CMAdvisor Congress Focuses on Spending... and Investments? GSA’s Peck Keynotes Owners Forum

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CMAdvisor
Advancing Professional Construction and Program Management Worldwide
Congress Focuses on Spending...
and Investments?
GSA’s Peck Keynotes Owners Forum
March/April 2011
Volume XXX, No. 2
Contents
6
8
March/April 2011
Volume XXX, No. 2
Congress Focuses on Spending Cuts—
and Investments?
The future of America’s investment in critical infrastructure
is being shaped this spring on Capitol Hill, in an environment
dominated by budget-cutting and concern about debt
and deficits.
Members Embracing New Liability
Insurance Offering
“Not only did we save over 30 percent on our closest
renewal option, we saved more than 66 percent over
what we were paying in 2009,” reports one member.
COLUMNS
CMAA’s new CMpat™—makes it easy to:
5 Chairman’s Report
By David R. Conover, CCM
•Record and verify your experience for the CCM.
•Convey your qualifications to employers and clients.
•Plan your future professional development needs.
31 President’s Report
By Bruce D’Agostino, CAE, FCMAA
2
CMAdvisor March/April
This simple, powerful career management tool helps you gauge
where you are today, where you want to be, and how to get there.
DEPARTMENTS
10Professional Practice Corner
CMpat is available to CMAA
members for just $75 annually.
14 Legal Corner
17 News
23 Foundation
24 Certification
See how CMpat works and start using it today!
Cover photo and above photos: Arrowhead Tunnels Project,
Metropolitan Water District of Southern California, 2010 Project
Achievement Award Winner. CM: Hatch Mott MacDonald.
26Roundup
CMAdvisor March/April
CMAA’s Practitioner Assessment Tool
Review the Year One milestones of
“Best Practices—Best Practitioners.”
3
Introducing CMpat™
IN THIS ISSUE OF NEWS:
CMAA, CII Celebrate Alliance’s
First-Year Achievements
President and Chief Executive Officer
Bruce D’Agostino, CAE, FCMAA
Editor
John McKeon
MWH Constructors…proven
Contributing Writers
Kathleen Davenport
Martha Montague
expertise, proven performance,
proven leadership. With a
Design
TGD Communications, Inc.
commitment that goes above
and beyond expectations, MWH
Constructors has received numerous
CMAA is a construction industry
association of 6,400 firms
and professionals who provide
management services to owners
who are planning, designing and
constructing capital facilities
and infrastructure projects.
awards and commendations for
superior performance in project
delivery, sustainability, partnering
and safety. Our track record
Our Mission is to Promote and
Enhance Leadership, Professionalism
and Excellence in Managing the
Development and Construction
of Projects and Programs.
exemplifies our performance.
STRATEGIC
SERVICES:
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CONSTRUCTION MANAGEMENT
DESIGN-BUILD
TRACK.Record
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ideas and suggestions is appreciated
and encouraged.
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Chapter Growth =
CMAA Growth
By David R. Conover, CCM, HDR, Inc.
In late February CMAA had the pleasure of welcoming a
new chapter serving the Gulf Coast region, embracing
Louisiana, Mississippi and Alabama. This has long
been an active region for the CM profession and the
construction industry, and momentum for a CMAA
chapter had been building steadily.
I’d like to welcome the Gulf Coast Chapter and congratulate Chapter President William
Lacher, CCM, LEED AP of Vanir Construction Management, Inc., Vice President Lisa
Cookmeyer, PE of Trigon Associates, LLC, the rest of their leadership team.
Less than a year ago, CMAA’s board of directors approved charters for three new
chapters, in Oregon, Indiana and Hawaii. So we have added four regional chapters
since last May, a development I find particularly satisfying because I have always
been an enthusiastic fan of chapter activity.
For the individual member, the regional chapter often is CMAA. The chapter is where he
or she finds colleagues, business leads, learning opportunities and social connections.
The chapter is also the conduit by which members access such national resources as
Standards of Practice courses and the CMAA Foundation scholarship program.
The first year is a critical time for young chapters, though. Usually, chapters come
into being thanks to a core group of dedicated leaders. It’s imperative to broaden
that group, involve more people and reach out as widely as possible to build enough
support to help keep the chapter dynamic even after the first wave of excitement
has passed.
CMAA’s “official” policy is that we require a minimum of 13 members to start a new
chapter, but a successful chapter needs a lot more hands at the oars to ensure the
success of the new chapter.
CMAA National reaches out to new chapters with a variety of support. President Bruce
D’Agostino was on hand at the Gulf Coast group’s inaugural meeting in February. Chapter
Relations Manager Martha Montague provides day-to-day guidance and solutions to
common problems.
When a new chapter has been launched, the CMAA Regional Chapters Committee
conducts a six-month review with the chapter’s leaders to be sure that all is going
according to plan. The goal is not only to see that the chapter is doing what it should
be doing, but to assure that National is supporting those efforts effectively.
We’re not through adding regional chapters by any means. Members who believe their
region could support a new chapter should review the Chapter Formation Manual on
our Web site, or contact Martha for more information.
As a dedicated chapter man, I believe the growth of our chapter network is a very
positive trend for CMAA. I look forward to welcoming additional chapters, and to
helping all of our chapters be as successful as possible.
CMAdvisor March/April
Chairman of the Board
David R. Conover, CCM
HDR, Inc.
CHAIRMAN’S REPORT
5
CMAdvisor
AASHTO Gives Transport
Users a Podium
The American Association of State
Highway and Transportation Officials
(AASHTO) has mounted a social media
campaign using Facebook and Youtube
to let the public—nearly everyone uses
transportation infrastructure in some
way—sound off on what Congress and
the states need to do.
More than 200 comments, via email and
video, were received over a five-week
period. Among them:
• “As simple as it sounds, start by
utilizing the gas tax for funding
transportation projects ONLY...no
earmarks...no competing modes...
just roads and bridge infrastructure!”
The future of America’s investment in critical infrastructure
is being shaped this spring on Capitol Hill, in an environment
dominated by a budget-cutting mindset and serious concern
about the national debt and deficits.
6
CMAdvisor March/April
The outcome will affect everyone from motorists who may
encounter higher gas taxes to state DOTs that want stability
and clarity for their long-term construction programs.
As CMAdvisor went to press, the House and Senate were debating
a compromise continuing resolution to keep the government
operating through the end of the fiscal year in September. In
the short run, the debate over this measure focused almost
entirely on cuts. CMAA, however, has been active in a variety of
collaborative efforts to both increase and stabilize funding for
vital infrastructure. The long-term prospects for these measures
are unclear at best as winter passes into spring.
“The critical distinction drawn by the president was between
government spending and investment in value-enhancing assets
like highways, rail, energy and communications infrastructure,”
D’Agostino went on. “Much work needs to be done to convince
both the Congress and the public of this difference so that we
can move forward with critical investments that enhance our
competitiveness and productivity.”
Mica announced a general plan for a six-year bill in February,
shaped by his assumption that there will be no new resources
available to increase revenues from the Highway Trust Fund,
and that the political climate will not permit increases in
spending without offsetting cuts. Mica said the goals of his
evolving legislation will be to:
Also early in the term, Rep. Rosa DeLauro (D-CT) re-introduced
her bill to create a National Infrastructure Investment Bank,
and CMAA promptly restated its support.
“We believe the Bank represents an innovative and highly
effective way of bringing greatly expanded resources to
the critical task of repairing, expanding and improving our
national infrastructure. This will not only create jobs but will
lay foundations for our competitiveness and prosperity far
into the future,” D’Agostino said.
• Stabilize the Highway Trust Fund;
• Recapture unspent federal funds within the
transportation program;
• Utilize P3s and other alternative financing mechanisms,
including expansion of programs like TIFIA (Transportation
Innovative Financing and Innovation Act) funding and
Build America Bonds; and
• “Fully fund the State DOT’s reasonable
requests for high-speed rail in America’s
most congested and populous mega
regions. Provide tax incentives to
HSR companies to encourage publicprivate partnerships in developing a
COMPETITIVE HSR system.”
• “Improving rail/seaport linkages should
be a strong priority; there’s a hefty
backlog of such projects and immense
economic benefits awaiting.”
• “Send us some intelligent, thoughtful,
experienced and customer-oriented
professionals who will partner with
state highway agencies. Clean up the
regulations so that we can efficiently
deliver clean, useful projects. We need
speedy delivery of projects so that we
can get our meager funds spent out
on the road.”
