CMAdvisor Advancing Professional Construction and Program Management Worldwide Construction Without Architects? CMAA in San Diego: More Value than Ever BOOKMARK THIS ISSUE July/August 2010 Volume XXIX, No. 4 Contents 6 July/August 2010 Volume XXIX, No. 4 Construction without Architects? How CMs Will Fit in a New World A dwindling design community, a tight economy and changing owner priorities are driving new approaches to procuring quality design...with important implications for CMs. 2 CMAdvisor July/August The first new edition of Construction Management Standards of Practice in six years. 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. FEATURE 12CMAA in San Diego: More Value Than Ever CMAA’s National Conference & Trade Show offers top keynoters, 40 breakout sessions, two pre-conference workshops, the biggest exhibit hall yet, plus the entire program content easily accessible online through the new Live Learning Center. 5 Chairman’s Report By Gary Cardamone, PE 31President’s Report By Bruce D’Agostino, CAE, FCMAA DEPARTMENTS “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.” 16Professional Practice Corner 20Legal Corner GARY CARDAMONE, PE, DIRECTOR OF CONSTRUCTION MANAGEMENT, PORT OF LONG BEACH, CA, AND CHAIR, CMAA SOP COMMITTEE Order your copy today online through the CMAA website. COLUMNS 22 News 24 Foundation Cover photo: Camelback Ranch - Glendale Spring Training Facility, Phoenix, AZ. CM: Mortenson Construction. 2009 Project Achievement Award winner. Photos: (above left) TODD Aerials; (above right and cover) Carlos Espinosa. 25 Certification 26 Roundup CMAdvisor July/August CMAA PRESENTS “High performance” buildings are all the rage these days. But are they living up to their claims and expectations? And whose job is it to see that they do? 3 8 The CM’s Role in the Successful Transition to Sustainable Building Operations CMAdvisor Chairman of the Board Gary Cardamone, PE Port of Long Beach, CA 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 6,200 firms and professionals who provide management services to owners who are planning, designing and constructing capital facilities and infrastructure projects. RENEWABLE ENERGY GREEN TECHNOLOGIES CONSERVATION PRESERVATION We take action. Action demonstrated in our environmental sustainability. Action exemplified through our community management services. Our actions speak volumes. 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 2010, ISSN 1084-75327 Reproduction or redistribution in any form is forbidden without written permission of the publisher. +1.303.410.4000 mwhglobal.com constructioninfo@mwhglobal.com Sometimes a word or phrase becomes so common and popular that we hear it all the time, but rarely pause to wonder what it really means. The particular phrase I’m thinking of is “skin in the game.” This usually means that owners want their contractors, designers, consultants, and even their Construction Managers to assume some important share of project risk. “Don’t just leave me in the cross-hairs,” we seem to say. “Put your own welfare at stake, too.” I’ve heard this plea from Contractors as well, who believe agency CMs have no incentive for keeping a project on schedule as “they get paid by the hour.” This attitude can at times be beneficial when it leads to a carefully thought out structure of incentives and disincentives built into construction and service provider contracts. We should strive for a fair and proportional distribution of risk and reward among all project stakeholders. But when it comes to professional services, “skin in the game” is just not the right mantra. The professional CM or Program Manager does not deliver value to the owner by assuming financial risk associated with a project. Quite the contrary: The value of CM services springs from the fact that the CM cannot gain or lose by offering the most thoughtful and objective counsel possible. That has nothing to do with bonding capacity, financial reserves, or any other project-related factor. Our accountants don’t make more money if they make our books look better. In fact, that would be a pretty serious disservice. What if our physicians had a financial stake in every diagnosis? How could we trust them? Instead, we pay these professionals for their brain power. We want their best advice, and we want all the professionals we hire to perform without real or perceived conflicts of interest. involvement. Action realized in our expert CM-at-Risk, design-build and enhanced third-party construction By Gary Cardamone, PE Port of Long Beach, CA CMAA members receive this newsletter as a member benefit. For advertising information, contact Tom Egly at tom.egly@tgdcom.com. We should also realize that CM is practiced—and practiced well—in a wide variety of settings. The Agency CM model is well known, of course. But a CM-At-Risk contract also provides scope for effective delivery of sound, professional CM services. In-house CMs at owner organizations can perform at a high level as well. What matters, regardless of who signs the pay check, is professionalism, and that, in turn, is built upon our CM Standards of Practice. CMAA is working to elevate an entire category of project participants, and to advance the profession of Construction Management across the board. The clearest and most persuasive evidence of the Construction Manager’s commitment to professionalism is of course the Certified Construction Manager credential. But first and most important: Before a practitioner can even think about pursuing the CCM, there must be a fundamental commitment to our SOP, our Code of Ethics, and the ideal of responsive, unbiased professional service. CMAdvisor July/August WET INFRASTRUCTURE 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. Getting Past “Skin in the Game” 5 Actions Speak Louder Than Words Our Mission is to Promote and Enhance Leadership, Professionalism and Excellence in Managing the Development and Construction of Projects and Programs. CHAIRMAN’S REPORT “They can do without architecture who have no olives nor wines in the cellar,” wrote the 19th century American author and philosopher Henry David Thoreau. Thoreau may have regarded architecture as one of life’s necessities, but today’s construction industry is evolving toward a different view. It isn’t that owners want to “do without architecture,” really…but market forces and demographic changes are forcing a new approach to procuring good building design. This trend has important implications for professional Construction and Program Managers. “It’s clear to me that the design community is diminishing in population and general experience,” says Robert Wilkinson, CCM, Deputy Director of Construction Management at Hazen and Sawyer. There’s data to back up that impression. According to the U.S. Bureau of Labor Statistics, employed architects have dropped from an average of 233,000 in the first quarter of 2008 to 217,000 in the first quarter of 2009 and 198,000 in the first quarter of 2010. BLS also says the total number of technical and nontechnical staff employed in the architecture and engineering services industry in 2009 was 1.346 million, down from 1.445 million in 2008, a 9.3 percent drop. High-profile firms have closed their doors (for example, Boston’s Cubellis and the multinational Yamasaki Associates, designer of the World Trade Center). Others are laying off staff. A survey by consultants ZweigWhite found that 35 percent of firm leaders said they are considering staff cuts in 2010, on top of layoffs conducted in 2009. George Miller, past president of the AIA and a partner at world-renowned architecture firm Pei Cobb Freed & Partners, worries about the long-term effects this job shortage will have on the industry. 6 CMAdvisor July/August “It’s really difficult, of course in these last several years, for students coming out of school to find appropriate positions in the field,” he said. “That really concerns all of us because we’re afraid that we’re going to lose a generation of architects. ... There are going to be fewer of us around to do the work that really needs to be done in the future.” Not everyone is so discouraged. Heery International CEO Bill Heitz, CCM, says, “I would challenge the premise that the design profession is a vanishing breed. The size of the design community has certainly been reduced during this recession, just as it has in every recession.” Still, Heitz says, that’s true of many other fields as well. Looking to the future, he adds: “The reality is that there is more to draw young people to the design professions than ever—increasingly complex and challenging buildings, the sustainability movement, forward thinking trends in urban planning, exciting advances in the use of technology, and a heightened awareness of the impact of good design. Enrollment in architecture and engineering schools, along with the ranks of the active practitio- How CMs Will Fit in a New World ners, will continue to ebb and flow with the economic cycles, just as it always has.” Heitz does see increasing owner interest in a new approach to design, accounting for the growing popularity of Design-Build. Cost isn’t driving this trend, though, Heitz says: Speed of delivery and risk management are. Both of these benefits spring from one of construction’s longest-standing areas of tension, the conflict between designer and builder. This tension is increased by dwindling expertise in design and a lack of focus on owner needs. “The youngest members of the experienced, competent staff of design firms are approaching 60 years old and are preparing to retire,” says Wilkinson. “These people have not been replaced, and a clear void of experienced personnel exists.” Among younger architects, attitude may also be part of the problem. Anne Edwards-Cotter, president of Cotter Consultants, comments, “Some architects, and particularly young architects can’t see past the ‘romance’ of architecture. I’ve worked on projects where I sense that the architects are only concerned with what award they might win for this project. I have experienced projects where the architect spends time chasing too many ideas (time & fee) in the schematic phase and the quality of the construction documents is poor as a result. “[T]he design community is diminishing in population and general experience. ... CMs need to identify and understand these changes and adjust the practice of CM accordingly.” “The role of the CM in the design phase becomes more important,” Cotter adds. “The CM must manage the design team within the project budget and schedule and keep the design team focused on meeting the program requirements of the client. The CM has to keep the team focused on the goals and objectives of the project.” Clients who want a “trophy” building by a big-name architect will probably always be able to get one. But for the huge volume of bread-and-butter