CMAdvisor Advancing Professional Construction and Program Management Worldwide CMs and Sustainability New Owners Forum Debuts in Atlanta January/February 2010 Volume XXIX, No. 1 Contents January/February 2010 Volume XXIX, No. 1 6 As Sustainability Becomes Mainstream, CMs Can Become Indispensable CMs need to recognize that owner interests and needs are driving the move to sustainability. Getting out front-or catching up, if necessary— isn’t just responding to a demand. It’s a way to build business. BUILDING A BETTER WORLD 8Sustainability and the At-Risk CM Like the Agency CM, the At-Risk CM needs to become thoroughly familiar with the intricacies of sustainable design. He must come to an appreciation, early on in the process, of just how thoroughly integrated most sustainable designs are. WITH OPPORTUNITY AND SUSTAINABLE SOLUTIONS Columns Refer a Friend to CMAA! MWH Constructors, a leader in construction management-at-risk for the wet infrastructure industry, is building a better world by providing jobs to local businesses and incorporating innovative and sustainable solutions to our clients’ water and wastewater challenges. mwhglobal.com 303.410.4000 ■ ■ constructioninfo@mwhglobal.com 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! 5Chairman’s Report By Gary Cardamone, PE 23President’s Report By Bruce D’Agostino, CAE, FCMAA Departments 10 News 14 Foundation 15 Certification 16Professional Practice Corner 18Legal Corner 20 Member News 21 Chapter News C M - A T- R I S K ■ DESIGN-BUILD ■ CONSTRUCTION ■ CONSTRUCTION MANAGEMENT Cover photo: Brightwater Marine Outfall, Shoreline, WA. Photo by Danny Broadhurst, Vanir Construction Management 22Professional Development Calendar January/February 3 CPS offers peace of mind every phase of the way Structured Cabling Voice • Data • Video Mobile Surveillance Unit CCTV/ Camera Security Trailer Security Officer CMAdvisor Chairman’s Report Chairman of the Board Gary Cardamone, PE Port of Long Beach, CA The Meaning of “Professional” President and Chief Executive Officer Bruce D’Agostino, CAE, FCMAA By Gary Cardamone, PE Port of Long Beach, CA Editor John McKeon In recent months, CMAA has been working as part of a large group of federal executives on a proposal to have the U.S. Office of Personnel Management (OPM) create a new professional job series entitled 0820 Construction Manager. This is a complex undertaking for a lot of reasons, not the least of which is our challenge to persuade OPM that Construction Management is a profession, distinct from other jobs with previously established definitions. Contributing Writers Sarah Black Martha Montague Design TGD Communications, Inc. 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 CMAA is a construction industry association of 6,000 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. CM Advisor, published bi­‑monthly by CMAA, reports on and follows the industry as a service to its members. Submission of articles, ideas and suggestions is appreciated and encouraged. 7926 Jones Branch Drive, Suite 800 McLean, Virginia 22102-3303 USA Phone: 703.356.2622 Fax: 703.356.6388 Email: info@cmaanet.org Web: www.cmaanet.org CMAA ©Copyright 2010, ISSN 1084-75327 Reproduction or redistribution in any form is forbidden without written permission of the publisher. CMAA members receive this newsletter as a member benefit. For advertising information, contact Tom Egly at tom.egly@tgdcom.com. Among ourselves, we take this for granted. Of course we’re professionals. But what evidence do we present when someone responds, “Prove it?” The answer consists of equal parts education and workplace performance. Becoming a professional typically requires a rigorous university-level degree obtained from an accredited institution whose faculty and other resources are seriously committed to research as well as teaching. In our business these institutions are generally accredited by the Accreditation Board for Engineering Technologies (ABET), the American Council for Construction Education (ACCE), or the National Architectural Accrediting Board (NAAB). Such accreditations ensure consistency in the education students receive, wherever they may study. In the workplace, professionalism is defined by the existence of a recognized Body of Knowledge and Standards of Practice, coupled with a Code of Ethics. In legal terms, professionals are also defined by the standard they are held to in assessing their performance. Professionals are not expected to deliver a “defect-free product,” as though they were producing the same thing using the same process every time. The job involves the exercise of informed judgment on behalf of a client. Hence, Construction Managers must deliver a “standard of care,” comparable to what is expected of doctors, lawyers, accountants and other professionals. We’re not expected to be perfect; we are expected to be knowledgeable, conscientious and dedicated to our clients’ best interests. The concept of professionalism implies not only a commitment to one’s own excellence, but also a commitment to advancing the profession, both through innovation and through continued involvement in the education of the next generation(s) of practitioners. This is the message I have tried to convey both at our National Conference and at the 2009–2010 Board of Directors’ first meeting in December. We need to be the face and voice not only of CMAA but of the profession. We need to be out there, actively explaining and advocating our profession to owners, to architects, engineers, contractors and our fellow practitioners, to government officials, to students, faculty…to everyone with a stake in successful construction. In this effort, not only the Board but every member of CMAA must be a leader. Reach out. Be an advocate and a voice in our industry and for our profession. Suggest to your colleagues that the best way to do this is by being an active member of CMAA. If they already belong, ask them to be more involved. Become more involved yourself in defining our profession, leading our industry, and building a better future. It’s the professional thing to do. 4 CMAdvisor January/February 5 says John Manning, PE, CCM, LEED AP, principal of KrausManning, Inc. “That individual also needs to understand how the early decisions will affect the construction side. There needs to be someone who understands both design and construction to truly manage the process, and who better to do that than the CM?” According to Wilhelm, “owners don’t often know what it means to be green. A CM can offer leadership and knowledge to the owner. There are many questions that arise when an owner or project team consider taking a sustainable approach: How much will it cost to implement sustainable building and development strategies? What are the direct and indirect benefits that could accrue? Which firms have the capability to implement these strategies at the least cost with the greatest positive impact? What is the best way to evaluate and compare optional sustainable strategies from a life cycle costing approach? “These are all real questions that serious owners who are considering sustainable development should be asking, and CMs can provide the knowledge and the leadership to make it successful,” says Wilhelm. AS SUSTAINABILITY BECOMES MAINSTREAM, CMs Can Become Indispensable By John J. McKeon Sustainability “is on its way to becoming the mainstream approach to the design and construction of our built environment,” in the view of Heery President Bill Heitz, AIA, CCM, LEED® AP. Yet a large number of CMs, both individuals and firms, continue to lag in embracing sustainability and are missing a major opportunity as a result. “Some CMs are right on target or even ahead of the curve regarding sustainable design and construction issues and opportunities,” says Judith Kunoff, AIA, CCM, chief architect at MTA-New York City Transit. “Others need to get with the program. CMs need to take a genuine interest and own the green goals. More typically these days the CM sees these issues as issues of designers and constructors, not theirs. This is just not true. CMs need to take the lead.” Mark Wilhelm of Green Ideas Environmental Building Consultants, who presented a well-received workshop on sustainability prior to CMAA’s National Conference in Florida, agrees that “some CMs have embraced knowledge of sustainability issues, but not that many as yet.” 6 CMAdvisor Wilhelm points out that the demand for sustainability expertise is only going to increase. “There are at least 202 municipalities, 34 U.S. states, and 14 federal agencies that have committed to build to LEED standards,” he says. Moreover, both AIA and the National Governors Association have called for buildings to be carbon neutral by 2030. Both