CMAdvisor Volume XXVI, No. 5 September/October 2007 The Official Publication of the Construction Management Association of America CMAA Launches Online Learning Initiatives This year’s National Conference & Trade Show in Chicago sees the debut of a major new initiative by CMAA to expand its Professional Development offerings into self-paced, online course formats and to support industry practitioners with relevant continuing education for every stage of their careers. CMAA is introducing “Contract Administration,” the first of eight projected online certificate courses to be rolled out over the coming year. These programs, which students can take at their own pace and on their own schedules, can be used as a complete basic CM education, or taken separately to meet individual needs. Contents 2Chairman’s Report 3 CMAA News 9 Government Affairs 10 Professional Practice Corner 14 Company News 16Chapter News 19President’s Report 20Professional Development Calendar In addition, a new online Construction Manager in Training program will be introduced early in 2008. The new eLearning options are delivered through a Learning Management System that provides instruction, assessment and formal educational/ training documentation. Each program will include video instruction by a prominent industry expert, together with slides and other visual material to explain and clarify content. Periodic assessments will give participants an appreciation of their ability to understand and apply the information they study. CMAA Vice President, Professional Development George Gehringer, PhD says the new initiative is a key to meeting the association’s PD goals. “We want to be the source of authoritative continuing professional educa- tion for every stage of a member’s career, from entry level to the high degree of accomplishment represented by the Certified Construction Manager credential,” he explains. “Moreover, we want to deliver our educational resources in ways that meet members’ needs, particularly in the flexibility of learning options.” James Moynihan, president and CEO of Heery International, calls the kind of education provided by CMAA “more important than it ever has been.” Moynihan adds, “We must seek constant new knowledge...and given the schedules we’re all working under, to be able to learn in alternate ways is very beneficial. The fact that we can do it on our own time, during lunch breaks, between bites of a sandwich, if you will, is very beneficial. We can learn while we continue to serve our clients. Attorney Chris Brasco records portions of the new CMAA “Contract Administration” certificate course. “The traditional means of learning have their place and their role,” Moynihan goes on. “But they entail costs and take time, and you’re away from your office and your clients, so Continued on page 4 Chairman’s Report Chairman of the Board Randy Larson, CCM PBS&J President and Chief Executive Officer Bruce D’Agostino, CAE Editor John McKeon Contributing Writer Martha Montague CMAA is a 25 year-old construction industry association of more than 4,500 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. CM Advisor, published bi­‑monthly by the Construction Management Association of America, 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 2007, 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. Others are invited to subscribe and receive six bi-monthly issues for $49.95 (domestic) or$59.95 (international). Advertising opportunities are available for each issue. For subscription or advertising information, please contact John McKeon at jmckeon@cmaanet.org. CMAdvisor Driving CMAA Forward…on the Right Course Randy Larson, CCM, PBS&J Even as I was preparing my first report for CM Advisor, looking ahead to my year at the association’s helm, I knew the day would come when I would have to craft a report looking back at the same year. It is, nevertheless, startling how quickly that day has arrived. In the November/December 2006 issue, I promised to emphasize our Standards of Practice and to work to engage as many individuals as possible in CMAA activities. I’m struck, today, by how closely related those two goals turned out to be. The major reorganization and updating of our Standards of Practice, which has been spearheaded so effectively by Vice Chairman Gary Cardamone, has elicited an extraordinary degree of participation by CMAA members. Early in my year, it also became quite evident that program management was moving to the fore as a key need of owners and a prime area in which our members could deliver value. However, as program management has gotten more and more attention, it has become clear that this emerging discipline lacked precisely the benefits delivered by clear and recognized Standards of Practice. Thus, we launched a new effort to create definitions and SOPs for program management, and once again the membership responded with remarkable energy. Both of these initiatives represent CMAA responding quickly and flexibly to fundamental changes in our marketplace. More recently, the Board of Directors has acted on just this concern for our future by adopting a new Mission Statement for CMAA. We’ve been well served by the Mission Statement we’ve used in recent years: “To promote professionalism and excellence in the management of the construction process.” However, it has become clear that a broader scope is needed. To express a more comprehensive view of what CMAA does, the Board has adopted this new Mission Statement: “To promote and enhance leadership, professionalism, and excellence in managing the development and construction of projects and programs.” It seems to me the approval of this new Mission Statement is a suitable conclusion to my year of leadership. Any elected leader in a professional or trade association has to realize he or she will occupy the office for only a year, perhaps two. As a result, the leader slips into a continuity of programs, issues, and leadership that was in full flow before he took office