7, 2011. All nominations from the membership must conform with the qualifications for the specific office and must be made using the forms and procedure provided at http://www.cmaanet.org/CMAA_Board_Nominations. • Paul Nelson, CCM, Doe-Run Corporation • Mani Subramanian, AIA, CCM, Vanir Construction Management 100+ Projects Vie for Achievement Awards CMAA has once again received more than 100 submissions for the Project Achievement Awards program. A group of nearly 20 judges is reviewing the submissions to select the projects that will be honored at the Industry Recognition Banquet in Washington on November 8. Awards will be given in 15 categories embracing buildings, infrastructure projects, and programs or program phases at different levels of constructed value. CMAdvisor July/August Other highlights of the program include: Chair: Ron Price, CCM, Parsons Brinckerhoff 21 One centerpiece of the event is a Career Fair and “speed networking” session on Saturday afternoon, which will give attendees a chance to meet briefly with a large number of prospective employers. Immediately after the Career Fair, attendees will be able to meet members of the CMAA National Board of Directors at a special social function. NEWS ACE Program Continues to Thrive D’Agostino Updates Owner Survey for CII Alliance Continues to Grow “The program is exploding in scope. We’re outperforming every other after school program in the United States, bar none.” Speaking at July’s Annual Conference of the Construction Industry Institute, CMAA President Bruce D’Agostino provided an update on the 2010 CMAA/FMI Owners Survey, which gauged significant staff reductions among owners and their views of the likelihood of future hiring. CII will also present a session at the fall Performance Improvement Workshop presented by CII in Houston, Texas in October. “The great thing about ACE,” he explained, “is that it is an industry selling an industry. It’s not architects, engineers or contractors selling their own individual discipline. It’s introducing these kids to the broad industry called construction. Basically, what these kids learn is not only what this industry is about but how teamwork and all the participants working together make these projects happen.” CMAdvisor July/August CMAA has created a new “landing page” on its website where members can access all the latest activities and benefits of the “Best Practices—Best Practitioners” alliance, including discounts on event registrations, publication purchases, and the like. • 72% agree that “Large spending cuts by owners have resulted in significant purging of construction industry providers.” A high level working group continues to move forward with its effort to compare CII’s Best Practices and CMAA’s CM Standards of Practice. The goal of this project is to integrate all of CII’s 14 Best Practices into the SOP. ACE’s rewards for leaders and mentors are substantial, Thornton adds. “It’s amazing to watch the development of these high school kids from the early meetings in October through the end of April and May of the following year. The kids just blossom. They become unbelievably interested and interesting young people. They have this feel they can do anything.” • 25% believe the “frozen” hiring situation described last summer has since improved. What’s most needed for ACE to continue its success, Thornton says, is more involvement by industry partners. “We need more companies to supply mentors,” he explains. “Everybody wins. The companies win because they give back to the community. They get their middle management and young people mentoring, and they learn public speaking, how to make public presentations. Think about it, walk into a room with 25 teenagers and keep them occupied for two hours. That is not an easy thing to do. In conclusion, D’Agostino noted that constrained resources mean owners will be outsourcing more and more of their Construction Management functions, and “blended” teams of in-house and consultant CMs will be more and more common. Particularly encouraging to Thornton is the fact that so many ACE students “are staying in our industry. One of the reasons for that is the growing passion and satisfaction that shows on the part of the mentors. 