the House and Senate have energy bills pending that call for substantial reductions in greenhouse gas emissions and require increased reliance on renewable energy. “It’s clear that sustainability is not a passing fad,” says Heitz. So, what do CMs need to be, and how can they equip themselves for their new role? FIRST, SUPPORT THE OWNER CMs need to recognize that owner interests and needs are driving the move to sustainability. “The CM has the tools to manage a project from concept to completion and it is critical that sustainability start in the beginning stage,” Manning notes that part of the CM’s role is to educate owners concerning the real benefits of sustainability. “Whether our clients believe in global warming or not, they are all very interested in finding ways to reduce their operating costs,” he comments. “A CM is in the best position, with a grasp of the overall budget, to understand what sustainable practices provide the best return on investment for the client. The CM has the ability to help a client choose what makes sense.” Wilhelm points out that numerous tax breaks for energy efficient buildings and renewable energy use “can go straight to a client’s bottom line.” That’s a quick payoff in addition to the long term benefits of green design and construction. The CM should also be guiding how owners convey their sustainability goals to others in the project team. “Particularly Agency CMs are hired to be the owner’s seasoned right hand,” says Kunoff. These CMs should be leading owners in making appropriate demands on designers and constructors as well as operators.” EMBRACING GREEN Is there a logical path for CMs who want to build their credentials in sustainability and claim a place in this enormous future market? “The CM needs to, at a minimum, be familiar with the CMAA sustainability Standard of Practice,” says Kunoff. “He or she should read detailed sustainability materials published regularly in journals to which s/he subscribes, and should consider acquiring LEED accreditation to assure themselves that they know the trends.” “A CM is in the best position, with a grasp of the overall budget, to understand what sustainable practices provide the best return on investment for the client. The CM has the ability to help a client choose what makes sense.” For many, becoming a LEED Accredited Professional has been a first step. Heitz says the number of LEED APs in a firm, together with the number of LEED certified projects executed, are “early metrics” of a firm’s attention to sustainability issues. “We are a design and CM firm,” he notes. “Of our 350 LEED APs, the majority come from the CM/PM side of our business.” “LEED is a good starting point, but only that,” says Kunoff. A variety of other initiatives, including Green Globes, the Living Building Challenge, and many local and regional green building programs, all promote green building, often with guidelines that exceed those of the LEED program. CM firms should move past a superficial reliance on counting accredited professionals, however. “It used to be that CM firms could sell their sustainability experience just by stating how many of their team members were LEED accredited professionals” says Wilhelm. “In many markets now, this is not sufficient. Knowledgeable owners will require CMs to know the difference between greenwashing and true sustainable building experience and capabilities.” The key to this distinction, he adds, is the difference between simply executing sustainable projects and developing a programmatic approach to sustainability, helping to create as well as implement green strategies. “A commitment to sustainability requires an organization to focus on leadership, goals, culture and service offering,” Wilhelm says. “It impacts how companies do business on so many levels.” Getting out front on sustainability—or catching up, if necessary—isn’t just responding to a demand. It’s a way to build business. “The firms that have been slow to seek an understanding of the many facets of sustainability have missed a good marketing opportunity,” says Heitz. John J. McKeon is vice president of CMAA. He can be reached at jmckeon@cmaanet.org. January/February 7 This planning, knowledge, and documentation will not only be needed at the conclusion of the project, but as an ongoing requirement prior to and during construction, too. The CM’s preconstruction team needs to make certain that any potential subcontractors who are involved in early conceptual pricing are doing so with the project’s sustainable goals and requirements in mind. Both the At-Risk CM and his subcontractors need to become thoroughly familiar with the owner’s goals in regard to sustainable aspects of the project at an early stage in the process. Some owners may be interested in sustainability only as long as it doesn’t cost appreciably more or take longer to accomplish. Others may be committed to achieving a LEED Platinum certification. In either case, the owner’s goals must be addressed. In addition to the basic parameters such as the size and shape of the building, the layout, number and size of interior spaces, the owner may have specific preferences in the choice of major MEP equipment manufacturers, type of lighting, finishes used, selection of doors or ceilings, etc. All of these parameters could have a bearing upon the direction of the design, and on how these preferred components can be integrated into the overall sustainable design concept. They could significantly impact cost of the project. Sustainability and the At-Risk CM By Ron Whisker, CCM How does the concept of At-Risk CM differ from Agency CM when working through sustainable design projects? Like the Agency CM, the At-Risk CM needs to become thoroughly familiar with the intricacies of sustainable design. He must come to an appreciation, early on in the process, of just how thoroughly integrated most sustainable designs are. He must also understand the level of thought, planning and documentation that will be required. 8 CMAdvisor In addition, the At-Risk CM may typically want or need to exercise greater control over his construction costs by carefully crafting a greater number of subcontract scopes of work. Many times, under an Agency CM contract an owner may choose to have a smaller number of prime contracts with broader scopes of work under each. Each of these prime contractors may have an additional layer or multiple additional layers of subcontractors. Under a sustainable project, when coupled with a greater number of separate subcontracts, the At-Risk CM must ensure that each of these subcontractors thoroughly understands what is required and follows through with both the correct material and procedures. He must additionally make certain that the subs all provide the required documentation to satisfy the applicable sustainable requirements. The complexity and scope of sustainability requirements should be taken into consideration when analyzing who the At-Risk CM’s key subcontractors and suppliers will be. Just as with the At-Risk CM himself, his subcontractors also need to be both understanding of, and committed to, the sustainable goals of the project. These subcontractors must understand that there will be additional hours and resources involved in the design process to facilitate the integration of their systems with the others in the project. The At-Risk CM must be sure that the selected subs are capable, as well as willing to perform the additional work throughout the course of the project, and again following the successful completion of the construction phase. The At-Risk CM may be contractually obligated to provide a certain level of certification. He needs to satisfy himself that the subs understand what they are obligating themselves to do, and then he must see that it is done correctly. It is imperative that the At-Risk CM pass along to his subcontractors a clear understanding of what is required, especially if some of his chosen subcontractors have not been exposed to the specific and unique nature of this undertaking on a previous sustainable project. Since there typically are a larger number of subcontractors chosen to provide services under an At-Risk project, these may also be smaller firms who may not have had the opportunity to have worked on a previous sustainable project. So, it is crucial for the At-Risk CM to clearly define these expectations in any subcontracts he issues, in order to be sure that all of his subcontractors’ costs are covered in his Guaranteed Maximum Price to this owner, when the time comes to issue the GMP. “Like the Agency CM, the At-Risk CM needs to become thoroughly familiar with the intricacies of sustainable design.” The At-Risk CM should also be giving early