and will continue after he has moved on. In such a short time, the best that can be done is to make the course adjustments necessary to keep the association headed in the right direction, and to continue to create opportunities and incentives for as many people as possible to provide the energy that drives us forward. To the degree we are equipped to live out our new Mission Statement, the past year has been a success. I certainly look forward to sharing in much more success yet to come. CMAA News Board Adopts New CMAA Mission Statement The CMAA Board of Directors in late August wrapped up three months of development by adopting a new association Mission Statement, designed to position CMAA more clearly in the forefront of a changing industry. The new statement expresses CMAA’s Mission as: “To promote and enhance leadership, professionalism, and excellence in managing the development and construction of projects and programs.” CMAA President Bruce D’Agostino points out that the new statement expands on the previous CMAA Mission in three specific respects: • It emphasizes leadership as a key value to be promoted by CMAA activities. CMAA Leadership 2006-2007 • It includes “development” as part of the overall construction process, in which professional CM can yield important gains in time, cost and quality. Officers Chair: Randy Larson, CCM, PBS&J • The phrase “projects and programs” has been added to reflect the growing prominence of Program Management among the services being demanded by leading construction owners and delivered by CMAA members. “The new Mission Statement is a clearer expression of the value CMAA members bring to all stages of the most complex construction projects and programs,” notes D’Agostino. “It stresses what professional CMs and PMs can contribute to pre-design, design, commissioning and other activities in addition to the actual building phase, and it recognizes the growing role our members play in helping owners to manage multiproject programs.” CMAA Vice President, Certification Jan paul Miller says the late August webinar drew one of the highest rates of participation of any CMAA online offering this year. Nearly 40 different sites registered for the webinar, many of which reported multiple attendees taking part. “In one week, we had a bumper crop of professionals completing the most stringent certification process in the construction industry, and an equally impressive number preparing to embark on the process,” says Miller. “That’s clear evidence of the acceptance CCM has earned throughout the industry. Mani Subramanian, CCM of Vanir Construction Management, one of two Secretary/Treasurer: Tom Bishop, URS Construction Services Past Chair: Robert Fraga, U.S. General Services Administration General Counsel: Hugh Webster, Esq., Webster, Chamberlain & Bean President & CEO: Bruce D’Agostino, CAE Vice Chairs: Gary Cardamone, Port of Long Beach Raoul Ilaw, P.E., Parsons James W. Mitchell, CCM, DMJM Management Steve Routon, HNTB Corporation Directors Raymond Brady, CCM, MWH Americas, Inc. David Conover, CCM, HDR, Inc. Jerry Gallagher, Gallagher Construction Services With Ranks of CCMs Growing, Webinar on Program Basics Draws Strong Response Just days after a recent national exam that produced more than 25 new Certified Construction Managers, an additional 50 or more potential candidates for certification took part in a special online CMAA webinar to introduce and promote the certification program. Chair-Elect: William Van Wagenen, Jr., Esq., CCM, CH2M HILL Kurt Goddard, ARCADIS Ron Kerins, CCM, GREYHAWK speakers at the webinar, noted that “pretty close to anybody can claim to be a construction manager. Consequently, construction owners are benefited tremendously by this systematic program that validates the education, experience, and knowledge base of the individual practitioner.” Charles Levergood, Jacobs Subramanian is also chair of the Construction Manager Certification Institute (CMCI), which administers the CCM program. CCM is the only credentialing program in the construction industry to be accredited by the American National Standards Institute (ANSI), in accordance with norms published by the International Organization for Standardization (ISO). Porie Saikia-Eapen, AIA He briefed webinar participants on the specific requirements of the program, which are a combination of formal education, responsible-in-charge work experience, and demonstrated knowledge of the CM Body of Knowledge. Continued on page 4 Steve Margaroni, PSOMAS D.J. Mason, III, P.E., Keville Enterprises, Inc. James Morris, CCM, Harris & Associates James Moynihan, Heery International David Rathmann, CCM, Parsons David L. Richter, Hill International, Inc. Ex-Officio Chris Brasco, Esq., Watt, Tieder, Hoffar & Fitzgerald, LLP Joseph McAtee, FCMAA , Urban Engineers, Inc. Director Emeritus Robert Wilson, FCMAA, Parsons Brinckerhoff Construction Services September/October CMAA News Continued from page 3 Continued from cover Joining him in the presentation, R. L. “Rick” Rye, CCM of Fluor Industrial & Infrastructure offered a discussion of how candidates could meet the requirement for responsible-in-charge experience in a variety of project delivery settings. Gaining the CCM, he said, requires “documentation of specific project experience that clearly demonstrates the responsible-in-charge role as detailed in the qualifications. The Board of Governors, in its evaluation of an applicant, is going to focus very closely on how the applicant influenced the projects in which he or she was involved.” having the alternate ways of learning is a great benefit. Once again CMAA is on the leading edge of providing better and better people for the industry.” The key questions the Board will apply to each applicant, Rye said, include: • Did decisions candidate was empowered to make directly impact successful project completion? • Was candidate directly responsible-in-charge of construction management services? • Did candidate protect project and Owner