CMAdvisor
Volume XXVIII, No. 4
July/August 2009
Advancing Professional Construction and Program Management Worldwide
CMAA Strengthens Flagship
Networking Event
The next big project, growth area,
team member or business alliance:
These are the discoveries that will
draw hundreds of the industry’s
foremost professionals to Orlando, FL
in October for CMAA’s 2009 National
Conference & Trade Show.
Pennsylvania Governor Ed Rendell—See Page 4
Contents
2Chairman’s Report
3 CMAA News
9 CMAA Foundation
10 Professional Practice Corner
12 Legal Corner
13 Member News
14Chapter News
15President’s Report
16Professional Development Calendar
Conference attendees consistently
report that networking opportunities – chances to meet owners and
peers from all over the country – are
the main attraction of CMAA’s flagship national event. The 2009 event
will provide plenty of opportunities
for these vital informal conversations,
including meals, receptions, refreshment breaks and the festive Industry
Recognition Banquet.
For this year, moreover, the association
has announced yet another valuable
enhancement, two new pre-conference workshops focusing on critical
trends in today’s market.
The new programs add an important
dimension to the year’s foremost
networking and team-building
opportunity.
Held on Saturday, October 24, the
pre-conference sessions will focus on:
• LEED®, including LEED certifications
and CM’s responsibilities related to
LEED, presented by Charles Popeck,
president of Green Ideas Environmental Building Consultants; and
• Scheduling and Delay Analysis, led
by Rocco Vespe and Scott Lowe, PE
of Trauner Consulting, who have
recently delivered a very popular
series of CMs TalkLive! webinars
on this subject. Stay tuned to www.cmaanet.org
for additional session details as they
become available.
The National Conference & Trade
Show will be the year’s best chance
for owners and CM providers to
meet, network, build alliances and
explore business opportunities likely
to take shape in 2010. It also provides
the most comprehensive Professional
Development forum of the year.
Continued
on page 3
Career HQ
Enhancements
Underway
CMAA has launched a series of
enhancements to its online Career
Headquarters, designed to make
the service more productive for
job-seekers and employers alike.
The site allows employers to post
job openings that can be viewed by
more than 5,000 users, including
CMAA members and members of the
Project Management Institute (PMI).
Job seekers can use the site to view
openings, set up search agents and
saved searches, sign up for automatic
notification of new job postings, and
access a variety of career support
services and tools.
As part of the job site enhancement,
CMAA has been adding valuable new
content to the site, including job
search tips, resume advice, articles
Continued on page 3
Chairman’s Report
Chairman of the Board
Thomas W. Bishop, PE
URS Corporation
President and Chief Executive Officer
Bruce D’Agostino, CAE, FCMAA
Editor
John McKeon
Contributing Writers
Sarah Black
Martha Montague
CMAA is a construction industry
association of 5,500 firms and
professionals who provide management
services to owners who are planning,
designing and constructing capital
facilities and infrastructure projects.
Our Mission is to Promote and
Enhance Leadership, Professionalism
and Excellence in Managing the
Development and Construction
of Projects and Programs.
CMAdvisor, published bi­‑monthly
by CMAA, reports on and follows
the industry as a service to its
members. Submission of articles,
ideas and suggestions is appreciated
and encouraged.
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 2009,
ISSN 1084-75327
Reproduction or redistribution in any
form is forbidden without written
permission of the publisher.
Advertising opportunities are available
in CMAdvisor. For information, contact
Tom Egly at tom.egly@tgdcom.com.
2
CMAdvisor
A Five-Year View for CMAA
By Thomas W. Bishop, PE
URS Corporation
How will our business environment
change in the next five yeas?
What factors that are critical in shaping
our success today will become less
critical, or even disappear, in that time?
And what should our national
association do now to anticipate
and prepare for these changes?
Questions like these belong on the
agendas of Boards of Directors. Our
role, after all, is to provide CMAA staff
with strategic guidance, informed by
our own experience and expertise.
The goal is to be sure our association
is always relevant and our programs
are always valuable to members.
During our recent Leadership Forum in
Scottsdale, the Board participated in a
facilitated strategic planning process,
led by our chair-elect Gary Cardamone.
We began with a detailed discussion
of our current environment, then broke
into small groups to address specific
questions before re-convening to share
the results of our group conversations.
The process had a number of interesting
outcomes, but I would like to share just
a few in this column.
First, it seems clear that in the next
five years, credentials will become
even more important. CM certification,
valuable as it is today, will become critical. In part, this is because something
we may take for granted – technical
competence – is likely to become scarcer
over time as expert practitioners retire
and the industry continues to face
difficulties in replacing them.
Owners will continue to attach high
value to a CM/PM’s track record: Having
delivered successful projects and programs of the same type, for the same
or similar owners, will continue to count
for a great deal. But several new factors
will probably take on greater importance in the next five years.
Prime among these
is leadership, the
ability of the CM/
PM to motivate,
collaborate and
innovate in addition
to managing day
to day operations.
“On time, on budget” will remain a
paramount concern for owners. But
increasingly, we will see projects and
programs driven by other factors as
well. The idea of the “owner” will grow
to include the facility’s eventual users,
neighbors, the public, and others. It
may not be easy to identify all of the
“owners” with a stake in project success,
but this is one of the ways in which the
CM/PM will prove his or her value.
It seems clear that in the next
five years, credentials will
become even more important.
CM certification, valuable as it
is today, will become critical.
What did this exercise tell us about
CMAA’s future? It will help guide our
Professional Development offerings,
certainly, toward an ever-greater
emphasis on leadership. We will
also need to expand our scope to
address such topics as financing
and collaboration more fully.
And certification will remain frontand-center as an important way
of responding to owners’ needs
for certainty and accountability.
Strategic planning is always an
interesting exercise. The difficult part,
of course, is to translate the plan into
concrete action. This year’s process
will shape the creation of our Business
Plan and Budget this fall, to be acted
on throughout next year.
CMAA News
CMAA Strengthens Flagship Networking Event, Continued from page 1
With 30 breakout sessions covering
a variety of business, technical, and
leadership topics, this program will
help members stay competitive in
this year’s tough market.
Keynote speaker Rich Karlgaard,
publisher of Forbes magazine and
author of Life 2.0 How People Across
America Are Transforming Their Lives by
Finding the Where of Their Happiness,
will give a presentation designed to
help attendees understand “how the
2009–2010 recovery will affect you.”