consideration to his site utilization plan to include such things as demolition and construction phase waste recycling, sustainable irrigation systems, rainwater collection systems, and/or geothermal well fields. An effective waste recycling effort, for example, will require the At-Risk CM to provide significant additional laydown space for multiple waste containers for each type of material being recycled. In a suburban, rural or industrial project, this may not be a substantive issue, but in a typically tight urban site, it will be. Sustainable projects might add yet another dimension of complexity to any subcontractor’s work. The additional set of requirements required by a sustainable project can sometimes be overlooked during pre-construction discussions. Or worse, the CM may assume that the sub understands exactly what is required because the At-Risk CM has had far more experience with sustainable projects than his subcontractors. On a sustainable project, this need for clear understanding of requirements on the part of each and every subcontractor is magnified. It must be reflected in their pricing throughout the design and pre-construction phases, and then be carried through construction and post construction. Ronald Whisker, CCM, is senior project manager at Reynolds Construction Management. He can be reached at rwhisker@reynoldsconstruction.com. January/February 9 News CMAA Presents New “Owners Forum” In Atlanta • CM/PM services and the best/worst things about CM providers • Project Delivery Methods: Options, comparisons, constraints • Human Capital Strategies: Outsourcing, staff augmentation, workforce development • ARRA and life after the stimulus: The future of funding CMAA’s annual spring national gathering is bringing into sharp focus the central ingredient in the capital construction process with its first ever Owners Forum May 2–4 in Atlanta, Georgia. The overarching purpose of this new event is to put the views, interests, priorities and needs of owners in the spotlight. Owners will deliver presentations sharing their views on topics of interest to other owners, and to CM service providers alike. Among the prominent owner organizations whose executives will speak at the Forum are Target, the MassPort Authority, American Airlines, Sutter Healthcare, the Virginia Department of Transportation, the Port of Long Beach, the New York City Transit, and major federal owners including the Army Corps of Engineers and the General Services Administration. These owner organization leaders will deliver presentations in four full audience sessions: Buildings, Process Industries, Transportation and Transit, and Federal. In session after session, owners will take the lectern to share what their organizations are doing, what they plan to do, and what issues and opportunities are “front of mind” for them. They will focus on such critical topics as: • Sustainability • BIM, electronic project management, and other emerging technologies • Integrated Project Delivery 10 CMAdvisor The Owners Forum is an opportunity for owners across all business segments to share best practices, discuss strategies for a recovering economy, and learn what today’s marketplace has to offer. “We have innovated in several ways and created a truly unparalleled event that will also offer significant benefits for the service provider organizations and individuals joining us in Atlanta,” said CMAA Chair and owner member Gary Cardamone. “If you want to hear first hand what owners need, want and expect, you can’t miss this Forum.” All Forum participants will hear every word spoken by all the owners presenting and participate in the facilitated dialogue and Q&A in Town Hall sessions each day of the Forum. The agenda will stress high level strategic business considerations, not “nuts and bolts” on how to perform CM/PM. A special low owner registration fee will make it possible to attend on even a tight budget. Opening the Forum on Sunday afternoon will be a special presentation on construction best practices by the Construction Industry Institute, University of Texas, followed by a CMAA College of Fellows presentation on “Leadership: Filling the Gap in Capital Construction.” These sessions will provide a springboard to what will surely be the most active and worthwhile experience to follow. The Fellows will engage the owners and service providers in a discussion of the most interesting and controversial topics of the day. Learn more about the Owners Forum and reserve your space today at http://cmaanet.org/owners-forum-2010. Unquenchable Author Is Keynote for Water Summit “We think of water as we think of air: limitless and inexhaustible. In fact, water is both finite and exhaustible,” says Robert Glennon, a law professor at the University of Arizona and author of Unquenchable: America’s Water Crisis and What to Do About It. Glennon will be keynote speaker at CMAA’s second Water Summit. The Summit will bring together leading owner/operators of water and wastewater systems nationwide, together with the top specialized Construction and Program Managers, to explore critical issues in this key infrastructure area. It takes place on July 18–20 at the Kansas City Hyatt. Details are available at www.cmaanet.org/water-summit-2010. U.S. Senator Mark Udall says Glennon’s book “connects the dots between our water woes and climate change, energy, growth, the environment, and agriculture. He makes a compelling case that we need to rethink how we use this prized resource and provides a number of thought-provoking solutions.” Nominations for the CMAA College of Fellows The Fellows designation is the highest honor conferred upon an individual by CMAA. Such recognition is awarded to the leaders of our industry based upon their record of contributions to the profession, the industry, CMAA, and their individual business organizations. A primary goal of the College of Fellows is to assemble a diverse community of thought leaders that will lend their knowledge and insight to the strategic issues facing our industry and the CM profession. If you know of an individual that you believe meets these qualifications and would like to nominate that person for consideration to become a Fellow, please email Bruce D’Agostino at bdagostino@cmaanet.org to receive a copy of the Nomination Form. Access Fellows Nomination Instructions at http://www.cmaanet.org/ fellows-nomination-instructions. Completed Nomination forms and supporting materials must be received no later than April 1st. In describing America’s looming water crisis, Glennon notes, “We Americans are spoiled. Turn on the tap and out comes a limitless quantity of high-quality water for less money than we pay for cell phone service or cable television. Water utilities have done such a fine job in providing water that the crisis has been masked. “We may fret about the sources for our future oil needs, but we need also to think about securing water for highvalue uses. A vibrant American economy depends on an adequate supply of water for high-value uses. We still have water available, but, like a gambler at the craps table, we’re rapidly depleting our resources.” Among the major water/wastewater systems whose leaders are invited to take part in the Summit are New York, San Francisco, Dallas, Denver, and Washington, DC. These leaders will be featured in an Owners Roundtable Session. A companion session will feature top-level executives from leading CM/PM firms. See Glennon on “The Daily Show” with John Stewart. The Summit program will also feature a dozen breakout sessions. This vital and exciting event will conclude with a Town Hall forum where our featured executives will engage in a lively Q&A and dialogue with the Summit participants. Be sure to check the event page for updates and online registration. January/February 11 News “SOP Integration” Aims to Transform CM Practice CMAA Offers SOPs And Training Options for Every Need • At Pratt Institute in New York, obtaining the Construction Manager In Training (CMIT) credential is becoming “an unofficial requirement of all our graduating seniors,” according to Harriet Markis, PE, Chair of the Construction Management Program. CMAA offers a flexible array of options for companies striving to integrate the Standards of Practice (SOP) and related Body of Knowledge enterprise wide. • The U.S. Army Corps of Engineers is guiding all of its newly hired CMs into the CMIT program and assigning them mentors. “The end goal of our formal training program is preparing CMs for certification,” says Larry Smith, PE, CCM, Chief of Construction, Sacramento District. • At Southern Illinois University – Carbondale, the new academic term will see the launch of SIU’s first course in professional Construction