CMAdvisor Advancing Professional Construction and Program Management Worldwide Forecasts for 2011 What Makes CM a Profession? BOOKMARK THIS ISSUE November/December 2010 Volume XXIX, No. 6 Contents 6 8 November/December 2010 Volume XXIX, No. 6 What’s Ahead in 2011? CMAdvisor canvassed a variety of industry leaders on the eve of the midterm election to gather their best prognostications for the year ahead. Read some highlights of their forecasts. CMAA Delivers “Unequivocal Success” in San Diego More than a thousand people...the largest Trade Show ever...and a steady buzz of excitement marked CMAA’s biggest and most successful National Conference. Read about the Person of the Year, Project Achievement Awards, and CMAA’s new leadership. CMAA PRESENTS “As an owner practitioner myself, I would expect every CM pursuing work with my agency to be well versed in all areas of the Standards of Practice.” GARY CARDAMONE, PE, DIRECTOR OF CONSTRUCTION MANAGEMENT, PORT OF LONG BEACH, CA, AND CHAIR, CMAA SOP COMMITTEE 5 Chairman’s Report By David R. Conover, CCM 31 President’s Report By Bruce D’Agostino, CAE, FCMAA Cover photo and above photos: National Petascale Computing Facility at the Center for Supercomputing Applications, University of Illinois. CM by Clayco, Inc. 2010 Project Achievement Award Winner. Matthew McFarland Photography DEPARTMENTS 12Professional Practice Corner 14 Legal Corner 18 News 22 Foundation Order your copy today online through the CMAA website. 24 Certification 26Roundup CMAdvisor November/December The 2010 Edition includes entirely new chapters on Sustainability, BIM and Risk Management, along with extended coverage of Program Management and other updates. For CM/PM practitioners, the new SOP defines excellent professional practice. It can help you market your services and guide your staff training and development. For owners, the SOP summarizes what to expect from your service providers. There is no better authority on what CMs do, how we do it, and how our owner clients benefit. COLUMNS 3 2 CMAdvisor November/December The first new edition of Construction Management Standards of Practice in six years. CMAdvisor CHAIRMAN’S REPORT Continuous Improvement Chairman of the Board David R. Conover, CCM HDR, Inc. By David R. Conover, CCM, HDR, Inc. President and Chief Executive Officer Bruce D’Agostino, CAE, FCMAA Editor John McKeon Contributing Writers Kathleen Davenport Martha Montague Design TGD Communications, Inc. 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. Our Mission is to Promote and Enhance Leadership, Professionalism and Excellence in Managing the Development and Construction of Projects and Programs. 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. I was honored and excited to receive the ceremonial gavel from Gary Cardamone at CMAA’s National Confer‑ ence & Trade Show in San Diego, as I stepped into the role of chairman of the Association for 2010–2011. CMAA’s new leadership team takes over the reins of an organization in great shape: Strong financially, with sound management, quality programs, and exciting prospects. I believe these great strengths stem from two closely related sources: CMAA’s emphasis on meeting owner needs, and our certification program. We talk about CMAA being an owner-focused organization. This forces us to ask, just what is it that we offer owners? Why would owners join CMAA? Why would they want to work with CMAA member firms? I believe certification is central to answering these questions. A CCM is an individual who doesn’t just claim to be the best, but is willing to prove it. The CCM is willing to have his or her job experience examined, references checked, and knowledge tested. And the CCM is ready to continue to learn and grow to maintain that credential. Supporting this commitment is CMAA’s job. I believe that the reason our membership has continued to grow strongly even during a challenging economic period is simply because our value proposition is so compelling. Professionalism. Standards. Excellence. Better outcomes. As long as we can deliver these values, people will turn to us in greater and greater numbers. I have chaired the CMAA membership committee for the past year, which tells you, first, that membership growth is a priority for me and second, that I have had to think clearly about exactly what we need to offer to attract the members we want. CMAA ©Copyright 2010, ISSN 1084-75327 CMAA is committed to continuous improvement…to being more valuable every year. We see this future focus in the strategic planning exercises the board of directors undertakes every year. And we see it in our growing connection with our academic and student constituencies. I was involved in founding the student chapter at Colorado State University. I think our student chapter program is lively and exciting, and I look forward to helping it grow even more in 2011. Reproduction or redistribution in any form is forbidden without written permission of the publisher. Similarly, our Construction Manager In Training program is really catching on. CMITs were highly visible in San Diego and brought a valuable added dimension to a great conference. CMAA members receive this newsletter as a member benefit. For advertising information, contact Tom Egly at tom.egly@tgdcom.com. Succeeding a successful leader like Gary is both easy and difficult. It’s easy because so many things are already working so well. But it is also difficult because the bar has been set so high. But with our committed leadership, the strong support of hundreds of volunteers, and the extraordinarily high energy now running through everything CMAA does, I believe we can and will have another great year! 5 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 CMAdvisor November/December CMAA’s customer service is unsurpassed, and the content of our programs and products is second to none. Is the economic recovery going to pick up steam? Will changes in Congress affect how the country addresses its infrastructure issues? CMAdvisor canvassed a variety of industry leaders on the eve of the midterm election to gather their best prognostications for the year ahead. Here are some highlights of their forecasts. Pat Natale, PE, F.ASCE, CAE, Executive Director, American Society of Civil Engineers For the first time in years, the president of the United States has acknowledged the role infrastructure investment can play in stimulating and improving the nation’s economy, and has declared his commitment to improving the condition of our roads, pipes, dams, and other critical support systems. Not only that, there are indicators of a growing level of public support for infrastructure investment. When the public can see the benefits they will reap from improving infrastructure—and the consequences of doing nothing—it becomes an issue they can be passionate about. If we can sustain that level of support and commitment, both from our national leaders and our neighbors, 2011 has the potential to be the year of infrastructure…. 6 CMAdvisor November/December Currently, we are overdue on legislation for surface transportation, clean water, aviation, dam rehabilitation and repair, and water resources, and with few exceptions, the political will to move forward on any of those vital issues is sorely lacking… One ideal for 2011 would be that demand for infrastructure improvement continues to grow and spread throughout all levels of government, and the public, nationwide and that our nation’s leaders recognize this support and make a commitment to improving the critical systems that underpin the health and welfare of our communities. A second and perhaps more important ideal would be that the American public begins to see infrastructure improvements as an investment in their future, not just another expensive bill to pay. Kerry O’Hare, Vice President & Director of Policy, Building America’s Future A Republican (election) victory does not make it any easier to resolve funding shortfalls that have stalled action on a bill to date. The appetite for increasing the gas tax—or any other tax for that matter—will simply not exist in a new more conservative Congress. Listening closely to Rep. John Mica who would likely be the new Chairman of the Transportation Committee under a Republican majority, it is reasonable to expect him to offer a smaller proposal that can be paid for with current gas tax revenues and one that will focus on core programs, include incentives for increased private investment, a National Infrastructure Bank, an expanded TIFIA program, and a streamlining of the current project delivery process. While a new Republican majority in the House (and possibly the Senate) would be wise to focus on reviving our stalled economy which would lead to greater job creation, don’t expect to see it done through a huge transportation bill. NACWA is committed to making the case that the water infrastructure funding gap itself is of crisis proportion and demands a sustainable form of funding in the form of a clean water trust fund, similar to those that were created for the nation’s highways and airports… Currently, municipalities spend approximately $80 billion per year on water and wastewater infrastructure investment—second only to education in terms of municipal spending. Municipalities are doing more than their part, paying for over 95% of the cost of clean and safe water. Many municipalities, however, are reaching their affordability limits as they continue to raise rates and their debt servicing loads increase. So in addition to significant public health and environmental impacts of a failure to act, there are also significant local