construction in America, high fees are out and a new, more integrated approach is in. “For the straight-vanilla building design effort, the fees will be diminished, and these projects will increasingly be unattractive to the larger design firms,” says Wilkinson. Integrated Project Delivery, in which highly collaborative teams of stakeholders work together throughout the project life cycle, also works to eliminate the division between design and execution. One of the keys to Design-Build’s appeal, says Heitz, is that it uses qualified design professionals in two roles, as the bridging architect and the architect of record. “Design has not become a gap,” Heitz says. “If there was a gap in the building process, it was the one that was filled by the creation of the Construction Management and Program Management profession in the 1970’s. Conventional wisdom says that Construction Management was born to fill a gap left by the architects. In fact, most of the standard scope of the program manager’s contract involves activities that are typically performed by the Owner—creating a budget and schedule, managing the design process, controlling the time and costs, forming a strategy for procuring the construction, negotiating the construction contact, and so on. One could thus make the argument that the CM has filled a gap left by Owners. The reality is that the complexity and risks in today’s built environment demand project management skills that some Owners choose to outsource.” In a new world, with a changing view of design, the Construction or Program Manager has a critical role to play. Cotter says part of this role will be to get client needs and designer selection in a more logical relationship. Too many owners, she says, “hire the architect first to help them determine what they need. I have seen a client committed to an architect that really isn’t suited to the project, but because they were brought in early, they are married to them. If the PM/ CM can provide planning and early programming services, the selection of the architect can be delayed until the project goals and objectives are established. The PM/CM can help the client to select the design team best suited to their project.” However the architectural profession may change in the future, it’s clear the old ways aren’t coming back. “These are long term, permanent changes and a return to previous conditions of practice will not be experienced,” says Wilkinson. “It is a foregone conclusion that CMs need to identify and understand these changes and adjust the practice of CM accordingly. CMAdvisor July/August By John McKeon 7 Construction without Architects? 8 The success of high-performance buildings is directly related to an integrated approach to project delivery. This approach requires that a robust and collaborative project team, including the owner, tenant, facilities personnel, contractors, architect, engineers, and others, is established at the earliest stages. This team is engaged in developing the initial concepts and vetting viable approaches during the early stages of design. This is an iterative effort that reveals the most effective solutions. While the initial costs for engaging the project team at an early stage may be higher than the more traditional approach, evidence from other successful high-performance projects shows that the overall cost is often less and the quality and operating efficiencies of the project are enhanced. The CM is a very important voice in that collaborative effort. Design Integrated Delivery Design Construction Operations & Maintenance The CM’s role in the project starts during the pre-design phase. A clear understanding of the owner’s requirements is essential. If they are not already established, the CM should assist in developing guidelines for such project-related issues as cost, quality, and project team selection. These goals will determine which central characteristics of high-performance buildings a particular project will pursue. If the owner’s project requirements have already been established, the CM should confirm that they include requirements for all energy systems, indoor environments, siting, water, and environmental responsiveness of the facility. It should also address the ideas, objectives, and criteria that the owner considers important. Often an owner will need guidance in this area and may need to undertake a team brainstorming effort to establish these criteria. The CM can be effective in helping the owner organize and develop this document. The project team should be selected based on their experience in designing and constructing high-performance buildings. Firms with experience in sustainable and energy-efficient design and construction methods are critical for success. They must understand the use and potential impact of building configuration and orientation, daylighting, natural ventilation, high-efficiency mechanical equipment and lighting installations, and renewable/alternative energy sources (e.g., wind, solar, fuel cells). Considering the project through a sustainability perspective during the design phase will help seamlessly incorporate the key elements that will make the project successful. During the design phase, the CM will need to ensure that the sustainability criteria outlined by the owner are included in the building design plans and specifications. Establishing clear communication channels, expectations, and performance criteria with the design team will be essential in this stage. The CM should also be prepared to provide the owner with knowledge about the newest developments in high-performance building technologies. Through these suggestions, the owner will be able to make decisions about design with direct industry knowledge. There are many tools to assist in successfully integrating sustainability into these projects. Few sustainability “extras” actually require extra time or cost if incorporated correctly and at the appropriate time. Tools such as energy modeling software, Building Information Modeling (BIM), water balance calculations, and daylight modeling will be instrumental during the design phase of the project. For sustainable material selection, resources like BEES (Building for Environmental and Economic Sustainability) and EPP (Environmental Preferable Purchasing) will be valuable references. There are a variety of rating systems for measuring building performance. Understanding the processes and values associated with each system is important so that the owner can be directed toward those that will best meet his goals. Incorporating rating systems like the U.S. Green Building Council’s LEED® Certification early in the process will be necessary to avoid costly late changes. Be sure to explore a variety of certification options, including: IPMVP (International Performance Measurement and Verification Protocol), ASHRAE criteria, LEED rating systems, and EnergyStar ratings. Similar to selecting the appropriate rating system to track building performance, deliberate analysis of building components and strategies should be a priority. Incorporating evaluation based on life cycle presents the owner with an opportunity to improve building performance while fully understanding the impacts of his decision. Establishing methods for evaluating life cycle costs during design will bring long-term benefits to both the owner and occupants. A tool that evaluates the cost over time will allow the owner to better understand his investment options. For example, design strategies and systems that are very energy efficient may have higher first costs, but may be the better investment when analyzed over their expected life in terms of energy savings, maintenance, repairs, and other costs. The CM should be prepared to explain the value of this type of analysis to the owner and project team. Construction A CM’s task during the construction phase is to ensure that the project is built to the plans and specifications established during the design phase. These documents should address all high-performance standards, as well as Division 1: General Requirements for the contractor, describing administrative and procedural requirements to realize these high-performance goals, including tracking, reporting, and meetings. The procedures used on a high-performance project will be similar to a traditional project but may vary considerably in detail, especially if a LEED rating is being sought. Requirements for documenting the LEED construction credits will mean the contractor and their sub-contractors will have additional responsibilities in the submittal and installation processes. The CM needs to be aware of these differences and ensure that they are adequately covered in the Division 1 requirements as well as instituted in the day-to-day activities on site. Of particular note would be any prerequisite credits such as Erosion and Sedimentation Control or Fundamental Building System Commissioning. CMAdvisor July/August CMAdvisor July/August As high-performance buildings take center stage relative to both owner and tenant requirements, buildings are constantly watched to see if they are performing to their engineered standards and intent. The responsibility of ensuring these buildings meet their design potential falls to a number of people. Understanding the critical role the Construction Manager plays in this challenge will help deliver more sustainable, better quality buildings with optimized performance to clients. Integrated Delivery 9 The CM’s Role in the Successful Transition to Sustainable Building Operations Regular site walks are a standard activity for a CM but will also require attention to issues that are not part of the normal observations, particularly with regard to indoor air quality issues which should follow SMACNA standards for isolation, protection, housekeeping, and scheduling to control the amount of contamination of the space by ongoing activities. properly maintained lasts longer, is more reliable, and tends to operate more efficiently. Training should be provided by qualified manufacturer representatives. The bid specifications should spell out the requirements. Commissioning (Cx) should be a part of any high-performance project, whether attempting a LEED rating or not. The requirements for the Cx work are typically specified by the mechanical and electrical engineers, but may also involve other systems including the exterior envelope or even irrigation systems. An independent commissioning agent will be hired by the owner to develop a commissioning plan and perform functional tests. This may also involve a peer review of the design before the construction documents are complete. The CM will need to be aware of the Cx strategy selected for the project in order to properly manage the schedule of activities that need to occur. Owner education runs through the entire