interests? The speakers also described the content of the six-hour written examination required of all CCM candidates. Owners have a particularly important stake in programs like these, says Vice Chairman Gary Cardamone, director of construction management for the Port of Long Beach, California. “These online certificate programs provide a very cost effective way to obtain training or sharpen skills in areas of critical importance to CM practitioners,” he says. “As an owner that hires CMs from the private sector, we look for distinguishing credentials that are differentiators in the selection process. CMAA’s online certificate courses represent one way to distinguish yourself from the competition.” CMAdvisor The Contract Administration certificate program is now available at an introductory cost of $395 per student, through December 31, 2007. Volume discounts will also be available to members wishing to provide the program, as well as future modules, to larger numbers of employees. For details, contact the Professional Development Department at CMAA. Tom Bishop, PE, senior vice president, West & Construction Services at URS Corporation, agrees that “The flexibility afforded by online courses will allow even the busiest of us to continue our personal and professional development in a focused and efficient manner. Following Contract Administration, the next online module to be delivered will be a new Construction Manager in Training (CMIT) program derived from the familiar Capstone basic course. Other planned certificate modules include: “As professional construction managers we should be striving to ever improve our personal performance and the performance of those we mentor and supervise. A key to improvement is continual learning, sharpening of our skills and updating our personal best practices. CMAA’s new Online Certificate Courses will assist those new to our practices in efficiently obtaining the knowledge basic to our discipline and will help our seasoned CMs update their capabilities, while honing their skills,” Bishop concludes. • Professional Practice CMAA Past President Robert Fraga of the U.S. General Services Administra- tion points out that “These courses are developed by leading practitioners and cover the latest and best practices for each subject. In this era of rapidly changing technology and workload,” he adds, “the online certificate courses provided by CMAA are an excellent, cost effective way for owners and practitioners to gain, refresh or augment their knowledge, skills and abilities on specific areas of professional practice.” • Project Management • Value Engineering • Cost Management • Safety and Risk Management • Time Management • Quality Management Availability and other information will be published by CMAA in the coming months as the new programs appear. Jeffrey S. Dailey of Illinois Tollway is 2007 “Person of the Year” Jeffrey S. Dailey, who as chief engineer for the Illinois Tollway is leading a $5 billion program of sweeping capital improvements to that vital highway system, has been named CMAA’s 2007 “Person of the Year.” road tolling at 20 mainline toll plazas. Other key features of the program include rebuilding and widening of the South Tri-State Tollway, I-88 from Route 59 to Washington Street, and a 32-mile pavement rubblization project on I-88. The award is CMAA’s foremost individual honor, and recognizes the most innovative, influential and quality-driven individuals in the profession of construction and program management. In presenting the award, outgoing CMAA Chairman Randy Larson of PBS&J noted that “The data concerning miles of restoration and miles of new highway construction only tell part of this remarkable story. Dailey leads a team of more than 500 staff and consultants in carrying out a program to restore, rebuild and extend a 274-mile system serving some 1.3 million users every day. The cornerstone of the project has been the implementation of barrier-free, open “In the process of managing a huge project, Jeff has partnered with the contracting community and heightened the accountability and customer service focus of the Tollway’s operations,” Larson said. “In an environment of accelerated schedules and unprecedented cost escalation, Jeff has committed more than $2 billion in contracts to date while keeping this complex program on schedule and on budget. “Jeff’s leadership of this critical project has combined technical excellence with an extraordinary commitment to leadership and innovation,” said Larson. D’Agostino Speaks to SAME Post on Sustainability CMAA President Bruce D’Agostino made a presentation on “Sustainable Construction” as part of a special conference devoted to “Achieving a Sustainable Environment,” presented in September by the Sacramento Post of the Society of American Military Engineers. He described how the surging interest in green construction is impacting building owners, designers, construction managers, and others in the construction industry. “Our members are definitely hearing from their clients that sustainable and green construction is a high priority,” he said. He particularly described how owners and building designers are taking the opportunity to seek certification of their buildings under the Leadership in Energy and Environmental Design (LEED®) program administered by the U.S. Green Building Council. “Many owners perceive responding to this demand as an added cost and burden on their projects,” D’Agostino noted. “However, many are also recognizing the benefits they can realize in terms of lower operating costs, improved productivity and higher value. Indeed, most of the 69 available LEED ‘credits’ represent items that can yield life cycle savings. “This focus on the long-term success of a project in meeting the owner’s needs is central to the CM’s mission. The professional CM can help an owner plan for success from the earliest stages of a project,” D’Agostino added. Often, pursuing a green building strategy means the CM must guide