22 • 74% of this summer’s survey respondents agree with the comment that “Owner organizations have downsized too much and cannot adequately staff significant project workloads.” LISTEN NOW to the CMAA Radio interview with Charlie Thornton. Next Up: CMAA Radio interviews Harlan Kelly, PE, assistant general manager, infrastructure at the San Francisco Public Utilities Commission, about his agency’s $10 billion-plus capital program. Check CMAA’s home page for the link! • 36% say their likely timeline for future hiring has improved since last year. Plans for 2011 Survey Underway CMAA has also launched preparations for the 12th edition of the Survey of Owners, which will be conducted over the summer and presented for the first time at the National Conference & Trade Show in November. The new Owners Survey will measure the effect of national economic conditions on owners’ procurements, including whether owners are seeing dramatically lower bids and more bid protests. It will also assess how owners manage project close-out and what obstacles or shortcomings they are encountering in this critical process. Finally, the survey asks owners to define the kinds of support they need and want from their in-house or consultant CMs. Refer a Member and Win! Refer a membership prospect to CMAA and you could win a free iPad or a complimentary registration to an upcoming CMAA conference, either the National Conference & Trade Show in Washington, DC, or next year’s Owners Forum in Long Beach, California. The new round of CMAA’s “refer-a-friend” program continues through September 30. CMAdvisor July/August “We now have 12,000 high school kids in the program this year alone, in 400 cities, through 57 affiliates in 32 states, and as of this month we will have given almost $11 million in scholarships since we started the program,” Thornton said. A brief follow-up survey among CII and CMAA owner members generated about 100 responses and largely reinforced the findings of last summer’s survey. D’Agostino pointed out several striking findings, though: The session will address strategies for staff professional development based on pursuing the Certified Construction Manager credential. Planned speakers include representatives of the U.S. General Services Administration, the Department of Veterans Affairs, and such service provider organizations as URS, Black & Veatch and Parsons. 23 That’s how Charlie Thornton, founder of the ACE Mentor Program, describes the program in its 17th year of introducing high school students to careers in architecture, construction and engineering. Thornton, who was CMAA’s 2011 Person of the Year, is also chairman of Charles H. Thornton & Company, and was a long-time principal of Thornton Tomasetti. In a recent CMAA Radio interview, Thornton told CMAA President Bruce D’Agostino about ACE’s current success and growth. CERTIFICATION When it opened in 1897, the Jefferson Building of the Library of Congress was called “the most beautiful public building in America,” according to Librarian of Congress James H. Billington. This spectacular, historic structure will be the setting for a memorable benefit reception for the CMAA Foundation on Monday evening, November 7, during the National Conference & Trade Show. Foundation supporters will gather in the Great Hall of the Jefferson Building, whose ceiling, 75 feet overhead, features stained glass skylights and beams decorated in aluminum leaf. More than 40 artists creates the numerous statues, reliefs, murals and other artwork surrounding you. It’s a spectacular setting for food, drink and congeniality. Help the CMAA Foundation craft a brighter future for our profession as you browse such wonders as the magnificent Main Reading Room and an original Gutenberg Bible! Or gaze through the front windows at the floodlit Capitol dome and the Washington Monument. It’s sure to be an all-time highlight. Register now! “Few structures represent human thought and aspiration in such dramatic fashion.” (John Y. Cole, Jefferson’s Legacy: A Brief History of the Library of Congress, 1897) Congratulations to Our Newest CCMs! Connie Lea Allen Salt River Engineering, PLLC Harrodsburg, KY Roger Elkins VDOT Jonesville, VA Augustine Ibrahim Angba AECOM Arlington, VA Mark Essert STOA Architects Pensacola, FL Barry Bennett Tierce KBR, Inc. Tampa, FL Vincent Falkowski The LiRo Group Syosset, NY Brian Bechet AECOM Technical Services Northeast Inc Boston, MA Richard Farr ARCADIS U.S., Inc. San Diego, CA Margaret Bergamini Federal Bureau of Investigation Quantico, VA Stephen Boyles AECOM Arlington, VA Wheeler Bradley KBA Construction Management Bellevue, WA Preston Breeding A. Morton Thomas & Associates, Inc. Lebanon, VA 24 CMAdvisor July/August Bond Becomes Foundation Chair Edward A. Bond, Jr., CCM, FCMAA, LEED AP, Chief Executive Officer of Bond Brothers, Inc., Everett, Massachusetts, has become chairman of the Board of Directors of the CMAA Foundation. Bond succeeds Randy Larson, PE, CCM, FCMAA, who remains on the Foundation Board although he asked to step aside as chair. Succeeding Bond in the position of secretary/treasurer is Darrell Fernandez, PE, of Parsons, who has previously been chair of the Fundraising Committee. Charles Brown Cumming/ Southern Management Group Columbia, SC