• Streamline programs and speed project delivery.
The center of gravity, however, remains passage of a new
multi-year surface transportation bill to replace SAFETEA-LU,
which expired in September 2009 and has been funded by
temporary extensions ever since.
Administrator Mendez returned to this theme at TCM-2, saying
that the current typical project delivery time of 13 years “simply
doesn’t compute in today’s world.” He said alternate delivery
methods like CM-At-Risk could provide “a better handle on costs,
a new approach to risk and an ability to do things concurrently.”
Both Rep. John Mica (R-FL), the new chair of the House Transportation and Infrastructure Committee, and Sen. Barbara Boxer
(D-CA), returning chair of the Senate Committee on Environment
and Public Works, have made public commitments to passage
of a bill early in the 112th Congress.
In general, the long-term outlook for surface transportation
seems to be that funding will be limited to what the Highway
Trust Fund provides at current gas tax levels, and that pressure
for faster delivery will continue to grow.
WATCH NOW
AASHTO’s ongoing video
program is conveying
messages about infrastructure to
both political leaders and the public.
CMAdvisor March/April
Spending Cuts—
and Investments?
Federal Highway Administrator Victor
Mendez, speaking at the second International Conference on Transportation
CM in February, said the administration’s
“goal is to have a bill on the president’s
desk by the August recess.” He also said
the president’s preferred program includes
the Infrastructure Bank.
7
CONGRESS FOCUSES ON
The opening weeks of the new Congress brought plenty of
rhetoric about infrastructure. In his State of the Union message,
the president committed to investing in highways, bridges,
airports and other resources. CMAA President Bruce D’Agostino,
CAE, FCMAA said the Association was “pleased to hear him
give infrastructure investment the same weight as education,
research and development, and fiscal reform in charting the
nation’s future.
• “Replacing woefully obsolete signal
systems with modern equipment
will go a long way toward improving
roadway operations for all users.”
Members Embracing
NEW Liability Insurance Offering
The new professional liability insurance product being offered to CMAA members by The
Chubb Group and Ames & Gough has received an enthusiastic early reception, with more
than 10 companies obtaining policies and giving both the price and the coverage high marks.
“The policy was comparable to policies that we had renewed at in the past but at a much greater value,”
says David Zaiderman of Warner Construction. “Not only did we save over 30 percent on our closest renewal
option, we saved more than 66 percent over what we were paying in 2009. We also were able to save over 90
percent on our deductible.”
Charles Kumi of Kumi Construction Management Group also cited lower costs as an advantage of the new policy.
“The new professional liability insurance provides the same coverage and services at a much lower price than
what I used to have,” he says. “Overall, I am saving about 25 percent on premium payments, which is very good
for my business. It was impossible to get comparable coverage at a much lower premium in the past.”
In addition to cost savings, however, the new Chubb/Ames & Gough offering presents other advantages.
“The new program has enabled us to have an admitted, strong carrier for CM specific professional liability
coverage,” says Sean L. Leonard of S.L. Leonard & Associates, Inc. “We had always felt we were lumped in
with design professionals in the past, which wasn’t consistent with our Agency CM practice, which is a
lower risk profile.”
Chubb Group and Ames & Gough also brings a certain “CM savvy” to the process, and this makes a difference.
“This policy, with Chubb/Ames & Gough fully understanding the intricacies of Professional Construction
Management, was a very effective solution to a difficult decision we were facing in the liability arena,” notes
Derwood Anderson, president of AGCM. “They fully understand the real risk versus the perceived risk of the
industry and provided a solution that fit within our budget. This policy brought our premiums back in line
with industry standards and allowed us to be competitive with our services again.”
Specifically, Anderson adds, “Reviewing contracts with an eye for liability issues that are not fair is probably
the most valuable feature we’ve never had with an insurance carrier.”
Chubb Group and Ames & Gough tailored the new policy to the needs of small and mid-sized corporate
CM service providers, as well as sole proprietors.
CMAdvisor March/April
CMAdvisor March/April
8
9
Anyone interested in exploring the insurance can learn more at http://cmaanet.org/chubb-eo-policy
or by contacting Frances Railey at Ames & Gough.
PROFESSIONAL PRACTICE CORNER
a. Establish processes to identify line item prices that do not
appear achievable or are the result of bid gaming.
b. Establish a process to objectively identify front end loading
outside reasonable limits.
The rules for contractor or vendor procurement in a
public environment have been well established and
are generally codified. As a general rule, contract
awards go to the lowest responsive bid from a
responsible bidder. Further explanation of these
concepts is in many industry publications including
numerous references from CMAA’s Construction
Management Standards of Practice and Cost
Management Procedures.
Ultra Lean Bids—The New Risk
10
CMAdvisor March/April
What has changed is the dramatic economic situation for the construction industry and its impact
on contractors. The volume of work available has
decreased dramatically. Contractors that didn’t bid
government work or projects below a certain value
are now actively pursuing such work. Bid invitations
that may have drawn three to five bidders before
are now drawing multiples of that number, all of
them desperately trying to get the work to survive
long enough for the economy to come back.
Owners report that bids have gone down 25–35
percent from the engineer’s estimate. Yet costs have
not decreased by the same amount. Contractor
profit margins are declining and the ultra-lean
bid, based on the best-case, hoped-for scenario
has become less of a fringe practice and more of a
necessary way to survival. Solid bidding practices,
such as bidding on work where you really have
experience, including an adequate contingency,
selecting subcontractors based on experience and
reliability, avoiding questionable material suppliers
and confining bids to projects within a reasonable
geographic area are all giving way to the current
need to cut costs and survive. It is a great boon
to owners that prices are low and budgets can be
stretched to get even more value. It is no boon
however, if the project fails or the contractor relied
upon for warranty work is no longer available.
Once a project has been won, the pressure to deliver
the hoped-for gross margin, if not increase it, is also
greater than before. Change orders are opportunities
to profit from an otherwise marginally profitable job.
“Or equal” clauses are not simply alternatives, they
are valuable revenue centers. And if anything goes
wrong, some contractors cannot weather the storm,
regardless of who caused it.
The risk of ultra-lean bids and bidders ultimately
rests at the owner’s feet. In the past, owners have
taken comfort in payment and performance bonds.
It is assumed that if the contractor can get the
bond, it must be healthy enough to qualify and if
something goes wrong, the surety will rescue the
project. But the industry is rife with true stories of
sureties that didn’t act quickly enough to keep the
project on track, and the impact of delays can ripple
throughout the project. Even though bonds provide
some measure of protection, they are not the best
solution. Prevention is.
Ultra Lean Bids—The New Response
As indicated, the need for responsible bidders and
responsive bids is not a new requirement. What is
a new requirement is to pursue these objectives
with a degree of robustness not previously practiced. The fact that you’ve worked with or known
a contractor for many years is no longer enough
comfort. The new economy has changed the rules.
The strategy for protection against ultra lean bids
is threefold:
1.Enhanced efforts to specify and review criteria
for responsible bidders.
a. Establish a process to check past and
current references of the company and
its management team.
b. Establish a process for a robust review of a
company’s financial strength. Ensure that
contractors can meet their operating costs
with progress payments less retainage
and while keeping the contract in balance.
c. Use the same process used to vet your
general contractor on all major subcontractors
and suppliers.
3.Establish an early warning system for contractors/subcontractors going into failure mode, i.e. project oversight.
a. Establish resource, progress and cash flow metrics for
use in project oversight.
b. Move quickly when clues arise as to the contractor's/
subcontractor’s impending failure
All of these initiatives will encounter challenges in their
implementation. Most require taking steps or gaining
information that is often considered confidential or prejudicial.
All require a more active role on the part of the CM to seek
information or monitor contractors.
Reviewing Contractor Responsibility
Many jurisdictions and owners already have prequalification
systems; most rely heavily on past experience or affirmations
of the contractor. Both methods have disadvantages.
Past experience is not always an indicator of future abilities.
In the 1990s, the largest heavy and highway contractor in
the United States ceased doing business. Until that point,
no one would question its experience or ability to complete
work. Its downfall was actually a few years in the making, but
unless specific independent inquiries were made, there was
nothing in the public knowledge that would have indicated
its impending collapse.
“It is a great boon to owners that prices are low and
budgets can be stretched to get even more value. It is
no boon however, if the project fails or the contractor
relied upon for warranty work is no longer available.”