owners who may be quite new to the subject, D’Agostino said. “CMs routinely work with owners who may CMAA President Bruce D’Agostino with Ron Price, CCM of Harris, Northern California chapter president, and Larry Smith, PE, chief of construction, ACORE Sacramento District. undertake one or two major building projects in their entire careers. Building is not their business. Still less can they be expected to have a thorough and up-to-date understanding of an area as complex as sustainable construction.” In these cases, he went on, the owner needs to rely on a “champion” within the project team. “That champion, in turn, must rely on productive collaboration and timely information sharing among all project participants. Document control, cost management, and schedule maintenance all require close attention. Promoting this kind of collaboration is another key mission of good CM,” said D’Agostino. September/October CMAA News Thank You, National Conference Sponsors! CMAA Marks “First 25/Next 25” at National Conference Many thanks to these companies, whose financial support has contributed to an outstanding CMAA National Conference: CMAA is observing the 25th anniversary of its first national gathering with a program of activities focusing on both concluding 25 successful years and launching a second quarter century on a note of high optimism. GOLD LEVEL ($10,000-$14,999) McDonough Bolyard Peck, Inc. Hill International, Inc. SILVER LEVEL ($5,000-$9,999) AECOM DMJM H&N and DMJM Harris Engineering News Record: McGraw-Hill Construction EPC Consultants, Inc. HDR Engineering, Inc. Among the highlights of the observance is publication of the “CMAA Value Report,” a 12-page, full color publication highlighting how CMAA has directed all of its energy and attention to delivering the best possible Professional Development programs and helping shape the business environment for members. “As we cross the threshold between a successful first 25 years and an exciting next 25, where does CMAA stand?” the Value Report asks. Part of the answer: “CMAA has greatly strengthened its resources in both Professional Development and Communications. We have moved into new offices, expanded our professional staff, grown our membership, upgraded our technology and involved more members than ever before in productive work through committees and other vehicles.” In addition to the Value Report, CMAA will mark its anniversary with a special commemorative lapel pin and a display of historic covers from past issues of CM Advisor, going back to Volume 1, Number 1…plus a variety of recognition features during the plenary and social events of the Conference. HNTB Corporation Indam Engineers Jacobs Mark G. Anderson Consultants Parsons PBS&J SGI Construction Management Summit Associates URS Corporation BRONZE LEVEL ($2,500-$4,999) Carter & Burgess, Inc. CH2M HILL Harris & Associates, Inc. Keville Enterprises, Inc. Kleinfelder, Inc. PSOMAS Momentum Growing for CMAA Radio CMAA Radio, a new series of monthly audio interview programs on topics of broad industry interest, is gaining momentum as its audiences grow along with its archive of programs, all available through the CMAA website. chief architect at MTA of New York City Transit. Since early summer, CMAA Radio has presented: These audio interviews have been played back more than 800 times to date by listeners. New interviews are produced monthly, and previous programs remain accessible through the archive. “Selling Value Versus Price,” with Mack Hanan, author of the best selling book, Consultative Selling. STV Construction, Inc. “Delivering More Value to Clients,” with CMAA Chairman Randy Larson. FRIEND LEVEL ($2,499 and under) “The Need for Leadership,” with CMAA President Bruce D’Agostino. KCMC and Hanyang University “The Value of Building Information Modeling,” with Judith Kunoff, AIA, Primavera Systems Vanir Construction Management, Inc. CMAdvisor “Managing Construction Risks,” with Chris Brasco, Esq., partner at Watt, Tieder, Hoffar & Fitzgerald, LLP. Recent Arrivals in the CMAA Online Bookstore CMAA’s online bookstore is a convenient way to keep up with the latest publications in the field of construction management, including both CMAA’s own products and the latest releases from such leading sources as McGraw-Hill. The most recent additions to the CMAA Bookstore include these timely titles: Successful RFPs in Construction, by By Richard Fria (a CMAA member). Paperback, 172 pages. This is a step-by-step guide for managing the RFP process in a way that saves time, money, enhances team collaboration, and assures quality in construction. Focusing on the negotiated contract method (as opposed to the competitive bid method), the book takes readers from articulating the needs/wish list for a construction project, to the analysis of responses and interviews, through negotiations and finalization of the deal. Faster Construction Projects with CPM Scheduling, by Murray B. Woolf with a Foreword by James J. O’Brien, FCMAA. Hardcover, 456 pages. A comprehensive review that contains a full explanation of the new and innovative Scheduling Practice Paradigm, and translates it into tangible steps you can use to create powerful project schedules designed to boost productivity on any job. Managing a Construction Firm on Just 24 Hours a Day, By Matt Stevens. Project Management in Construction, By Sidney M. Levy. Hardcover, 392 pages. Covering every aspect of the job, from writing initial contracts to complying with OSHA regulations, this trusted resource outlines the essential tenets of project management including estimating, purchasing, and administration of the contract. The CMAA Bookstore also offers CDs of past CMs TalkLive! webinars, model contract documents, and a variety of other material. Check it out at cmaanet.org. Paperback, 406 pages. This detailed overview of the construction contracting business delivers an invaluable collection of best practices, forms, templates, and checklists designed to reduce risks and increase