Management. SIU’s Assistant Professor Kevin Roth tells CMAA that they will “model the class and program after CMAA, with the intent to provide a BA Degree and qualify for certification soon after graduation.” • More than a dozen CMAA corporate members have signed up for licensing or subscription programs that enable them to deliver SOP-based training throughout their organizations. “Even as applications for the Certified Construction Manager (CCM) designation continue to grow, CMAA has recognized that full adoption of the SOPs requires a consistent promotion and training effort at every career stage.” All of these initiatives are early outcomes of CMAA’s comprehensive strategy to promote full integration of CM Standards of Practice throughout the industry. Even as applications for the Certified Construction Manager (CCM) designation continue to grow, CMAA has recognized that full adoption of the SOPs requires a consistent promotion and training effort at every career stage, notes CMAA Vice President/Professional Development Dennis Doran. “SOP education needs to serve a wider audience,” Doran says. This effort is aimed at “improving business, operations, and technical processes and procedures to strengthen CM professional practice,” he adds. Audiences for the “SOP Integration” effort include owners, service providers, educational institutions and individuals. CMAA’s Chairman Gary Cardamone has placed this effort at the top of his list of strategic initiatives for his term. To underscore its importance a special committee of key association leaders has been formed to drive this effort forward. 12 CMAdvisor CMAA’s SOP Integration strategy aims to make the influence of the Association’s CM Standards of Practice pervasive throughout both the construction industry and individual careers. This influence begins with students: Nearly 20 new student chapters are in the organizing process, preparing to join the current 18. SOP education extends to embrace the “gold standard” CCM certification, as well as every step in between. A key element of the integration effort, being rolled out nationally this year, is a new CM Assessment and Rating Program that will give the industry its first rigorous means of evaluating the knowledge, skills and abilities (KSAs) of CM staff and identifying the career level an individual has reached. The Assessment Program will measure competencies in 14 key groupings of KSAs. The Rating component of the program will quantify the accumulation of responsiblein-charge experience an individual has amassed, as preparation to apply for the CCM. Ultimately, the CM Standards of Practice will become the common thread that unites university education, organizational training, CMAA Professional Development, and certification in pursuit of a single goal: More successful delivery of capital construction projects and programs. The 2010 CM Standards of Practice book itself can be purchased in quantity at significant discounts. For details, visit the CMAA Bookstore. For use throughout an organization, members can obtain a license to post the SOP and all other CMAA core documents on their own internal networks, authorized for unlimited access, reprinting and other uses within an organization. SOP-based training is also readily available for delivery through three channels: Career HQ 1.On-site, instructor-led SOP courses. These intensive three-day courses cover the entire SOP and related Body of Knowledge including an SOP Study Kit containing all CMAA core documents for each student. 2.Online, self-paced eight module curriculum covering the complete SOP’s, now available at a reduced fee. 3.Enterprise-wide delivery of the entire online SOP education program through either an annual unlimited use subscription to access through CMAA University or license agreement for use of all materials internally within your organization. Contact CMAA Professional Development for further information about any of these options. As we enter the New Year, many CM firms expect to see growth and expansion. Be sure you’re geared up to take advantage of the opportunities that accompany this growth. CMAA’s career headquarters is free to all job seekers and provides you with access to the best employers and jobs in the Construction Management industry. From internships to senior management, you can use the CMAA Career Headquarters to find your next position. CMAA PRESENTS The first new edition of Construction Management Standards of Practice in six years. Follow CMAA …on Twitter by following jmatcmaa. 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. “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.” ...or through the Construction Management Association of America groups on Facebook and LinkedIn. 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. Advancing Professional Construction/ Program Management Worldwide. January/February 13 Foundation Certification CMAA Foundation Welcomes New Board of Directors The CMAA Foundation promotes careers in Construction Management, provides scholarships to worthy students, and supports a variety of other activities designed to create a better future for the profession. The Foundation’s ongoing Capital Campaign, “Construction Managers Building for the Future,” has raised more than $324,000 toward a $500,000 endowment goal. The Foundation encourages every member to contribute, noting that a modest $10 annual gift from every member would achieve and exceed the campaign goal very quickly. At the CMAA National Conference in October, the Foundation welcomed its Board of Directors for 2010 Christine Keville, FCMAA, Chair Keville Enterprises Marshfield, MA Bruce D’Agostino, CAE, FCMAA, President CMAA McLean, VA Laura Blake, Assistant Treasurer CMAA McLean, VA Ed Bond, CCM, FCMAA Bond Brothers, Inc. Everett, MA Larry Casey, PE Skanska USA Building, Inc. Fort Lauderdale, FL Darrell Fernandez, PE Parsons Pasadena, CA Christine Flaherty, CCM STV Construction, Inc. New York, NY Robert Fraga, AIA, FCMAA Smithsonian Institution Washington, DC Kurt Goddard Shaw Environmental and Infrastructure Group Alpharetta, GA 14 CMAdvisor Charlie Herndon, PE PB Tampa, FL Robert E. Holt, PE Jacobs Facilities, Inc. Conshohocken, PA Randy Larson, PE, CCM, FCMAA PBS&J Tampa, FL D.J. Mason, PE – CMAA Foundation Liaison Keville Enterprises, Inc. Boston, MA James W. Mitchell, CCM AECOM Boston, MA Brian C. Moore, PhD Georgia Southern University Statesboro, GA Steven A. Routon, PE HNTB Corporation Santa Ana, CA Larry Zimmerman, PE, FSAVE Black & Veach Gaithersburg, MD Directors Emeritus: Christopher Reseigh, FCMAA PB Herndon, VA Joseph McAtee, PE, FCMAA Urban Engineers, Inc., Philadelphia, PA 2010 Scholarship Applications Open Are you looking to further your career with the help of an academic scholarship from the CMAA Foundation? Do you know someone who is a worthy candidate for such a scholarship? The CMAA Foundation is now accepting scholarship applications for 2010. Students may compete for the Foundation scholarships in one of two ways: 1.Be selected as the top-rated undergraduate or graduate-level scholarship applicant by a CMAA chapter; and have completed a CMAA Foundation scholarship application. In this case, your application will automatically be sent to the CMAA Foundation for consideration as a national scholarship recipient; or 2.If you live in an area not served by a CMAA chapter, you may complete and submit a CMAA Foundation scholarship application in accordance with the instructions contained in the application package, available online. “Old South” Is Theme for Foundation Party in Atlanta The upcoming Owners Forum will take advantage of its historic Atlanta location to offer a lively “Old South” themed reception in support of the CMAA Foundation. Attendees can mingle with colleagues among the sights, sounds and tastes of the Old South. Rub elbows with “Rhett” and “Scarlett.” Sip a julep and nibble some fried chicken. Match wits on some “Gone with the Wind” trivia. And best of all, help build your profession by supporting the CMAA Foundation. As Scarlett said, tomorrow is another day. But what kind of day? The answer will be shaped by Foundation initiatives supported through events like this. Details and registration are available at the Owners Forum event page. CMCI BOG Welcomes New Governors Initiative Coming to Update CCM Exam The Construction Manager Certification Institute Board of Governors has added the following new members elected during the National Conference in Orlando: CMCI has begun its process of incorporating the 2010 edition of the CM Standards of Practice into the CCM exam. The process is expected to be completed by mid July. Josh Rowan, PE, CCM, LEED®AP PBS&J, Atlanta, GA In order to determine how the exam