Pre-qualification packages commonly ask the contractor to
affirm that it has the resources and ability to complete the
work on which it is bidding. It would be truly unusual for the
contractor to indicate it did not; and probably it would sincerely
believe that whatever problems it had could be worked through.
Such assurances are of little value as a contractor on the verge
of collapse is not going to declare that in a qualification package
to get the work it so desperately needs for survival.
In the Internet age of a company’s financial trouble is often
found by a researcher of moderate skill. The proactive approach
is to make independent inquiries into a contractor’s abilities
and condition. Included below is a checklist for these inquiries.
Some of these questions will take personal and financial skill
sets not normally utilized in today’s procurement process or a
CM’s background. Obtaining supplemental technical support
is a good idea.
Contractor Responsibility Checklist
1.Does the contractor have recent (two years) experience with
projects similar to the subject project?
2.Who will be the project manager and project executive for
the subject project? Do they personally have the experiences
noted above? Obtain references and contact data.
3.Has ownership or executive leadership of the contractor
changed in the last two years? Are any changes under
consideration?
4.Obtain D&B reports, vendor and bank references, and
search the Internet for any information on the contractor’s
performance or situation.
5.Obtain two recent years’ financial statements for the
contractor. Test ratios for current assets, debt to equity,
gross margin and net profit noting comparability with
industry averages. Note any negative audit comments
in the audit opinion.
6.Obtain evidence that the business is properly registered and
authorized to conduct the type of work to be performed.
7.Obtain evidence of all appropriate insurances.
8.Follow the same process for any significant subcontractors
and suppliers to be used on the project.
Reviewing the Bid
A bid review process already exists in most circumstances.
(See Section 8 of the CMAA Cost Management Procedures.)
Experience has shown that the review is commonly cursory
in nature. Yet resources are generally available to perform a
more effective review. The objective is to establish that a bid
not only is not unbalanced or front- loaded but that it contains
no obvious errors. The historical approach has been to not
question the potential of errors under the notion that it is
the contractor’s problem and responsibility. The notion is
true as far as it goes, but the consequences of a bid error
on an ultra-lean bid can cause disputes if not failure of the
contractor in a fragile financial position.
CMAdvisor March/April
By Dennis Allen, Hill International, and Jeffrey Gans, Howrey LLP
2.Enhanced efforts to review a bid to determine its achievability.
11
Managing Risk in an Ultra-Lean Bid Environment
STANDARDS
CERTIFICATION
LEADERSHIP
PROFESSIONAL PRACTICE CORNER
Make the Schedule of Values a part of the bid submission.
Mistakes in a bid are generally apparent in a review of the “bid
tab” or cross reference document between bidders. A review
and comparison of the bidders’ detail often will point to a
specific error or trends in the bid amounts. To help the process,
a standard protocol should be established and communicated
in the invitation to bid. A robust review of this data should be
performed due to the risk of ultra-lean bids.
To the cash strapped contractor, these control points are a
challenge. “Getting ahead” on the payment cycle is part of the
survival strategy and self-funding of a change or a delay can
be enough to eliminate any balance of cash on the project. As
such, owners must maintain the controls already in existence
while getting monies properly due to the contractor as soon as
possible, and being preemptive on eliminating and resolving
potential disputes.
Bid Review Checklist
Project Oversight Checklist
1.Are there sufficient bids to enable a comprehensive review?
1.Establish a payment application and payment procedure that
reduces as much as possible the time between completion of
the work and payment.
12
CMAdvisor March/April
4.Are individual elements of the bid within a reasonable
deviation from other bidders? The comparative review of
individual elements often will show more disparity than bids
as a whole. Although pricing strategies and methodologies
differ from contractor to contractor, performance cost is more
standardized and the occurrence of large disparity in specific
line-items must be particularly scrutinized. Some owners in
this situation will notify the bidder that it has a questionable
bid item, give no other information (to preserve the integrity
of the process) and request that the bidder confirm its price.
Project Oversight
Like the previous interest areas, project oversight is not without
existing controls and established procedures. (See Section 6.5
of the CMAA Construction Management Standards of Practice.)
The primary points of control remain the monthly review and
approval of payment applications, the orderly approval of submittals and change orders, the ongoing progress review against
an established project schedule and the receipt of lien releases
to confirm that subcontractors and suppliers are being paid.
CMAA is the home of professional
Construction Management.
Learn more at www.cmaanet.org/enr.
2.With each payment application, evaluate the cost of the
work to be completed as well as the value of the work in
place with each application to keep the contract in balance.
3.Use joint checks to subcontractors to eliminate the risk of
non-payment or late payment.
4.Obtain timely lien releases and ensure that releases are
obtained from all subcontractors performing the work
for which payment is being sought. The common practice
of sending in lien releases with the subsequent payment
application allows too much time for a project to get
unbalanced and invites project administration lapses
during crunch time.
5.Prepare and monitor a revenue loaded schedule to highlight
any delays in project performance and to maintain the link
between compensation and performance.
6.Streamline submittal, RFI, change order and claim procedures
to eliminate uncertainty and/or delays.
7.For change requests that the amount cannot be resolved
promptly, consider a unilateral resolution to get some
payment to the contractor, even if under a mutual
reservation of rights.
8.During the life of long term projects, re-qualify the contractor
annually to confirm his or her ability to complete the project.
Notify the bonding company if the qualification standards
are no longer met.
9.Insist that surety obligations are triggered when a contractor
is merely defaulted and not terminated.
Dennis Allen is a senior vice president at Hill International.
He can be reached at dennisallen@hillintl.com. Jeffrey
Gans is a partner at Pillsbury LLP and can be reached at
jeffrey.gans@pillsburylaw.com.
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of our online SOP modules. Or select from a broad menu of
events, interactive webinars, and other programs.
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CMAdvisor March/April
3.Is there an indication that the bid is front end loaded? Do the
initial bid items total more than others in the bid pool? When
a bidder has an overall low price total, but an accumulation of
initial work activities has a higher bid total, it is an indication
of front end loading. Use the engineer’s estimate to compare
the cost (price) of major bid items looking for any significant
discrepancies. Other than simple cash flow considerations,
allowing a cash strapped contractor to receive the largest
portion of its cash flow up front could reduce the contractor’s
incentive to complete the contract.
Certified Construction Managers™ deliver
these values on every job, every day.
13
2.Is the low bid amount within a reasonable deviation from
the other bidders? A comparison of the low bid against the
mass of other bidders can indicate whether the bid is, on its
face, arbitrarily low.
Professional Construction Management
based on CMAA’s Construction Management
Standards of Practice will improve your
project outcomes and build your business.
LEGAL CORNER
State-by-State Licensing Review Updated
This table identifies the functions addressed under different types of licenses in each state.
By J. Willcox Dunn III, Esq., of Vandeventer Black, LLP
State
Inspection/
Observation
Supervision
Administration Construction
of Construction Management
Alabama
A, E
C
A
Alaska
A, E
Arizona
A, E
C
Arkansas
E
C
California
The State-by-State Review of Licensing Requirements
Affecting Construction Managers, first compiled by
CMAA in 1994 and updated in 1999, has undergone
its first complete review in more than a decade, by
the Legal Counsel Committee.
Colorado
The result is an extensively revised document
providing all the latest requirements and agency
information as of the end of 2010. The 112-page
book provides “a survey of architect, engineer and
contractor licensing requirements on a state-bystate basis, inasmuch as these are the statutes that
are most relevant to the practice of Construction
Management. It also provides references to statutes
where the term “Construction Management” is used.
Finally, it provides an identification of the addresses,
telephone numbers and (if available) contact points
within each state, all of which may provide guidance
to the practitioner who has specific questions
regarding the climate for Construction Management
within a state. This edition has also provided Web
sites and email addresses where available, according
to the committee.
District of Columbia
E
Florida
A, E
14
The following excerpt from the introduction to
the Review addresses the key issue of the scope of
professional services covered under the different
types of licenses.
General Licensing Issues
Although this survey can provide some guidance,
the reader should note that the question of what
licenses are absolutely necessary for a CM in a given
state is not readily answerable by simply looking
at the statutes or regulations. First, many of the
statutes suggest that one must be an architect or
A
C
A, E
A
E
A, E
A
Connecticut
E
A
Delaware
E
A
Georgia
“Construction Management is practiced in
virtually every state by a variety of entities
that do not have professional licenses.