Karlgaard’s regular Forbes Column,
entitled Digital Rules, discusses technology, entrepreneurship, regional and
economical development, and the future
of business and work. He predicts that
the economic recovery is coming sooner
than most observes have said, and will
discuss which sectors and regions will
benefit from current stimulus funding.
The National Conference will also feature
a new edition of CMAA’s popular Trade
Show, bringing together dozens of leading CM firms and industry vendors.
SAFETEA-LU Successor
Legislation Unveiled
Rep. James Oberstar (D-MN) chair
of the House Transportation and
Infrastructure Committee, and
Ranking Minority Member John
Mica (R-FL) have introduced a new
six-year Transportation Authorization
Act, intended to be the successor for
SAFETEA-LU and to provide both a
comprehensive national energy policy
and major funding for new surface
transportation investment.
CMAA has endorsed the bill, noting
in a letter to Chairman Oberstar that:
“One of the stated goals of this legislation is ‘to improve the project delivery
process by eliminating duplication in
documentation and procedures.’ Another
is ‘to facilitate private investment in the
national transportation system that
furthers the public interest.’ The legislation creates Offices of Expedited Project
Delivery within the Federal Highway
Administration and the Federal Transit
Administration, mandated to ‘improve
the project delivery process’ and ‘to
expedite the development of projects
through the environmental review
process, design and construction.’
Career HQ Enhancements Underway, Continued from page 1
and videos about careers in Construction Management, and other features.
Currently, the Career HQ has more
than 350 resumes on file, with job
postings from 18 active employers
including Faithful+Gould, Foster CM,
the General Services Administration,
MTA New York City Transit and the
University of Maryland Facilities
Management Department.
In the past month the average job posting received 323 views and attracted
25 clicks of the “apply” button.
Resumes posted on the site include
nearly 90 from seekers of executive
management positions, along with
266 looking for Construction Management jobs, 206 seeking Project
Management positions, and a wide
range of other categories.
CMAA’s Career Headquarters can
be accessed through the association
home page by clicking the link in
the upper right corner.
“Not only does CMAA endorse these
goals, but they constitute the fundamental mission of our association
and our membership.”
CMAA Delivers SOP Training at
SAME Event in Germany
CMAA presented its three-day Standards of Practice course in Frankfurt,
Germany in June as part of the first
SAME University, a new program
presented by the Society of American
Military Engineers in cooperation with
CMAA and the International Facilities
Management Association.
The event’s mission was to provide more
convenient professional development
opportunities for personnel who
can’t easily travel to events in the
United States.
Tommy Thomas of TetraTech, who led
the SOP course, described it as “a very
rewarding class, not only for CMAA and
SAME but for me as a presenter.” The
students, mainly civilian personnel,
were highly interested in learning and
applying the CM Standards of Practice,
Thomas said.
Secretary of Transportation Ray LaHood
called for an 18-month delay in consideration of the re-authorization, but
both Oberstar and Mica rejected this
call, and CMAA said in its letter that
such a delay “would be extremely
unwise and unwarranted.”
Dr. Bob Wolff, SAME Executive Director,
was on site for the event and described
it as “a great success.”
Details about the bill are available
on the CMAA website at
www.cmaanet.org/issues.
SAME has plans for additional SAME
University sessions in San Antonio,
Texas, in October 2009; Seoul, South
Korea, in January 2010; Rolla, MO at
the conclusion of the Captains Career
Course in June 2010; and again in
Frankfurt, Germany, in July 2010.
July/August
3
CMAA News
CMAA Joins in
Infrastructure
Bank Advocacy
“We can’t play
around. The time
to do this is now,”
said Pennsylvania
Governor Ed
Rendell, one of the
co-chairs of the
coalition Building
America’s Future,
at a recent BAF-sponsored conference
promoting legislation to create a
National Infrastructure Bank.
CMAA took part in the conference
and has supported the bank proposal
as an innovative tool to provide
significant, consistent funding for
high quality infrastructure projects.
Legislation to create the Infrastructure
Bank, sponsored by Rep. Rosa DeLauro
(D-CT) and others, could provide up to
$625 billion for infrastructure projects
over a five year period.
“The investors are there,” Rep. DeLauro
said at the conference, which was
also co-presented by Third Way, a
“think tank.” DeLauro said private
investors both in the United States
and overseas “have a growing interest
in infrastructure investment…It is
time to seriously invest in our nation’s
economic growth,” she said.
Rendell warned that “the American
people will not support a massive
infrastructure program that goes
through the same old process,”
meaning a politicized process that
funds various “pet projects” without
regard to need or merit. “The best
part of the Infrastructure Bank is
that it is a concept the American
people can support.”
4
CMAdvisor
A New Era for CMAdvisor
Back in September 2007, CMAdvisor
took a big step forward by moving to
full color printing and accepting color
advertising for the first time.
Now, CMAA’s main publication is once
again readying a leap into the future.
Your next issue of CMAdvisor –
September/October – will come to
you exclusively in a new, flexible, and
highly interactive electronic format.
In making this move, CMAA is joining
a growing national trend. The number
of business-to-business publications
reporting digital editions grew 215%
between 2005 and 2007, the latest available data. The number of digital subscriptions grew 222% in that time. The
number of pages read and the average
length of the “sessions” grew more than
100%. The number of link click-throughs
increased by more than 100%, and the
number of unique readers grew by 150%.
Electronic magazines are growing in
popularity for many reasons, and the
new CMAdvisor will offer a variety of
powerful advantages.
First, it’s part of a “greener” approach
to CMAA communications. “The
Association has been increasingly
stressing electronic connections with
its members in place of traditional printand-mail. Given the central importance
of sustainability in our business today,
this transition is a natural,” says CMAA
President Bruce D’Agostino.
The “E” approach also means more
content in each issue. The old page
limits are off. In fact, CMAA no longer
must decide whether to add complete
four-page signatures to an issue. Each
edition of CMAdvisor can have all the
space it needs.
The new format provides expanded
room for Member News, Chapter
News, and coverage of industry events.
Deadlines will be later, and readers will
have opportunities to forward contents
to colleagues, discuss articles online,
and get fast access to background
information via the Web.