will reflect the changes, CMCI will send out a Job Analysis Survey to evaluate the changes in the CM field resulting from the use of the updated standards. The results will then be analyzed, and exam will undergo an item analysis, question by question, during which questions containing information from the new standards will be added. Ann Marie Sweet-Abshire, AIA, CCM GSA, Washington, DC Douglas Titzer, PE, CCM Jacobs, Arlington, VA View the complete 2010 Board of Governors roster. Quarterly Webinars Focus on CCM Process CCM Roster Exceeds 1,200 The number of Certified Construction Managers continues to grow and has now exceeded 1,200 for the first time. To view the list of the latest new CCMs, click here. CMCI is now offering free quarterly webinars which allow interested parties to learn more about the CM Certification process. The presentation will be followed by a question/ answer session during which attendees can address concerns about the process directly with CMCI’s Certification Manager. Find a date that works for you and register at http://cmaanet.org/courses-and-events. The best CM/PM education in the business. CMAA is your partner for high value professional education for every member of your team at every level. For new hires, our Construction Manager In Training (CMIT) program supports the transition into the workplace. At the high end, the Certified Construction Manager (CCM®) credential identifies the best in the business. Deliver SOP-based training to your entire team for as little as $35 per hour of expert instruction with flexible licensing of our online SOP modules. Or select from a broad menu of events, interactive webinars, and other programs. To learn more, visit www.cmaanet.org/pd-home. Advancing Professional Construction/ Program Management Worldwide. January/February 15 Professional Practice Corner Incentive to Change Attitude By Devesh Mody, PE, Parsons Brinckerhoff In the project management arena, when one thinks of a contractor, there is a tendency to associate the term with another ‘c’ word: yes, claims! This has come to a point where any bid that seems unusually low is automatically perceived, and maybe rightfully so, as being claim-oriented. It is not atypical for such contracting methodology to be a business strategy for some firms. The ‘bid-low and go after claims’ attitude has become more of a cultural anathema than a minor irritation. Let us analyze the repercussions that this bidding practice can have. Estimators come up with a bid and upper management slashes it at will and without rationale to ensure a win. An unrealistic low bid gets turned in by the contractor; owners cannot justify rejecting the lowest bid and are often bound to accept it. The contractor’s project superintendents are then immediately put on notice by their upper management to start ‘finding faults and busts’ in the drawings and specifications to identify issues, and thus begins the genesis for a claim driven environment. And like a train hurtling down a hill, once it starts, it is hard to stop. Now let’s analyze the contractor’s viewpoint. As we all know, construction, like any other industry is a cyclical business. In a tough economic environment, like the one we are going through currently, it is exceedingly difficult for contractors to hang on to the people and resources they may have amassed and enjoyed through the good times. Forced to control costs, cutbacks are imminent. A perfect opportunity to get rid of inefficiency, one might say. But cutbacks will affect even the efficient parts of the company. It’s like amputating an infected arm while the fingers still work. “While the disincentives are used almost regularly and are present in many contracts in the form of liquidated damages, it’s the incentives that make the difference, and that are hardly ever used.” To prevent this, the contractor is forced to find a way to keep the engine running. This is where the contractor’s hand is forced to begin bidding low, so that the efficient parts of the engine can keep running along with some of the inefficient ones. They are thinking: Bid low to win the work so that the engine doesn’t stall. But the problem arises when the “bid low” turns into “bid too low.” Then, after the work is won and the dust has settled, reality sets in. How do we make money? How long can we go on running a business that will lose money? Well, let’s find an easy way to make up the lost money. How about the ‘c’ word? Claims! That’s the tool that gets resorted to most often. 16 CMAdvisor Now let’s analyze the owner’s perspective. In the best interest of the bottom-line, the owner selected the lowest bid. For that, the owner gets exposed to being slammed with claims. Mounting management fees, claim settlement costs and legal bills are what you get in return for looking after the best interests of the shareholders and taxpayers? As unfair as this seems, owners need to look internally and revisit the vehicle used for project delivery. Approximately $51 million was spent in multiple incentives on $1.59 billion worth of construction contracts through establishment of a variety of milestones. This amounts to over 3% in bonuses. In a tough economic environment, this can be the difference between survival and bankruptcy. This can serve as a huge incentive for the contractors to start working with a positive mindset. Depending on how the bonuses are structured, this is a win-win situation. While several alternative delivery methods have been tried in the past with successful results, such as design-build and construction management at-risk (CM at-risk), some of these delivery methods require massive changes in the contracting standards established within an organization. While this can happen over a long term basis, the change comes with a lot of upfront cost. What was clearly visible on the Katy Freeway Reconstruction Program was the change in attitude of the contractor. Houston was hit with two severe hurricane seasons through the lifespan of the construction. Traditionally, this would have been an automatic delay to the end date by weeks, resulting in large overall delays to the program. But because the incentivized end date was held firm by contract, the contractor found ways to accomplish the goal, by working additional shifts, enhancing crew sizes and employing supplementary equipment. “This kind of incentive will force the contractor to think outside the box and think positively, to actually solve the problem rather than resort to the easy way out.” Another example is working around design problems. It’s unrealistic and impossible to expect a program of this size to not have some design conflicts. However, the contractors found ways to keep working in other areas while design problems were being reviewed and resolved in the problem areas. This is a result of an attitude shift by the contractors, which in turn was a consequence of bearing in mind the loss of incentives. For example, for a state agency such as a Department of Transportation (DOT) or for a county toll road authority or a city department such as public works, lots of effort would need to be expended by expert contract managers and legal counsel of these government institutions, to change the way they have been doing things. While I am not advocating stagnancy and systems do need to continually change to adapt to more optimal standards, the reality is that switching a system that is used to issuing low-bid contracts for the past several decades to one that employs complicated delivery techniques such as design-build or CM at-risk cannot happen overnight. But there is a certain technique that can be employed, almost immediately by such agencies, with tremendous results. It’s nothing new. It’s been around but under-utilized. It’s the incentive/disincentive plan. While the disincentives are used almost regularly and are present in many contracts in the form of liquidated damages, it’s the incentives that make the difference, and that are hardly ever used. Let us use Texas Department of Transportation’s recently completed, $2.7 billion award winning Katy Freeway Reconstruction Program in Houston as an example. This program involved reconstruction and widening of approximately 24 miles of the I-10 freeway and related interchanges with complicated utility relocations, massive right-of-way takings exercising eminent domain in several instances, and multiple contracts, consultants and contractors. This very complex program was completed in record time. Apart from careful planning, proactive management and dedicated project personnel, the tool that worked best to achieve timeliness and achieved coordination amongst different contracts and contractors, by nearly eliminating claims and resulting