economic consequences of federal inaction. Tony Keane, CAE, President & CEO, International Facility Management Association Aging building stock is a critical concern, and many are waiting for money to become available to do the needed renovations, deferred-maintenance and shovel-ready construction they have planned. We anticipate that there will also be increased competition for funding from other pressing internal needs when capital again becomes available. We are seeing signs that economic recovery may be taking hold. This tells me that facility and construction professionals need to be able to make the business case for timely investment. The essential message is that facility- and infrastructurerelated initiatives must be viewed as asset enhancements that support and further the organization’s mission. Regardless of the outcome of the election, a narrow Democratic or Republican majority in the Senate will make it very difficult to forge consensus on even essential legislation. The regulatory landscape will continue to threaten free enterprise as the Obama Administration tries to advance its agenda outside of legislative action, although the president publicly will appear to move to the center. Infrastructure investment will be a tough sell next year: it won’t be impossible, but very difficult. The success of infrastructure investment legislation depends on the ability of transportation stakeholders to change their scripts so that the message works. Elected, civic, and business leaders need to walk the halls of Congress as soon as the next Congress is sworn in to emphasize the need to prioritize infrastructure investment legislation. It’s not going to happen if the public doesn’t speak up. Absent action on the surface transportation side, you’ll see the end of the federal Highway Trust Fund, less aggregate federal investment in all forms of surface transportation, and no more multi-year contract authority allowing for major capital investment as the pressure to reduce the deficit squeezes domestic discretionary spending. It’s going to be grim. Eric Law, Founder & CEO, EADOC Technology adoption will continue to increase dramatically as firms look for ways to increase their competitive advantages and cut costs. True collaborative web based applications delivered over the Internet giving members of project teams access to all their project information 24X7 from anywhere in the world. As teams become more integrated and projects increase in complexity it becomes paramount for the team to be using a single collaborative application for exchanging and controlling the flow of information. You are going to see continued integration and collaboration between vendor applications. This will progress slowly until large numbers of users migrate off old legacy enterprise applications that have no integration capability. Also standardization is still very weak in the AEC industry. I would expect to see this area start to really take off in 2012/2013. CMAdvisor November/December What’s Ahead in 2011? The current Administration will remain highly active and focused on a broad array of regulatory activity that includes a new stormwater rule, more stringent nutrient control, tougher climate change policies, sewage sludge incineration standards, and a new policy for sanitary sewer overflows. In this context, I think an activist Administration will face more careful and rigorous oversight from Congress, especially in light of the ongoing economic downturn the nation is experiencing. Janet Kavinoky, Director, Transportation Infrastructure and Executive Director, Americans for Transportation Mobility, U.S. Chamber of Commerce 7 Ken Kirk, Executive Director, National Association of Clean Water Agencies (NACWA) CMAA Delivers “Unequivocal Success” in San Diego Highlights include Record 1,050 Attendees, Largest Expo New CMAA Board of Directors Elected 8 “There’s a lot of activity on the trade show floor. We’ve never seen as much traffic on the show floor as this year,” D.J. Mason, III, PE, COO of Keville Enterprises, Inc., said. “It’s definitely meeting our expectations. The trade floor is where we expect to do a lot of networking and tell people about our products and services. It’s working very well.” Attendees also benefited from two dynamic keynote addresses from New York Times best-selling author Stan Slap and former Los Angeles transit official Roger Snoble; a panel of owners discussing results of the 11th annual CMAA/FMI Survey of Owners; and valuable content from 36 education sessions. Respondents to the conference satisfaction survey—48 percent—rated the educational sessions the most important aspect of the conference. “The sessions have been very high quality. I’m looking forward to getting the Live Learning Center access, so I can look at all of the other presentations,” Robert Stundtner, director of project management at Cornell University, said. The CMAA Live Learning Center online portal provides access to synched audio content and PowerPoint™ slides from all sessions for attendees to review on demand—and even share with co-workers. Paid access to LLC content is available to non-registrants. Doug Hyde, PE, Jacobs Facilities, Inc. ** Rebecca Jones, SafeWork, Inc. * Hank Koffman, PhD, University of Southern California † Chair-Elect: Ron Price, CCM, PB * George Lea, CCM, U.S. Army Corps of Engineers † Secretary-Treasurer: Mike Potter, CCM, PE, RK&K D.J. Mason, III, PE, Keville Enterprises, Inc. Vice Chairs: Judith Kunoff, CCM, AIA, New York City Transit * Tiger Nigamatzyanov, CMIT † Christopher Payne, CCM, PE, McDonough Bolyard Peck, Inc. ** Sam Sleiman, CCM, PE, Massachusetts Port Authority Dave Rathman, CCM, Parsons William Heitz, CCM, Heery International * Ray Brady, CCM, MWH Americas, Inc. Past Chair: Gary Cardamone, PE, Port of Long Beach Directors: Stephen Ayers, AIA, Architect of the Capitol † Mark Ballard, PE, AECOM ** Robert Bennett, PE, RABCO Associates, Inc. * Willcox Dunn, Esq., Vandeventer Black, LLP Mike Griffin, PE, Hill International, Inc. Chris Griffith, CCM, PE, KCI Technologies, Inc. Charles Hardy, CCM, AIA, U.S. General Services Administration † * re-elected directors Melissa Robins-Cesar, CCM, Tishman Construction Corporation * Milo Riverso, PhD, PE, STV Joseph Seibold, FCMAA, PE, ARCADIS † Mani Subramamanian, CCM, AIA, Vanir Construction Management, Inc. Palmina Teta-Whalen, CCM, American Airlines President and CEO: Bruce D’Agostino, CAE, FCMAA Legal Counsel: Hugh Webster, Esq., Webster Chamberlain & Bean ** first-time directors CMAdvisor November/December CMAdvisor November/December The new attendance record set the tone for more excitement at the conference, which many deemed an unequivocal success. The largest trade show ever, with a total 83 booths, was held after selling out exhibit space not once but twice! Ninety-seven percent of survey respondents were either satisfied or very satisfied with the trade show, and 49 percent spent the most time on the expo floor, between three and four hours. Officers: Chair: Dave Conover, CCM, HDR, Inc. † ex officio member 9 If the energy level at this year’s CMAA National Conference & Trade Show is any indication of the future of the industry, it is headed in the right direction. More than 1,050 professional Construction and Program Managers, influential owner organizations, student delegations, international visitors, and key service providers gathered for the three-day event in early October in San Diego. CMAA leadership for the coming year was announced at the conference. New officers and directors were elected to the 2010–2011 Board of Directors. Of special note was the high interest in board participation this year, with the Nominating Committee considering 25 candidates to fill only three available seats. Board members, including returning directors, are: Best Projects and Programs of the Year Recognized “I like the fact that CMAA has a way to recognize people who work hard on these projects,” Melissa Robins-Cesar, CCM, project manager of Tishman Construction Corporation, said. “I am hoping that one year I’ll be the one getting the award.” Selected from 130 entries, CMAA honored 15 of the best and most innovative Construction Management projects and programs of the year during its Industry Recognition Banquet on Tuesday, Oct. 5. Distinguished Service Awards: Washington-Lee High School, Arlington, VA PHOTO BY MBP’S SAMEERA DESHPANDE Congratulations to the 2010 CMAA Project Achievement Award recipients: Columbia Heights Public Safety Center, Columbia Heights, MN Owner: City of Columbia Heights CM: EDS Builders, Inc. Buildings, New Construction with a constructed value less than $30 million Science Building at John Tyler Community College, Midlothian, VA Owner: Virginia Community College System CM: Gilbane Building Company Infrastructure with a constructed value less than $150 million Winner #1 Township Auditorium, Columbia, SC Owner: Town of Gilbert and City of Chandler, AZ CM: ARCADIS U.S. Owner: Richland County CM: Dennis Corporation Santan Vista Water Treatment Plant Winner #2 Clarkson University Quad Dorm Expansion Project, Potsdam, NY Infrastructure with a constructed value more than $150 million Owner: Clarkson University CM: U. W. Marx, Inc. Owner: Metropolitan Water District of Southern California CM: Hatch Mott McDonald Arrowhead Tunnels, San Bernardino, CA Buildings, Renovation or Modernization with a constructed value more than $15 million Buildings, Program Management or Program Phase National Petascale Computing Facility H.D. Cooke Elementary School, Washington, DC Phase One of the Fort Lee BRAC Program, Fort Lee, VA Owner: National Center