These entities face a risk.”
engineer to provide some of the services that are
commonly performed by CMs, such as supervision
and management of construction. In fact, one
commentator suggests that some architectural
licensing statutes could be construed as prohibiting
anyone but a licensed architect from acting as a
Construction Manager.
This is supported by the fact that many states
specifically mention the term “Construction
Management” within the definition of architecture
or engineering for licensing purposes. For example,
C
A
C
A
E
A
Hawaii
A, E
A, C
Idaho
E, A
E
Illinois
E
Indiana
E
A
Iowa
A
A, E
Kansas
E
Kentucky
E
Louisiana
A, E
Maine
C
C
CM-Public
A, E
A
A
A
C
A
E
A
C
CMAdvisor March/April
CMAdvisor March/April
CMAA now has a newly updated reference book
that directly addresses these critical topics.
C
15
Who in your organization needs to be licensed
to perform his or her job functions? What state
agencies administer those licenses, and how
can you contact them? How will you manage
licensure requirements across all of your activities
in multiple states?
[C]onsultation, evaluation, planning, the provision
of preliminary studies, design, construction
documents, construction management, and
the administration of construction contracts.
If read literally, this statute requires one who
practices Construction Management to have an
architectural license. It should also be noted that
other states, while not using the term “Construction
Management” directly, do mention terms such as
“administration of construction contracts” and
“responsible supervision of construction” in their
architectural licensing statutes.
“A survey of architect, engineer and
contractor licensing requirements on a
state-by-state basis...references to statutes
where the term “construction management”
is used...the addresses, telephone numbers
and contact points within each state...”
16
CMAdvisor March/April
What makes this situation difficult is that
Construction Management is practiced in virtually
every state by a variety of entities that do not
have professional licenses. These entities face a
risk—given the lack of judicial decisions or attorney
general opinions which provide guidance as to
the intent of the various statutes and regulations—
that they are engaging in the unauthorized practice
of architecture or engineering.
Some states have attempted to deal with this
potential problem by specifically stating that the
architectural licensing statute is not to be construed
to prevent contractors or builders from engaging in
Construction Management services. For example,
New York’s statute provides:
Likewise, Illinois, which specifically mentions the
term “Construction Management” as part of its
architectural licensing statute, has as a prelude
to its statute the provision that:
Transportation CM Conference: Speed, Quality, Metrics in Spotlight
Nothing in this Act shall be deemed or construed
to prevent...the offering or preparation of
environmental analyses, feasibility studies,
programming or construction management
services by persons other than those licensed
in accordance with this Act.
That was the forecast from U.S. Federal Highway Administrator
Victor Mendez, one of the keynote speakers at the recent
International Transportation Construction Management
Conference.
However, it should be noted that even in Illinois and
New York the question of licensure is not entirely
clear. One commentator has noted that the question
is still open as to whether a contractor who practices
Construction Management in New York must also
have an architectural license.
Contractor’s licensing requirements create similar
problems as to coverage. New Mexico and Nevada
both have contractor’s license statutes stating that
the term “contractor” includes a Construction Manager who performs management and counseling
services on the project.
The illustration, drawn from the Review, summarizes
what services are addressed in applicable state
licensing statutes for architects (A), engineers (E)
and contractors (C).
Copies of the State-by-State Review are available in
the CMAA Bookstore.
The 2010 Legal Counsel Committee was chaired by
John Heuer, Esq., sr. vice-president/chief legal officer,
Carolinas and Military Housing Divisions, BalfourBeatty Construction. In addition, the following
committee members contributed to this review:
Marion Hack, Esq., Gibbs, Giden, Locher, Turner &
Senet, LLP; Brian G. Lustbader, Esq., Mazur, Carp
& Rubin, P.C.; Timothy W. Murchison, CCM, URS
Corporation; and Robert M. Shaw, Esq., Akerman
Senterfitt, Drewry Simmons Vornehm, LLP
“We are in a very strong position right now, but there are
challenging times coming.”
“TCM-2,” the second edition of this gathering, brought more than
200 people to Orlando, Fla. in February. The event was organized
by FHWA and the American Association of State Highway and
Transportation Officials (AASHTO) and produced by the American
Road and Transportation Builders Association (ARTBA).
CMAA was a sponsor of the conference, organized two sessions
and promoted the CM Standards of Practice and CCM credential
at an exhibit table.
Steven DeWitt, PE, chief engineer of the North Carolina Turnpike
Authority and a co-chair of the program, noted the increasing
pressures on state DOTs due to downsizing, shrinking budgets
and other factors.
“We’re becoming more of an administrative function and
less pure engineering,” DeWitt said at the opening session
of the conference. “With the loss of benefits to public employees,
the job is becoming less and less attractive, and yet we are still
required to be in responsible charge. The next 10 years, he predicted, will see “higher quality standards, compressed schedules,
more environmental responsibility and more accountability.”
Still, DeWitt saw opportunities, as well, particularly in a
growing openness to new project delivery strategies.
Randy Park, PE, director of project development at Utah DOT,
called on DOTs to develop a “customer driven culture” and
explore all ways of completing projects more quickly.
And Bill Cox, president of Corman Construction and current
chair of ARTBA, urged attendees, “to work on a strategic plan to
become best in class.” Such a plan, he added, would emphasize
opportunities for employees to grow in their careers, as well as
a pervasive focus on environmental sustainability.
CMAA’s high profile at TCM-2 included:
• Former Chair Bill Van Wagenen of CH2M HILL took part in a
panel on “The Cutting Edge of Transportation CM, At Home
and Abroad.”
• CMAA organized a session on metrics and measurement, at
which Board Member Judy Kunoff of MTA New York City Transit,
joined by Stephen Mulva of the Construction Industry Institute,
offered a presentation on “Measuring the Impact of Effective
CM/PM on Large-Scale Capital Infrastructure Projects.”
• Academic members Mehmet Ozbek of Colorado State
University and Jesus de la Garza of Virginia Tech presented
a paper on “A Multi-Metric Performance Measurement
Framework for Transportation” at the same session.
• CMAA also organized a session on innovative project delivery
and quality management in the Northern Virginia “Megaprojects,” at which leaders from Virginia DOT, CH2M HILL
and Capital Beltway Express and others presented.
• CMAA members were also key players in a half dozen other
presentations, including representatives of Hill International,
RK&K, Trauner Consulting Services and several universities.
[Architect licensing requirements] shall not affect
or prevent...
(g) [c]ontractors or builders from engaging in
construction management and administration
of construction contracts.
Shoukry Elnahal, director of the Accelerated Bridge Program at MassDOT, describes his agency’s
successes at the International Transportation CM Conference.
Victor Mendez, head of the U.S. Federal Highway
Administration, was keynote speaker at TCM-2.
CMAdvisor March/April
consider the state of New York, which defines the
“practice of the profession of architecture” as:
NEWS
17
LEGAL CORNER
NEWS
President Recognizes International CM Day
CMAA, PTMC to Deliver Standards-Based CM Training in Asia Pacific
Construction Managers in the south and eastern Asia Pacific region will soon have access to comprehensive
training in CMAA’s CM Standards of Practice, thanks to a new agreement between CMAA and PT Mitratata
Citragraha (PTMC), based in Jakarta, Indonesia.
The agreement marks the first time CMAA has authorized another organization to create and deliver training
programs based on the CMSOP. The goal of the new program is to help Asia Pacific CMs prepare for the
examination to obtain the internationally respected Certified Construction Manager (CCM®) credential.
PTMC, founded in 1997, is a Muslim woman-owned training and consulting company, based in Jakarta,
Indonesia. It specializes in graduate level, experiential based training for adult learners in project and
Program Management.
The initial curriculum offering will be a four-month, graduate-level course designed specifically for
mid-career, English as Second Language (ESL) adult learners. The course will combine face-to-face and
distance learning and will emphasize team activities. One goal will be to create conflict among the
team members, to promote learning of not only technical skills but of the vital “soft skills” of leadership,
communication and conflict resolution.
Course content will be based on CMAA’s 2010 edition Standards of Practice, augmented by additional
elements common in South and Eastern Asia Pacific, including FIDIC (International Federation of Consulting
Engineers) contract documents and competency assessments against GAPPS (Global Alliance for Project
Performance Standards) metrics.