Advertisers will benefit from direct
web links to the online content of
their choice: Web pages, flash movies,
PowerPoints, and so forth. They will
be able to incorporate animation and
other effects in their ads. Such special
features as wrap-arounds and gatefolds
will also be available.
Plus, CMAA will be able to provide
greatly enhanced data on readership,
clicks and other actions.
Watch for an informational email in
September and a link to your first issue
of our new magazine shortly afterward.
Note: To be sure you don’t miss these
or other important communications,
please add mailams.cmaanet.org
and mail.vresp.com to your approved
sender list.
New Owner Survey Weighs Value of SOPs
The Tenth annual Owners Survey
conducted by CMAA with FMI is in the
works, and will closely examine the
value owners believe they realize from
application of specific components of
the CM Standards of Practice.
construction. In each phase, the survey
questionnaire lists selected specific
functions or tasks that are defined in
the SOPs and asks responding owners
to rate the value they receive from this
particular function.
This survey has addressed issues
ranging from risk management to
ethics in previous years.
The survey also asks for respondents’
forecasts of how important and valuable
these practices will be in five years.
For the Tenth survey, CMAA and
FMI have focused on the value of
CM to owners across all phrases of
The survey findings will be presented in
October at CMAA’s National Conference
& Trade Show in Orlando.
Newly Published CMAA
eJournal Paper Examines
Women in CM
CMAA has recently published two new
articles in the eJournal, our peer-reviewed,
scholarly online journal for CM professionals. One new entry examines how
the construction industry’s long history
of male domination has influenced
perceptions about the effectiveness
of women in CM positions.
In order to measure perception, respondents were divided into three categories:
women, men who had never collaborated with women in the CM industry,
and men who had worked with women
in the CM industry. Authors Barbara
Chun, David Arditi and Gulsah Balci
found that most male Construction
Managers who had worked with female
Construction Managers didn’t perceive
them as any less capable of performing
their job. However, men who had never
worked for or alongside a female CM
sometimes perceived them as less
effective than their male counterparts.
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The survey also looked at whether women
in CM positions perceive bias against
them in the form of skepticism and
indifference as a result of their gender.
The majority of women surveyed agreed
that being female does not help when
their performance is assessed.
Most respondents subscribed to the
modern belief that women are equally
as capable as their male counterparts
to perform the duties of a CM. The survey’s findings suggest that an attitude
that accepts women as an equal part of
the construction population is gaining
momentum, and will continue to do so
as more women join industry.
The focus of CMAA’s eJournal is
the examination of timely technical
issues confronting the architectural,
engineering, construction and facilities
management communities. Those
interested in submitting a paper for
review by CMAA’s eJournal staff should
visit http://cmaanet.org/cm-ejournal
for details.
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July/August
5
CMAA News
Social Media?
CMAA Is There!
CMAA Green Building Webinar Prepares
Participants for LEED Version 3.0
Do you tweet?
Major strides forward in the world of
green building are brought forth by
the adoption of LEED 2009 version
3.0. Some of these raised standards
were highlighted in the first session of
CMAA’s Green Building webinar series
hosted by WPL Publishing: “Uncovering
LEED 2009 – Managing the Transition.”
If so, you should be following jmatcmaa
on Twitter for the latest news, opinions,
and links to other interesting content.
Are you a fan of CMAA? Click the Facebook button on our home page and
become one on Facebook! There’s also
a special group on Facebook for CCM
candidates. CMAA can be found on
LinkedIn as well, along with a special
LinkedIn group exclusively for CCMs.
The CMAA Foundation’s new career
videos have been posted on Youtube,
where they have been viewed more
than 5,000 times!
Previews of the eight SOP online modules are also available on Youtube, and
have drawn more than 2,000 views.
Twittering Both Ways
CMAA isn’t only posting its tweets
in Twitter, but also using the service
to keep track of daily events in some
critical areas.
Twitter allows members to post very
brief statements – of what they are
doing, what they think, etc. – and have
these statements downloaded automatically to the desktops or PDAs of
other members who are “following”
them. As a result, Twitter serves as a
real-time communications channel
among people with shared interests.
Consider the progress of the Transportation Authorization Act of 2009. The
Act’s sponsor, Rep. James Oberstar,
tweets to post hearing notices, highlights of testimony, news conferences
and other information. Secretary of
Transportation Ray LaHood tweets,
as do the American Society of Civil
Engineers, Building America’s Future,
Public Works magazine, the editorial
staff of Engineering News-Record,
and a number of freelance journalists.
Each day brings a lively discussion of
the very latest developments. To keep
up, try following jmatcmaa in your
own Twitter account.
6
CMAdvisor
Presenters Elaine Ayre, IIDA, ASID,
LEED-AP and Glen Philips of Green
Building Services Inc. explained how
the new version of LEED gives a higher
profile for climate-change related
issues such as resource depletion,
eco-toxicity, and habitat alteration.
The latest version makes it harder for
buildings that ignore climate change
impacts to perform well in LEED.
A common criticism of LEED in
previous versions was its inflexibility
to accommodate regional issues.
While the new version does not
adapt a region-specific rating system,
it does issue regionally-assigned
weight to existing credits, determined
by regional councils and chapters.
Population density differences help
establish different playing fields and
their respective zone-specific concerns.
For example, protecting farmland may
be a concern in a suburban area, while
connectivity to existing cities is a more
relevant concern to a rural zone.
LEED version 3.0 accreditation for new
construction places greater emphasis
on the following categories:
• Development Density & Community
Connectivity
• Public Transportation Access
• Energy Performance
• On-site Renewable Energy.
For more information about CMAA’s
webinar series offerings, visit http://
cmaanet.org/courses-and-events. Learn
more about LEED at CMAA’s National
Conference & Trade Show.
New Directors Nominated
The Nominating Committee has
proposed a slate of both new and
returning directors and officers
for election at the annual meeting
this October in Orlando.
The proposed slate of officers
for 2009 –2010 includes:
The following members have
been nominated to fill open
positions on the Board:
Vice Chair
Dave Conover, CCM, HDR
Chris Griffith, CCM, KCI
Dave Rathmann, CCM, Parsons
Chair
Gary Cardamone, PE,
Port of Long Beach
Sect. Treas.