delays, was the incentive/ disincentive program. This is the critical point. The incentives have to be structured correctly for the scheme to work. There has to be a hard finish line, set in stone and immovable. Allowing the incentivized finish line to be fluid and movable is worse than not having one because it could potentially be moved out, via a frivolous time extension claim, and then the owner would still be liable to pay the incentives for finishing the program later. Therefore, the incentives need to be structured so that the date is hard and absolute, and any movement of the schedule beyond this hard date begins to decrease the incentive. The other very critical condition that should be included in the incentive program is that the hard finish date that is set in the contract will not be changed irrespective of what causes the delays that are encountered, be it weather, acts of God, owner driven changes, consultant errors and omissions and so on. While, on the face of it, this sounds very unfair to the contractor, this is where the problem lies to begin with. Any and every excuse is used to move the end date out via claims as contractors wish to collect delay related expenses. Unless this basic problem is acknowledged and dealt with head-on, it will be hard to tackle the problem described in the opening paragraphs of this article. After all, the contractor is being paid an incentive to finish early. Nobody expects the early completion to be achieved at no cost. Introduction of this kind of incentive will force the contractor to think outside the box and think positively, to actually solve the problem rather than resort to the easy way out, that is, claim for additional time, dump the entire responsibility on the owner and continue with business as usual. On the other hand, in case the owner or its parties are at fault, they should not take a back seat approach in resolving the problem at a lackadaisical pace, hoping that the contractor will solve it for them. As a final example, the Harris County Toll Road Authority was to employ its own crews and contractors to build out a wide stretch of tollway about 13 miles long down the center of the freeway. Customarily, there would be wide resistance, if not a claim, from the contractors to allow a new project to be built right in the middle of their construction zones. However, again, keeping the end goal in mind, the contractors cooperated and accommodated these new and unforeseen developments so as to not jeopardize the completion of the program and the attached incentives. To summarize, there was a definite shift in the attitude of the contractor in wanting to complete the work, a shift away from making excuses for delays. On the Katy Freeway, the contractors won because there was a tangible reward for timely performance and the owner won because claim management costs were minimized and the end product was delivered ahead of schedule. In conclusion, the introduction of the incentives into contracting philosophy needs to be seriously considered and should be as regular a feature of contracts as is the disincentive or liquidated damages concept. It is a proven concept. How they are structured and how much incentive is offered depend on the project and risks associated with the local conditions. But one thing is for sure: Incentives work! Devesh Mody, PE, is a licensed engineer in the state of Texas and is a Project Manager/Senior Supervising Engineer with Parsons Brinckerhoff in Houston, Texas. He has graduate degree in Civil Engineering from Virginia Tech. His experience includes projects in highways, aviation and civil works, in the US and overseas. He can be reached at mody@pbworld.com. January/February 17 Legal Corner Economic Stimulus Will Result in Heightened OSHA Scrutiny— Are You Ready? By John F. Heuer, Jr., Esq. Along with the American Recovery and Reinvestment Act (“ARRA”) and the funds that are being disbursed throughout the country to stimulate a faltering economy comes a less publicized yet potentially potent threat to industry participants and owners— the increased oversight and more aggressive enforcement by OSHA. Indeed, Secretary of Labor Hilda Solis pulled no punches in warning last July that “the U.S. Department of Labor is back in the enforcement business.” In the same manner as contractors, subcontractors and owners need to be aware of OSHA’s heightened attention, so too do Construction Managers. Because construction projects are typically inhabited by multiple parties, performing multiple activities in concert (hopefully!) toward the timely completion of a work of improvement, OSHA views these worksites as “multiple-employer” worksites and applies certain specific rules to them. On such worksites, more than one employer may be citable for a hazardous condition that violates an OSHA standard. In this regard, OSHA generally follows a two-step process to determine whether more than one employer may be cited. The first step is to determine whether the employer falls into one or more of the following categories: A creating, exposing, correcting, or controlling employer. If so, the next step is to determine whether the employer’s actions were sufficient to satisfy its duty to exercise reasonable care in the detection and prevention of violations. A failure in this second step could lead to citation and possibly penalties. 18 CMAdvisor Except perhaps in the case of CM-AtRisk contracts, Construction Managers are generally not engaged in the actual performance of work, so the categories of “creating employer” (employers that cause a hazardous condition to exist) or “correcting employer” (employers who are responsible for correcting an existing hazard), will typically not apply. However, the “exposing employer” (an employer whose own employees are exposed to the hazard) or “controlling employer” (employer who has general supervisory authority over the worksite) designations are more likely to apply to Construction Managers. Indeed, the Multi-Employer Citation Policy published by OSHA states that a Construction Manager would be a “controlling employer” for its purposes if the Construction Manager is responsible for such things as schedules, sequencing, compliance with contract specifications and resolving disputes, even though the Construction Manager may not be responsible for compliance with safety and health requirements. “The U.S. Department of Labor is back in the enforcement business.” OSHA inspections are generally conducted without prior advance notice and may be either programmed (scheduled by OSHA according to some selection criteria) or unprogrammed (scheduled in response to a report of an alleged hazardous condition.) The inspection can either be comprehensive or a partial, focused inspection. At the outset of any inspection the CSHO is required to locate an owner representative and present his or her credentials and, thereafter, to present those credentials to any management representatives during the inspection. Typically, an Opening Conference will take place during which the CSHO will inform all of the affected employers of the purpose of the inspection. Unless certain exigencies are present permitting immediate entry, an employer has a right to require that the CSHO seek an inspection warrant prior to entry and the employer may refuse the CSHO’s entry without such a warrant. However, on multi-employer sites, a CSHO can get around one employer’s refusal by obtaining consent from the owner or another employer with employees at the worksite. The CSHO will want to review the employer’s injury and illness records and evaluate any recordkeeping deficiencies. Next, the inspector will likely conduct a walk-around inspection to identify actual or potential safety and/ or health hazards at the worksite. The CSHO may be (and should be) accompanied by designated representatives of the affected employers and/or employee unions. Lawyers consistently advise clients and representatives prior to depositions to answer the question posed and refrain from volunteering information not directly responsive to a question. This same advice should be followed by designated representatives during an inspection. A CSHO may (and has the right to) conduct private interviews with employees to obtain information that is “necessary or useful” for carrying out the inspection effectively. If an inspection proceeds and an employer interferes with the inspection, the CSHO may treat the interference as a refusal. Examples of interference include the refusal or limitation on: (1) a walk around inspection of the site; (2) the review of records essential to the inspection; (3) the taking of photographs and or videos; or (4) private employee interviews. Following the inspection, a