CMAA President and CEO Bruce D’Agostino, CAE, FCMAA, said the Association “welcomes the opportunity
to collaborate with a deeply experienced and knowledgeable international partner, working toward the
shared goal of improving CM expertise and performance worldwide.”
PTMC’s President Director, Yani Suratman, said the agreement with CMAA also reflects the high level of
international interest in the CCM program and the global recognition of CMAA’s Standards of Practice
and Code of Ethics as basic elements of professional practice.
18
CMAdvisor
Advancing Professional Construction and Program Management Worldwide
A full collection of CMAdvisors for the last four
years is being provided to EBSCO Publishing, which
provides more than 300 full-text and secondary
research databases for libraries and other users.
CMAA will receive modest royalties whenever content
of CMAdvisor is accessed by database users, and
the full content of the magazine will be available
to students and faculty at hundreds of institutions.
Sustainability: Already “Old Hat?”
LEED® De -Certification? Maybe!
January/February 2011
Volume XXX, No. 1
CMAdvisor March/April
CMAdvisor March/April
CMAA is implementing an agreement that will soon
enable librarians and researchers at universities
and other institutions to include CMAdvisor in their
online database searches.
19
CMAdvisor to be Searchable Online
NEWS
GSA’s Peck to Keynote Owners Forum
New Conference Will Serve “Rising CMs”
CMAA, CII Celebrate Alliance’s First-Year Achievements
Robert Peck, commissioner of the Public Buildings Service,
U. S. General Services Administration, will be keynote
speaker at CMAA’s 2011 Owners Forum in San Antonio.
CMAA will launch a new conference especially targeted to
“rising CMs”—CM students in their junior and senior years—
in conjunction with the National Conference & Trade Show
in Washington, DC in November.
The first year of “Best Practices—Best Practitioners”—
CMAA’s alliance with the Construction Industry
Institute—has seen major progress in bringing
construction owners, Construction and Program
Managers, and academia together to improve the
execution of capital programs.
• CII has organized program content for CMAA
national gatherings, including a benchmarking
session at the 2010 Owners Forum in Atlanta and
three sessions at last year’s National Conference
in San Diego, focusing on benchmarking, front
end planning and construction safety.
Among the major milestones of “Year One” are:
• Each organization has extended special discounts
to members of the other organization for event
registration and document purchases.
As “landlord” for the civilian federal government, PBS acquires space on behalf of the
federal government through new construction and leasing, and acts as a caretaker for
federal properties across the country. PBS owns or leases 9,600 assets, maintains an
inventory of more than 362 million square feet of workspace for 1.1 million federal
employees and preserves more than 480 historic properties.
Peck was appointed PBS commissioner in 2009. He had previously worked for Jones
Lang LaSalle and in a variety of other federal positions. In addition, he has been a
land-use and real estate lawyer, president of the Greater Washington Board of Trade
and vice president for public affairs at the American Institute of Architects.
At the Owners Forum, Peck also will serve as honorary chair of the Building
Strategies Summit.
Honorary Co-Chairs Named
Honorary co-chairs have been confirmed for all three concurrent summit conferences
at the Owners Forum. In addition to Peck, they are:
CMAdvisor March/April
• A job fair Saturday afternoon, at which students will be
able to meet representatives from leading CM service
providers and owner organizations.
More details will be announced soon.
Nominations Open for CMAA Board
CMAA is now welcoming nominations for its Board of
Directors for 2011–2012. The Nominating Committee,
chaired by Past Chair Gary Cardamone, PE, Port of Long
Beach, also includes:
• Chair-Elect Ron Price, CCM, Parsons Brinckerhoff
• Rebecca Jones, Safework, Inc.
Transportation: David Casteel, assistant executive director, Texas DOT, and Joni Earl,
chief executive officer, Seattle Sound Transit.
• Judith Kunoff, AIA, CCM, MTA New York City Transit
Water and Wastewater: Harlan Kelly, assistant general manager, San Francisco Public
Utilities Commission, and Cathy Gerali, district manager, Denver Metro Wastewater
Reclamation District.
• Rocco Vespe, FCMAA, Trauner Consulting Services
LEED® ‘Green Associate’ Exam Prep Course Offered
20
• An education program taking place Saturday, Nov. 5 and
Sunday, Nov. 6, featuring topics and speakers of particular
interest to students, and
Green Ideas, a leading provider of education and training resources related to
sustainability, will offer a special pre-conference seminar on Saturday, May 14,
to help participants prepare for the LEED “Green Associate” examination.
The seminar will guide participants through the material needed for studying
and passing this exam—the first step toward pursuing LEED AP certification.
Register now for the Owners Forum and related events.
• Joe Smith, CCM , T.Y. Lin International
• Sandy Hamby, CCM, Moca Systems, and
• Michael Germinario, CCM, U.S. Customs and
Border Protection.
Application forms and information about the
nominating process can be found online at
www.cmaanet.org/CMAA_Board_Nominations.
• CII has endorsed the Certified Construction Manager (CCM) credential and begun communicating
with its members about the CCM process. • A 23-member team composed of CII and CMAA
industry professionals has been working to
identify areas of alignment between CMAA’s
CM Standards of Practice and the 14 construction
Best Practices published by CII. Participants
found strong levels of alignment between the
CMAA and CII documents in the areas of front
end planning, alignment, constructability and
change management. In other areas, the group
has charted a future course toward the goal of
bringing the two documents closer together.
Within 18 months, CMAA plans to assure that
the CCM examination adequately addresses
each of CII’s Best Practices. • CII has created an opportunity for CMAA owner
members to participate in its globally respected
Benchmarking and Metrics program, adding
extensive data to the CII database. The CMAA
owner members will benefit from immediate
benchmarking of their projects against a collection
of some 2,000 projects with a total constructed
value of more than $100 billion. The goal of the CMAA/CII initiative is to “improve
delivery of capital facilities in all settings by promoting the professional practice of Construction
and Program Management in conjunction with the
broadest possible application of recognized industry
Best Practices.”
CMAA President and CEO Bruce D’Agostino comments,
“The CMAA/CII alliance has already yielded important
industry benefits by forging a closer link between CII,
with its emphasis on organizational effectiveness,
and CMAA, which stresses individual excellence and
professionalism. Our two organizations have gotten
off to a fast start and made major strides in just one
year. The outlook for the future is bright.”
At CII, Director Wayne Crew notes that “the Institute
originally became interested in working with CMAA
because it wanted to ally with an organization capable
of defining and credentialing high-level professional
practice. This emphasis ideally complements CII’s
mission of transforming organizations. We are very
excited and optimistic about what we can achieve
together in 2011 and beyond.”
• CMAA has made presentations on certification and
the SOPs at the CII 2010 National Conference and
its semi-annual Project Improvement Workshops.
CMAdvisor March/April
Peck will update attendees on GSA’s announced targets
of “net-zero” energy efficient designs by 2020 and
independence of fossil fuels by 2030, as well as other
initiatives to improve the government’s planning and
management of its built portfolio.
The new event will feature two elements:
21
The forum takes place May 15–17 at the Westin
Riverwalk Hotel.
NEWS
22
Like the 15 awards bestowed last year, the 2011 program
will consider submissions that fall into the categories of
buildings projects, infrastructure projects, international
project/program and Program Management/program phase.
All submissions must be completed online by midnight (EDT)
Friday, June 3, 2011. Multiple entries from the same firm will
be accepted. Read complete submittal instructions.
More than 130 entries were received in 2010. Please don’t
wait until the last minute to showcase your most relevant
and challenging work—start your submission now. We
look forward to celebrating these exceptional project
achievements at the CMAA Industry Recognition Dinner
on Tuesday, Nov. 8 at the Grand Hyatt in Washington, D.C.
Good luck!
Foundation Welcomes $5K Donation
from SoCal Chapter!
“BIM can be a foundation that everybody
goes to whether it be green or resiliency or
virtual design/construction, energy,” is a
message that the buildingSMART alliance™
and its executive director, Dana “Deke” Smith,
FAIA, want to send to all areas of the industry
and Congress. Operating as a council of
the National Institute of Building Sciences,
the alliance has a big educational initiative
underway to challenge the traditional, siloed approach to work
flow and move toward collaborative, technology-driven efforts
to deliver smarter, higher performing buildings.
The Southern California Chapter has “stepped up” with an
impressive donation of $5,000 to the CMAA Foundation, along
with an expression of optimism for additional collaboration
in the future.