Ron Price, CCM, PB
Milo Riverso, PhD, STV
Vice Chair
Ray Brady, CCM, MWH
Palmina Teta-Whelan, CCM,
American Airlines
Vice Chair
Bill Heitz, CCM, Heery
In addition, these current Board
members have been nominated
for additional terms:
Vice Chair
Ron Kerins, CCM, GRAYHAWK
Michael Potter, CCM, RKK
Ron Price, CCM, PB
Ray Brady, CCM, MWH
Sam Sleiman, CCM, Massport
Vice Chair
Michael Potter, CCM, RKK
SOP Modules
Well Received
With training budgets among the first to
be cut in tough economic times, it can
be difficult to keep your team sharp and
up-to-date. That’s why CMAA created
online Standards of Practice Modules,
launched earlier this year.
The eight modules are:
• Contract Administration
• Cost Management
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• Value Engineering
The self-paced and flexible nature of the
modules and their high quality content
have led many CM professionals to
utilize them. An increasing number
of organizations are opting for the
subscription option, enabling them
to pay a flat annual fee of $10,000
to make the eight-part curriculum
available to all employees.
For nearly 50 years PBS&J has been partnering
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Here’s what individuals who’ve taken
them have had to say:
• “Course was well designed, concise,
and comprehensive, with minimal
diversions from the basics. This course
was extremely well put together
and will be of great value to those
taking this to reinforce their learning
or those learning for the first time!”
• “Overall, the course was very good.
It was a help in cleaning the dust of
the shelf. With my busy schedule it
is hard to get the time to sharpen
my knowledge.”
• “This is a well written and clear
course. It is a good foundation for
the young professional and a good
refresher for the older professional.”
Learn more and preview the courses at
http://cmaanet.org/sop-modules.
Offices throughout the US • pbsj.com • 800.477.7275
“Best of CMAdvisor” Now Available on Website
Ever wanted to return to a Professional Practice Corner or other article
in a past issue of CMAdvisor, only to find you can’t locate that issue?
Now, CMAA has compiled some of our most noteworthy articles over
the past two years in one location. Take a look back at some high-impact
articles, or pass them along to your colleagues. View the articles at
http://cmaanet.org/best-cm-advisor.
July/August
7
CMAA News
CMAA Bookstore: NEW Building Information Modeling Resources
BIM is one of the most exciting developments in the A/E/C
industry. Learn about how you can use it, how others use it, and
how it will keep you competitive in today’s fast paced market.
and receive insightful, first-hand accounts from early
adopters of BIM, and learn how to gain a competitive
edge through its use.
Take advantage of a benefit of your membership in CMAA,
and obtain these publications at a discounted member rate!
Green BIM: Successful Sustainable Design
with Building Information Modeling
Building Information Modeling
A Strategic Implementation Guide for
Architects, Engineers, Constructors, and
Real Asset Managers
Authors: Dana K. Smith, Executive Director
of the building SMART Alliance, a program
of the National Institute of Building Sciences
(NIBS) & Michael Tardif, Sole proprietor
and editorial director of Design Byline
This book makes the business case for BIM, how it
can improve collaboration, facilitate better design
and construction, optimize workflow and reduce error.
It presents methods for benefiting from BIM in your
own firm or practice. Purchase this book for your team
Authors: Eddy Krygiel, AIA, LEED AP
& Bradley Nies, AIA, LEED AP of BNIM
Architects
Meet the challenge of integrating Building
Information Modeling and sustainability
with this in-depth guide, which pairs these
two revolutionary movements to create
environmentally friendly design through a
streamlined process. Written by an award-winning team that
has gone beyond theory to lead the implementation of Green
BIM projects, this comprehensive reference features practical
strategies, techniques, and real-world expertise so that you can
create sustainable BIM projects, no matter what their scale.
Purchase these books and explore our publications at
www.cmaanet.org/bookstore.
BIM can now
have a huge impact
on your preconstruction
services.
BIM Software & Services from Beck Technology
In 2005, a leading construction firm set out to develop a technology
to reduce VE by helping owners make better informed decisions
earlier. The vision was simple: integrate cost and 3D modeling in real
time. Today, DProfiler™ software is the realization of that vision and
is available from Beck Technology to other construction stakeholders.
Yes, even other contractors.
To learn more, visit www.beck-technology.com
8
CMAdvisor
CMAA Foundation
Thank You, Foundation Donors!
Scottsdale Reception
Nets $2K+
Capital Campaign Donors Pledging Annual Contributions
Visionary – $25,000
ARCADIS/PinnacleOne
CH2M HILL
Keville Enterprises
Parsons Brinckerhoff
PBS&J
Christopher Reseigh, FCMAA
URS
Champion – $10,000
HNTB Corporation
Chuck Kluenker, FCMAA
CMAA New England Regional Chapter
McDonough Bolyard Peck
Summit Associates
Vanir Construction Management
Leader – $5,000
Mansour Aliabadi, FCMAA, CCM
APSI Construction Management
Brookwood Program Management
CMAA Chicago Chapter
CMAA Southern California Chapter
CMAA South Central Texas Chapter
Fred Kreitzberg, P.E.
Hazen and Sawyer
Hill International
A special “Taste of the Southwest” reception during CMAA’s Leadership Forum
in Scottsdale in May raised more than
$2,000 for the Foundation and provided
a lively networking event in the process.
Hoar Program Management
Joseph P. McAtee, FCMAA
Michael Baker, Jr. Inc.
Parsons
PSOMAS
Ken Rice
Donald Russell, FCMAA, CCM
SGI Construction Management
STV
Urban Engineers
Attendees enjoyed Southwest-themed
foods and beverages in a venue that
embraced the scenic setting of the
Westin Kierland hotel.
Mentor – $2,500
Bond Brothers
CMAA NY/NJ Chapter
CMAA Mid-Atlantic Chapter
D.J. Mason, P.E.
DeMatteis International Group
Dick Corporation
GREYHAWK
HDR
Jacobs Engineering Group
Project Mediation
Quintessential LLC
Rockmore Contracting Corporation
Rummel Klepper & Kahl
Swinerton Management & Consulting
In addition, Forum participants chipped
in roughly another $2,000 for tickets in
the Foundation raffle drawing, which
featured such prizes as an iPod Shuffle
and free registrations for CMAA’s online
SOP modules.
A similar event during the National
Conference & Trade Show last fall also
generated ample amounts of enjoyment
for attendees and new funding for the
Foundation.
Scholarships Update
The CMAA Foundation has received a
dozen applications for scholarships for
the coming school year. Winners will be
announced at the National Conference
& Trade Show in October.