for Supercomputing Applications of the University of Illinois CM: Clayco, Inc. Owner: District of Columbia Public Schools CM: Gilbane Building Company/ Quinn Evans Architects joint venture Owner: U.S. Army PM: Army Corps of Engineers CM: MOCA Systems, URS, and MBP Buildings, New Construction with a constructed value less than $100 million Infrastructure with a constructed value less than $15 million Washington-Lee High School, Arlington, VA Pacific Coast Highway Congestion Relief Project, Dana Point, CA San Francisco Public Utilities Commission Water System Improvement Pre-Construction Planning Phase Owner: Arlington County Public Schools CM: MBP/AECOM joint venture Owner: City of Dana Point CM: The City along with PBS&J and TWNiemann, Inc. Owner: San Francisco Public Utilities Commission PM: Parsons Infrastructure with a constructed value less than $50 million International Project of the Year Buildings, New Construction with a constructed value less than $50 million CMAdvisor November/December Buildings, Renovation or Modernization with a constructed value less than $15 million Buildings, New Construction with a constructed value more than $100 million Meadowlands Stadium, NJ Owner: New Meadowlands Stadium Company CM: Skanska USA Building, Inc. Victoria Canal Conveyance Pipeline, Holt, CA Owner: the Contra Costa Water District CM: Contra Costa Water District together with HDR, Inc. Infrastructure, Program Management or Program Phase Dan Fauchier, The ReAlignment Group Pacific Coast Highway Congestion Relief Project, Dana Point, CA PHOTO BY PAUL SAVAGE San Francisco Public Utilities Commission Water System Improvement Pre-Construction Planning Phase William Ingles, CCM, CH2M HILL Distinguished Owner Award: Harlan Kelly, Jr., San Francisco Public Utilities Commission PHOTO BY SFPUC’S KATHERINE DU TIEL New CMAA Fellows Three new members were inducted into the CMAA College of Fellows: Renovation and restoration of the Colon Theatre William Van Wagenen, CCM, senior vice president, Program and Construction Management, Transportation Business Group, CH2M HILL. Owner: City of Buenos Aires, Argentina CM: Grupo SYASA Thomas W. Bishop, PE, senior vice president, URS. Rocco Vespe, PE, director, Trauner Consulting CMAdvisor November/December Buildings, New Construction with a constructed value less than $10 million PHOTO BY ADRIAN PÉREZ 11 10 Renovation and restoration of the Colon Theatre PROFESSIONAL PRACTICE CORNER “Trends indicate that the role of construction manager eventually could be considered simply a paraprofessional who works under the direction of an individual with a state-regulated professional license,” this author wrote. This column appeared at a time when several initiatives were moving forward simultaneously, all based on determining exactly what “professionalism” means as applied to CM and what education, skills, and credentials the industry should rely on in identifying true CM pros. A joint meeting of CMAA’s Board of Directors and the Board of Governors of the Construction Manager Certification Institute, held in San Diego during the recent CMAA National Conference & Trade Show, devoted several hours to a discussion of these topics. This installment of CMAdvisor Professional Practice Corner draws on that discussion, along with other industry resources, to summarize the status of the CM profession today and the challenges it faces in the future. 12 CMAdvisor November/December Defining a Profession “The CM profession is largely unregulated,” noted a breakout group at the joint Board meeting. Some participants held that “One key to the definition of a profession is that it is licensed by somebody. Every profession is licensed.” However, it is also common for CM to be performed at a high level by individuals holding licenses as engineers or architects, or holding no government-issued license at all. Moreover, holding an engineer’s or architect’s license doesn’t necessary reflect qualification to perform CM well. If a license is not crucial to the definition of a professional, what elements are? Andrew Abbott, in his book The System of Professions: An Essay on the Division of Expert Labour (University of Chicago Press, 1988) defines a profession as “an occupational group with some special skill.” Among the keys to a profession’s success are its ability to claim jurisdiction over particular tasks and determine who is entitled to perform those tasks. The rise of university education has reinforced this power. Abbott held that universities have served as “legitimators of professional knowledge and expertise.” In the same spirit, the joint Board meeting found that “CMs today are better educated than in the past, and their scope of work is larger than before, including more social issues. The academic course of study is much more recognized today, and there are more programs than ever before.” Indeed, CM-specific university programs are becoming both more numerous and more accepted. One reflection of this trend is CMCI’s recent decision to recognize, in reviewing applications for the Certified Construction Manager program, relevant undergraduate degrees granted by any institution accredited under the Council for Higher Education Accreditation. In the past, this recognition has been extended only to degrees granted by programs accredited by the Accreditation Council for Construction Education (ACCE) or the Accreditation Board in Engineering Technologies (ABET). Similarly, today’s CM is often called upon to advise owners about many aspects of a project that fall outside of the traditional construction stages. As important as technical and soft skills is the CM’s adherence to an established code of ethics that is recognized by all practitioners. The U.S. Office of Personnel Management makes the same point in different words in its Job Family Series descriptions: Credentialing Professionalism “Professional work involves exercising discretion, analytical skill, judgment, personal accountability, and responsibility for creating, developing, integrating, applying, and sharing an organized body of knowledge: • Uniquely acquired through extensive education or training at an accredited college or university; • Equivalent to the curriculum requirements for a bachelor’s or higher degree with major study in, or pertinent to, the specialized field; and Although educational resources continue to grow, a critical element of true professionalism, according to Abbott, is the fact that the profession itself determines what skills and knowledge it requires of newcomers. To be successful, a profession must be able to control who can claim membership. In this regard, Abbott says, “a single, identifiable national association is clearly a prerequisite.” • Continuously studied to explore, extend, and use additional discoveries, interpretations, and applications to improve data quality, materials, equipment, applications, and methods.” The Professional Process Performance Standards and Increasing Scope One key factor is that professionals bring a special body of knowledge to the service of their client and have a duty to operate in their client’s interest. That body of knowledge, embracing wisdom, experience, creativity, and technical proficiency, is hard to specify and it is hard to measure its delivery. Therefore professionals (doctors, lawyers, architects, engineers and now Construction Managers) are selected based on their qualifications more than price. Critically, a professional has a duty to serve a client’s interest, which a vendor of a specified product does not have. Another consideration is the standard to which a practitioner is held in assessing the outcome of his or her work. The CMAA College of Fellows addressed this topic in its 2010 White Paper on Managing Integrated Project Delivery. The basic question, the Fellows noted, is whether the CM is expected to deliver a product or to manage a process. If, by doing a job in a workmanlike way, a practitioner can be expected to deliver the same product to the same specs every time, then the standard by which the work is judged is the creation of a “defect-free” product. These two descriptions show that definitions of professionalism tend to focus on three elements: Discretion or judgment in executing the work, based on specialized education and an organized, broadly accepted body of knowledge. Because of the prominence of individual judgment in delivering professional services, and the high variability of job conditions, professionals are measured by a metric different from that of “defect-free” products, name, a “standard of care.” Under this doctrine, each professional is expected to deliver “the same level of care employed by reasonably prudent professionals practicing in the same field in the same area.” The professional’s ability to adapt to changing and unpredictable circumstances is becoming more critical, the combined Boards noted. “Often the technical part of a project is a slam dunk, but a large part of the job is on the social side.” Increasingly, CMs today are called upon to manage stakeholder relations, sustainability issues, and a whole gamut of other tasks calling for mastery of so-called “soft skills.” The combined Boards noted that business acumen is often as critical to CM today as technical ability, and effectiveness in financial management, communication, and leadership often makes a decisive contribution to project success. Professional credentials like the CCM administered by the Construction Manager Certification Institute—as long as they are recognized as being fairly earned through demonstrated mastery of an accepted Body of Knowledge—can serve many of