Deborah Metz Metz Construction Management, LLC Richmond, MN Tom Dresler Heery International, Inc. Phoenix, AZ Terrence Duffy Terrence P. Duffy, Builder, Inc. Rutherfordton, NC George Ronald Ferrara ka2d construction management Fallbrook, CAFor owners… Salvatore Manzella Vanir Construction Management, Inc. Los Angeles, CA Robert Marshall VDOT Richmond, VA Michael Hartley Michael Baker Jr., Inc. Harrisburg, PA Congratulations to the 1,600th CCM! Julius Rwamashongye of Seattle Public Utilities has become the 1,600th Certified Construction Manager. This milestone reflects the accelerating pace of growth in the CCM roster. It took about 24 months for CMCI to move from its 1,000th CCM to its 1,300th—but only 15 months to enroll the next 300 and reach the current level. Scott Murphy Vanir Construction Management Sacramento, CA Michael Naughton “CCM establishes standards that complement AECOM our Global Project Management strategies supporting consistency, quality and timeliness.” working with CCMs, both in-house andNewark, NJ Robert Peck, Commissioner, Public Buildings Gary Little on contractor staff, is an assurance of Service, U.S. General Services Administration professionalism and high standards in MWH Americas, Inc. Richard Panos the execution of every project. “CCM is helping us to manage our projects better and improve the competencies of our staff, and Broomfield, CO Parsons it is helping them to achieve personally and to achieve results on their projects every day.” For service providers… Pasadena, CA Mark Cacamis, PE, CCM, Virginia DOT Gregory Barbuto the CCM program is an independent “CCMs reduce our risk on construction projects assessment of staff capabilities based on Banning Lewis Ranch Miguel Perezand reducing risk is what makes us successful. national standards. Having CCMs on your By reducing cost and reducing time on projects, Management Company, LLC Turner Construction we find we are far more successful with CCMs team improves your marketing and gives you leading our effort.” access to theCO growing volume of work whose Colorado Springs, Company Stephen Ayers, AIA, Architect of the Capitol owners are specifying the CCM in their RFPs. Los Angeles,“CCM CAis extremely valuable for me and my team.” Joe Lansdowne Christine Acampora, CCM, C. B. Richard Ellis For practitioners… TDC Construction Ramon Gomez CCM offers a portable credential that increases “CCM is the one designation that is truly on Oklahoma City, OKstature, earning potentialPhoenix, AZ target with what we do.” professional and Blake Peck, CCM, McDonough Bolyard Peck advancement opportunities. John Metoyer Philip Russell CCM is the “gold standard” in personnel The most experienced, qualified and credentials for the Construction Management Keller CMS, Inc Volkert, Inc. committed Construction Managers profession. This one globally respected Los Angeles,certification CA defines the content, standards Mobile, AL are Certified Construction Managers. and values of the profession, identifies its most qualified practitioners, and offersE. an Alan Saunders Marki Johnson assurance of excellence to anyone hiring or G. Stephens,retaining Inc. a Construction Manager. VDOT 7926 Jones Branch Drive, Suite 800 McLean, VA 22102 Akron, OH Richmond, VA 703.356.2622 | 703.356.6388 fax Julius Rwamashongye Seattle Public Utilities Seattle, WA www.cmaanet.org Kenneth James Shirley VDOT Culpepper, VA Donald Koslowsky MOCA Systems, Inc. Honolulu, HI Max M. Shoura Hill International Phoenix, AZ Quan Lee San Diego State University San Diego, CA David Wade Smith VDOT Culpeper, VA Kevin Lugo McDonough Bolyard Peck, Inc. Raleigh, NC Theodore Daniels Gilbane Building Company Laurel, MD The Mark of a Professional Look for the CCM. Hire a CCM. Become a CCM. Show your commitment to excellence by becoming a CCM. Strengthen your team with CCMs for better project results. The Construction Manager Certification Institute has a new pocket brochure describing the benefits and requirements of the CCM credential. It can be viewed and downloaded here. CMAdvisor July/August America’s “Most Beautiful” Public Building to Host Annual Benefit 25 FOUNDATION ROUNDUP MOCA Systems has been awarded the CM services contract for GE Transportation’s Energy Storage Division through the end of 2011. MOCA will provide support for GE as they build a new $100 million state-ofthe-art GEMx Battery manufacturing plant in Schenectady, New York. Contract services will include oversight of the on-site construction cost control and management, review of contractor invoices and change orders, document audits, bid analysis, stakeholder coordination, and reporting. GE’s GEMx battery is a sodium-based battery that lasts nearly ten times longer than traditional battery backup storage systems. Keeping with the growing green movement throughout the construction industry, the battery is recyclable, contains no toxic chemicals and needs little to no maintenance. 