closing conference with the affected employers and union representatives (if applicable) will provide for discussion about any apparent violations, the employers’ rights and responsibilities, as well as the handling of any citations that may be issued or penalties imposed. Any noted violations should be abated promptly and, upon the CSHO’s departure, a safety meeting should be convened to address whatever violations, issues or concerns were identified during the inspection. Although citations and proposed penalties may be forthcoming, (both of which can be addressed through established legal processes), knowing what to expect and appropriately managing an OSHA inspection may minimize hefty penalties and projectdelaying sanctions. Construction Managers need to be proactive and prepared to be visited by OSHA because all indications are that they’ll be coming! John Heuer is an equity partner in the Los Angeles-based firm of Gibbs, Giden, Locher, Turner & Senet LLP and is the current National Chair of CMAA’s Legal Committee. He can be reached at jheuer@gglts.com. Waiting for the shoe to drop By Raoul M. Ilaw It’s not what you wanted to hear: the OSHA compliance officer at the closing conference tells you that you have a number of apparent violations. Now what? Days pass and you either wait patiently for some communication from OSHA, or you may mentally cast aside the experience of being inspected. Then one day, an envelope arrives from OSHA. You’ve just been handed your list of citations and penalties. Welcome to OSHA’s enforcement system. OSHA has six months from the end of the inspection to serve you the citation. Your rights begin with a 15-day period in which you may meet with the OSHA area director at his office to discuss the citation and penalties. In trying to come to terms with OSHA, try to reduce the classification of the violation, which is either egregious, willful, serious or other-than-serious. Penalties for willful violations start at $70,000, and a serious violation starts at $7,000. These violations can be re-classified to a lesser classification if the OSHA official agrees with you. “In trying to come to terms with OSHA, try to reduce the classification of the violation.” If you can’t reach an agreement, you may within that 15-day period contest the citation, or penalties, or both. Your case is then sent to the Occupational Safety and Health Review Commission, a separate group composed of several hearing judges, and the case is set for a trial. You’d be smart to request this conference. You’ll be given an opportunity to get the details and explanation of why and what caused OSHA to come down on you. You’ll also have a clearer understanding of what standards mean. You’ll have an opportunity to attempt a settlement. And you can request an extension in order to abate (correct) violations, and correct them in the proper way to maintain a safe and healthful workplace. You might have several possible defenses: Noncompliance was due to employee misconduct, and you trained every employee and communicated the specific information to that employee. Or, you investigated and attempted to correct any potential hazard and you enforced your company policy. The penalties you receive are based on your history with OSHA, the size of your business, how severe the violations were, and the way you acted during the inspection (your good faith). Raoul M. Ilaw is a former OSHA Administrator and OSHA/FEMA, Safety & Health Manager. This advice is excerpted from an article he wrote in 2005. However, you must have clear, concise documentation to prove your case. January/February 19 Member News Baker Wins 2009 Engineering Excellence Award at Joint Transportation Forum Michael Baker Jr., Inc., was presented with the Engineering Excellence Award in the Construction Inspection Project Category at the 2009 Joint Transportation Forum sponsored by the American Council of Engineering Companies of West Virginia (ACEC-WV), the West Virginia Division of Highways (WVDOH), and the Federal Highway Administration—West Virginia Division (FHWA-WV Division). Baker received the award for its outstanding Construction Management and inspection services for the West Virginia Department of Transportation—Division of Highways on State Route 9 from County Route 9/3 to County Route 27. CMAA Remembers Industry Leader Frank Muller Frank Muller, one of the founders of CMAA, died on December 11, 2009 after a brief illness. Born November 24, 1930 in Prague, Czechoslovakia, son of Ernest and Margaret Muller. 45 year resident of Pelham, NY; civic leader, mediator, arbitrator and Construction Management executive; avid squash player, athlete, reader and nature lover. He enriched the lives of everyone he touched and left the world a better place. Beloved husband of Louise DeVel Muller, father of Robert, Bill and David, father-in-law of Sally, Diane and Nancy, grandfather of six, brother of George, dear friend, colleague and advocate of many. Memorial tributes to Muller may be viewed at http://cmaanet.org/cmaaremembers-founder-frank-muller. Hill International Acquires TRS Consultants Hill International, the global leader in managing construction risk, announced today that it has acquired TRS Consultants, Inc., a firm that provides civil 20 CMAdvisor Chapter News engineering, program management, Construction Management and information technology services primarily to the transportation and infrastructure market. TRS, which has approximately 40 employees, is based in San Ramon, California. Terms of the transaction were not disclosed. Indianapolis Construction Company Names New President The Skillman Corporation has announced that Brad Skillman will succeed Larry Koenes in the role of company president. Although new as president, Brad Skillman is not new to the firm. As president, Mr. Skillman will oversee 68 full-time employees. Regarding future plans, he says, “I have inherited an excellent management team and a tremendous culture. We’ll work together to build on our strong foundation in the Midwest. Our focus has been (and will be) construction services for clients in the education, healthcare, government and commercial sectors.” Alexander Building Construction Co. Awarded Phase I of District Wide Facilities Master Plan for State College Area School District Alexander Building Construction has been awarded a Construction Management contract for Phase I of the District Wide Facilities Master Plan for the State College Area School District. Phase I projects consist of consolidating the Boalsburg and Panorama Village Elementary Schools in a New Elementary School at the Panorama Village site, replacing the current Ferguson Township Elementary School through a combination renovation/new construction project, and an addition to Gray’s Woods Elementary School. Both the new Panorama Village and Ferguson Township Elementary Schools will be approximately 55,000 square feet. LEED Silver certification will be sought for both buildings. Construction is scheduled to begin Spring 2010. Chicago Chapter The Colorado Chapter hosted a happy hour social this month, attended by approximately 20 chapter and student chapter representatives, including several board members and program chairs. During the evening, the Chapter recognized its scholarship recipients, promoted the January program on the reconstruction of the I-35W Bridge, and presented a draft calendar of chapter events for the remainder of 2010. Kwame Building Group Selected for Ameren UE Methane Gas-toElectricity project Kwame Building Group has been awarded a contract through Green Companies Inc. to provide design management support on a major landfill gas-to-energy project at the Fred Weber Company Solid Waste Landfill in Maryland Heights, Missouri. Construction is expected to begin in 2010, and the plant is expected to be operational in 2011. The Ameren UE Methane to Megawatts project will be the largest landfill gas-to-electric facility in the state and among the largest in the nation, generating enough electricity for 10,000 homes. S E A Consultants to Become Part of Kleinfelder Kleinfelder has announced the acquisition of S E A Consultants Inc., a full-service engineering, architecture and planning firm headquartered in Cambridge, Mass. The transaction closed on November 13, 2009, following a due diligence process, respective board approvals and integration planning involving employees from each firm. KBR Awarded $46M Contract for Alabama Federal Building and Courthouse KBR announced that its Building Group has been awarded a $46.96 million contract by the U.S. General Services Administration to provide Construction Management services for a new United States Federal Building and Courthouse in Tuscaloosa, Alabama. The