project process and is a critical avenue for the CM to influence the success of this transition. Ensuring that the owner is aware of the importance of fundamental commissioning and the ongoing measurement and verification of his systems will be critical for the life of his building. Setting up these standards and expectations before the project closeout will give the owner more tools, ensuring that the building will continue to meet his or her expectations for sustainable building performance. Training is comprised of two areas: Operations and maintenance. Employees who will be using or running various systems should be given instructions on how to do this properly. They should understand the installed energy-saving features and how to use them. With new technologies, there is often a lack of understanding about how these systems work or interact. It is critical that the appropriate personnel are educated on all the systems and the controls needed to operate them. Similarly, those expected to maintain and repair equipment need to know correct procedures for doing so. Equipment that is A successful closeout of a project could include contracting with third-party monitoring and verification services, recommended by the project CM. Utilizing these services takes pressure off the owner for tracking details like warranty issues, O&M manuals, and measurement and verification of their building system operations. Tracking building performance in real time with a third-party monitoring system will ensure that any changes in building performance are identified and addressed immediately, ensuring the design of these systems is living up to the expected financial and energy savings. CMAdvisor July/August 10 USGBC’s Greenbuild Nov. 16-19 Chicago, IL Ecobuild America Dec. 6-10 Washington, DC Mobile Surveillance Unit CCTV/ Camera Security Trailer Security Officer 800–310–5535 www.dmcommun.com www.eCamSecure.com www.cpssecurity.com sales@cpssecurity.com CA C7 825688 | ACO 6119 | PPO 11094 | GA PSC001921 | NV 741 | AZ 1003939 | FL B2100148 | UT P102088 | TX C09819 | L A 531 | AR B2005-0080 | NM 2328 Preparing the owner with operational procedure training, connecting him or her with third-party building monitoring, and setting him or her up for successful monitoring and verification are essential for transition to sustainable operations. This article was prepared by the CMAA Sustainability Committee together with Peter Locke, LEED AP, AIA, Lauren Carter, LEED GA, and Rishi Tirupari, LEED AP, Sustainable Building Advisor, of McKinstry. 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. Upcoming Sustainability Events Two large and important events for sustainabilityfocused professionals are opening soon for registration. Structured Cabling Voice • Data • Video Register early since the most interesting sessions fill up quickly. Another interesting opportunity for our international members is the upcoming World Expo in Shanghai co-sponsored by Stanford University, which will be held in August. “Better Building-Better World” is the theme, and the program will explore many aspects of sustainability. 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 July/August Before the project is completed, the CM needs to ensure that all staff training and operations and maintenance manuals are in place. This process traditionally begins as construction is completed, but for the most successful transition, training should be ongoing during the project, educating the staff that will be operating the finished product. Operations & Maintenance 11 “The CM should also be prepared to provide the owner with knowledge about the newest developments in high-performance building technologies.” CPS offers peace of mind every phase of the way The big event takes place on October 3–5 at the Manchester Grand Hyatt hotel in San Diego. “For an industry event whose value hinges on networking, collaboration and timeliness, there’s simply no better venue than California,” says Todd Niemann, CCM of TWNiemann, Inc., chair of the National Conference Committee. “The dynamism of the California market, the appeal of San Diego, and the high quality of the Conference program will combine to produce a remarkably valuable and successful National Conference & Trade Show.” For the first time, CMAA will deliver the entire content of these sessions—combining slides with fully synchronized audio and a variety of enhancements—in an online Live Learning Center (LLC). Instead of choosing one session in each time slot and missing the others, Conference participants will benefit from all the content, from all presenters, in a convenient form. AECOM Michael Baker, Jr., Inc. HDR Engineering, Inc. Oracle Heery International Parsons It amounts to four times the content and four times the value of any previous National Conference. Hill International, Inc. PBS&J HNTB Corporation Attendees will also be able to use the LLC in advance of the Conference, to select sessions and download them to their personal calendars. Indam Engineers, Inc. STV Construction Services, Inc. Jacobs Urban Engineers, Inc. Keville Enterprises, Inc. Vanir Construction Management, Inc. Online Registration Now Open! CMAA in San Diego Top Keynoters CMAdvisor July/August Two dynamic keynote speakers will highlight the Conference. 12 Thanks to CMAA’s National Conference & Trade Show Sponsors! Stan Slap is the author of the newly-published Bury My Heart at Conference Room B: What Truly Drives the Most Passionate Managers. He will focus on “the ultimate key to creating a compelling, competitive, durable brand—a key held by each and every employee.” The second keynoter, Roger Snoble, led the Los Angeles Metropolitan Transportation Authority for more than seven years, managing a $3.5 billion budget, over 9,000 employees, a subway system, three light rail lines, a 500-mile HOV network, a fleet of 2,600 clean fuel buses and a 26-line bus rapid transit system. He now serves on Gov. Arnold Schwarzenegger’s Infrastructure Advisory Commission. Snoble is a true innovator—adopting new project delivery methods and learning from methods used in other parts of the world. He brings a broad perspective to the challenge of financing infrastructure in an era of constrained resources. Kleinfelder, Inc. More Value Than Ever Best Practices— Best Practitioners Fellows Session to Focus on Academy-Industry Links CMAA will work with alliance partner the Construction Industry Institute to craft a special group of presentations within the overall Conference program. These sessions will be derived from the ongoing CMAA/CII effort to harmonize CMAA’s Standards of Practice with the construction Best Practices published by the Institute. Industry and Academia—Strengthening our Ties to Improve our Products is the topic for this year’s CMAA College of Fellows special discussion session at 4:30 pm on Sunday in San Diego. Session specifics will be published in late summer. “This discussion will concern the relationships between academia and the construction management industry, the challenges facing CM degree programs, and the means by which our industry and academia can strengthen our relationships,” says Donald B. Russell, chancellor of the College of Fellows. Speakers will include heads of some of the top university CM programs in the country, plus a group of CMAA Fellows. The goal is a free-flowing discussion driven by questions and comments from the audience. CMAdvisor July/August The Association’s flagship annual gathering will once again be the best opportunity of the year to learn what’s driving the market and sharpen the knowledge and skills you will need to prosper in the future. Some 40 breakout sessions will address key topics related to Strategies, Execution, Sustainability, and Technologies. 13 CMAA’s National Conference & Trade Show returns in October to a true industry crucible: California, the place where trends are spotted, challenges met, and solutions devised. Exhibitors in 2010 CMAA Trade Show CMAA in San Diego More Value Than Ever 3QC, Inc. Largest Trade Show Ever Time to Celebrate Aconex The excitement about San Diego has shown up early in the form of exhibitor commitments to the Exhibit Hall. The hall was roughly 90 percent sold out in early summer, well ahead of the pace that led to a sellout last fall in Orlando. Attendees in San Diego can also have good fun in a good cause at the CMAA Foundation reception on Monday evening. Aerotek, Inc. AIA Contract Documents® ARCADIS U.S., Inc. Bluebeam Software, Inc. CH2M HILL Chambers Group Inc. Chubb Insurance/Ames & Gough Coffey Environments Construction Testing Services CPS Security Solutions D. R. McNatty & Associates, Inc. EADOC LLC EarthCam, Inc. e-Builder, Inc. e-Plan, Inc. Eyedeal Tech, Inc. Faithful+Gould 14 CMAdvisor July/August Field Automated Communication Systems Meridian Systems Michael Baker Jr. Inc. Microdesk, Inc. MOCA Systems Inc. Motion Computing MWH Constructors, Inc. Ninyo & Moore Parsons Parsons Brinckerhoff PBS&J PSOMAS RGA Environmental, Inc. Safework, Inc. Green Ideas Shannon & Wilson, Inc. Hill International, Inc. Simon Wong Engineering HNTB Corporation Spitfire Management, LLC Industrial Info Resources The Louis Berger Group, Inc. Infrastructure Engineering Corporation Totum Consulting Keville Enterprises, Inc. Kraus-Manning, Inc. • The LEED® Green Associate Exam Preparation course, and • Claims Avoidance, Evaluation and Resolution for Owners and CMs, led by experts from Trauner Consulting. It’s Not Whom You Have, It’s What They Give (From Tough Times: Tougher Teams, by Stan Slap) PMA Consultants Sage Software, Inc. Jacobs CMAA will also produce two pre-Conference workshops on Saturday, October 2: Oracle Forensic Imaging & Archiving, Inc. IT Vizion, Inc. Pre-Conference Workshops Return Trauner Consulting Services, Inc. URS Corporation USC Viterbi School of Engineering Vali Cooper & Associates, Inc. Kugan & Associates, LLC Vanir Construction Management, Inc. MacDonald-Bedford LLC Vela Systems, Inc. MBI Weston Solutions, Inc. Your company may be currently betting its life on the ability to roll out new strategies to the marketplace—ahead of schedule, ahead of budget, on the heads of your competitors. Yet most strategies in most companies don’t really work. They don’t really do what they were supposed to do, cost what they were supposed to cost or happen when they were supposed to happen. This is because even the smartest companies subscribe to the most dangerous strategic myth: A strategy has to be planned well to be successful. In fact, a strategy has to be implemented well to be successful. “Implemented well” means that your company must be able to dependably enroll its employee culture in fierce support of that strategy. If you can do this, you’re well on the way to achieving strategic insurance. If you can’t, and you think strategies will be successful