26 CMAdvisor July/August Heery International Named New Stadium Designer at State University of New York Heery International has been chosen by the University of Albany to design and build the new sports stadium at the State University of New York (SUNY). Construction will be performed in several phases with the first phase to include building a 6,000 seat football/multi-use stadium. The new stadium will be big enough to allow future expansion to hold up to 24,000 seats including proposed suites and club amenities. The new facility is anticipated to open by 2012. Suffolk Construction recently topped off the Dartmouth College Visual Arts Center with a celebration and ceremony. The events included placing the final steel beam on the project which has been designed to attain a LEED Gold certification. The new $32 million visual arts center is located in downtown Hanover, New Hampshire. When finished, the fourstory 106,000 square foot facility will be home to the college’s studio arts, film and TV programs. It will also house feature teaching and production studios, classrooms, exhibition space, a screening room, an auditorium, and faculty and administrative offices. In addition to the new center, Suffolk is responsible for construction management services for the college’s new $3.7 million, 3,200 square-foot chilled water facility. On hand to celebrate the final beam placement was Suffolk Vice President of Education for the Northeast Frank Craemer and Senior Project Manager, Timothy Harris. Representatives from Dartmouth College also joined in the celebration. The water facility should be complete this fall with the visual arts center completion anticipated next spring. Balfour Beatty Infrastructure Purchases VA Construction Company The U.S. construction division of Balfour Beatty has acquired Woodbridge, VA based Fru-Con Construction LLC for $20 million. Fru-Con is a leading water and wastewater infrastructure contractor with annual revenue of $80 million. According to Balfour Beatty’s Chief Executive, Ian Tyler, the new addition will, “add to Balfour Beatty’s expertise in water infrastructure projects and will enable it to grow further in the mid-Atlantic and California…as well as other regions including the Carolinas, Georgia Florida and Texas.” Fru-Con will remain in the Woodbridge area and recently completed a $136 million water pollution control plant upgrade and expansion in for Arlington County. Atkins Reselected for Five-Year A-E IDIQ Contract with Air Combat Command The U.S. Air Force, Air Combat Command (ACC) has awarded the Atkins-Merrick Joint Venture a five-year, $14 million indefinite delivery/indefinite quantity (IDIQ) contract to provide architectureengineering (A-E) services for the new construction, maintenance, renovation, and repair of facilities and infrastructure at ACC bases worldwide. This is Atkins’ third consecutive five-year IDIQ contract with ACC since 2000. Over the past 10 years, Atkins has successfully performed A-E services for 43 task orders—ranging from under $20,000 to more than $730,000—at various Air Force installations in the US and abroad. The work has required specialized and extremely versatile teams involving nearly 100 in-house staff from 19 different offices, as well as 14 subconsultants. ARCADIS Awarded $60 Million in Water Contracts by DC Water and Sewer Authority ARCADIS has been selected by the District of Columbia Water and Sewer Authority for two contracts totaling $60 million in value to assist with the management and the implementation of DC Water’s $1.6 billion sewer system capital improvement program. In addition, ARCADIS will manage under a four-year Construction Management contract, the implementation of the $400 million biosolids program at the city’s Blue Plains Advanced Wastewater Treatment Plant. In the greater D.C. community sewer system improvement projects will take place over the next five years to help restore structural and performance integrity to the system and minimize disruption across a network that includes more than 1,800 miles of sewer pipe and eight major pumping stations, providing conveyance of wastewater to the Blue Plains Advanced Wastewater Treatment Plant. “These environmentally driven projects fit in the market trend towards renewal and upgrading of existing facilities to meet the latest environmental, technical and efficiency standards. Our Malcolm Pirnie Water division provides ARCADIS a strong competitive edge as these projects are at the heart of our capabilities,” said Bill Dee, Global Director for the Water Business line in ARCADIS. “The