profits. Association Launches RSS Feed CMAA recently launched its own RSS Newsfeed, giving members and others an easy way to have the latest news, information and reminders from CMAA delivered right to their desktops as soon as the content becomes available. RSS stands for Really Simple Syndication. Users of the latest version of Microsoft Internet Explorer have a “news aggregator” program built in. By clicking on their “favorites” button, they can easily access the news feeds to which they subscribe. Other users opt to keep up with newsfeeds through third party news reader programs. Either way, when CMAA posts a new item to the feed, it appears on subscribers’ computer screens as soon as their news readers update their content – usually several times each day. As a result, instead of having to visit the CMAA website and seek out the latest news, it’s immediately available in a convenient form, with a hyperlink back to the website for full details. So far, CMAA has used its feed to distribute announcements about CMAA Radio programs, upcoming Professional Development sessions, and association news. Since the feed went “live” in late July, the feed page at cmaanet.org has recorded nearly 5,000 visits. In August, it ranked as the seventh most frequently viewed page on the website, and was ranking even higher through mid-September. To check out the RSS feed, visit the CMAA home page and click on the icon in the right hand column. September/October CMAA News CMAA Staff News Jan paul Miller, an experienced specialist in industrial certification and education, has joined CMAA as Vice President, Certification. He will supervise the rapidly growing Certified Construction Manager (CCM) program, which has certified nearly 1,000 professionals. He comes to CMAA from the Construction Specifications Institute (CSI), where, as certification manager, he was responsible for administering certificate and certification programs for specifiers, architects, engineers, contractors building materials suppliers, and others in the construction industry. Miller is a graduate of the University of Maryland /Baltimore County and holds two masters degrees, a Master of Arts in English and a Master of Education in Reading Diagnosis and Instruction. He has completed doctoral work in administration at George Mason University in Fairfax, VA. “CCM is not only growing in participation but evolving in the programs needs and resources,” notes CMAA President Bruce D’Agostino. “In Jan paul, we have added a remarkably qualified and experienced person who can shepherd this vital program to even greater accomplishments in the years ahead.” In other staff moves, Kate Brundage has become certification associate. Kate has been with CMAA for about a year. Cindy Hurt, a recent University of Virginia grad, has joined the staff as receptionist. CMAdvisor CM Advisor Offers High-Impact Advertising With circulation now topping 4,500 and growing dramatically every year, CM Advisor offers advertisers an economical way to reach the most influential construction and program managers in the country. Each issue of CM Advisor carries a limited amount of advertising, and there’s no premium charge for full color. Ad rates, dimensions and production requirements are available online at cmaanet.org, or by emailing John McKeon at jmckeon@cmaanet.org. Government Affairs Infrastructure Initiatives Add to Capitol Hill Traffic Jam Congress and the federal agencies responded quickly to the collapse of the I-35 bridge in Minneapolis last month, but some of the proposals and initiatives being advanced to address the state of America’s bridges and other infrastructure have simply joined a long queue of measures awaiting action this fall. Action in Congress, and particularly in the Senate, will focus on passing a dozen major funding bills that theoretically require enactment by October 1 to keep the federal government operating next year. The House has passed all of its funding measures, but the Senate had only acted on two – Homeland Security and Military Construction/VA spending – as CM Advisor was going to production. Senate Majority Leader Harry Reid (D-NV) has acknowledged that Congress will not meet the October 1 deadline for enacting its 12 regular fiscal 2008 appropriations bills. Moreover, the majority of the bills awaiting action are also likely to face presidential vetoes. Even before that, Democrats will need to round up the 60 votes they need to curtail filibusters by Republicans opposing the increased spending levels in these bills. All in all, the Democratic leadership in Congress is planning to spend some $23 billion, or 2.5 percent, more than the $933 billion in discretionary spending the administration has requested. Among the topics being tracked by CMAA: Transportation and Housing of Washington also proposed to add another $1 billion for bridge repairs, essentially by raising the amount of money states can obligate from the Highway Trust Fund. This proposal passed the Senate on September 10. Meanwhile, Rep. Jim Oberstar (D-MN), chairman of the House Transportation and Infrastructure Committee, has proposed a “National Highway Bridge Reconstruction Initiative” that would fund bridge repairs by increasing the federal gasoline tax. President Bush and Transportation Secretary Mary Peters have both been vocal in rejecting any gas tax increase, however. Oberstar says he hopes to get his bill through committee markup in October. Water Projects The Senate hopes to act on a conference report on the Water Resources Development Act, which would authorize about $21 billion for more than 900 projects of the Army Corps of Engineers. The conference report greatly exceeds both the House version of the bill, which authorized $15 billion, and the Senate version, which had a price tag of $15 billion. Another complication may arise because the conference report includes several new earmarks that were not included in the original versions of the bill that passed the House and Senate this