anyway, you’re building a base camp on Mount Delusional. Which employee could argue with the irrefutable logic of urgent strategies during these trying times? Forget about the logic: Neither business logic, nor management authority nor any compelling competitive urgency will convince an employee culture to adopt a corporate cause as if it were its own. In the killing field between company concept and employee commitment lies many a failed strategic plan. If you want your employees to buy a strategy, you have to know how to sell it to them. This means selling to the employees—knowing how the culture works and how to work the culture. It’s not a matter of informing the culture; it’s a matter of inspiring it. It’s not a matter of PowerPoint or bonus programs; it’s a matter of vision and values. It’s not a matter of logic; it’s a matter of logical methods for stirring deep response. An employee culture is the simplest operating system in the world: It’s solely concerned with survival and emotional prosperity. Unfortunately, that’s its own survival and emotional prosperity, not yours and not the company’s. Still, it’s a rational organism and will devote resources to achieving any strategic goal as long as it can link that goal with its own priorities. The culture has plenty of commitment to give as long as it perceives that it’s safe and sensible to give it. Because an employee culture is an information gathering organism designed to protect itself, its antennae are constantly working, its perceptions are alarmingly accurate, its credibility detector is infallible and its memory is elephantine. Management can’t bluff, bribe or bully an employee culture. You can’t stop an employee culture from existing and you can’t tell it what to believe. WATCH NOW Video Preview of Conference Keynoter Stan Slap What you can do is respect its power to make or break any corporate survival strategy. You can imbed your strategic and performance goals with the opportunity to satisfy what’s most important to the culture, not just to the company. You can’t sell it outside if you can’t sell it inside. Remember this one point when depending on strategic success and you’ll be halfway home. Or in a halfway home. Either way, you’ll have made progress. CMAdvisor July/August C2PM McDonough Bolyard Peck, Inc. This year’s Trade Show also continues the growth pattern that began in San Francisco. That year, with 60 booths, the expo eclipsed the 41 booth spaces occupied in 2007 in Chicago. In 2009, in Orlando, CMAA expanded the show to 66 booths and once again sold them all. For 2010, the exhibit hall has grown again, to 78 booths. 15 Box.net As always, the National Conference will wrap up with the festive Industry Recognition Awards reception and banquet. Honors bestowed at this lively gathering include CMAA’s Project Achievement Awards, Distinguished Service and Distinguished Owners Awards, new inductees into the College of Fellows, and the 2010 CMAA Person of the Year. PROFESSIONAL PRACTICE CORNER Safety in Design is an effort made in the design phase of a construction project to consider the safety of workers who will be constructing the project. It is a structured process in the planning and design phases of the project. In the United States, such a focus on worker safety in the early stages of a project is neither a part of the traditional aspects of design nor a part of the traditional aspects of construction safety practices. Rather, the focus of designers is on the safety of the end users of the facility: Its occupants, maintenance personnel, and the public who utilize the facility, and not the worker who builds it. Construction safety requirements fall primarily on general contractors and subcontractors. The safety emphasis is on the means and methods practiced in the construction phase. 16 CMAdvisor July/August In other counties, effective ways of addressing construction safety, in addition to proactive safety management during construction have been pioneered and implemented. The objective has been to improve construction safety by making the working environment safer before construction begins. The United Kingdom and Australia are two countries that have aggressively taken the lead to regulate and implement Safety in Design. They have enacted laws, rules, and regulations that require the designer to proactively design for safety, and in developing best practices models for designers to use to incorporate into design. For example, in Australia, health and safety law and supporting guidelines for industry practice have been established, requiring designers to ensure health and safety in design and construction of buildings, facilities, and infrastructure. Professionals in design, and others including the owner, and the developer, are all under the jurisdiction of Australia’s Occupational Health and Safety Laws. The laws require a process of interaction between designers and the end users, manufacturers, suppliers, and contractors. In the UK, the Construction Design and Management Regulations of 2007 (CDM) require every designer preparing a design for construction to “avoid foreseeable risks to the health and safety” of workers on construction projects. Designers are required to incorporate regulatory requirements that address hazards created by design when a construction process is being specified and provide safer alternatives. In order to do this, UK designers must identify prohibited practices, such as the lifting of loads over a large radius, or painting steelwork on site, exposing workers to toxic vapors. Designers are also required to assist contractors in meeting safety requirements through safety policies. These include, for example, the provision of holes in steelwork to anchor lanyards, lifting points in precast or preassembled panels, and use of lightweight blocks. Despite these successes in the UK, there has been resistance to compliance. Certainly the added cost associated with compliance and the need to cut costs and meet schedules is one reason for this. Also the Health and Safety Executive (HSE), which is similar in many respects to Occupational Safety and Health Administration, has been underfunded to enforce these requirements. A rise in fatalities in the UK from 2005/2006 to the following year and inspections by the HSE that identify non compliance in one of three work sites inspected indicate that even abroad, Safety in Design has more distance to travel. The implementation of Safety in Design is likely to be a part of the evolution of the construction industry in the United States. Much like the embracing of Green Construction, which has taken many years to take hold, Safety in Design is a concept whose time has come. A review of the literature on the subject of Safety in Design shows that there are only a handful of design firms that will even take credit for performing Safety in Design functions. As costs of litigation and liability insurance increase, along with the concern for construction worker safety, there is recognition that improved safety can improve worker productivity and the quality of construction. Why the resistance? The current notion is that liability should remain in the province of the general contractor. The general contractor is rewarded for the risks it takes. The design community fears that the embrace of Safety in Design will increase their professional liability. There is great reluctance for American architects and engineers to interfere with, recommend or suggest construction means and methods to contractors, and great reluctance by contractors to accept them. This is because it goes against the culture, custom, and norms of the practice of construction in the United States. “Safety in Design is highly complementary to Green Design principles. Both concepts speak to a choice of processes in engineering and architectural design that lead to safer and healthier environments.” The construction contract documents published by the industry and used by owners, and even the OSHA regulations, reinforce the notion that safety is squarely in the province of the general contractor and not the designer. OSHA clearly establishes the role of contractors in providing safe work conditions and practicing OSHA standards. A review of OSHA regulations show that OSHA standards addressed such operations as scaffolding, material hoists, hazardous locations, cranes and derricks, and protective systems, but defined the role of the professional engineer as an inspector or designer for the contractor, providing no role to perform prevention through design services before the start of construction. There are encouraging signs that Safety in Design is beginning to take root in the United States. For example, the American Society of Civil Engineers has entered into discussions with OSHA to improve construction worker safety, which could directly involve design engineers in the process at a future time. A key initiative is to develop model safety programs that can be used by engineers and architects in their designs, such as already exist in the UK and elsewhere. The U.S. Department of Energy has taken concrete steps to incorporate safety into the design phase for nuclear power plant facilities. For example, a project at Los Alamos serves as a model for Safety in Design. During the design of a recent project for a chemistry and metallurgy research facility, many aspects of safety were integrated into the design phase. This was done by identifying and addressing safety issues on a daily basis through the interface of designers and safety professionals, and further supplemented by monthly formal design meetings and safety committee meetings for review and debate of issues identified and means to resolve them. Another DOE project undertaken by the Washington Group International (now the Washington Division of URS Corporation) that serves as a model was a design build project for an advanced mixed waste processing facility. A core mission was to integrate safety input into the design, engineering, and planning stages of the project. The firm believed that designing for safety in the engineering phase would have a great impact on safety during construction of the project and later on in the operation of the facility. Thus, safety measures were built into the design, construction, operations, and future decommissioning and demolition stages. A formal process was developed to identify ideas that would enhance safety. Design managers incorporated safety concepts early in the design. These inputs were reviewed for their appropriateness and effectiveness by other team members. During construction, design took into account hazards of electric shock, confined space, fire, toxic substances, vehicle traffic, falls, and rigging for heavy lifts. On the operational side, some of the Safety in Design measures included the design of a waste handling system that would be remotely handled by operators. Safety in Design cannot be successfully implemented without the participation of the Construction Manager. When we think about constructability reviews we associate these reviews with the incorporation of our knowledge and expertise in practical construction methods and incorporating this into the design process. The goal is to produce a project that is cost effective and buildable. Why not take this to another level by incorporating design and constructability review for safety? CMAdvisor July/August By Alexander M. Palumbo, CCM, THE HIRANI GROUP Safety in Design is highly complementary to Green Design principles. Both concepts speak to a choice of processes in engineering and architectural design that lead to safer and healthier environments. The Green Design movement has been slow in its implementation but is now gaining momentum. Similarly, Safety in Design has gotten off to a slow start, but there are signs that the movement is growing. It stands to reason, because Safety in Design not only reduces accidents and illnesses, but is cost effective. In the United States, Safety in Design is in the early stages. 