sewer system capital improvement program will help protect the Rock Creek, Anacostia and Potomac Rivers while strengthening the District’s sewer system infrastructure. At the same time, the biosolids program will include innovative solutions to reduce the carbon footprint of the Blue Plains facility. PB/STV Joint Venture Awarded Contract For L.A. Metro Green Line Extension ConnectLAX, a joint venture of Parsons Brinckerhoff (PB) and STV, has been awarded a contract by the Los Angeles County Metropolitan Transportation Authority (Metro) to provide environmental and preliminary design services for an extension of the Metro Green Line light rail to Los Angeles International Airport (LAX). The Green Line LAX Extension will link the planned Metro station at Century and Aviation, about 1.5 miles from the airport, with the central terminal area of LAX, by one of three alternatives—an aboveground or underground extension of the Green Line light rail, or an automated people mover. ConnectLAX will prepare the alternatives analysis, final environmental impact statement/ environmental impact report (EIS/EIR), and conceptual engineering to support the final EIS/EIR. Hill International Receives Contracts Worth $1.5 Billion to Manage and Supply Major Housing Development in Iraq Hill International has received a contract from TRAC Development Group, a South Korean real estate developer, to provide project management and construction management services in connection with a major housing development in Iraq. In addition, Hill’s majority-owned subsidiary HillStone International, LLC has received a contract to supply building structural systems to TRAC for the development. The total development includes the construction of 500,000 housing units plus related infrastructure which was granted to TRAC by the National Investment Commission of Iraq. The total development is estimated to cost approximately $35 billion. The contracts, each for a period of three years, have an estimated value to Hill of approximately $200 million and to HillStone of approximately $1.3 billion. These two contracts nearly triple Hill’s backlog, from less than $800 million to approximately $2.3 billion. PHOTO COURTESY OF HDR, PHOTOGRAPHER: KEITH PHILPOTT Hoover Dam Bypass Wins ARTBA Globe Award The Hoover Dam Bypass is adding to its collection of national awards, this time with the American Road & Transportation Builders Association Transportation Development Foundation’s Globe Award. The project won first place for bridges over $100 million. HDR led the Hoover Support Team of HDR, T.Y. Lin International and Jacobs Engineering, working in close partnership with their client, the Federal Highway Administration Central Federal Lands Highway Division. The ARTBA Globe Awards recognize private-sector firms and public-sector transportation agencies that do an outstanding job protecting and/or enhancing the natural environment in planning, design and construction of U.S. transportation infrastructure projects. The Hoover Dam Bypass was cited for its mitigation measures to protect bighorn sheep, desert tortoises and state-protected Gila monsters. Native plants within the project corridor were salvaged and replanted, and water drainage off the bridge is collected to maintain the quality of the Colorado River. CMAdvisor July/August MOCA Systems Wins CM Services Contract with GE Transportation Suffolk Construction Celebrates Milestone for Dartmouth Project 27 Member News ROLL OUT I NSU RANC E ROUNDUP President & CEO Bruce D’Agostino recently visited the Chapter to celebrate its Project Achievement Awards. Prior to the evening’s festivities, D’Agostino met with Bill Heitz, CCM, at Heery International, Inc. and then had a behind-the-scenes tour of new exhibit facilities at the Georgia Aquarium. The evening began at the Oceans Ballroom in the Aquarium. D’Agostino spoke to more than 250 members and guests, reminding them that the youth of today will be the Construction Managers of the future and stressing the importance and need for technical education and certification to achieve their goals. The keynote speaker, The Honorable Casey Cagle, Georgia’s lieutenant governor, delivered a motivational speech about the future prospects of employment and his vision of prosperity for the state. Finally, the Project Achievement Awards were presented to Ruby Collins Inc., Jacobs, Parsons, New South Construction Company, and Skanska, with Heery International, Inc. and Whiting-Turner in a tie for the top prize of Project of the Year. CMAA President Bruce D’Agostino joins (left to right) Chapter President Trey Weatherly, Lt. Governor Casey Cagle, and Chapter Vice President Trevor Pitt. New England Chapter The New England Chapter’s 17th Annual Project Achievement Awards program was attended by more than 200 industry professionals including owners, architects, engineers, and construction managers. 