spring. This runs counter to the ethics legislation recently passed by both houses, which limits the Senate’s ability to add earmarks to a conference report that were not in either chamber’s original bill. Both Senate and House versions of this bill exceed the administration’s requests. Democratic Sen. Patty Murray CMAA co-sponsors FEDCon® 2007 in DC FEDCon® 2007, the Market Outlook Conference on Fall Construction, is coming to the Washington, DC Convention Center on Tuesday, December 11. CMAA is once again supporting this vital event, which is expected to draw more than 300 participants. FEDCon® offers authoritative, up-todate information on building budgets, construction forecasts, and regulatory updates affecting all federally commissioned A/E/C projects. The event’s goal is to enable federal agencies to present their construction programs to the building community. This year’s highlights will focus on: manufacturers interested in providing services and products to the federal government, the world’s largest facility owner and procurer of design and construction services. • current year construction budgets • planned budgets for future years • building types to be designed • regional and international construction information • overall direction of design/construction programs FEDCon® presentations typically cover a spectrum of useful information for private sector architects, engineers, general and specialty contractors, and The event is co-located with the Ecobuild® Fall – Sustainable, Green, and High Performance Solutions for the Built Environment and AEC-ST Fall – Science & Technology for Architecture, Engineering & Construction. The entire three-day conference and two-day exhibit spans December 10-13, 2007. For more information visit www.aecstfall.com. September/October Professional Practice Corner Building Your Team with the Contractor RFP for Negotiated Project Delivery Rick Fria, The Fria Company 70 % of project costs are controlled by the contractor 100% of the schedule is controlled by the contractor 100% of the quality is controlled by the contractor Choose the Contractor Carefully The negotiated approach to construction has increasingly become a favored delivery method. This method provides many benefits to the design/construction process, increasing the opportunity for value-added project delivery, including: • Assembling a team of qualified professionals to design and build the project consistent with the owner’s goals. Why Negotiated? The triangle represents the key elements of a successful project. It is rarely possible to revise one element without impacting one or both of the others. Cost Program • Creating a basis for analyzing the cost-benefit elements of critical design decisions early in the design process. Quality • Affording the contractor time and access to the team to plan the construction, value engineer, and establish a strong and trusting relationship, thereby reducing the potential for adversarial relationships. The goal of the negotiated approach is to balance the elements of the triangle. Cost is determined concurrent with design, providing a context for timely decisions about quality and program. The architect, owner and contractor work as a team during preconstruction to measure and balance the three elements. Expectations at the start of construction are therefore programmed into the documents and the GMP. • Providing the opportunity for timely schedule feedback for cost-of-carry analysis. The Cost of the RFP • Selecting a contractor on the basis of proven experience, qualified personnel, and cost competitiveness. Various factors affect the cost of an effective RFP plan, including project size, type, locale, experience the manager has with the RFP process, quality/quantity of design documents, and extent of information requested in the RFP. • Testing the design for cost prior to expending significant capital on A/E. Construction price typically represents two-thirds of the total project cost, making the selection of a qualified contractor—a selection based on clearly defined terms—one of the most important elements of the project. The RFP provides an opportunity to fully define the project and prescribe the basis for the construction price and schedule at the early stages of design. It can serve as the foundation for the agreement between owner and contractor if carefully planned and managed. Assuming the RFP process leads to the selection of a competent, qualified contractor with preconstruction experience, the decision to commit dollars to a well-managed plan will pay off handsomely, and the benefits are likely to be well worth the cost: • A clear and concise program is developed at the outset and serves as the basis for the design effort, enhancing efficiency in design maturation. • A detailed project definition is produced for use in the financing package. • A defined basis for construction cost is provided as a benchmark against which to measure value-added choices. 10 CMAdvisor Ben efit of N ego tiat ed App roa c h Design Cost es itur nd xpe E n g i Des Schematic Design Development Construction Documents Design Process The figure above illustrates the cost-benefit relationship between design maturation and contractor participation in a negotiated approach. The team should discuss the cost-benefit elements of timing the RFP process with design maturation. There is an optimal time to execute the process. Provided the decision is consensus driven and incorporated into the overall design plan, benefits will almost always outweigh costs. The Search for RFP Recipients The goal is to assemble a list of qualified and competent contractors experienced in adding value to the design process. Contractors with experience in preconstruction are essential to a successful negotiated GMP approach. Architects and engineers have first-hand experience with contractors located within their region. Owners with recent comparable project experience may also assist in your search. The Associated Builders and