Congratulations to Our Latest CCMs!
Congratulations to these CM professionals who have earned their Certified Construction Manager distinction:
William Atessis
Gunda Corporation
Houston, TX
Jerry Avalos
Vanir Construction
Management
Sacramento, CA
John Bartholomew
PBS&J
San Diego, CA
Dhruba Bhattacharyay
Parsons
Pasadena, CA
Brian M. Bush
Kitchell CEM
Sacramento, CA
Wade Eller
Eller Group, LLC
Fairfax, VA
Ronald Garraffa
HDR Construction
Control Corporation
Tampa, FL
Donald Edward Haase
Vanir Construction
Management
Sacramento, CA
Greg Havo
U.S. Army Engineering &
Support Center
Huntsville, AL
Robert Hildreth, Jr.
Vanir Construction
Management
Tempe, AZ
Matthew Kellett
Vanir Construction
Management
San Diego, CA
Jeffrey Mertens
Amin Salari-Saeedi
Hill International
Washington, DC
Vanir Construction
Management
Los Angeles, CA
Jeffrey Scott
Carl Schneider
Phipps
Chicago, IL
SchneiderCM, Inc.
Escondido, CA
Cymbre Potter
Vanir Construction
Management
Oakland, CA
Warren Walker
Chris Remme
Mary Wise
Jack Ridgeway
Samuel Zitser
Arcadis U.S., Inc.
Richmond, VA
Arcadis
Columbia, MD
U.S. Army Corps of Engineers
Rio Linda, CA
Vanir Construction
Management
Sacramento, CA
Vanir Construction
Management
Los Angeles, CA
July/August
9
Professional Practice Corner
Multi-Prime CM and CM at-Risk in
the Public Sector: “Kissing Cousins”
Chuck Kluenker, FCMAA,
Vanir Construction Management
A recent CMAA survey on the use of CM Agents with various
project delivery systems got my attention. It reported that over
60% of owners who use multi-prime CM employ a CM Agent
firm to help them deliver their projects. With my practitioner’s
hat on, I immediately leapt to the question: “If it’s multiprime CM, why would an owner hire a second Agent CM on
top of their Agent CM already delivering the project using the
multi-prime delivery system? The firm delivering the project is
already an agent of the owner. It seemed like a double layer
of agents, adding cost to the project without adding value.
The owner received the cost benefits of procuring the
construction directly from the trade contractor tier, the time
benefits of phased (fast-track) design and construction, and
the benefits of having the CM managing and coordinating
the work of the trade contractors. The CM, as an agent of
the owner, had a contractual duty to manage and coordinate
those trade contractors in the owner’s best interests. Time,
cost and claims were significantly reduced when projects
were properly run.
John McKeon, CMAA’s VP of Communications, reminded me
that many owners who use multi-prime CM do it themselves,
particularly in the private sector. They are staffed for this and
gain the benefits without using an outside firm. But according
to the survey about two-thirds of owners using the multiprime delivery system aren’t staffed to manage the work
themselves, and hire an Agency CM firm to help them with
it. From my experience, it seems that many of these owners
who use an outside Agency CM firm to help implement the
multi-prime delivery system are in the public sector.
Successfully providing multi-prime CM services required
a firm with both the general contractor’s knowledge of
construction and ability to take control of the trade contractors plus the agent’s ability to think and act on behalf of
the owner. A number of GC’s got into the business, as did
start-up CM firms. There were many successful projects. But
CM firms lacking either the skills of the general contractor or
of the agent of the owner (sometimes both) also got into the
business and there were multi-prime CM projects that did
not go well at all. As a result, multi-prime CM in the public
sector got mixed reviews.
So this got me to thinking about the origins of this CM
business, and the fact that multi-prime CM is a separate
Project delivery system, same as Design/Bid/Build, CM-atRisk and Design/Build. My comments are based on what
I have seen, experienced, read and been told (and agreed
with) over the last 35 years.
The CM, as an agent of the owner, had a contractual
duty to manage and coordinate those trade contractors
in the owner’s best interests. Time, cost and claims were
significantly reduced when projects were properly run.
Multi-prime CM emerged fairly spontaneously in the public
sector in the late 1960s and 1970s, in response to projects
that were typically bid over budget, finished behind schedule,
and were generating an increasing number of claims. It was
one alternative to the traditional general contracting design/
bid/build delivery strategy that worked within existing public
procurement law. The CM firm was hired as an agent of the
owner on a qualifications/fee basis, and all construction was
competitively and publicly bid directly to the subcontractor
tier. The owner then held 15, 20 or more individual prime
trade and supply contracts, and the CM was responsible for
managing and coordinating those individual prime contracts
to meet the owner’s time, cost and quality requirements.
The CM functioned as an advocate of the owner.
10 CMAdvisor
But the delivery system continued to provide cost-effective
projects when properly applied by competent CM firms.
Multi-prime CM remains a viable option today for owners
who want the cost benefits, direct control and CM advocacy
that this delivery system provides.
Beginning in the 1990s, CM-at-Risk emerged in the public
sector as an alternative to multi-prime CM as, state-by-state,
procurement laws were opened up so public owners could
take advantage of the CM-at-Risk project delivery system.
Often, multi-prime CM was already an accepted delivery
method when the prospect of CM at-Risk came upon the
scene. But the prospect of the CMs holding the trade contracts,
bonding the job, guaranteeing the price, and taking on the
contractual role of the general contractor was understandably
attractive. Many public owners moved to this method because
of the contractual guarantees, backed by a bond on the CM.
As CM-at-Risk emerged in the public sector some projects
went well, and others did not. One reason for the mixed results
was that some CM-at-Risk firms were not familiar, culturally
or procedurally, with how to act as an agent of the owner.
Additionally, some owners did not understand that by putting
their CM in an at-risk contract, they were pushing the CM
away from their side of the table and would not get the level
of advocacy that they had come to expect. So, as with multiprime CM, results were mixed. However, those CM-at-Risk
firms that could take on the risks while retaining a meaningful
level of owner advocacy have been successful and many have
stayed in the game. Over time, more and more successful
public sector CM-at-Risk projects are the result.