28 CMAdvisor July/August The event featured Frank DePaola, PE, acting high‑ way administrator for the MassDOT, as the keynote speaker. He spoke on the use of Construction Manage‑ ment Standards of Practice endorsed by CMAA and being utilized on projects by the Massachusetts Bay Transportation Authority (MBTA). The highlight of the event was the Project Achieve‑ ment Awards presentation. A total of 13 projects received awards in the areas of Infrastructure, Building Construction, and Program Management from both the public and private sectors. Awards were presented to MassDOT, Gilbane Building Company, PMA Consultants, Richard White Sons, Turner Construction Company, Parson Brinckerhoff, Tetra-Tech, Walsh Brothers, Cutler Associates, Bond Brothers, and Colantonio. Tour guides Sean VonFeldt, Jerry Nery, Joe Christie, and CSU Student Chapter Members The Chapter also selects individuals who have demonstrated excellence in the field of Construction Management. The 2011 Person of the Year is Edmond Hunter, acting director of design and construction at the MBTA. Mr. Hunter was recognized for his accomplishments as a dedicated public servant, a highly effective manager and an outstanding leader in the construction profession. Distinguished Service Awards were presented to Nicholas Macy, CCM, and Christine Keville, FCMAA. Mr. Macy was recognized for his recently completed six years of service on the Chapter’s Board of Directors and Ms. Keville was recognized for her 20 years of service at both the chapter and Building national levels of CMAA. Professional Liability Insurance Specialists for Construction Managers on the cornerstones of professional practice. lEaDEr h TEaM BuilDEr h innovaTor h ManagEr Additional presentations of scholarships were made to 13 students from four area colleges Building on the cornerstones of professional practice. (800) 597–2612 www.hallandcompany.com including Northeastern University, University onE EvEnT, lEaDEr h TEaM BuilDEr h innovaTor h ManagEr of Southern Maine, Wentworth Institute of Building on the cornerstones of professional practice. Technology, and Worcester Polytechnic Institute. For all Your rolES... A total of nearly $23,000 was awarded in scholar‑ onE EvEnT, EVENTS lEaDEr h TEaM BuilDEr h innovaTor h ManagEr ships to these students. For all Your rolES... novEMBEr 6-8onE h EvEnT, granD hYaTT For all6-8 Your rolES... novEMBEr h granD hYaTT Colorado State University Student Chapter The CSU Student Chapter had the great opportunity through RTD’s Project Controls Manager and CMAA Colorado Board Member Sean VonFeldt to receive an all-day site tour of the West Rail Line and Denver Union Station (DUS) projects of the FasTracks Program. RTD FasTracks Program is a $6.7 billion comprehensive transit expansion plan to build 122 miles of new commuter rail and light rail, 18 miles of bus rapid transit, 21,000 new parking spaces at light rail and bus stations, and to enhance bus service for the eight-county district. It is currently the single largest federally- and locally-funded project in Colorado. The tour started at the West Rail Line, a 12.1-mile light rail transit corridor between DUS and the n Jefferson County Government Center in Golden. Project Manager John West of Denver Transit Construction Group was gracious enough with his time to give the students a personal four-hour tour of the $350+ million portion of this $6.7 billion program. The tour ended at DUS where 750,000 cubic yards of concrete had already been poured for the future underground bus terminal portion of the expansion. The tour guides for the DUS project were Jerry Nery, project manager with RTD and Joe Christie, engineering manager with RTD. Send Us Your Project Announcements CMAA would like to publish the latest project news from members. Please put jmckeon@cmaanet.org on the list to receive press releases. washington DC’11’11 washington DC novEMBEr 6-8 h granD hYaTT washington DC ’11 naTional ConFErEnCE & TraDE ShoW l C o Register r E ntoday a T i o nnaa lT i oCnoa n F E nrFEE n C EC E &&at TT rr aaD DE ES hSo hW o W www.cmaanet.org Register today at Register today at www.cmaanet.org www.cmaanet.org Advertise in ROLL OUT On a tight budget, but interested in reaching a targeted, highly qualified audience of professional Construction and Program Managers? Call today. If you want to advertise in the special Roll Out Section contact Tom Egly at 703-548-0200 x117 or email him at tom.egly@tgdcom.com CMAdvisor July/August South Atlantic Chapter 29 Chapter News Let us show you what our focused expertise can do for you. ROUNDUP PRESIDENT’S REPORT Professional