17 Safety In Design Practices: Comparison Between The U.S. And Abroad PROFESSIONAL PRACTICE CORNER This does not only mean ensuring that design documents address the permanent facility’s safe operation, but also allows for construction site safety to begin at the start of construction for the protection of the trades, general public, and other parties in proximity of construction sites. The following constructability safety review criteria simply illustrate how constructability review by Construction Managers can incorporate a review for safety during construction: • Ensure that the design provides for tie-off points for attaching lanyards and other fall protection devices. • Ensure that the floor perimeter beams and beams above floor openings are designed to support lanyards. • Ensure that the contract drawings identify which beams are designed to support lanyards, how many lanyards, and at what locations along the beams. • Ensure that permanent guardrails are designed to be installed around skylights. • Recommend domed, rather than flat, skylights with shatterproof glass or strengthening wires. • Recommend design of skylights to be installed on a raised curb. We are slowly beginning to embrace Safety in Design. The embrace of safety has taken time, but just think of the strides that have been made since the early 20th Century. When the Hoover Dam was constructed, more than 120 workers were killed, and this was an acceptable cost of construction. When the Verrazano Narrows Bridge was being constructed, there were no safety nets until three workers fell to their deaths and a work stoppage forced change. There is growing evidence that the domestic construction industry is becoming more aware and more receptive to safety and health requirements on the job. This awareness is not only motivated by the concern for the well being of the construction workforce. Increasing costs associated with accidents and illnesses, lost productivity, and legal liability have combined to increase awareness. Expertise. Technology. Results. CAPITAL BUDGETING AND PROGRAMMING SUSTAINABLE PLANNING AND DESIGN PROGRAM AND CONSTRUCTION MANAGEMENT Alexander M. Palumbo, CCM is senior vice president and principal for construction management, construction inspection, health and safety management and general contracting services comprising the HIRANI CONSTRUCTION MANAGEMENT DIVISION. He can be reached at apalumbo@hiranigroup.com. CAPITAL ASSET MANAGEMENT www.mocasystems.com • Recommend that upper story windows be designed to be at least 1.07 m (42 in.) above the floor level, and that the window sills act as guardrails during construction. • Recommend design of roof parapets at 1.07 m (42 in.) high to eliminate the need for additional guardrails. Program Management - Constructibility Review - Construction Inspection Cost Estimating - Commissioning - CPM Scheduling - Risk Management - Training WWW.MBPCE.COM 800-898-9088 CMAdvisor July/August COMPREHENSIVE CONSTRUCTION MANAGEMENT SERVICES 19 18 CMAdvisor July/August • Recommend design of building components that can be prefabricated and installed as assemblies rather than as individual pieces at height. While not extensively addressing the protection of trade secrets, Article 43 does provide that a “business secret” learned in concluding a contract not be disclosed or unfairly used, and establishes liability for damages caused by the use or disclosure of the business secret if such use or disclosure causes the other party loss. By Christian A. Carrillo, Esq., Morris Polich & Purdy LLP A Construction Manager should also be aware of the circumstances under which Chinese law renders a contract null and void. This occurs when the contract is obtained through the use of fraud or collusion with the intent of damaging the interests of the State or a third party, the contract is damaging to the public interests, or the contract violates laws or administrative regulations. A party also has the right to request that the people’s court modify or revoke contracts that are concluded as a result of a “serious misunderstanding” or were “obviously unfair at the time of concluding the contract.” However, a party should be aware that seeking modification waives the right to revocation. In today’s globalized economy, overseas construction projects present opportunities for exciting and prosperous work. But perils exist when unfamiliar laws govern the projects. When involved with foreign construction projects, a construction manager must be familiar with the effect of local contract laws. labor usage), its traditional focus is almost solely on, for example, “the agreement to do or not to do a certain thing.” See, e.g., CAL. CIV. CODE § 1549. Chinese law’s explicit focus on the collective is alien to Anglo-American law, and creates a backdrop where the welfare of society, as defined by the State, looms over every contract. China, with its massive construction projects, remains a magnet for American investment, but Chinese contract laws, while superficially similar, are different in important ways from Anglo-American traditions. Awareness of these similarities and differences is essential for a Construction Manager to fulfill his or her duties for the client. This broad, social welfare-based focus continues beyond Article 1, with the general provisions of the 1999 Act specifying that “[n]either party may disrupt the socio-economic order or damage the public interests.” The 1999 Act then shifts to more traditional contract concerns, such as requiring the parties to be of equal footing, act in good faith, abide by the laws and administrative regulations, and observe social ethics. Prior to 1999, China’s contract law was quite rigid, emphasizing the centralized, planned economy’s “public interests” and severely restricting the autonomy of the parties to a contract. The 1999 Act radically altered that balance away from the collective and toward the free marketplace and the individual parties within it, emphasizing freedom of contract, restricting government interference, and increasing the contractual freedom of the parties. The 1999 Act also tries to “codify,” or establish by statute, specific rules and provisions which are often unwritten in Anglo-American jurisprudence because they have developed over hundreds of years of judicial decisions (the “common law”). Despite these marketfriendly improvements, the former focus on the State occasionally reemerges. Article 1 of the 1999 Act is such a throwback to earlier Chinese law, establishing the purpose of Chinese contract law as “protecting the lawful rights and interests of the parties to contracts, maintaining the social economic order, and promoting the progress of the socialist modernization drive.” While Anglo-American contract law may void or otherwise alter contracts due to public policy (such as child A construction manager should be aware that Article 12 requires contracts to contain specific clauses with precise information. That information includes: The title or name and domicile of the parties; the contract’s object; quantity; quality; price or remuneration; time limit, place and method of performance; and liability for breach of contract and methods to settle disputes. Most American contracts contain “boilerplate” provisions, which are critical as they typically govern such things as dispute resolution, claims administration, and the various rights and duties of each party. The 1999 Act defines these as “standard terms”—clauses prepared in advance for general or repeated use by one party and which are not negotiated with the other party. If a dispute arises over the meaning of the contract’s standard terms, those terms are interpreted according to “general understanding” and are construed against the terms’ supplier. (This is somewhat akin to the common law rule that ambiguities are construed against the drafter.) Consistent with its “codification” approach, Chinese law attempts to resolve contract ambiguities in advance. In the performance of contracts which contain unclear quality requirements, the State standards or trade standards shall apply. Similarly, when the price or remuneration is unclear, the market price of the place of performance at the time the contract was concluded is applied. If the place of performance is unclear and the payment is currency, the place of performance is the location of the party receiving payment. In the case of government contracts, the 1999 Act is state-friendly: If delivery under the contract is delayed and the price has dropped, the new price is adopted; if the price has risen, the original price remains valid. Other provisions important to Construction Managers include the circumstances, liabilities, and remedies for breach of contract. Article 114 is, essentially, a liquidated damages provision, stating that a contract’s parties may establish, in advance, a certain amount of contract damages for a breach, or a formula for calculating damages. The amount agreed upon may, however, be adjusted, at any party’s request to the people’s court or to an arbitration panel. With international projects, contracts may be in two languages. Chinese law provides that “where two or more languages are adopted in the text of a contract, both texts are equally authentic.” When the terms and expressions are inconsistent between the texts of different languages, a contract will be interpreted in a manner consistent with the contract’s purpose. Chapter 16 of the 1999 Act governs contracts for construction projects. Some notable provisions include a requirement that construction projects be in written form. Article 275 requires construction contracts to contain clauses