Through these same 15 or so years, CMAA has been developing its policies and guidelines for CM-at-Risk. The goal of
these policies and guidelines is to provide the owner with
the contractual guarantees of CM-at-Risk, while providing
a level of advocacy that can approach that of a multi-prime
CM. The intention is to keep the CM-at-Risk on the owner’s
side of the table as much as possible, considering the risks
the CM is assuming.
These CMAA policies/guidelines are focused on reducing
the potential for conflict of interest between the CM-at-Risk
and the owner. Current thinking can be summarized by the
following points:
• The CM-at-Risk is selected on the basis of qualifications,
with the fee a consideration.
• The CM-at-Risk makes its money solely on its fee, not
on general conditions or mark-ups on subcontracts or
change orders.
• The CM-at-Risk does not self-perform construction.
• All parts of the subcontractor marketing and procurement
process are open to the owner.
• All subcontracts are bid competitively, or negotiated if
circumstances require.
• The owner should consider bonding the project at the
subcontractor level, but not at the CM level.
• All of the subcontracts and the work is “open book” to
the owner.
• All subcontractor and supplier payments are “open book”
to the owner.
These prospective policies/guidelines have been generally
understood and accepted within CMAA circles for some time,
but have not been officially adopted. So they are open for
discussion, and CMAA welcomes and needs your feedback.
So the development of multi-prime CM and the emergence
of an approach to CM-at-Risk biased towards serving the
owner’s interests have given the public sector owner some
viable alternatives to what was the conventional Design/
Bid/Build approach. Successful application of these two
alternatives requires a clear understanding of the points
raised above and an engaged and informed owner. Selection
of the CM that is right for the particular job is the first and
arguably the most important task of the owner.
Approached correctly, CM-at-Risk can give the owner the
best of both worlds; the strong advocacy that one receives
from a professional CM firm, and the contractual guarantees
that accrue from a CM-at-Risk contract.
Chuck Kluenker, FCMAA, of Vanir Construction Management
can be reached at chuck.kluenker@vanir.com.
We welcome submissions for the Professional Practice Corner.
Please send your ideas to John McKeon at jmckeon@cmaanet.org.
Record Breaking Submissions for
Project Achievement Awards
CMAA is proud to report a record 140 submissions for
this year’s Project Achievement Awards. This program’s
growth demonstrates the steadfast commitment our
profession holds to project outcomes of world class quality.
Since 1999, CMAA has been presenting its Project
Achievement Awards to recognize instances in which
professional Construction or Program Management
has made a significant contribution to the successful
completion of a challenging project or program.
Last year’s honorees included a hospital, a university
building, a school construction program, a seismic retrofit
of a state capitol building, a refrigeration plant expansion,
a water treatment plant, and a bridge replacement project.
Winners will be honored during the Industry Recognition
Banquet at the National Conference in October. Learn
more about CMAA’s Project Achievement Awards at
http://cmaanet.org/cmaaprojectachievementawards.
July/August
11
Legal Corner
Contractual Indemnification Provisions and the Recovery of Attorneys’ Fees
By Willcox Dunn,
Vandeventer Black LLP
Indemnification provisions are a common feature of
agreements for design and construction-related services,
yet it seems no two are the same. Standard form contracts
published by the American Institute of Architects, Engineers
Joint Contract Document Committee, ConsensusDOCS,
Design-Build Institute of America and Construction
Management Association of America all contain contractual
indemnification provisions. Although frequently short
on words, some indemnification provisions can create
tremendous liability exposure and prove quite costly to
the party discharging an indemnification obligation.
At its most simple, indemnification is the act of compensating another party for its loss or damage. The generally
understood purpose of indemnification appears reasonable
enough – if acts or omissions of Party A cause damage to
Party B for which Party C becomes legally liable, it is only
fair that Party A (the indemnitor) compensate Party C (the
indemnitee) for the loss or damage sustained. Parties often
have protection from this type of derivative third-party claim
in mind when entering into indemnification agreements.
Indemnification provisions typically allow the “innocent
party” to pass through liability to the party actually responsible for causing the third-party damage. On occasion,
however, an indemnitor may be surprised to discover its
indemnitee using the indemnification provision not only
to pass through third-party claims and damages, but also
to recover its own, first-party attorneys’ fees. This puts the
indemnitor in the unenviable position of funding a legal
battle against itself by being required to pay the legal costs
of its adversary, the indemnitee, for direct claims such as
the indemnitor’s alleged breach of the parties’ contract.
Part 1: Attorneys’ Fees, the “American Rule,”
and Prevailing Party Provisions
Litigation can be very expensive. There are occasions where
a prevailing litigant may win the battle but lose the war by
having its attorneys’ fees and other litigation costs erode the
total recovery to the point where, from at least a business
perspective, the ultimate recovery proves not to be worth
the effort. In most cases, a prevailing party in this position
can thank the “American Rule” for its disappointing economic
bottom line. Under the American Rule, absent a specific
contractual provision or statutory grant, each party is
responsible for its own attorneys’ fees and other legal costs.
The American Rule contrasts the “British Rule” under which
the losing party pays the prevailing party’s attorneys’ fees.
The rationale behind the American Rule is that society is
better off promoting the advancement of meritorious claims
12 CMAdvisor
and the extension of existing law. Under the British Rule, a
party facing the prospect of paying the other party’s legal
costs may be discouraged from advancing not only frivolous
claims and actions, but also meritorious ones.
The standard and straightforward way for contracting parties
to implement a loser-pays rule is to include a “prevailing party”
or “attorneys’ fees” provision that provides for the recovery of
first-party attorneys’ fees. The terms “prevailing party” and
“attorneys’ fees” often are used interchangeably in this context,
but note that such provisions frequently address more than
just attorneys’ fees and can include related costs such as court
costs, expert witness costs and staff time. The following is a
fairly standard example of a prevailing party provision:
In the event litigation or any alternative form of dispute
resolution between the parties arises from this Agreement or the services provided pursuant to this Agreement,
the prevailing party shall be entitled to recover from the
non-prevailing party all reasonable costs incurred relating
to the litigation or alternative form of dispute resolution
including court costs, attorneys’ fees, and all other related
expenses. In the event an alternative form of dispute
resolution resolves a dispute between the parties, the
term “prevailing party” and application of this provision
shall be determined by that process.