Development Calendar Reaching Out to Our Future By Bruce D’Agostino, CAE, FCMAA Answer: A smart, ambitious young college grad choosing a career path. Northern California Chapter CMAA Standards of Practice Course August 11–13 Sacramento, CA LEED for Specialty Contractors Online Webinar Thursday, August 25 Korea–U.S. Construction Management Forum September 25–27 Seoul, South Korea CMAA 2011 National Conference & Trade Show November 6–8 Washington, DC Visit www.cmaanet.org/courses-and-events for a list of upcoming online educational events. CMAA Standards of Practice Course – hosted by SAME 30 CMAdvisor July/August October 12–14 Seattle, WA San Diego Chapter CMAA Standards of Practice Course October 27–29 San Diego, CA First Rising CMs Conference November 4–5 Washington, DC Congratulations to Member Recruitment Program Winners Two winners were drawn for recruiting the most new CMAA members. Congratulations to David Alexander, PE, CCM, LEED AP BD+C, CMWorks, Inc., who won the complimentary registration to the Owners Forum, and Les Hunkele, CCM, FCMAA, of Luster, who won the iPad. Everybody wants these newcomers. On every side, they encounter people waving at them and shouting, “Come join us! We need you! You’ll love working as a…(fill in the blank).” The CMIT program links newcomers with experienced mentors and defines a clear route to the industry’s prime mark of distinction, the Certified Construction Manager credential. We’ve rolled out a versatile and powerful tool, CMpat™, to help young practitioners navigate this route. Our recent Board of Directors strategic planning session made it clear that recruiting and training new entry-level personnel is very much “front of mind” among CMAA’s leadership. We’re committed to tackling this pressing and complex challenge. This November, we’ll present the first edition of our Rising CMs Conference, offering students and early-career CMs a combination of educational programs and career fair/ networking opportunities. We are hardly alone in our need to attract quality newcomers. It seems as if every thoughtful executive, in every industry, lists this task among his or her most pressing concerns. For CM, the job is further complicated by the specialized nature of our profession. Before choosing to become CMs, students must make several other choices— whether they are interested in engineering in general, or architecture, and if so, whether construction appeals to them, and so on. This decision tree has many branches, and it is very difficult to apply just the right influences at just the right time to guide a prospect toward CM. Another factor is that at many CM service provider organizations, a “new” CM is not really an entry level employee. Instead, many firms are accustomed to hiring their new CMs from the ranks of general contractors and other companies. They’re looking for new hires who come in the door with substantial work experience, and they’re content to let others bear the burdens of training true rookies. We run a big risk with this approach: The risk that talented grads will turn their backs on CM and never return. Let’s face it: These candidates have many options. They’re not waiting for us, and if we aren’t ready with interesting, rewarding work and clear career paths, they’ll look elsewhere. “We are hardly alone in our need to attract quality newcomers. It seems as if every thoughtful executive, in every industry, lists this task among his or her most pressing concerns.” A new Academic Council, launched by our College of Fellows, had its first meeting in May and marked out a number of valuable initiatives that industry and academia can take together. This includes such tools as more and better student internships with CM organizations and a “faculty residency” program that would enable teachers to spend time in the CM workplace. We really have two distinct but related imperatives. First, we must attract talented and ambitious young people to explore careers in CM. Second, we must be sure their college or university level education suitably prepares them to be successful in their first job. Working toward these two goals will be an increasingly important arena for CMAA in the years ahead. CMAdvisor July/August Online Webinar Thursday, August 11 CMAA has taken a number of initiatives to meet this need. We’ve added a place on our Board of Directors for a Construction Manager In Training, and the first two professionals to occupy this place—Walter Fedrowitz, CMIT of Fluor and Tiger Nigamatzyanov of Siegel Construction—have definitely been active, high-energy contributors. 31 Question: What’s the scarcest, most studied, most soughtafter species in today’s business environment? Lower Your Schedule Risk with Pre-Construction Schedule Validation