establishing, among other things, the construction’s scope, the time period, the cost, and quality. Also required in the construction contract are provisions addressing the deadline for submitting technical data, the responsibility for supplying materials and equipment, allocating funds and settling accounts, and the mutual cooperation of the parties. And Article 276 governs “supervision” of a construction project, requiring that the “contract letting party shall enter into a written supervision commission contract with a supervisor.” The Act allows the contract letting party, the general contractor, or the contractors for the survey, design, or construction to assign part of the contracted work to a third party, who becomes jointly and severally liable. The subcontractors may not sublet that work again. “Chinese law’s explicit focus on the collective is alien to Anglo-American law, and creates a backdrop where the welfare of society, as defined by the State, looms over every contract.” International projects can be profitable, exciting and dynamic. But awareness of the local laws’ effects on the projects’ contracts is essential so that problems, which can ultimately entail litigation in distant jurisdictions, are avoided. As can be seen from Chinese law, even superficial similarities can obscure differences of which one must be aware so that projects can be built without problems or delays. A clear understanding of local contract law, with clear contracts at the beginning of a project, will help ensure a smooth and prosperous construction experience. Christian A. Carrillo is an associate with the Los Angeles office of Morris Polich & Purdy LLP. He has represented owners, general contractors, and construction managers in complex, contractual litigation, and also litigates delay and defect claims. Carrillo also litigates commercial actions involving trade secrets, trademarks, copyrights, and false advertising, and has extensive experience with actions brought under the False Claims Act and in administrative proceedings brought by public entities. He can be reached at CCarrillo@mpplaw.com. CMAdvisor July/August Avoiding Peril Abroad: Understanding Foreign Contract Law Will Help Avoid Later Project Difficulties 21 20 CMAdvisor July/August LEGAL CORNER NEWS To gain a broader understanding about the state of global Construction Management and how to promote worldwide standards of practice, the UK’s Chartered Institute of Building Chief Executive Chris Blythe shares his thoughts with CMAA President and CEO Bruce D’Agostino, CAE, FCMAA during a recent CMAA Radio interview. CIOB serves more than 42,000 member owners, consultants, contractors, and specialists in regulation, research, and education. The CIOB recognizes the growing need for a professional and cohesive CM discipline, but according to Blythe the UK deals with a stigma that construction is dangerous and opportunistic. Professionalism, in his opinion, must begin with customers and associates and carry through with a high level of competence and skill. “There’s still a lot of work to be done to bring the industry up to speed to a global concept,” he says. “We live in a world of cultural diversity; acting in a reliable and trustworthy manner is a common courtesy, and that in the end is the key to success or failure.” Blythe points to the significant differences in the approach, methodology, and technique in Construction Management practiced in the States compared to other parts of the world. The CIOB first published its code of practice in 1992—now in its fourth edition—and offers the MCIOB and FCIOB professional designations, similar to CMAA’s Standards of Practice curriculum and the CCM respectively. “If we can achieve uniformity and standardization without compromising our core strengths and values, CM as a service industry has much to offer in the coming years,” Blythe says. “I would like to see more convergence between what CIOB and CMAA are doing rather than looking at separate streams of activities.” The CIOB and its partners are working with the European Union to develop a consistent set of documents on such areas as value management and public-private partnerships that may be used as a reference across the EU. Blythe concludes that, “It’s our public duty to share with everybody who’s interested.” LISTEN NOW to more on ideas to promote wider adoption of best practices and other key CIOB initiatives 22 CMAdvisor July/August ENR Highlights CM Certification, CMAA The June 14 cover story published in Engineering News–Record, “Seeking New Directions By Raising the Bar on CM,” examined how CM certification through CMCI has elevated the practice standards industry-wide. Vanir Construction Management Inc. President and CEO Mansour Aliabadi has been a long-time advocate in establishing and expanding a certification standard, stating “If we don’t create a measurement, someone else will.” Vanir Group Chair Dorene Dominquez went even further, saying “Vanir’s success is directly attributable to the professional development of our dedicated construction management staff, including our commitment to the certification program.” Read the story here. The ENR issue also features the annual list of top 100 professional services firms. Find the archive on ENR’s Web site. CMAA Announces Nominees for Board of Directors More than a dozen leading CM firms now rely on online Standards of Practice training from CMAA to enhance and maintain the skills of thousands of practitioners at all levels throughout their organizations. The Nominating Committee, led by Immediate Past Chair Tom Bishop, PE, has developed a slate of nominees for the 20102011 CMAA Board of Directors. CMAA is preparing to add four new modules to the online curriculum, reflecting the new content added to the 2010 edition of Construction Management Standards of Practice. These modules will address Program Management, Risk Management, BIM, and Sustainability. The current library of eight modules, totaling more than 16 hours of expert instruction, is available either as single programs, as a complete eight-course curriculum, or as a license enabling an organization to deliver unlimited training through its own network to its entire staff. “Licensing SOP training from CMAA is a sound strategy for assuring a uniformly high level of knowledge and skill among all of our practitioners,” says Dave Conover, CCM, vice president at HDR, Inc. “It is a significant plus for us to be able to assure clients that our entire team is thoroughly familiar with the Standards of Practice.” URS Corporation’s director of training and development, Allyn Bader Barclay, calls the CMAA modules “important not only for their immediate training value but also as a clear pathway to the eventual goal of earning the Certified Construction Manager credential.” URS already has more than 30 CCMs on its staff. At MWH Global, Joseph Sesil reports that CMAA’s SOP training has been enthusiastically received throughout the company. “Like other large organizations, we are challenged to deliver timely, standardized training to professionals at all levels, and CMAA’s self-paced online tools are a powerful, flexible solution.” In addition to those who have taken courses under MWH’s license, nearly 1,000 company employees have enrolled in individual modules directly through CMAA. HNTB, with more than 550 enrollees, and Hill International, with more than 400, are other large-scale users of the SOP online modules. Thirteen organizations have licensed the full SOP curriculum from CMAA: ARCADIS, HDR, Heery International, Hill International, HNTB, the city of Indianapolis, Jacobs, MWH, Parsons, PB, PBS&J, RK&K, and URS. For information about licensing, contact Dennis Doran, CMAA VP/Professional Development. The Committee considered both current directors seeking additional terms and more than 20 nominees for three seats becoming vacant this October. The slate of nominees is: Officers Past Chair: Gary Cardamone, PE, Port of Long Beach, Ca Chair: Dave Conover, CCM, HDR, Inc. Chair-Elect: Ron Price, CCM, PB Secretary-Treasurer: Mike Potter, PE, CCM, RKK Vice Chairs: Judith Kunoff, AIA, CCM, New York City Transit Sam Sleiman, PE, CCM, Massachusetts Port Authority Bill Heitz, CCM, Heery International Ray Brady, CCM, MWH Nominees for Re-election as Directors Robert Bennett, PE, Rabco William Heitz, CCM, Heery Rebecca Jones, Safework Judith Kunoff, AIA, CCM, New York City Transit Ron Price, CCM, PB Melissa Robins-Cesar, CCM, Tishman Nominees for First-Time Election as Directors Mark Ballard, AECOM Doug Hyde, PE, Jacobs Chris Payne, CCM, McDonough Bolyard Peck The Board election will be conducted online during the weeks leading up to CMAA’s Annual Meeting on Sunday, October 3 in San Diego. CMAdvisor July/August Consistency, standardization, and uniformity, with special emphasis on professionalism, are the key issues standing in the way of utilizing the full potential of collective resources for international Construction Management practice. Online SOP Training Reaching Thousands Throughout Industry 23 CMAA Radio Interview: Inside Look at Global Perspective Capital Campaign Continues to Grow Thank You, Foundation Donors! ANSI Extends CMCI Accreditation Congratulations to Our Newest CCMs! Visionary: $5,000 per year Hill International The CMAA Foundation’s Capital Campaign, “Construction Managers Building for the Future,” continues to progress toward our goal of a half million endowment. We’ve recently been able to open an investment account with a substantial initial deposit, and we expect to be adding to this account regularly as we receive new contributions and fulfillments of multi-year pledges. Arcadis/PinnacleOne Hoar Program Management CH2M Hill Joe McAtee, FCMAA The Personnel Certification Accreditation Committee of the American National Standards Institute voted in June to extend CMCI’s accreditation for an additional year. Nadir Al-Salam Parsons Brinckerhoff Herndon, VA Jarad Kriz FTI Consulting, Inc. Rockville, MD Keville Enterprises, Inc. Michael J. Baker, Jr., Inc. Parsons Brinckerhoff Parsons Pedro Astudillo American Infrastructure Chantilly, VA Nicholas Macy ARCADIS, Inc. Middletown, CT PBS&J PSOMAS The CCM program is accredited by ANSI under the International Organization for Standardization’s ISO 17024. Driven by increasing owner recognition and preference for CCMs, the program has been gaining momentum throughout 2010. Christopher Reseigh, FCMAA Ken Rice Jody Mac Booth Heery International, Inc. Atlanta, GA Alexander Main Pacifica Services Pasadena, CA URS Donald Russell, FCMAA, CCM Richard Gangloff Department of Homeland Security Glynco, GA Conan James Mathson AECOM Los Angeles, CA Even at today’s low rates of investment return, earnings on this endowment will be enough to support several scholarships. And the more we can build the fund, the most we can do. CMAdvisor