Contractors (www.ABC.org) and the Associated General Contractors of America (www.AGC.org) maintain a computerized database on their member contractors. Both offer referral services. In refining the list of qualified contractors, it is useful to request Form AIA A305, Contractor’s Qualification Statement which covers company history, licensing, general experience, annual volume, references and bonding limits/capacity. Keep in mind that each contractor’s capability and workload are of equal importance. A contractor may be capable according to resume but incapable according to backlog. An excessive number of candidates does not necessarily add value to the process. It is more important to be dutiful in prequalifying a select list. The list should reflect a meaningful cross section of proven experience, cost conscious project management and quality construction. The Request for Proposal The RFP presents an ideal opportunity to clearly define the scope of the project. By developing a comprehensive project summary for issuance with the RFP, you will create a package that can be used in the equity/finance effort as well as in market studies and related activities. An early, refined definition of the project scope provides a basis for both the pro forma and the negotiated construction contract–and a blueprint for managing the design to meet the budget. The RFP should request a detailed construction budget based on the narrative and early design documents. The pricing and format provided by each candidate can be useful in assessing the quality of information provided by the contractor and in preparing for the interview. Total project costs, however, may be subject to continuing refinement until the RFP process has reached the final stages of negotiation and the documents have matured. At that point, the team should have a clear understanding of the scope of work and the contractor should be armed with adequate information to produce a refined and reliable price. If the project documentation provided in the RFP is detailed and comprehensive, the average of all contractors’ estimates provides a meaningful first test of the pro forma assumptions. September/October 11 Professional Practice Corner The construction budget should be based on a “Pricing Package” included with the RFP. Since the RFP can be effectively issued any time along the continuum of conceptual to design development, the extent of the drawings issued in the Pricing Package can vary. At minimum, basic floor plans, elevations, building section(s) and site plan should be included. Additional documents may include: • Structural drawings • Geotechnical report • Environmental survey • Mechanical/Electrical/Plumbing drawings • Site survey Develop an outline specification or detailed narrative that includes sufficient detail to underpin the pro forma and program requirements. It may be helpful to include one or more narratives from the architect, engineers and owner, defining essential elements such as exterior closure materials, type of structure, program requirements, MPE systems, and site development details. Increasing the contractor’s understanding of the project increases the likelihood of receiving meaningful feedback in the response. review is to identify a “short list” for the interview process. The goal: to build, by consensus, a team of personnel that work well together. The Interview The interview will likely be the first time you meet and interact with the contractor’s proposed team and is an essential component in the selection process. By including key members of your design/development team in the interview process, you will have an opportunity to assess the group dynamics and promote team buy-in for the final selection. Review the analysis results with the team participants conducting the interview. Each contractor RFP response is likely to present differing issues requiring clarification prior to final selection. By fine tuning each interview you will be able to “fill in the blanks” in the short period of time allotted for this meeting Plan to conduct all the interviews on the same day or on successive days if possible. This will assure a common thread through all interviews in comparing the contractors’ qualifications. The selection team discussion/decision can be made while the interview experiences are fresh. The Analysis The Negotiation When the RFP includes specific instructions defining the format for the responses, accompanied by formatted electronic spreadsheets, the analysis can be efficient and timely. Checklists and spreadsheets should be prepared in advance of the due date to facilitate expedient comparison of the data. If each contractor’s response follows the defined format, the information can be readily inserted into the prepared checklists. When the format and preparations are well coordinated, it is possible to complete the analysis in a matter of days. The negotiation is the final chance to make your best deal. The RFP solicits “proposals” intended to serve as the basis for the contract terms and the deal. As such, the “proposed” terms are subject to negotiation and refinement. Only after collecting and analyzing data, interviewing candidates, and reaching consensus with your team are you adequately prepared to negotiate the final terms. The objective of the analysis is to refine the responses to a meaningful and concise summary of information relating to the selection criteria. This may include schedule, general requirements, costs, fees, markups, and other tangible information specific to the project. Follow-up with the contractors may be required in order to complete the analysis and to clarify the basis of the proposal and elements of cost. Follow-up may reveal omissions, misunderstandings, scope clarifications and related issues. Upon completion of the follow-up effort, final adjustments may be required to assess the impact on the final estimate and proposal. As the responses and spreadsheets are analyzed, it will become increasingly