the same purposes as a license. Continuous improvement and enlargement of the Body of Knowledge through research and practical experience are essential to gaining this recognition. The International Organization for Standardization (ISO) Standard 17024 provides the means by which personnel certification programs can assure their transparency, consistency, and equity. The American National Standards Institute is authorized by ISO to accredit certification programs that comply with ISO 17024, and has granted this accreditation to the CCM program. The industry also benefits from the availability of several other credentials. Notably, the Chartered Institute of Building (CIOB), based in the United Kingdom, certifies practitioners on an international basis, and the American Institute of Constructors (AIC) offers a Certified Professional Constructor credential for contractors and others who focus on the construction process and related tasks. The possible arrival of specialized endorsements to well established licenses (such as the PE-C, for Professional Engineer— Construction) also may have a significant impact on the professional practice of Construction Management. Yardsticks of Professionalism In summary, a profession can be identified by these qualities: Its practitioners exercise independent judgment in response to conditions that vary and are not easily predicted or controlled. This judgment is shaped by rigorous and specialized education, coupled with a broadly accepted system of Standards of Practice. The Standards of Practice and related Body of Knowledge undergo continuous review and improvement. The professional practice is governed by a Code of Ethics and represented by a single nationwide association. Join the discussion of what makes CM a profession and where the profession stands today. Post your views online at http://www.cmaanet.org/what-makes-cm-a-profession. CMAdvisor November/December Many CM practitioners would recoil from hearing their work described as “paraprofessional.” Yet that’s exactly the word used by an academic author recently in a recent guest column in ENR: On the other hand, in some cases every job is different and conditions may be difficult to predict, let alone control. In such cases, the Fellows paper says, “professionals…are in the business of exercising learned judgment, based on experience with a body of knowledge and on situations and decisions not totally knowable or under their exclusive control.” 13 What Makes CM a Profession? LEGAL CORNER In the present economy, performance bonds are often important for construction projects, for several reasons: 14 CMAdvisor November/December 1)Although Construction Manager/contractor defaults have always been of concern (public agencies routinely require bonds), such defaults have increased recently with the worsening economy; 1)fund the principal to completion; 2)perform the work itself by retaining a completion contractor and overseeing that contractor’s work; 3)tender a completion contractor and then walking away; 4)tender payment to the owner up to the penal sum of the bond, less amounts previously paid, or 2)Owners, developers, sureties, Construction Managers, and contractors need to protect their interests; and 5)do nothing and interpose all defenses against the owner’s default. 3)Such bonds enhance the viability of construction projects generally. It is always important to make sureties as secure as possible, or else they won’t issue bonds, thereby drying up what little construction is in—or about to enter—the pipeline. Surety’s Defenses to Owners’ Claims on the Bond There are several basic concepts in the performance bond context. First, the relationship here is tripartite, not the normal one-on-one contractual relationship. The three parties are (i) the Construction Manager or contractor (in many forms referred to as the “Principal”), (ii) the surety, and (iii) the project owner (in many forms referred to as the “Obligee”). Each side’s rights are interdependent, but the surety is a powerless bystander for most of a project. The latter is injected into the process only when the project owner has formally declared a default. Declaration of Default— the Surety’s Options Prior to the owner’s formal declaration of default, there is no legal basis for the surety to take any action vis-à-vis the owner or the Construction Manager/ contractor. Once the owner has formally issued its declaration holding the Construction Manager/ contractor in default, the surety has five options: Once an owner has declared the Construction Manager/contractor to be in default, several defenses are available to the surety, including those that the Construction Manager/contractor may have had, unless waived, vis-à-vis the owner, e.g., non-payment, obstruction of construction activities, or other such claims. In essence, the surety will argue that the owner had no right to default the Construction Manager/ contractor. In addition, the surety may have its own defenses, separate and apart from those of the Construction Manager/contractor, bases on which it can claim that it was discharged from its obligations under the bond by virtue of improper conduct on the part of the owner vis-à-vis the Construction Manager. Whether to pursue the Construction Manager/ contractor’s defenses can be an unenviable choice for the surety. If the surety sides with its principal (i.e., the Construction Manager/contractor), it risks a claim from the owner of bad faith disclaimer of liability or breach of its obligations under the bond. On the other hand, if the surety sides with the owner and admits that the owner’s default determination The surety has a duty to investigate the owner’s demand on the bond, both in order to decide how best to pursue its defenses and to meet its good faith obligations under the bond. It should employ consultants or otherwise learn of problems; not just problems related to the actual construction but also other issues such as unpaid taxes, payroll taxes, etc.—in short, all of the possible claims that might be made against the bond. collateral valued at 40 percent of the GMP/lump sum. This is not a theoretical concern, as owners often advance funds to their Construction Managers/contractors. Therefore, it is important for the owner and Construction Manager/contractor to obtain consent of surety for each such advance. Whether an advance is in fact a violation of the bond sufficient to discharge the surety is a fact-specific determination, where the legal standard is whether the owner has used reasonable prudence and has a good faith reasonable basis for making the payment. The surety must also affirmatively demonstrate that the owner’s payment created actual harm to the surety. In addition, the contractor’s should also investigate the Construction Manager/contractor’s claims against parties other than the owner, e.g., subcontractors or other prime contractors, claims that the surety could pursue by way of subrogation. After investigation, the surety must then decide which side to support, owner or Construction Manager/ contractor, or whether to complete its principal’s work under a reservation of rights. Distinct Defenses Available to the Surety There are also several defenses unique to the surety. The surety could argue that certain owner acts have relieved or discharged the surety from its obligations under the bond. Among the bases for such a discharge are any of the following: 1)owner’s relinquishment of its security, including overpayment to the Construction Manager/contractor; “The surety has a duty to investigate the owner’s demand on the bond, both in order to decide how best to pursue its defenses and to meet its good faith obligations under the bond.” 2)material alteration of bonded contract; 3)misrepresentation, concealment or fraud; and 4)owner’s release of the Construction Manager/contractor. The overpayment defense is perhaps the most common. The concept is that the surety has relied on the owner compliance with contract terms, including the requirement that the owner make timely payments to the Construction Manager/ contractor, but not overpay. That is, the contract balance/ retainage acts as security for the surety, not just for the owner. For example, if the owner were to pay its Construction Manager/contractor 80 percent of the GMP or lump sum for only 40 percent completed work, the surety will have lost The barriers to a complete discharge are many. The burden is on the surety to demonstrate both the fact of overpayment and the harm created thereby. But even where the surety is able to meet both of these criteria regarding an overpayment, it will only gain a so-called pro tanto discharge, that is, a discharge limited to the extent of the overpayment. Another defense is that there were material alterations to the bonded agreement, both in terms of contract terms, e.g., extensions of time, failure to give notice, and drastically changing the scope of the work to be performed. According to the case law, examples of material alterations include CMAdvisor November/December By Brian G. Lustbader, Esq., Mazur Carp Rubin & Schulman, P.C. was justified, then the Construction Manager/contractor may claim that that determination was unjustified. The CM or contractor can then use that claim to avoid its indemnification obligations under the general agreement of indemnity it would have executed to obtain the bond in the first place, arguing that the surety was acting as a “volunteer.” One possible solution to this difficult choice is for the surety to apply to a court for a declaratory judgment adjudicating the rights and obligations of the respective parties. 