In a recent CMAA Radio interview with President and CEO
Bruce D’Agostino, CAE, FCMAA, Smith credits the construction
industry for doing very well in adopting new tools and finding
common ground in the approach to a building’s life cycle.
“We’ve talked a long time about balancing the difference
between cost and time of delivery as well as quality, and I
think we are truly getting to the point where we’re able to
deliver all three,” he says.
Atul Apte, CCM, LEED® AP, president of the Southern California
Chapter Foundation, said the chapter had created its own
foundation “to supplement the efforts of CMAA in its mission
to provide opportunities and support through education and
research endeavors to advance knowledge in the management
of the construction process.”
2011 Scholarship Materials Available
The application and related materials for 2011 CMAA student
scholarships are now available.
Each regional chapter can submit its top undergraduate
and graduate scholarship recipient for consideration by the
Foundation. These chapter-level winners are the main pool of
candidates for national scholarships.
Students in areas not served by a regional chapter, or whose
regional chapter does not have a scholarship program, can
apply directly to National.
Details, instructions and forms are available online.
Apte termed the $5,000 donation “a demonstration of our
support for this overarching mission. The board of the Southern
California Chapter Foundation felt that this was the best
use of the initial seed money transferred from the chapter’s
fund. We look forward to future collaborations with the
National Foundation…”
CMAA Foundation Chair Randy Larson, PE, CCM, FCMAA, said
the SoCal Chapter donation was “really huge,” and expressed
gratitude for the chapter’s “remarkable generosity.”
But the industry still has a reputation for non value-added
waste. Smith points to some $400 billion a year that’s currently
wasted in design and construction alone, which could go
toward the country’s investment in infrastructure and make
the taxpayers much happier.
San Antonio Event Offers “Salsa and Sangria”
The culture, according to Smith, is one of the impediments
slowing down the process in implementing new business
models. When CAD became available, it only impacted one
segment of the industry—design—just automating the
business of design, not changing it.
A pleasant evening overlooking the famed San Antonio
Riverwalk, enjoying hors d’oeuvres like tequila-cured salmon
with jalapeno foam, chicken quesadilla, and chicken and
jalapeno wrapped in bacon—all washed down with cold
sangria, margaritas, beer or soft drinks.
“Now, we’re talking about with BIM, we’re affecting all the
stakeholders, all the players that are involved,” Smith says.
“In order to really make it work well, we have to change
the way we do business.” A major mission of the Alliance is
gathering resources from different industries and more than
20 associations to make these changes.
That’s what’s in store for attendees at the CMAA 2011
Owners Forum on Monday evening, May 16, if they support
the Foundation by attending the “Evening in San Antonio”
reception at the Westin Hotel.
LISTEN NOW to more about the Alliance’s
activities to move closer to BIM and improve
building processes and outcomes.
PHOTO: CRAIG STAFFORD/SAN ANTONIO CONVENTION & VISITORS BUREAU
The hotel’s Olivares Patio, adjacent to the Riverwalk, will be
the scene for a festive and relaxing gathering. In addition to
the hors d’oeuvres, plenty of chips, salsa and queso will be
on hand—making this the ideal way to relax after a full
forum day and support a good cause at the same time.
Registration is now open.
CMAdvisor March/April
CMAdvisor March/April
Go beyond the personal satisfaction and the client’s praise for
a project well-done—have your most successfully executed
Construction or Program Management project of the year
considered for one of the industry’s highest honors, a 2011
CMAA Project Achievement Award. To be eligible, projects,
programs or program phases must have achieved substantial
completion within the timeframe of June 2, 2010 through
June 3, 2011.
buildingSMART alliance Bring Technology,
Culture Together to Improve Processes
23
Could Your Project Be a 2011 CMAA
Project Achievement Award Contender?
Online Submission Portal Now Open
FOUNDATION
CERTIFICATION
CMCI Updates Recertification “Points” Options
CCM Momentum Continues
Congratulations to Our Newest CCMs!
The CMCI Board of Governors has expanded the options available to a CCM for earning
points toward recertification.
Driven by a growing number of public
sector owner organizations that
are encouraging and embracing CM
certification, the CCM program continues
to accelerate in the early months of 2011.
Among the highlights of recent activity:
Chris Alwan, CCM
CB Richard Ellis
Stephen Khovananth, CCM
Greenway Enterprises, Inc.
Dewayne Cargill, CCM
Cumming Construction Management
Paul Knopp, CCM
Kraus-Manning, Inc.
James Carr, CCM
Spotts, Stevens & McCoy, Inc.
Jason Knudson, CCM
Alfa Tech Consulting Enterprises
Mary Crawford, CCM
Crawford Consulting Services
Nabil Salah Mabrouk, CCM
Jacobs International Holdings, Inc.
Ronald Duek, CCM
Kitchell CEM
Mitchell Miles, CCM
United States Department of State
Thomas Francisco, CCM
Parsons Transportation Group
G. Scott Perala, CCM
Heery International, Inc.
John Gould, AIA, CCM
Gilbane Building Company
David Reynolds, CCM
Port Authority of San Antonio
Jonathan David Grammer, CCM
Volkert, Inc.
Scott Allen Schriner, CCM
Gannett Fleming, Inc.
John Christian Hasselmann, CCM
The Louis Berger Group
Paul Usuriello, CCM
STV Construction, Inc.
Richard Houghton, CCM
Black & Veatch
Lee Yowell, CCM
RK&K, LLP
Involvement/Commitment to the Profession
a) Continued employment in CM/as CM . . . . . . . . . . . . . . . . . . . . . 1 point per year
b) Membership in industry related organizations . . . . . . . . . . . . 1 point per year
(Ex: NSPE, ASCE, AIA, etc.)
c.) Membership in CMAA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 points per year
d.)
Writing related to the CM profession
Short article . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 points per article
Manual, Monograph, Booklet, Chapter . . . . . . . . . . . . . . . . . . . . 15 points
Book . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 points per book
24
CMAdvisor March/April
e.) Presentations at conferences/seminars . . . . . . . . . . . . . . . . . . . 6 points per event
Training Sessions
f.)
Professional Organization Work (CMAA, CMCI, AIA, etc.)
Chair of committee, chapter officer . . . . . . . . . . . . . . . . . . . . . . . 3 points per year
Board member . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 points per year
Committee member . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 points per year
CMCI Subject Matter Experts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 points per year
Mentor (CMIT/CCM) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 points per person per year
Actively Involved in ACE Mentoring Program . . . . . . . . . . . . . 3 points per person per year
CCM Actively teaching CM in Universities . . . . . . . . . . . . . . . . . 1 point per course, up to 6 points per year
Writing exam items/questions . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 points per item accepted
g.)
CCM on Winning Project Achievement Awards
For CMAA National Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 points per year
For CMAA at the Regional/Chapter level Award . . . . . . . . . . . 2 points per year
For another Industry Related Association . . . . . . . . . . . . . . . . . 1 point per year
(Points cannot be gained twice for the same project.)
h.) Professional Development
a.)Attending meetings (local chapters, etc.) . . . . . . . . . . . . . . 1 point per meeting
b.)Attending forums, conferences, etc. . . . . . . . . . . . . . . . . . . . 2 points per conference
(Additional points per seminar at conferences)
c.) Attending CMAA National Conference . . . . . . . . . . . . . . . . 3 points
(Additional points per seminar at conferences)
d.)Attending CM related courses,
seminars and training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 points per course
e.)Attending webinar sessions . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 point per hour taken
f.) Attending Industry specific online courses . . . . . . . . . . . . . 1 point per hour of instruction
• The Fairfax County, VA Department
of Public Works has sent 17 of their
most qualified project managers
and Construction Managers through
CMAA’s CCM Workshop. The workshop
included a CCM presentation by CMAA
VP Dennis Doran and Certification
Manager Kate Brundage and the
three-day instructor-led Standards
of Practice Course.
Fairfax County DPW now employs
13 CCMs. Nat Atapoor, CCM, has been
leading this charge for the Department.
• Virginia DOT is on the move again,
this time sending 20 of their most
qualified Construction Managers
through the CCM Workshop, including
the CCM webinar, three-day Standards
of Practice Course, the Standards
of Practice Modules and a one-day
application workshop.
These 20 CCM candidates are in
addition to 10 VDOT managers
already certified.
• CMCI has been approved by the
Workforce Investment Act (WIA)
as a training provider for the CM
certification program. This approval
means WIA funding will be available
to individuals to pay for the application,
exam and preparation courses from
CMAA for the CCM exam.