building, designed to achieve LEED® Silver certification, replaces an outdated existing facility. Colorado Chapter This year-end celebration culminated a very successful year, which included events such as the Annual Scholarship and Awards Dinner in April when presentations were made of eight awards in four categories, as well as $15,000 in scholarships. The Annual Owner’s Night in June drew dozens of agencies/owners who staged booths. In addition, a Sacramento Riverboat dinner celebrated the incoming board and thanked the outgoing board. Northern California The CMAA Chicago Chapter recently hosted a jobsite tour for its CMAA Illinois Institute of Technology Student Chapter of the new Joe and Rika Mansueto Library at the University of Chicago. The library, designed by architect Helmut Jahn, will ultimately house 3.5 million volumes of material below ground, making the University of Chicago the only university in the country to house such an expansive research collection on its campus. The Northern California Chapter celebrated the holiday season with a cowboy-themed party at the Texas Back Forty restaurant in Pleasant Hill, CA. Big hats were encouraged, no business suits were allowed, and everyone enjoyed their ribs, brisket, and barbeque! The Chapter also collected toys for the Toys for Tots program and held a raffle to raise raised money for the 2010 scholarship program. Integral to the design is the 50-foot deep automated storage and retrieval system that, when finished, will have the capacity to retrieve requested material and deliver it to the user within minutes. On the tour, the students had the unique opportunity to climb into this slurry wall hole and observe preparation for a slab pour. Chapter President Jan Turner and Chapter Member Connie Walker, both from Cotter Consulting, led students on the tour. Cotter Consulting served as the Owner’s Representative, working with Mike Natarus, Project Manager for the University of Chicago. Barton Malow Company is the Construction Manager for this project that is scheduled to open in 2011. To learn more about the project and watch construction progress via web cam please visit http://mansueto.lib. uchicago.edu/. COMPREHENSIVE CONSTRUCTION MANAGEMENT SERVICES Program Management - Constructibility Review - Construction Inspection Cost Estimating - Commissioning - CPM Scheduling - Risk Management - Training WWW.MBPCE.COM 800-898-9088 January/February 21 Professional Development Calendar President’s Corner Webinars: National Meetings: “Second Stimulus” Could Be A Good First Step A National Conference Encore Event: Leveraging Web-Based Collaboration to Deliver Quality, Cost Effective CM Services Owners Forum February 24 This new event will put the views, interests, priorities and needs of owners in the spotlight. Attend and find out what’s on the minds of leading owners, and what they expect from their CM service providers. Learn how to cut project costs and substantially reduce the amount of paper on the project while improving control. May 2–4 Atlanta, Georgia A National Conference Encore Event: Complexity, Risk and Pirates—Mitigating Risk through Collaboration and Technology Participants will understand the impact of increasing complexity and risk in project development and strategies to mitigate these factors through collaboration and technology. In December we joined with the Building America’s Future coalition in support of a new infrastructure bill, which was strongly advocated by BAF co-chairs Ed Rendell, Arnold Schwarzenegger, and Michael Bloomberg. In a speech on December 8, President Obama called for a new package of legislation to create jobs, chiefly by investing in infrastructure. Going Green to Get the Goal— Without Legal Downsides March 11 Construction Managers Responsibilities on Successful Green Building Projects Water Summit July 11–13 Kansas City, Missouri Hear directly from the experts, including leading system owners, what they expect and need to manage and expand their systems in the years ahead. March 18 Learn how to handle preconstruction issues, development of management tools, sustainable documentation methods, subcontractor training and post-construction close-out strategies for successful green building projects. Let the Environment Work for You—Storm Water and Solar Energy Benefit Green Construction March 25 Attendees will learn about best management practices and how to integrate into your projects innovative techniques that have proven successful on sustainable buildings around the world. 22 CMAdvisor The American Recovery and Reinvestment Act of 2009 has largely succeeded in creating jobs and helping people survive in a challenging economy. But it has left unaddressed the persistent and critical infrastructure needs of the nation. Now, we seem to be seeing a surge in recognition that addressing these priorities in a coherent long-term manner will produce both short-run and permanent benefits. As this issue of CM Advisor went into production there seemed to be a consensus on Capitol Hill in favor of what is variously called a “second stimulus” or a new “jobs bill,” which would allocate significant funding to highways, transit, water/wastewater systems and other critical infrastructure needs. March 4 Attend this webinar and learn how to identify metrics for achieving certification and other awards, specify contract language to allocate liability for the standard of care required to achieve certification, and provide strategies for managing expectations to avoid litigation. By Bruce D’Agostino, CAE, FCMAA See the full schedule of CMAA webinars. The president said his administration is proposing “a boost in investment in the nation’s infrastructure beyond what was included in the Recovery Act, to continue modernizing our transportation and communications networks. These are needed public works that engage private sector companies, spurring hiring all across the country.” He also predicted that spending of the original ARRA funds will be ramping up in the months ahead. “I recognize that by their nature these projects often take time, and will therefore create jobs over time,” the president said. “But the need for jobs will also last beyond next year and the benefits of these investments will last years beyond that. So adding to this initiative to rebuild America’s infrastructure is the right thing to do.” We couldn’t agree more. Nor could Building America’s Future. The coalition is calling not only for a new stimulus bill heavily tilted toward infrastructure spending, but also for creation of a National Infrastructure Investment Bank and for fast action on a new six-year Transportation Authorization Act. As part of the Water Infrastructure Network, we also joined in a letter to key senators and House members urging that the new stimulus bill include at least $20 billion for ready-to-go water and wastewater projects. “Investing in water infrastructure creates thousands of quality jobs in the short-term, dramatically improves our nation’s long-term competitiveness and improves the quality of water for every American,” the letter said. We support all of these initiatives, and concur with Gov Rendell’s comment at CMAA’s National Conference that “the biggest mistake made in the stimulus program was having so little of the spending go for infrastructure.” It is somewhat encouraging to hear these infrastructure investment proposals described by proponents as “jobs bills.” I say “somewhat encouraging” because infrastructure spending is not a mere make-work activity, as “jobs bills” may often be. Instead, money spent on infrastructure enhancement both creates jobs now and creates value for decades to come. “Money spent on infrastructure enhancement both creates jobs now and creates value for decades to come.” Infrastructure investment is unique in its capacity to combine short-term stimulus, in the form of immediate job creation, with long-term benefit in the form of efficient and robust national highways, water and wastewater systems, power grids and other resources. We simply must make it a national priority to repair, modernize, and expand our transportation and other resources. We need a sound long-term strategy that devotes adequate and consistent funding to these tasks. They cannot be dealt with successfully through any series of quick fixes. We also need to assure that this major funding is spent with accountability, transparency, and maximum application of recognized Construction Management Standards of Practice. CMAA is not the only organization advocating this sound long-term approach, but we are working to make our voice heard more clearly. Now it seems that our arguments are finally being heard and accepted where it counts. January/February 23