15 Performance Bonds: Default, Defenses & Discharge LEGAL CORNER Among the examples of non-material alterations are changing a building’s height, changing the location of the building, adding an additional floor, adding a basement, and failure of the owner to obtain builder’s risk insurance from the contractor. In analyzing each situation, the court will not permit ex post facto perspective—that is, the situation must be viewed from perspective of the time when the bond was issued. 16 CMAdvisor November/December Owner’s Claims Against the Surety Just as the surety may maintain its principal’s claims against the owner, the owner may likewise maintain against the surety its (the owner’s) claims against the principal, the Construction Manager/contractor. Among the claims that the owner may assert are those for incomplete or defective work (but the owner has a duty to mitigate these claims), unexcused delays, including liquidated damages (which the surety may in turn pursue against its principal’s lower tier trade contractors/ subcontractors). If the agreement does not provide for liquidated damages, the owner may pursue a claim against the surety for its actual delay damages, assuming the terms of the bond permit direct plus consequential damages. The owner may also pursue other claims it might have against its Construction Manager/contractor, such as breach of warranty or latent defects, even if the bond form does not explicitly so permit. While in many instances, certain technical defenses might appear to let a surety disclaim coverage or be discharged, such a result will not always obtain. Key to any such determination will be whether the surety can sustain its burden of proof both as to the defense itself and also that the event giving rise to that defense caused actual prejudice to the surety, something that usually cannot be shown. Where the surety’s defenses are not permitted and liability is assessed against it, however, the ultimate liability will likely rest not with the surety but with the principals of the Construction Manager/contractor for which it has issued the bond, as they will have issued the general agreement of indemnity for the bond, which usually includes a personal guarantee. In that sense liability will come full circle and ultimately fall on the defaulted Construction Manager/ contractor, or at least its principals. As a result, corporate insolvency/bankruptcy will not help the Construction Manager/contractor. Your Foundation for Success Jewish Reconstruc�onist Congrega�on New Synagogue, LEED Pla�num The key factor in seeing that the performance bond process is handled properly, as is often the case for construction projects, is close project monitoring—of claims, change orders, time requests and extensions, and like matters—together with providing proper notice thereof, and especially obtaining consent of surety for these various items. Such monitoring and notice will help all parties see that the inevitable project difficulties and obstructions are handled as effectively and painlessly as possible. Brian G. Lustbader, Esq., Mazur Carp Rubin & Schulman, P.C., New York City, has spent the last 30-plus years specializing in construction law and litigation representing Construction Managers, contractors, trade contractors, owners, and developers. He can be reached at blustbader@MazurCarp.com. Co�er Consulting provides comprehensive services for planning and implementing projects in the built environment. Ann & Robert Lurie Children’s Hospital of Chicago University of Chicago Joe & Rika Mansueto Library Cotter Vice President Jan Turner congratulates her fellow Chicago Chapter members on receiving the CMAA Chapter of the Year Award. Learn how Co�er can make your projects successful, Contact: Jan Turner 100 South Wacker Drive, Suite 920 Chicago, Illinois 60606 P) 312.696.1200 www.co�erconsul�ng.com CMAdvisor November/December “The key factor in seeing that the performance bond process is handled properly, as is often the case for construction projects, is close project monitoring.” Conclusion 17 changing the project from building a warehouse to building a hospital, imposing an inordinate number of change orders (although there is no absolute standard as to the number or even the dollar amount of change orders necessary to qualify), a material change in allocation of revenues, and failure to obtain lien waivers. NEWS 2011 Owners Forum Offers “Summit” View of Key Areas Last spring in Atlanta, CMAA rolled out an innovation in its national gatherings, a conference that put owners front and center, as speakers, panelists and attendees, and kept the spotlight on owner needs and priorities. CMAA is sponsoring and helping to organize the second International Transportation Construction Management Conference, which will be held February 7–10, 2011 in Orlando, Fla. The conference is presented by the U.S. Federal Highway Administration, together with the Transportation Research Board and the American Association of State Highway and Transportation Officials (AASHTO). Attendees will include executives from state departments of transportation and other agencies worldwide, along with a large number of Construction Management practitioners. The conference manager is the American Road and Transportation Builders Association (ARTBA). CMAdvisor November/December Roughly 50 conference sessions will address such topics as innovative financing, alternative project delivery methods, risk management, performance measurement, quality, emerging technologies, and international trends. As part of the conference, CMAA is organizing two presentations: • Measuring the Impact of Effective Construction and Program Management on Large-Scale Capital Infrastructure Projects, and For 2011, the Association will combine these two proven strategies into an extraordinary Owners Forum in San Antonio on May 15–17. The forum will address a central theme of “Sustainable Building Strategies,” offering a full program of sessions addressing this comprehensive theme, together with two more specialized, concurrent summit-style programs: • Innovative Procurement, Funding and Incentives Facilitate Two Mega-Projects in Virginia. • Water and Wastewater Summit—continuing the exploration of issues surrounding the world’s most valuable resource, which began at 2010’s successful Water Summit in Kansas City. The first edition of this conference, also held in Orlando, drew more than 300 people in February 2010. • Transportation and Transit Summit—delving into trends and prospects for roads, bridges, ports, transit, airports, and other transportation modes. Full conference information is available at www.tcm-2.org. All of these programs will focus on the needs and priorities of owners trying to secure the future of their organizations. Speakers will be invited owners or speakers recommended by owners, keeping true to the model of last year’s Owners Forum. Each summit will combine high-level panels, breakout sessions, and other content into an efficient, value-packed agenda. Each summit will include four pairs of breakout sessions, plus plenary session panels of owners and service providers. The entire combined forum attendance will come together for the opening keynote session, two breakfasts, networking opportunities, and the closing “town hall” meeting with owners from all sectors. Additional information about the 2011 CMAA Owners Infrastructure Forum will be published soon at www.cmaanet.org/owners-forum-2011. CMAA Publishes First Sustainability Guidelines CMAA has released its first guide to implementing sustainable Construction Management tools and processes. The 62-page Sustainability Guidelines covers key objectives of the CM in integrating successful sustainable practices throughout pre-design, design, procurement, construction, and post-construction project phases. Developed as an expansion of section 9.0 of the Standards of Practice, 2010 Edition, the new CMAA guide presents valuable information on such topics as BIM, the owner’s sustainability goals, project delivery strategies, cost control, and change management. A dedicated group of sustainable construction experts contributed to the publication’s content. CMAA appreciates the efforts from: Lonnie Coplen, LEED AP, Jacobs Engineering; Jennifer Creighton, LEED AP, McKinstry | Energy & Facility Solutions; Joyce Dawson, CCM, LEED AP, Anne Arundel Community College; Juan Giron, PE, LEED, City of Phoenix; Lourdes Gonzalez, AIA, LEED AP, Primera; Don Green, CCM, CCC, LEED AP, Heery International, Inc.; Judith Kunoff, CCM, AIA, LEED AP, MTA NYCT; Don Laford, CCM, PE, URS Corporation; Christopher Magent, PhD, LEED AP, Alexander Building Construction; Mickey Rosenblum, CCM; and Ron Whisker, CCM, LEED AP. CMAA Creates Academic Advisory Panel CMAA has established a new academic advisory committee of leading faculty members at CM programs nationwide. The new group’s charge will be to work with CMAA—and particularly with the College of Fellows— on strategies to enhance the Association’s relationships with the academic world and improve the education available to young aspiring CMs. The Fellows have focused on academia recently, hosting a session at the National Conference & Trade Show in which industry and university representatives shared views on what prospective CMs need to learn and how best to deliver this knowledge. The new committee will both help faculty members integrate the CM Standards of Practice into their curricula and help CMAA understand what teachers need to shape the next generation of CMs. CMAdvisor November/December CMAA Sponsors International Transportation Construction Management Conference Members Will Present in Key Sessions Several times in recent years, CMAA has staged highly focused best practices summits that explored a single market area in depth, whether it was transportation, schools or water and wastewater infrastructure. 