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: CM-AT-RISK CONSTRUCTION MANAGEMENT DESIGN-BUILD TRACK.Record 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. 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 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. 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. The best CM/PM education in the business. CMAA is your partner for high value professional education for every member of your team at every level. For new hires, our Construction Manager In Training (CMIT) program supports the transition into the workplace. At the high end, the Certified Construction Manager (CCM®) credential identifies the best in the business. Deliver SOP-based training to your entire team for as little as $35 per hour of expert instruction with flexible licensing of our online SOP modules. Or select from a broad menu of events, interactive webinars, and other programs. To learn more, visit www.cmaanet.org/pd-home. 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 Let us show you what our focused expertise can do for you. 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