July/August Please think about all the ways you can contribute today to the profession’s success tomorrow. SGI Construction Management Champion: $2,000 per year STV HNTB, Inc. Urban Engineers, Inc. Chuck Kluenker, FCMAA CMAA New England Regional Chapter CMAA South Central Texas Chapter McDonough Bolyard Peck Summit Associates Vanir Construction Management, Inc. Mentor: $500 per year Bond Brothers, Inc. C&S Design CMAA NY/NJ Chapter CMAA Mid-Atlantic Chapter DeMatteis International Group Dick Corporation Leader: $1,000 per year GREYHAWK Mansour Aliabadi, FCMAA, CCM HDR APSI Construction Management James Mitchell, CCM Brookwood Program Management Project Mediation Jacobs Engineering Group D.J. Mason, P.E. CMAA Chicago Chapter Quintessential LLC CMAA San Diego Chapter RK&K CMAA Southern California Chapter Rockmore Contracting Corporation Fred Kreitzberg, P.E. of the Kreitzberg Family Foundation Swinerton Management & Consulting Hazen & Sawyer In January, the first of four free CCM application webinars was launched and drew 80 registered sites; each “site” was authorized to include unlimited individuals. Participants listened in and asked questions pertaining to the CCM application and CMCI’s process of becoming certified. The second of these quarterly webinars was launched in April and consisted of 215 sites registered! Certification is also pulling visitors to CMCI’s website pages. For example, for a 30-day period ending in mid-June, total page views for basic CMCI page 175 percent higher than for the same period in 2009—1,301 page views compared to 473. The Certification-Process page was up 97 percent, and the exam sites page was up 18 percent. Gilberto Garcia County of Los Angeles Alhambra, CA Cass Hatcher Macon Housing Authority Macon, GA The CMCI home page is the third most active entry page on CMAA’s website—that is, ranked by the number of visitors who entered the CMAA site through cmaanet.org/cmci. Joanna Heinrich Barnhart, Inc. San Diego, CA Many site visitors reach CMCI through search engines like Google. In the sample 30-day period, 402 people found CMCI by searching on “certified construction manager.” This number a year ago was 225. That’s 79 percent growth in a year. Other keyword combinations also showed growth: Jeffery Jones Turner Construction Company Anaheim, CA • “CMAA certification” went from 125 to 190, a gain of +52% • “Construction management certification,” 91 to 155, or +70% Jeffrey Kramer ARCADIS, Inc. Tempe, AZ Daniel Maxwell Adams Management Services Rome, GA Haider Arif Naqvi ARCADIS, Inc. Highland Ranch, CO Michael Porter CH2M Hill Boise, ID Todd Scholtz McDonough Bolyard Peck, Inc. Columbia, MD Teodorico Sierra Los Angeles Unified School District Los Angeles, CA • “CMCI,” from 76 to 143, or +88% Click here to view the latest issue of the CMCI Contact newsletter! CMAdvisor July/August The great thing about this campaign is that it doesn’t rely on a small number of large gifts. In fact, the Capital Campaign would thrive if everyone committed to just a few dollars each year—$10 or $20 per member per year over the next several years will help create a very significant financial base for the Foundation. 24 CERTIFICATION 25 FOUNDATION ROUNDUP Louisiana’s Office of Coastal Protection and Restoration awarded The Shaw Group Inc. the job as project manager on a $360-million project to construct berms along coastal barrier islands to stop the invasion of oil from the BP spill on delicate marshes. Within 24 hours of signing the contract, Baton Rouge-based Shaw had two bucket dredges on their way to begin moving sand. The state signed emergency permits for the work late June 2, after it was announced that BP would fund the project as a necessary emergency measure resulting from the Deepwater Horizon spill. “If we got a contract yesterday, and today we are actually out soliciting prices on dredging, I think that demonstrates that we are mobilizing very quickly,” says Charlie Hess, vice president of Shaw Environmental & Infrastructure. 26 CMAdvisor July/August GSA Selects MBP Joint Venture for Repair and Alteration Projects McDonough Bolyard Peck, Inc. has announced that the General Services Administration Mid-Atlantic Region 3 has selected an MBP joint venture to provide construction management (CM) services for various repair and alteration (R&A) projects in the Allegheny service area. This is one of several task orders under a previously awarded $25 million Indefinite Delivery/Indefinite Quantity (IDIQ) contract. These projects are partially funded by the American Recovery and Reinvestment Act (ARRA). MBP will be managing construction to ensure that these projects are on schedule, in conformance with the contract requirements, and of the highest quality of work. At least one of the projects will include CM services for the Facade Restoration Project at the Edward N. Cahn Federal Building in Allentown, PA. MOCA Systems awarded PM Contract for Salt Lake City’s new Public Safety Building Early in 2010 the Salt Lake City Corporation awarded MOCA Systems a three-year Owner’s Project Management contract for the design and construction of the $125 million Public Safety Building. The project is funded under a bond issue approved by voters last November. The City plans to make the sustainable civic campus one of the great places in Salt Lake City. MOCA is using an integrated project delivery (IPD) approach to gain the benefits of the collaborative process and improve the likelihood that the team will deliver a high quality facility that meets all the owner’s goals. The design contract has been awarded to GSBS Architects and McClaren, Wilson & Lawrie (GSBS/ MWL). The CM at Risk contract is expected to be awarded this summer. MOCA is also using innovative technology to improve performance—a collaborative PMIS called MOCAManage for integration of team members, a construction simulation system called MOCABuild to control cost and schedule, and BIM to improve efficiencies. Stantec Overseeing Five-Year FTA Contract Stantec Consulting has been assigned Project Management oversight of a five-year, task-order contract, valued up to $13.8 million, for the U.S. Department of Transportation’s Federal Transit Administration. Stantec’s initial projects for the federal contract include enhancements to the New Orleans Regional Transit Authority’s Canal Street Car program; the Fort Worth Transportation Authority’s Southwest Northeast Commuter Rail program; and Austin Capital Metro Transportation Authority for its Bus Rapid Turner Selected for Columbus Convention Center Hotel Turner Construction Company will provide pre-construction and Construction Management services for the $92 million Columbus, OH Convention Center Hotel. Turner is partnering with Smoot Construction to complete the LEED® Silver 532-room hotel with conference and dining facilities and a fitness center in 2012. KBR’s Building Group Is CM on DuPont Campus Expansion Alpha Corp. to Serve as CM on Independence Hall Tower Repair KBR’s Building Group has been awarded a multimillion dollar Construction Management contract for the initial phase expansion of DuPont’s Wilmington, DE headquarters campus. The scope of work on the five-story, 222,000-square-foot office building includes utilities, parking and walking paths, a new picnic pavilion and an 18,000 square-foot cafeteria. With a goal of LEED® Gold, the project is slated for completion by December 2011. Alpha Corporation will provide Construction Management services for the rehabilitation/repair of the historic Independence Hall Tower, which once housed the Liberty Bell in Philadelphia, PA. Built in 1828 to replace the original tower from 1750, the Colonial Revival tower project includes preventing further deterioration as a result of water damage; replacing and refurbishing selected deteriorated elements of the roof, wood siding, decorative wood elements, balusters and the tower’s copper urns; and installing a new lighting protection system. The contract includes construction of bridge to the Greater Columbus Convention Center, vehicle ramp to the parking garage, and pedestrian entrance to the garage. A 33 percent reduction in energy/ carbon usage, dual-flush toilets and low-flow fixtures, bicycle storage and changing rooms, and individual occupant lighting are some of the green features being incorporated in the project. Jim Myers, 40-Year Veteran at LBG, Dies James S. Myers, retired senior engineer and 40-year employee of The Louis Berger Group, died in May. Myers managed some of LBG’s most challenging road and bridge assignments in the developing world, from Afghanistan and Bangladesh to Cambodia and Ethiopia. His appointment as chief of party for the U.S. Agency for International Development’s Kabul to Kandahar Highway project resulted in Afghan President Hamid Karzai awarding him a High State Prize for his contributions to the country. The road project was also named “International Project of the Year” by CMAA in 2004. Balfour Beatty Contracted for New LEED® Gold NPR Headquarters Balfour Beatty Construction will provide preconstruction services and manage construction for National Public Radio’s new 330,000-square-foot headquarters in a Washington, DC business improvement district. Designed to meet LEED® Gold specifications incorporating recycled and sustainable materials and energyefficient, green technologies, the project scope includes selective demolition and restoration of the existing warehouse building onsite, which will connect to a new structure with three below-grade levels and office and studio space occupying seven above-grade levels. Other features of the building, expected to be completed at the end of 2012, are origination centers, self-operated production studios, a 10,000-square-foot data center and technology core, a 100,000-square-foot open-concept newsroom, a 250-person capacity theater/production venue for live performances and events, meeting and training rooms, an employee lounge, roof terraces, and a fitness center. CMAdvisor July/August Shaw Awarded Barrier Island Work Funded by BP Transit program. Stantec is responsible for reviewing, auditing, monitoring, and reporting to FTA leadership on progress with plan implementation while ensuring capital programs are adequately staffed and executed. 