19 18 Visit the CMAA Bookstore to purchase the Sustainability Guidelines. NEWS More than half of owners reported dramatically cutting their headcount in the last two years, including 18 percent who said their staffs were down by more than 20 percent. Twenty percent of owners planned to hire in 2010, and 22 percent planned to hire in 2011. Even when staffing begins to pick up again, survey respondents said they expect to try to meet their workforce needs by hiring less expensive staff, hiring retirees, or recruiting current staff to stay on the job past their expected retirement dates. 20 CMAdvisor November/December “The trends described in this report will profoundly affect owners’ ability to manage projects effec‑ tively,” the survey report said. “As a result, owners will increasingly be faced with a choice: Scale back their capital design and construction activities (at the risk of compromising mission), risk suboptimal outcomes as a result of staff overwork, or find additional resources outside of their organization.” In addition to staffing changes and hiring restric‑ tions, the survey breaks down the impacts that the recent economic stress has had on document and service quality; collaboration and degree of integration; lean construction techniques; and project delivery systems. Encouraging news came in the form of rising program management use and improved service provider quality. Owner respondents have doubled their use of program management services since 2007, accounting for 10 percent of capital construction spending. It also is the opinion of owners—44 percent—that the quality of construction execution has improved. The complete report is available online. Coming Soon—CMpat™ CMAA’s new CM Practitioner Assessment Tool—CMpat—is slated for rollout early in 2011 and should provide a powerful new vehicle for both individual CMs and their organizations to record and assess professional experience and plot pathways to further education. CMpat received a high-impact introduction at the recent National Conference & Trade Show, with continuous demonstrations in the exhibit hall. A special demo video has been produced to show how the system will look, feel, and work. Individuals will use CMpat to keep track of their experience and build the record of Responsible-In-Charge experience they will need to seek the Certified Construction Manager credential. WATCH NOW to learn more about CMpat For companies, CMpat will be a vehicle to convey strong messages about the qualifications of their staff, and owners will rely on it as a consistent way to evaluate the work experience of CMs seeking their business. Construction Management sole proprietors and firms with annual fee revenues up to $10 million now have a new insurance option—one that, for the first time, is designed expressly for CM professionals and recognizes the value of the Certified Construction Manager (CCM) credential. Chubb Group of Insurance Companies, together with broker Ames & Gough, now offers Errors & Omissions Liability Insurance specifically for CMs. In addition, individual practitioners who are CCMs, and firms committing to have CCMs in key positions in their management and on their projects, will be eligible for a 10 percent discount on premiums. “We are pleased to make this new benefit available to our members who, by adhering to our standards, already are reducing their projects’ risk exposure,” said Bruce D’Agostino, president and CEO of CMAA. “It is a big milestone to have a leading national insurance company, after careful consideration, formally declare that professionalism and certification make a difference in project performance.” Michael Phillips, vice president and miscellaneous professional liability product manager for Chubb Specialty Insurance, added: “We are thrilled to receive this recommendation of Chubb’s capabilities from the preeminent construction managers industry association. CMAA members represent among the most professional construction managers in the industry. We look forward to serving their needs through customized insurance and loss prevention programs.” Mike Herlihy, executive vice president of Ames & Gough, said, “We are delighted to provide coverage to construction managers who provide the highest level of professionalism and performance and are committed to controlling and minimizing risks associated with construction projects.” COMPREHENSIVE CONSTRUCTION MANAGEMENT SERVICES Program Management - Constructibility Review - Construction Inspection Cost Estimating - Commissioning - CPM Scheduling - Risk Management - Training WWW.MBPCE.COM 800-898-9088 Expertise. Technology. Results. CAPITAL BUDGETING AND PROGRAMMING SUSTAINABLE PLANNING AND DESIGN PROGRAM AND CONSTRUCTION MANAGEMENT CAPITAL ASSET MANAGEMENT www.mocasystems.com CMAdvisor November/December America’s construction owners have significantly reduced their in-house design, engineering, and Construction Management staffs during the recession, according to one of the key findings of the CMAA/FMI 2010 Survey of Owners. The new 15-page report, Rising from the Ashes of Recent Economic Woes, provides insight from more than 300 owners across a wide range of markets and regions. New Insurance Policy Affirms CM Professionalism, Offers Discounts to CCMs 21 Owners Report Significant Staff Reduction a Permanent Condition FOUNDATION 22 It was more than just a positive coincidence that I became chair of the CMAA Foundation at the same National Conference that awarded CMAA’s Person of the Year distinction to Charlie Thornton. site will stress career promotion and recruitment, along with providing easier access to all of our basics—information about scholarships, useful publications, and ways to give to the Foundation. Charlie’s work in launching and building the ACE Mentor program has had a profound impact on our industry and clearly merited the honor. In addition, during our awards luncheon we offered a special recognition to ACE Program graduate Francisco Ruiz-Torres, who now works for Clark Construction and spoke to the large audience about how much the experience has helped him in both his education and his budding career. • Christine Flaherty, CCM, LEED® AP and her company, STV, Inc., have also taken the lead in designing a new pocket-size brochure about careers in CM. STV has donated the graphic design and a committee of the Foundation Board has been refining the text and “road-testing” the message among groups of high school and college students. You’ll hear more soon about how you and/or your CMAA chapter can obtain and use the brochure. We also showed an exciting video describing ACE. There is a natural community of interest between ACE and the CMAA Foundation, and as we move forward, I hope we will be able to build a very strong relationship. In the broadest terms, it will be critical for our industry to interact effectively with educators and reach out to students, both college age and younger, to help meet our long-term needs. • AECOM has come on board as the latest Visionary level supporter of the Foundation’s Capital Campaign. Thanks so much for both your check and your example to the rest of the industry! This goal also drives several other current Foundation activities: And we’re glad to welcome Atul Apte, CCM, LEED® AP of APRI Construction Management, Irvine, Calif., who has joined the board to fill out Steve’s unexpired term. • We are preparing to launch a renovation of the Foundation’s website. The goal is to have a new site in operation by spring, and to provide a high degree of interactivity and visitor engagement. The As we progress into 2011, the CMAA Foundation will continue to bring value to the industry and improve our prospects for the future. Finally, we are sad to say goodbye to Steve Routon, PE of HNTB, who has resigned from the Foundation Board after giving us impressive and valuable service. Ross Shafer Greg Gumbel David Wyss Labor-Management Conference Terry McAuliffe Ed Gillespie www.ironworkers.org Buena Vista Palace Hotel, Lake Buena Vista, FL FEBRUARY 20 – 24, 2011 1-800-545-4921 IMPACT_PC.indd 1 10/22/10 11:20 AM 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. REMINDER: The CMAA Foundation has a library of exciting www.impact-net.org 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. career videos available for use by your company or chapter. View the videos today at www.cmaanet.org/career-videos. To learn more, visit www.cmaanet.org/pd-home. CMAdvisor November/December CMAdvisor November/December Randy Larson, PE, CCM, FCMAA President, PBS&J/Atkins – Infrastructure, Water, & Environment, CMAA Foundation Chair 23 Reaching Out to ACE Nor th American Iron Workers / IMPACT CERTIFICATION In October, LinkedIn enabled a new feature called “sections” for its individual user profile pages. This includes the option to add certifications along with other elements of languages, patents, publications, and skills. Alfred Baniowski Parsons Brinckerhoff Scott Daniel Johnson Hill International, Inc. David Roach Barnhart, Inc. These new sections add another rich layer of profile information that will make LinkedIn an even more powerful networking tool than it already is. Gil Batin Vanir Construction Management Rodney Leard AECOM Mohammad Saeid Construction Controls Group, Inc. CMCI encourages all CCM and CMIT holders to include this information on their professional