Express prevailing party provisions present their own concerns
for design professionals and construction managers, a chief
one being a potential lack of insurability. Professional liability
insurance policies typically exclude liability assumed by contract, unless the liability otherwise would exist in the absence
of the contractual assumption. A prevailing party provision
arguably is an assumption of liability by contract that otherwise would not exist. As previously discussed, absent such a
contractual provision, the American Rule generally requires
each party to bear its own attorneys’ fees and costs. Because
of this insurability concern, at least one AE professional liability
insurance carrier now advises against entering into prevailing
party provisions.
Part 2 of this article will address how some indemnification
provisions can be used to shift responsibility not only for
third-party claims and damages, but also for first-party
attorneys’ fees and legal costs.
Willcox Dunn is an attorney with Vandeventer Black LLP.
He can be reached at wdunn@vanblk.com. This article is
meant to bring awareness to this topic and is not intended
to be used as legal advice.
Member News
CMAA at IECM Conference
in Thailand
The third annual IECM (International
Engineering and Construction Management) Thailand conference was held
in Bangkok in March. CMAA members
Robert A. Bennett, PE, president of
RABCO Engineering PC, and Porie SaikiaEapen, RA, of CH2M HILL were key
organizers and speakers at the event.
“This new mentoring program provides
a pre-qualified, diverse group of young
people who have shown interest in
the trades a chance to build relationships and to learn what is involved in
particular trades,” said Peter Campot,
CEO of Berry. “We hope that through
the program, students will receive the
knowledge and guidance to pursue
post secondary and/or apprenticeship
training for careers in construction.”
RTC Hires PB for Auxiliary
Lanes Project
Fria Company Project
Wins RED Award
New York-based Parsons Brinckerhoff
will serve as the Santa Cruz County
Regional Transportation Commission’s
eyes and ears for its Highway 1 Soquel/
Morrissey auxiliary lanes project, which
is to begin in August 2010.
The thirty-four story “44 Monroe”
condominium tower was awarded
the RED Award as Best Multi-Family
Project of the Year in Arizona. The Fria
Company provided full service development management on the two hundred
condominium, 488,000 SF project.
As the commission’s Construction
Management firm, the 115-year-old
company, which has an office in Campbell, is charged with making sure the
$15 million project runs smoothly with
little to no surprises, delays and cost
overruns. The auxiliary lanes project
seeks to add one lane in each direction
of Highway 1 between Morrissey
Boulevard and Soquel Drive.
PB will be paid $2.7 million, which
includes the cost of the Construction
Management consultant team,
construction support activities,
such as public outreach and project
scheduling, and a contingency fund
for any unknowns that might arise.
Berry Construction Gives
Trades a Boost with
First Youth Mentoring
Partnership Program
William A. Berry & Son, Inc. has
launched a Youth Mentoring Partnership program for Boston area students.
Students from Madison Park Vocational
and Technical High School and Youth
Build Boston began the program during
simultaneous learning sessions at two
active Boston construction sites: Boston Medical Center and University of
Massachusetts Biologic Laboratories.
“This project is a glowing example
of collaborative project management
in action,” said Rick Fria, President of
The Fria Company and author of Successful RFPs in Construction. “All prime
consultants and the contractor exhibited proactive and creative interaction
in producing a high quality project,
in budget and on time. We offer our
congratulations to all members of the
team. We are honored to have provided
the leadership on this magnificent
Phoenix landmark.”
Gilbane Helps Manpower
World Headquarters
Earn LEED Gold
Gold. Only two other buildings in the
city have achieved this. Partners on the
project included Johnson Controls, Kahler
Slater and Eppstein Uhen Architects.
“We’re excited to be involved in this
project, and the LEED aspect of the
building,” says Gary Grunau, Senior Vice
President in Gilbane’s Milwaukee office.
“We fully utilized the means and methods to make it environmentally friendly
at no additional cost to construction.”
Some of the sustainable design
elements at Manpower are: underfloor air distribution systems, 90% of
spaces receiving daylight, water use
reduction, water efficient landscaping,
maximization of construction material
recycling, use of low-emitting materials,
50% of the wood used came from
rapidly renewable forests, and public
transportation access.
MBP Named Best
Small Company to
Work for in America
The Society for Human Resource
Management (SHRM) and Great
Place to Work® Institute have selected
McDonough Bolyard Peck, Inc. as one
of their Top 50 Best Small and Medium
Companies to Work for in America.
For the second year in a row, MBP was
ranked in the Small Companies list, at
number 24. The Small and Medium
Companies lists are comprised of 25
firms each.
“We are honored to once again be
named to the Best Small Company
to Work for in America list. Our team
members are our greatest asset and
the reason we were selected”, states
Blake V. Peck, PE, CCM, MBP President
and Chief Operating Officer.
Granary Associates is PM
for Susquehanna Health
Gilbane Building Company built the
$60 million, 292,000-square-foot
Manpower corporate headquarters
along the banks of the Milwaukee
River, and the four-story beacon of
revitalization has been certified LEED
Granary Associates provided Project
Management and Architecture services
for Susquehanna Health’s new Energy
Services Center at its Williamsport
Hospital and Medical Center campus.
Continued on page 14
July/August
13
Member News
Member News, Continued from page 13
Khaled Husein Joins HAKS
The $17 million co-generation facility
will leave a smaller “carbon footprint”
by cutting carbon emissions by 50
percent and saving an estimated
$540,000 in annual energy costs for
Susquehanna Health.
This new facility is part of the greater
Project 2012 at Susquehanna Health
which includes a major expansion
and renovation at the Williamsport
Hospital and Medical Center, as well
as additional renovations to the other
hospitals in the system including
Divine Providence Hospital and Muncy
Valley Hospital. Granary Associates
is providing Project Management,
Planning, Architecture and Interior
Design services for the project.
Khaled T. Husein,
CCM has joined
HAKS in its New
York headquarters
as vice president
in the CM Division.
Prior to joining
HAKS, Khaled was
the Deputy General Manager for SBG/
RPD, a leading Saudi Arabian General
Contractor where he managed high
profile aviation and higher educational
projects in the Middle East.
Mr. Husein spent 22 years with URS,
where he successfully managed
major projects including GSA’s $400
million court house and post office
in downtown Brooklyn, NY.
Want to share your firm’s
or organization’s news with
other CMAA members?
Send your member news and updates
to Sarah Black, communications
associate, at sblack@cmaanet.org.
Please make your submission no
longer than 200 words.