27 Member News ROUNDUP 28 CMAdvisor July/August Founded in 1981, The LPA Group has more than 35 offices across the Southeastern and Mid-Atlantic regions of the U.S., as well as Southern California, providing comprehensive engineering, architectural, planning, environmental, program management, design-build, and construction management and inspection services for the development of aviation and surface transportation projects. Its revenue in 2009 was approximately $93 million. In making the announcement, Baker’s president and chief executive officer, Brad Mallory, said, “LPA is an outstanding company with a very talented team of professional and technical employees. Its prominence in the Southeast, and particularly in the Carolinas, Georgia, and Florida, greatly expands Baker’s presence in that region of the country, which is a key objective of our growth strategy.” He added that the merging of both firms’ Aviation practices “puts us in the Top 10 providers of these engineering and architecture services.” UCONN Picks Urban Urban Engineers was awarded a contract from the University of Connecticut for Claims, Scheduling, and Construction/ Design Review Consultant Services. One of seven firms selected by UCONN, Urban will provide consulting services for claims investigations, analyses, and reviews, and litigation support for the next three years. Hill International Wins Two Major Contracts from NYC Parks Hill International has been awarded two major contracts by the New York City Department of Parks & Recreation (DPR). The two contracts, which have a total estimated value to Hill of approximately $10 million, include: • A $6 million contract to provide construction project management services in connection with major construction and reconstruction projects totaling $100 million in value; and • A $4 million contract to provide asneeded construction project management services in connection with various construction and reconstruction projects of less than $3 million in value. “We are very excited about being awarded these contracts by DPR,” said D. Clarke Pile, PE, Hill’s senior vice president and New York Regional Manager. “We look forward to helping them continue to improve the quality of the city’s parks and recreational facilities,” Pile added. Chapter News Mid-Atlantic Chapter The Chapter held its Annual Awards Banquet in June. Approximately 100 people attended the event at the prestigious Union League of Philadelphia. During the evening, 10 projects from seven different firms were recognized and two students, one from the University of Delaware and one from the College of New Jersey, were honored. A Person of the Year award was instituted with the first presentation made to Pennsylvania Governor Ed Rendell. It was a great evening and another successful event for the Chapter. Three Rivers Chapter The first half of 2010 has been very busy for members of the Three Rivers Chapter. Recently, members attended tours of two exciting ongoing projects in the Pittsburgh area. In February, 20 members toured the Consol Energy Center, new home to the Stanley Cup Champion Pittsburgh Penguins. The tour was conducted by the project Construction Manager P. J. Dick Corporation. The project was about 70 percent complete at the time of the tour and is expected to host the first event in August 2010. After the tour, a social gathering was held at the Steel Head Grill sponsored by Pepper Hamilton LLP. The second event, a tour of the $190 million Allegheny River Bridge project, was held in May and hosted by the Pennsylvania Turnpike Commission and project Construction Manager McTish, Kunkel and Associates. The twin span, cast-in-place concrete segmental bridge spanning the Allegheny River in Allegheny County, PA, was traversed by 10 members, inside and out. Scheduled to be completed at the end of 2010, the project is the first of its kind in western PA. Afterwards, a social gathering, sponsored by Michael Baker, Jr. Inc., was held at Joey D’s restaurant. Northern California Chapter The Northern California Chapter hosted its Annual Scholarship & Awards Gala in April at the historic City Club of San Francisco. More than 100 guests turned out to celebrate the award of scholarships to students from Northern California schools. Additionally, the chapter honored four outstanding projects completed in the last year. For the first time, the Northern California Chapter honored a Person of the Year. Evening featured speaker Elizabeth O’Reilly from Pennsylvania Department of General Services, here flanked by Mike Griffin, Hill International, and Chapter President Chuck Romanoli, CCM, GREYHAWK. Because of fundraising and generous contributions to the Chapter scholarship program, the Chapter was able to award $15,000 in scholarships to 10 deserving students. The scholarship winners were from Chico State, Sacramento State, Stanford University, and University of California-Berkeley. This year, the Chapter honored diverse projects for Construction Management excellence including Project of the Year for Projects More Than $20 Million, Infrastructure Project Less Than $20 Million, Infrastructure Project More Than $20 Million, and Innovative Use of BIM Technology. One of the highlights of the evening included the presentation of Person of the Year to CMAA member Ron Price, CCM. Ron has been a stalwart supporter of CMAA for many years, and has generously given his time, intellect, and thoughtful guidance to our Chapter as well as the national organization. Three Rivers Chapter members toured the Allegheny River Bridge project. CMAdvisor July/August Michael Baker Corporation has acquired The LPA Group, Incorporated (LPA), a 475-person transportation consulting firm based in Columbia, South Carolina. LPA significantly expands Baker’s presence in the Southeastern U.S. transportation infrastructure market, and broadens the company’s already strong capabilities in the planning, design, program management and construction management of projects in the aviation, highway, bridge, and rail and transit markets. Urban will perform litigation support consulting services for construction claims made against the University for liability and cost damages. This contract also includes provisions for additional consulting services for review and analysis of construction progress schedules, contract change orders, and contractor requests or claims for extra work, impacts, or asserted changes. Urban could also provide expert testimony and participate in dispute resolution forums, such as mediation, arbitration, or litigation. 29 Baker Acquires The LPA Group ROUNDUP PRESIDENT’S REPORT Professional Development Calendar The Power of CM By Bruce D’Agostino, CAE, FCMAA National Meetings September 18, 25 & October 16, 2010 Davis, CA Construction Industry Institute Annual Conference August 3–5 Orlando, FL Webinars National Conference & Trade Show Thursday, August 12 October 3–5, 2010 Manchester Grand Hyatt Hotel, San Diego, CA Becoming a Certified Construction Manager Keys to Project Success Series Thursday, August 19 CMAdvisor July/August Session 5: What is Unabsorbed Home Office Overhead? Developing Effective Construction Documents Thursday, August 26 Session 2: Structural Steele and Building Envelope Developing Effective Construction Documents Thursday, September 30 Session 3: Interior Architectural Trades & MEP 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. In the process, you’ll be entered to win one of two valuable prizes: • A free registration for CMAA’s National Conference & Trade Show in San Diego. • A free “VIP Pass” for any and all CMAA online webinars for the rest of the year. Every time you refer a friend, it’s another entry, improving your chances to win. Do it today! We all believe in it, of course. That’s why it was so exciting and satisfying to see this phrase in bold type on the cover of the June 14 edition of Engineering News–Record, superimposed on a photo of Mansour Aliabadi of Vanir Construction Management. Vanir was the focus of a four-page cover story that gave strong and welcome emphasis to professional development and certification. In fact, Mansour told the ENR writer that CM certification “has elevated the discipline’s image and boosted its impact.” What’s more, Vanir Chair Dorene Dominguez noted that “Vanir’s success is directly attributable to the professional development of our dedicated CM staff, including our commitment to the certification program.” The feature article included a sidebar headlined “CM Certification Rocks as a Competitive Edge.” CMAA can promote CM and certification as energetically as we want, but we can never equal the impact of a message like Vanir’s. That message is simply this: “Our company thrives because of our commitment to professionalism, as reflected in our dedication to certification. We are reaping these benefits because owners want to work with the best.” Consider how much this statement really says. For example, at CMAA we have often been faced with the lack of really rigorous and well-controlled research to demonstrate the value of having a professional CM on a project. We’ve explored a variety of approaches to this need and come up against high costs and great complexity. But Vanir’s example may actually mean that a growing number of owners are being convinced of CM’s power not by reams of statistics but by the most persuasive evidence of all, their own direct experience. Suppose that CMAA’s staff had its entire “wish list” fulfilled and had vast sums to spend on advertising and promotion and research. We could do a lot of good, I’m confident…but what could we do that would equal the impact on an owner of simple positive experience? In the ENR profile, Mansour joked about how nervous he was, preparing for the CCM exam alongside so many younger Vanir employees. “I was worried that they would get their certification and, after 30 years in the business, I would fail,” he said. He’s the CEO. Nobody was going to compel him to complete the process. But Mansour understands leadership, and he knew that a true commitment to certification had to be evident right from the top of the company. Mansour set the pace for Vanir CM, and the company has become a leader for the entire industry. “What could we do that would equal the impact on an owner of simple positive experience?” And what might be the result if everyone in our business acted like Mansour and Vanir? What if every CM company conveyed to owners its commitment to the CM Standards of Practice, to ongoing professional development, and most of all to CM certification? We’d have built a true marketing juggernaut…and delivered thousands of high quality projects and programs in the process. Another highlight of the ENR feature was a photo from the Brightwater Marine Outfall project, for which Vanir won a Project Achievement Award last year…another instance of CM excellence paying off. Professionalism wins. It delivers successful projects for owners and better bottom lines for service providers. It creates a better functioning, more sustainable built environment. In short, professionalism in CM is good for everyone, and more and more people are beginning to recognize this. Congratulations to Vanir CM for an outstanding profile in our industry’s top magazine…and thanks for setting such an example for your colleagues. CMAdvisor July/August Northern California Standards of Practice Course (SATURDAY COURSE) 31 30 See the full schedule of CMAA webinars.