profiles. This will help to raise awareness of our certification programs and designations, and their importance in identifying professionals in the industry. Frederick Bravo GKK Works How does it work? At the bottom of your LinkedIn profile page in the “Edit Profile” mode you will see the new “Add sections” option: Michael Brenner PBS&J Jonathan Brunelle Tishman Construction Corporation Christopher Bush Parsons Elizabeth Davis MOCA Systems, Inc. Donald Ellis Shaw Environmental, Inc. Robert Joe Ervin Sound Transit 24 CMAdvisor November/December At the next prompt, you have the ability to add sections (certifications, etc.) as well as other LinkedIn enabled applications. Peter Espinosa Vanir Construction Management, Inc. Michael Froelich Construction Services Unlimited, Inc. Ryan Johnson Project Control, Inc. Daniel Mason McDonough Bolyard Peck, Inc. Brad Melton Fairfax County Department of Public Works Victor Millan-Simpkins URS Corporation Heidi Obie Bovis Lend Lease Gerald O’Neill Urban Engineers, Inc. Michael Petri KOLBE Construction Philip Poladian GKK Works David Pye The Whiting-Turner Contracting Company Moustafa Rezk Haks Engineering Carl Rizzo Paul C. Rizzo Associates, Inc. CMCI Board of Governors 2010–2011 Leroy Schmidt Black & Veatch Paul Casey Sheldon Hill International, Inc. Russell Smith AECOM J. Parke Smith Parsons Richard Sperandio Tetra Tech Eric Sweet Cannon Design Chair: Lou Couture, CCM, LEED®AP URS Corporation Vice Chair: Larry Smith, PE, CCM U.S. Army Corps of Engineers Secretary: Steven DiBartolo, CCM, LEED®AP Hill International, Inc. CMAA Board Liaison: Ray Brady, CCM MWH Global Governors: Roy Beeson, PE, CCM McDonough, Bolyard Peck Tom Haid, PE, CCM Parsons Mehdi Heydari, PE, CCM Vanir Construction Management Canh Tran Kitchell CEM Joe Lawton, AIA, CCM AECOM Traci Williams Volkert & Associates Josh Rowan, PE, CCM, LEED®AP PBS&J Michael Paul Wischnewski Naval Facilities Engineering Command Washington James Ruddell, PE, CCM PB Peter Yee Pacifica Services, Inc. Carl Sciple, PE, CCM Wentworth Institute of Technology Ann Marie Sweet-Abshire, AIA, CCM U.S. GSA Brian Stover, PE, CCM Urban Engineers Douglas Titzer, CCM Jacobs Adding your CCM or CMIT certification to your LinkedIn profile is a great way to familiarize your colleagues and friends with the high level of professionalism and accomplishment you bring to your career. Ken Vogel, PE, CCM Metropolitan Washington Airports Authority CMAdvisor November/December Congratulations to Our Newest CCMs! 25 Add CCM to Your LinkedIn Profile ROUNDUP 26 CMAdvisor November/December Parsons has been awarded a seven-year Program Management contract by the U.S. General Services Administration to coordinate construction and infrastructure development for the Department of Homeland Security’s St. Elizabeth Campus in Washington, DC—the largest federal construction project in the DC metro area since construction of the Pentagon and the most complex project in GSA’s history. Smoot Construction Seeking Subcontractors for CityCenter DC Complex A building team of Smoot Construction and Clark Construction Group has begun seeking subcontractors for the 10-acre CityCenter DC development on the site of Washington, DC’s former convention center. The mixed-use project will include 520,000 square feet of office space, 458 apartments, 216 condominiums, 185,000 square feet of retail and 1,570 underground parking spaces. Parsons will assist GSA in overseeing all phases of the design, commissioning, information technology, energy management, community outreach, and the relocation of DHS headquarters personnel. Construction is expected to begin in April 2011 and will cost between $750-$950 million, making it one of the largest active developments on the East Coast. Tishman to Oversee Construction of Vietnam Veterans’ Education Center Hill International to Manage Hospital Expansion Program in Kuwait Tishman Construction Corporation has been selected Construction Manager by the Vietnam Veterans Memorial Fund for the education center at The Wall. Designed as a learning facility, the new center will feature a wall of larger-than-life photographs of those whose names are on the Vietnam Veterans Memorial and showcase of more than 100,000 items that have been left in tribute at The Wall. A timeline of key military events of the Vietnam War and a history of the Memorial are other highlights of the facility. Hill International will provide project and Construction Management services, in association with System Development Project Management, for the Kuwait Ministry of Health’s nationwide hospital expansion program. The three-year, $6.2 million contract is part of a $513 million program involving eight hospitals. Hill International and SDPM will serve on all phases of the program, which includes new construction and expansion and renovation of existing facilities. The courtyard design reflects the National Park Service’s desire to minimize the center’s visual impact on the site and preserve the historic vistas of the National Mall. The project team is pursuing LEED® silver certification. “This program is extremely important to the Kuwait government. We are proud of the fact that the Ministry is relying on our team to help improve their healthcare infrastructure,” Raouf S. Ghali, president of Hill’s international project management group. Jacobs Engineering Group, Inc. will serve as Program Management consultant for the Regional Transportation Commission of Southern Nevada. The contract, to last four years with two one-year options, calls for Jacobs to provide technical capacity, coordination and oversight of professional service, design, and construction contracts to support development of RTC’s capital projects. Turner to Provide CM for University of Pennsylvania’s Penn Park Turner Construction Company will serve as Construction Manager of a 24-acre recreation development for the Univer‑ sity of Pennsylvania. Intended as a space for students and residents to connect the City of Philadelphia together with Penn’s campus, the $30 million Penn Park will feature two artificial turf fields, one of which enclosed for all-weather use; a natural turf field; an artificial turf softball field; two volleyball courts; and a 12-court tennis facility. Penn Park’s design and construction will exceed the city’s water management requirements by including stormwater and flood-water management. The project will be completed by fall semester 2011. Heery International to Serve as CM of Exotic Animal Training Facility at Moorpark College Heery International is providing Construction Management services for the new 13,000-square-foot facility for Moorpark College’s renowned exotic animal training and management program. The $12.7 million training facility will prepare students for careers working with animals in television, film, zoos, theme parks, and more. The unique structure, built to serve EATMP staff, students and 150-plus animal inhabitants, includes a 150-seat multi-purpose outdoor auditorium, two 50-seat classrooms, veterinary medicine lab, bookstore, ticket booth, faculty offices, and support space. The project has been challenged by the Ventura County, Calif. campus site conditions, involving stabilizing the building and ensuring its strength against soil pressure. Completion is slated for April 2011. MOCA Selected for Nationwide PMIS Contract with U.S. Army Corps of Engineers MOCA Systems, Inc. has been awarded a contract to improve P2 Program Management Information System adoption and data quality for the U.S. Army Corps of Engineers. The P2 system is used for every USACE project and provides the link from the Corps’ Primavera budgeting/scheduling system to its financial system. The contract calls for MOCA to help USACE headquarters improve overall functionality of the P2 system, as well as provide support in the design, implementation and use of P2 version 3, which is to roll out in December 2010. Cotter Consulting Opens First Out-of-State Office Chicago-based Cotter Consulting, Inc. has opened its first out-of-state office in Milwaukee, establishing roots in a market that it’s done business in for many years. The new office will be a center for business development for the metro region and southeastern Wisconsin. The Construction Management and commis‑ sioning services firm has selected Nahid Keltner, a former project manager at M.A. Mortenson, to lead the new location. URS Expands International Presence by Acquiring Scott Wilson Group URS Corporation has completed its acquisition of design and engineering consultancy Scott Wilson Group, adding a network of 80 offices and more than 5,500 employees from around the world. The deal expands URS’ presence in such key infrastructure markets as London, Warsaw, Hong Kong, New Delhi, and Dubai. Scott Wilson’s operations will be incorporated into the infrastructure and environment business segment of URS, and Hugh Blackwood, former Scott Wilson Group chief executive, has joined URS as a vice president and senior vice president of international operations. The total equity value paid by URS for all outstanding shares equals approximately $336 million. Balfour Beatty Acquires Toronto-based Halsall Group Balfour Beatty’s recent acquisition of Halsall Group provides a platform for Parsons Brinckerhoff to develop a successful Canadian professional services business. The deal adds seven offices in Canada and more than 300 employees to PB’s market reach. “The joining of Halsall’s strength in buildings with Parsons Brinckerhoff’s strength in transportation infrastructure allows us both to offer enhanced services to existing and new clients throughout Canada,” George Pierson, president and CEO of Parsons Brinckerhoff, said. CMAdvisor November/December Parsons Is PM on Dept. Homeland Security’s St. Elizabeth Campus Jacobs Awarded PM Contract from Nevada Transportation Group 27 Member News ROUNDUP Population Division II: CMAA Baltimore Chapter With 18.4 percent growth and 99.2 percent retention, the CMAA Baltimore Chapter received the Chapter of the Year Award for chapters with 100–200 members. CCMs comprise 30 percent of the membership of the Baltimore Chapter, which has only been in operation two years. Some of its key accomplishments during the year include: conducting a Standards of Practice course; making a $3,000 donation to the CMAA Foundation for student scholarships while it develops a chapter scholarship program; creating a transition plan for incoming officers; and generating $23,000 in revenue. 