• Part of WIA’s mission is to consolidate,
coordinate and improve employment,
training, literacy and vocational
rehabilitation programs in the
United States.
CMCI has received nearly 80 new
applications so far in 2011, and had
certified 1,534 CCMs by March 1.
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 March/April
Certification Renewal Categories
25
Recertifying requires the CCM to earn 45 points over a three-year period. Here’s the new,
updated list of point-earning activities, with the newly added options highlighted.
ROUNDUP
AECOM Technology Corporation has announced
that a joint venture in which it participates with
Rummel, Klepper & Kahl LLP has been awarded
an eight-year, $60 million PM contract by the
Maryland Transit Administration (MTA) of the
Maryland Department of Transportation.
The work is for PM on major capital projects in
Maryland involving new mass transit initiatives,
including the Red Line, the Purple Line and the
Corridor Cities Transitway light rail projects, which
are currently in the planning and environmental
phases of project development.
“We are excited to play a key role in expanding
and revitalizing Maryland’s public transportation
system,” said John M. Dionisio, AECOM president
and chief executive officer.
Project works are expected to be completed over
an eight-year period.
26
CMAdvisor March/April
Former PSOMAS Chair to Head
Infrastructure Green Rating System
Tim Psomas, former chairman of the board of
Psomas, has been named the first chairman of the
new Institute for Sustainable Infrastructure, a body
formed by the American Council of Engineering
Companies (ACEC), the American Public Works
Association (APWA) and the American Society of
Civil Engineers (ASCE). ISI’s goal is to develop an
infrastructure sustainability rating system.
“Public owners are looking for guidelines and support
to respond to the growing community demand for
sustainability in infrastructure. The new ISI rating
system is designed to meet the need for a common
language defining sustainable infrastructure,” said
Psomas in accepting the chairmanship.
The new rating system also will provide designers,
contractors and suppliers with a single comprehensive system to help bring innovative sustainable
solutions to market.
Charter members of the group include public
and private owner organizations, engineering
and construction firms, equipment manufacturers
and materials suppliers.
URS to Support Idaho Enrichment Facility
URS Corporation has been awarded a contract by
AREVA Enrichment Services LLC (AES) to provide
procurement, construction and management
services for the Eagle Rock Enrichment Facility
(EREF), a planned nuclear fuel enrichment facility
in Idaho that will supply low-enriched uranium for
use in commercial nuclear power plants in the U.S.
This important project has received a $2 billion
conditional commitment for a loan guarantee
from the U.S. Department of Energy.
Under the terms of the contract, URS will perform its
work in two phases. During Phase I, URS will provide
construction and procurement planning services.
During Phase 2, which would only commence upon
AES receiving a Combined Operating License for the
facility from the U.S. Nuclear Regulatory Commission
and other necessary approvals, URS will provide a full
range of procurement, construction and management
services. The facility is expected to start operations
in 2014 and to be fully constructed by 2017.
HDR/Hill Team Selected for
Sand Canyon Avenue Project
Hill International and HDR Engineering, Inc.,
have received a contract from the Orange County
Transportation Authority (OCTA) to provide Construction Management services in connection with
the $55.6 million Sand Canyon Avenue railroad
grade separation project in Irvine, Calif. Hill’s threeyear subcontract to HDR has an estimated value
of approximately $2.1 million.
The Sand Canyon Avenue undercrossing will be
constructed between Interstate 5 and Oak Canyon/
Laguna Canyon Road. A railroad bridge to accommodate two existing Burlington Northern Santa
Fe railroad tracks and a future third track will be
“We are extremely excited to be part
of this project,” said Michael B. Smith,
Hill’s senior vice president and western
regional manager. “Once complete, it
will have a major impact on improving
congestion in this highly traveled area,”
Smith added.
and implementation strategies including
risk analysis for design-build; and finally,
making recommendations on a variety
of policy and business issues related to
design-build.
Oregon State University
Energy Center Achieves
LEED Platinum Certification
PBS&J to Provide CM
Services for Colorado DOT
Bridge Replacement
Oregon State University’s (OSU) Energy
Center is the first university-based
cogeneration plant in the U.S. to achieve
LEED (Leadership in Energy and Environmental Design) Platinum certification
from the U.S. Green Building Council.
The Colorado Department of Transportation, Region 6 has selected PBS&J, an
Atkins company, to provide Construction
Management, inspection and materialstesting services for construction of the
Bronco Arch Bridge Replacement project.
The project is scheduled to begin in spring
2011 and wrap in summer of 2013.
Heery International served as commissioning agent for the $55 million plant,
which replaced a failing 90-year-old
steam plant. The new energy center
will allow the university to generate
approximately 50 percent of its electricity
on-site, which should result in an annual
savings of $650,000.
The 371-foot bridge is part of I-25
that spans the South Platte River near
INVESCO Field at Mile High. The existing
eight-lane bridge is one the state’s top 10
list of the “worst” bridges in the Denver
area. More than 200,000 motorists cross
over this bridge daily.
The plant also can operate on a variety
of liquid and fuel gas sources, including
bio-fuels. This affords the university
flexibility in choosing the lowest-cost
fuel as market conditions change, and
to use locally produced bio-fuels as they
become available.
Baker Selected for CALTRANS
Design-Build Program
The LPACIFIC Group Incorporated, a unit
of Michael Baker Corporation, has been
selected to perform on-call professional
and technical support services for the
California Department of Transportation’s (Caltrans) Design-Build Program.
Services for this $3.5 million contract
include: assisting Caltrans with engineering and design-build expertise on
an on-call basis; providing independent
engineering review of design-build
procurement and reference documents
and technical reports; developing procedures for pre-qualifying contractors for
design-build and pre-qualification criteria;
developing guidance, contract documents
As commissioning agent, Heery provided
technical coordination and confirmed that
any deficiencies were corrected. Additionally, the firm provided the facilities staff
with full functional training, providing
electrical and mechanical fundamentals,
and demonstrating not only how each
individual system works, but how the
plant works as a whole.
CDM, Wilbur Smith
Associates (WSA) Combine
CDM, Inc., has acquired transportation
specialist Wilbur Smith Associates. The
combined organization expands both
firms’ global, full-service capabilities
in water, environment, transportation,
energy and facilities.
The integration of CDM and WSA brings
together one of the engineering and
construction industry’s top water and
environment firms with an industry
leader in transportation. The addition
of WSA’s leading expertise in transportation enhances CDM’s service portfolio
and extends the firm’s presence in Asia
and the Middle East. Similarly, CDM
enhances WSA’s capabilities in water,
environment and design-build services.
According to Richard D. Fox, CDM
chairman and chief executive officer,
“Both firms share a common dedication
to putting our clients first and a mission
to create innovative, lasting solutions that
enhance quality of life, protect the environment and support economic vitality.”
KCI Becomes a Study
in Employee Ownership
KCI, Inc., of Sparks, Md., is the main focus
of a case study on employee ownership.
Entitled KCI Technologies, Inc.—Engineering the Future, One Employee at a Time,
the paper was published by Professor
Frank Shipper, PhD, and co-authored
by Professors Vera L. Street, PhD, and
Christy Weer, PhD, from the Perdue
School of Business at Salisbury University,
Maryland. Funding was provided by the
Employee Ownership Foundation.
The study chronicles the firm’s employee
buyout in the late 1980s, quotes several
senior managers and details the way
the company is managed and how the
company’s ESOP culture is fundamental
to the way KCI does business.
Send Us Your Project
Announcements
CMAA would like to publish
the latest project news
from members. Please put
kdavenport@cmaanet.org on
the list to receive press releases.
CMAdvisor March/April
AECOM Joint Venture Awarded
$60 Million PM Contract
built, while Sand Canyon Avenue will be
realigned, depressed and reconstructed
northwesterly to accommodate six lanes
of traffic.
27
Member News
ROLL OUT
I NSU RANC E
ROUNDUP
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Chapter News
This process resulted in securing a location for all
meetings that includes a permanent AV equipment
storage room, a two-week cancellation clause and
no meeting room rental. The chapter purchased
a large projection screen, saving approximately
$175 per event, and it’s leased at a fee to the other
groups in the consortium.
The chapter’s new Program Committee Chair,
Melanie McCarger of Sundt Construction, has
segmented the Arizona markets and is doing
programs for each segment. Every effort is made
to involve as many owners as speakers as possible.