Chapter News
Virginia Tech
Recently a group from the Virginia Tech Student Chapter
traveled to the BMW Manufacturing Plant in Spartanburg,
SC, for the Chapter’s annual Spring Field Trip. The trip was
hosted by Global Performance, a subsidiary of Mustang
Engineering. In a joint venture with Faithful+Gould, Global
Performance is providing CM services for BMW’s $750
million investment, which includes a new 1.3 million
square foot assembly plant.
After a project overview and safety discussion, the group
toured the site and new Assembly North Building. The trip
provided students an insight into industrial construction,
as well as the scheduling and coordination challenges of
a large scale project. The Chapter expressed its thanks to
Program Manager Kevin Ball of Global Performance for
hosting the group, as well as its sponsors, CMAA National
Capital Chapter and the Virginia Tech Myers-Lawson School
of Construction and Department of Building Construction.
The Student Leadership Awards program, chaired by Rick
Bernardini, CCM, TN Ward, presented awards to three
students: Robert Kudenchak from Rutgers; Gretchen
Heberling from University of Wyoming; and Patrick Hearn,
Pennsylvania College of Technology.
Chaired by Brian Stover, CCM, Urban Engineers, the 2009
Project of the Year awards were given to Alvin H. Butz;
TN Ward Company; Structure Tone, Inc.; Foreman; Hill
International, Inc.; Urban Engineers, Inc.; Alexander
Building; and Skanska Construction. Awards of Honorable
Mention went to Hill International, Inc., and Michael
Baker Jr., Inc
For more information about the Virginia Tech Student
Chapter, visit www.cmaa.org.vt.edu.
Mid-Atlantic Chapter
The Chapter held its annual fund raising golf outing at
DuPont Country Club in Wilmington, DE, celebrating three
Student Leadership Awards and eight Project of the Year
Awards. Approximately 75 people participated.
14 CMAdvisor
Students receive award for participation in Mid-Atlantic Chapter
Student Leadership Award Program. Left to right – Rick Bernardini,
CCM, Chapter program chairman; Robert Kudenchak; Patrick Hearn;
and Chuck Romanoli, CCM, president of Mid-Atlantic Chapter.
President’s Report
What Makes Us Stand Out?
Bruce D’Agostino, CAE, FCMAA
I’ve encountered a number of owners in my recent travels to
CMAA chapters whose experiences bear out some important
points about professional CMs in the marketplace, as well as
giving the association some interesting guidance in shaping
its own programs.
One owner had managed to launch a major condominium
project in which all project risk was being borne by the
financier. This owner didn’t see the value of having an owner’s
representative on his team from the beginning. The project
ran into difficulties, mostly stemming from the cost of building
what the architect had designed. Fortunately for the owner,
the contractor on the job was responsive and helpful.
Elsewhere, I had an occasion to visit two major water projects
being executed by CMAA members in San Diego. It struck
me that although the corporate “cultures” on those two job
sites were very different, both jobs were going well, moving
forward on budget with little or no delay.
This comparison made me think about what attracts owners
to use CMAA members. Surely the main attraction factors
transcend individual style or personal relationships. The
profession’s chief appeal to the sophisticated owner rests
on our Standards of Practice, and the promise of dependable,
uniform performance that SOPs represent.
CM certification is a vital adjunct to SOPs: The CCM
designation identifies a practitioner who has, though
education and experience, demonstrated the ability to
deliver the SOP level of performance on every job.
Recognizing what owners truly want and need from a
CM is a critical step in making both the profession and
our association more effective.
Of course, sometimes what owners say they want turns
out not to be the reality. All CMs have encountered the
occasional bad owner: The owner who calls for leadership
and collaboration but won’t listen to you, or the one who
“knows exactly what he wants” and views all suggestions
and innovations with suspicion. This owner’s main goal
is to squeeze all of his vendors and consultants to the
maximum, and this attitude presents a strong disincentive
to the CM to bring anything new or creative to the table.
We don’t need to look far for examples
of where this attitude leads. Anyone
who has ever tried to do business with
General Motors, for instance, can vouch
for the company’s “my-way-or-the-highway” approach to vendors. The longterm result? Now we all own part of GM.
You could argue with that kind of owner, but wouldn’t it
be better to be prepared to deliver leading edge ideas and
execution for owners who recognize and appreciate value?
In the eyes of these leading owners, what makes the professional CM stand out? Very simply, our professionalism and
our Standards of Practice.
Recognizing what owners truly want and need from
a CM is a critical step in making both the profession
and our association more effective.
What, in turn, will make CMAA stand out in our crowded
and competitive marketplace? Associations like CMAA rise
or fall on two basic standards: How we serve our members
and how we relate to the marketplace.
I’m proud of the raves we routinely get from members for
the quality of our programs and for the customer focus
of our staff. We want to continue to earn that praise by
delivering better programs and better service all the time.
Turning our face to the industry, we need to be an advocate
for the profession – to owners, government, the media, and
the public. To all of these audiences, we need to deliver a
strong, clear, honest and consistent message about the value
professional CMs brings to construction and to all of society.
If we can do that, we will be accomplishing just what our
members accomplish when they deliver success for their
best clients. Not a bad target, is it?
Suggest adopting BIM, for example, and this owner is
apt to say that “(a) you’re trying to get more money out
of me and (b) you’re trying to cloud responsibility so I
won’t know whom to sue when the project goes bad.”
July/August
15
Construction Management
Association of America
7926 Jones Branch Drive, Suite 800
McLean, Virginia 22102-3303 USA
Professional Development Calendar
Webinar Series: Keys to Project
Success—Avoiding Disputes
August 27
Measuring Inefficiencies on a Construction Project
September 24
Steps to Ensure Project Completion &
Litigation Avoidance
CMs TalkLive! Webinar
August 20
Beyond the Presentation—
Effective Q&A and Debriefing
September 17
Adding Value as a CM in Different Delivery Methods
National Conference & Trade Show
October 25 – 27
Orlando, Florida
Refer a Friend
With nearly 100 potential new
members referred, CMAA’s
Refer-a-Friend contest is off
to a steady start.
Just by sending basic CMAA
membership information to a peer, you can earn a chance
to win one of a variety of exciting prizes, capped by a free
registration to the National Conference or a 42 inch HDTV.
Have more than ten colleagues who stand to benefit from
CMAA membership? Refer them all and take the contest lead.
Share our “good thing,” and get your colleagues involved
in CMAA!