28 CMAdvisor November/December Population Division III: CMAA Chicago Chapter The CMAA Chapter of the Year Award in the 200–300 member category was presented to the Chicago Chapter, which boasts owner firms representing a third of its membership. During the year, the Chicago Chapter held 17 events and took in $25,000 in revenue with $30,000 in the bank. A past award recipient, the chapter was active bringing a new student chapter online— increasing the total that it hosts to three—and maintaining solid retention amidst the formation of a new regional chapter. Mid-Atlantic Chapter Rocco Vespe, PE, FCMAA, took over as president of the chapter again, having served in that position 20 years ago when the chapter had only 30 members. Now it has more than 250 members. Along with the other officers (Joni Powell; Bruce Betz, CCM; and Donna Rapone), the chapter plans another year of exciting events including the annual “Toys for Tots” meeting, a tour of a prominent local construction project, a golf outing, and an awards banquet. In addition, a combination instructional workshop and meeting on construction changes and delays is being planned. The officers and the board of directors of the chapter have established the chapter goals and objectives for the upcoming year including promoting the chapter on a local level, developing the chapter as technical resource for owners, increasing owner participation, increasing membership and members participation, and being chosen by National as the Chapter of the Year. Chicago Left to right: Harrison Staley, CCM, Chapter Secretary; Jan Turner, Cotter Consulting, Inc.; Mike Potter, PE, CCM, CMAA Vice President & Vice Chair, Regional Chapter Committee; Lourdes Gonzalez, AIA, LEED AP, Primera Engineers, Ltd. CMAA Adds Oregon Chapter The Oregon Chapter formed this summer and now has 49 members from varying backgrounds in facilities, water and waste water, transportation, and energy. According to Jim Ruddell, CCM, PE, PB Americas and president of the chapter, containing the chapter’s enthusiasm to pursue a limited number of initiatives in the first year was important. He says: “To optimize our likelihood for success, we agreed to do a few things well and to build on successes over subsequent years. Our focus this year is on building no more than four committees: membership, programs, student liaison, and awards.” Ruddell notes that there are plenty of opportunities to spread the word about CMAA, including the chapter’s monthly meetings with a featured speaker. In September, members toured the Tri-City Waste Water Plant. Population Division IV: CMAA Southern California Chapter The CMAA Southern California Chapter was honored with the Chapter of the Year Award, Population Division IV for membership above 400. The Southern California Chapter kept a busy schedule over the year, including four CCM application workshops which helped the chapter attain the second highest number of CCMs in the country with 105. The chapter held a total of 43 meeting and events on topics appealing to a wide range of members and attracted an average of 172 attendees to its dinner events. Aside from $500,000 going through its treasury during the year, another highlight was raising and distributing $45,000 in scholarships to four students, as well as donating $3,000 to ACE Mentor program. CMAA Awards of Excellence Student Chapter of the Year: Illinois Institute of Technology Chapter Student Focus: Metropolitan New York/New Jersey Chapter CCM Involvement: New England Chapter Professional Development: San Diego Chapter Southern California Left to right: Immediate Past President Atul Apte, CCM, LEED AP, APSI Construction Management; Secretary Brett Barnett, PE, CCM, Harris & Associates; CMAA National Chapters Committee Member D. J. Mason, PE, Keville Enterprises; Treasurer Michael Baker, Esq., AALRR; President-Elect Lisa C. Sachs, AIA, CCM, CUMMING; and President Michael McAlpine, CCM, STV, Inc. Left to right: Jerome Duletzke, PE, Jeff Graham (guest speaker), Phil Gagnier, CCM (vice president), Eric Forsyth, PE, Jim Ruddell, CCM, PE (president), Dan McIntier, Ed Trotter, Dan Dowell, CCM, PE (treasurer), Bill Hawkins, Stanley Kirk, and Doug Garland, CMIT CMAdvisor November/December CMAA Chapters of the Year Honored Baltimore Left to right: President Jonathan J. Ryan, PE, CCM, LEED AP, Johnson, Mirmiran & Thompson, Inc.; Mike Potter, PE, CCM, CMAA Vice President & Vice Chair, Regional Chapter Committee; President-Elect Vance Tsiamis, CCM, RK&K 29 Chapter News ROUNDUP Professional Development Calendar PRESIDENT’S REPORT Owners, and Only Owners, Define the Profession By Bruce D’Agostino, CAE, FCMAA 2nd International Conference on Transportation Construction Management February 7–10, 2011 DoubleTree Hotel, Universal Orlando Orlando, FL Webinars Independent Oversight and Control of Complex Capital Projects Thursday, Dec. 9 30 CMAdvisor November/December Visit www.cmaanet.org/courses-and-events for updates on the 2011 webinar schedule. National Meetings CMAA Owners Forum May 15–17, 2011 The Westin River Walk San Antonio, TX Refer a Friend to CMAA! Do you have a colleague or client who would benefit from CMAA membership? Visit this link to send them a concise message about CMAA. Just before our National Conference & Trade Show in San Diego I was invited to take part in a “Construction and Education Summit” organized by the Associated Schools of Construction and attended by 15 other national organizations. Then, in San Diego, I attended the CMAA College of Fellows’ panel presentation on the relationship between industry and the academic world. Designers want to design, and that’s what owners need them to do. Likewise, constructors want to build, and they serve owners best in that role. CMs create value by managing the entire process, according to recognized Standards of Practice. These two experiences reinforced for me the gap between what industry needs and what is being taught in our universities. This gap, in turn, reflects a fundamental misunderstanding of what the profession of Construction Management really is. We need to engage more effectively with faculty members and do a better job of defining the Construction Manage‑ ment profession. We need to establish a clear career path for students, industry newcomers, and more seasoned practitioners so that everyone, including owners, will know what to expect of professionals at different levels. As a result of the ASC Summit, CMAA was asked to lead an effort to unite the many players in our industry behind a single vision of what the profession means, what education it requires, and what role the Certified Construction Manager (CCM) and other credentials should play in it. A useful starting place for both industry and academia would be to recognize that owners will shape the future of the profession. We can’t worry about sorting through the com‑ peting definitions and claims of organizations representing architects, engineers, general contractors or others. They— and we—don’t get to say what services owners need and what levels of knowledge, skills, and experience they require. Owners do get to say those things, and it’s our job to listen. In a recent guest column in Engineering News-Record, an academic author commented, “Trends indicate that the role of construction manager eventually could be considered simply a paraprofessional who works under the direction of an individual with a state-regulated professional license.” Everything CMAA has heard over the years from owners, and everything owners are telling us today, contradicts this. Owners most emphatically do not want management of their projects and programs to be in the hands of a practitioner who is subordinate to their designer or general contractor. The CMAA Fellows session in San Diego revealed that a striking number of educators, at major institutions, are unfamiliar with our SOP. One speaker even referred to the SOP as newly published, despite the fact that we’ve been publishing this document for more than 20 years! “Owners get to say what services they need and what levels of knowledge, skills, and experience they require. It’s our job to listen.” We have a strong beginning with our CMIT program, and we will add the CM Practitioner Assessment Tool (CMpat™) early in 2011, which will also help measure and verify the experience of individual practitioners. Of course, the CCM remains the industry’s “gold standard.” CMAA embraces the job of leading the industry toward a unified, coherent vision of the profession. But we must remember along the way that we’ll never “sell” this vision unless we listen closely and responsively to what owners are telling us. CMAdvisor November/December December 8–9, 2010 Houston, TX 31 CII Project Management Course: Front End Planning and PDRI