Panels of three to five speakers are used as another
way to increase interest in the monthly programs.
Attendance is now at an average of 120-190
attendees, almost triple that of prior years.
28
CMAdvisor March/April
An example of the new programming was the
February monthly breakfast program, which
featured an “Arizona Renewable Energy Forum.” A
panel of guest speakers described their respective
organizations and then participated in a discussion
moderated by Mark Wilhelm, founding principal,
Green Ideas.
Topics included solar technology, design and
construction project efforts, economic drivers
and municipal and state government policies
that affect the renewable market in Arizona. The
chapter thanks its sponsors: ARCADIS, Mortenson
Construction and Stanley Consultants, Inc.
The chapter has introduced a new monthly opportunity for three firms to sponsor the meetings. This
new sponsorship has been a great success, and
In addition, the chapter now has a group on LinkedIn
with nearly 400 members.
Metropolitan New York/
New Jersey Chapter
The chapter hosted its first event of 2011, a presentation by Timothy Gilchrist, president, Moynihan
Station Development Corporation. It was a soldout event with more than 100 attendees. Members
gathered to learn more about the Moynihan
Station Development Project and to learn about
potential future opportunities for the Construction
Management industry.
Gilchrist reviewed the plans for the project which will
create a new Moynihan Station rail facility and new
private development within the James A. Farley Post
Office Building located between Eighth and Ninth
Avenues and West 31st and 33rd Streets. The first
phase of this project will include expansion of the
West End Concourse & 33rd Street Connector, new
8th Avenue entrances and platform access, and a
platform ventilation system under the Farley Building.
Phase 1 design process is underway with an anticipated finish schedule of summer 2011. Procurement
of a Construction Management firm is expected
to take place in February with Catenary Relocation
running from the summer 2011 to spring 2012.
Construction of the West End Course is expected to
start in spring 2012 and be completed by fall 2016.
CMAA Welcomes New Gulf Coast Chapter
CMAA President Bruce D’Agostino helped launch the
Association’s 28th regional chapter in late February.
The chapter membership embraces all of Louisiana
and parts of Alabama and Mississippi.
Its founding leadership is:
Officers
President
William Lacher, CCM, LEED AP
Vanir Construction Management, Inc.
Professional Liability Insurance
Specialists for Construction Managers
(800) 597–2612 www.hallandcompany.com
EVENTS
Vice President
Lisa Cookmeyer, PE
Trigon Associates, LLC
Secretary/Treasurer
Al Ewton, PMP
Royal Engineering & Consultants
Owners FOrum
2011
Board Members
Chair, Professional Development
David Andersen
Jacobs
Co-Chairs, CCM Committee
Al Ewton
Royal Engineering & Consultants
William Lacher, CCM, LEED AP (Interim)
Vanir Construction Management, Inc.
M AY 1 5 - 1 7 h S A n A n T O n I O h T h e w e S T I n r I v e r w A l k
Co-Chairs, Government Affairs
Max Nassar
AECOM
Michael Jackson, CMIT
U.S. Department of Veteran Affairs
Co-Chairs, Membership
Mike Guiza
Weston Solutions, Inc.
Bill Lacher, CCM, LEED AP (Interim)
Vanir Construction Management, Inc.
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 March/April
Along with other associations in Phoenix, CMAA
Arizona formed a purchasing consortium to combine
the groups’ purchasing leverage. An RFP was issued
to various venues, showing that together the groups
represented more than 190 events, far more than
the 12 events the chapter conducted on its own!
three sponsors have been signed for each event!
The chapter also recognizes its board members
by allowing them to host their own table at each
breakfast meeting. The member companies
have expressed gratitude for this token of the
chapter's appreciation by allowing one of their
employees to dedicate some of their time to
the Arizona organization.
29
Arizona Chapter
ROUNDUP
PRESIDENT’S REPORT
Professional Development Calendar
Supporting DOTs in Challenging Times
By Bruce D’Agostino, CAE, FCMAA
hosted by Colorado Chapter
May 4–6, 2011
Denver, CO
hosted by SAME
June 21–23, 2011
St. Louis, MO
hosted by Indiana Chapter
July 14–16, 2011
Indianapolis, IN
hosted by Northern California Chapter
August 11–13, 2011
Sacramento, CA
hosted by SAME
30
CMAdvisor March/April
October 12–14, 2011
Seattle, WA
hosted by San Diego Chapter
October 27–29, 2011
San Diego, CA
Check CMAA’s Web site for course
site and registration information
as it becomes available.
May 15–17, 2011
San Antonio, TX
CII Annual Conference
July 25–27, 2011
Chicago, IL
CMAA 2011 National
Conference & Trade Show
November 6–8, 2011
Washington, DC
Visit www.cmaanet.org/
courses-and-events for a
list of upcoming online
educational events.
Still Time to Recruit New
CMAA Members to Qualify
for April Prize Drawing
A few days remain to compete
in CMAA's membership referral
challenge. Each time a member is
directly responsible for a co-worker,
project partner or any colleague
joining CMAA, he or she will be
entered into a prize drawing for
either a complimentary registration
to the 2011 CMAA Owners Forum
May 15–17 in San Antonio or an
Apple iPad. Hurry—this recruitment
program ends April 15. Visit
www.cmaanet.org/refer-a-friend
for complete details.
The recent Second International
Transportation Construction
Management Conference took
place in February in an unsettled
and troubling environment. No
one among the more than 200
people on hand could venture
more than a guess at what the
future may hold for America’s
state Departments of Transportation, the conference’s
principal audience.
Despite near unanimity on the urgency of the nation’s
infrastructure needs, it’s unclear what funding, if any,
Congress will deliver this year. Even a burst of short-term
funding would not clarify the long-term picture for state
transportation planners.
“Our high visibility at this event also conveyed to
an important audience that CMAA is committed
to helping them execute their projects and achieve
their goals more successfully than ever before.”
It has never been so important for CMAA to reach out to this
key clientele. We achieved a high profile at TCM-2 and took
the opportunity to communicate with public sector owners
and others in the industry about our Standards of Practice,
education, certification and other programs.
CMAA members were prominent throughout the conference
agenda. Among presenters, Balfour Beatty, Hill International,
CH2M HILL, RK&K, Trauner Consulting, Virginia Tech, Colorado
State University, Virginia DOT and MTA New York City Transit
were all represented.
Michael Baker, Jr., Inc., joined CMAA as a co-sponsor of the
event. We had an exhibit on site, where we distributed
literature and showcased the very proactive SOP training and
certification program we have crafted for the Virginia DOT.
Executives from two member firms, Krauss-Manning and URS,
helped staff the booth during meal and networking functions.
CMAA Vice President John McKeon moderated two sessions
and joined in the conference’s concluding Town Hall panel
presentation.
Our high visibility at this event also conveyed to an important
audience that CMAA is committed to helping them execute
their projects and achieve their goals more successfully than
ever before.
This was a timely and well received message. In presentation
after presentation, it became very clear that these transportation leaders have two overriding concerns right now:
• Accelerating the delivery of their capital construction
projects, and
• Developing reliable metrics to help them measure what
they’ve accomplished and prove the ROI on transportation
investments to their legislatures, executives and taxpayers.
To speed up project delivery, DOT executives seem to be
focusing on Design-Build and or CM-At-Risk.
Many, however, don’t fully understand the features or uses
of these project delivery methods. Moreover, in terms of
the values a professional CM can bring to any delivery
method, the conference reminded us that we still have
a job of education to do.
Part of that education is being able to prove the value of
what we do as CMs.
An impressive number of conference presentations explored
ways to identify and measure improvement, pre-qualify
contractors and craft effective incentives for the entire
program team—all functions we would define as part of
the professional CM’s brief.
Former Pennsylvania Governor Ed Rendell, who was CMAA’s
2009 Person of the Year, gave the keynote presentation at
TCM-2 and renewed his familiar call for a more farsighted
and sensible approach to infrastructure, including both
a National Infrastructure Bank and a sound multi-year
transportation authorization bill.
The current stalemate in Congress won’t last forever.
Someday, perhaps soon, money will flow once again.
When that happens, CMAA will be ready to play its part, as
a proven ally with a reliable commitment to excellence.
CMAdvisor March/April
April 26–28, 2011
Norfolk, VA
CMAA Owners Forum
31
CMAA Standards of Practice Course—
hosted by SAME
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