evident which contractors are most qualified and preferred. By including the members of your team in the contractor evaluation process, the all-important team “buy-in” is more likely. The objective of the team 12 CMAdvisor Analysis of the written proposals will have provided specific deal points such as fee, schedule, markups, labor rates (and burden), general requirements, and insurance rates. These are some of the key financial elements to use as a starting point for the negotiation. The interviews may have uncovered additional deal points. The team should determine the deal point “goal” prior to initiating the negotiation. This will allow the process to move forward in an organized fashion, delivering measurable results. As the negotiation matures, be open to alternatives that may be unconventional yet provide win-win opportunities. Consultation with the selection team may reveal successful creative experiences on other projects. It is critically important to apply the necessary time and effort to reaching an agreement, since this deal will serve as the basis for cost and the recipe for success. The most successful negotiations result in a “win-win” outcome for all parties. Beginning the project with a contractor who feels shortchanged in the negotiation may set the tone for a contentious relationship. The best outcomes for negotiated projects are a result of mutual respect and trust. The Deal Information gathered from the analysis, the interview, and the negotiation should be compiled into a single document forming the basis for the deal. Attention to detail will significantly reduce the potential for disagreements at a future date. Critical deal points may include: • Schedule/duration • Exceptions/agreement on construction contract • Agreement on general requirements • Preconstruction cost and extent of participation • Fee agreement (% or lump sum) • Definition of markups • Bonding requirements • Committed personnel. (It is often said “it is the people that make the difference.”) Preparing a clearly documented agreement, defining the elements of the cost of construction, as well as the committed resources and definition thereof, is essential to maintaining the pro forma objective, and significantly mitigates the potential for scope and cost disagreements. The deal should be executed carefully and promptly, and with the appropriate duty of care. Hill International, Inc. (NASDAQ: HINT), the worldwide construction consulting firm is expanding. With 1,500 employees in 70 offices in 25 countries, Hill provides program management, project management, construction management, and construction claims services worldwide. ENR recently ranked Hill as the #10 largest CM firm in the US. Summary Each RFP process will vary according to the team’s needs, project requirements, extent of documents and the role of the contractor. As the process unfolds, the plan will require modification to fit reality. Incorporating flexibility into the timing and execution of the plan, the spreadsheets and interviews will result in an outcome tailored to the specifics of the project. A well-organized plan, utilizing refined analysis tools, should allow you to complete the entire effort in three to six weeks. The key steps of a successful RFP process: 1.Plan the RFP process in advance 2.Consider the cost-benefit of the effort 3.Provide clear and concise information in the RFP document 4.Complete a detailed analysis of the responses and follow up as appropriate 5.Perform thorough reference checks 6.Conduct open and interactive interviews 7.Document the negotiation in writing 8.Execute the deal without delay The desired result is the selection of a qualified contractor to assume a critical role in the development of your project—a contractor with the requisite specialized skills to complement your team. The proactive interaction of the contractor with the design-development team will enhance the probability of your project being built…on time, in budget and with quality. Richard Fria owns and operates The Fria Company (www.friaCM.com), providing project and construction management services on large commercial developments. He is author of “Successful RFPs in Construction” published by McGraw Hill and available at the CMAA Online Bookstore. He can be reached at rick@friacm.com. Enjoy working in an environment that offers competitive salaries and many benefits, including medical, dental, vision and prescription drug coverage, 401(k) plan with a generous employer match and tuition reimbursement. We are seeking experienced Project Managers to join us in our Washington, DC Office to provide project management services to our federal sector clients. To apply, submit your resume, along with your minimum base salary requirements, through our online recruiting database www.hillintl.com Hill International is an Equal Opportunity Employer M/F/D/V September/October 13 Company News Gregory Retires After 16 Years with Heery; Derrick Promoted to Washington, DC Area Manager After a 44-year career including 27 years with the U.S. Army Corps of Engineers and 16 years with Heery International, Inc., Woody Gregory, CCM, PE has retired. Bob Derrick, PE, a senior manager with Heery, will replace Gregory as Washington, D.C. area manager. Gregory joined Heery in 1991 after retiring from the military. During this time, he managed numerous contracts for the federal government and served as operations manager for Heery’s Washington office before assuming leadership of that office in 2005. Derrick joined Heery in 2006 to spearhead Heery’s approach to significant design and construction activity resulting from the Department of Defense Base Realignment and Closure (BRAC) program. Prior to joining Heery, Derrick spent 29 years with the U.S. Army, retiring as chief of the Army’s BRAC Division in the Pentagon. Project Manager. Both will be part of MOCA’s new Owner’s Representative Team. Chris brings over 17 years in the public construction sector market. In his new role, he will lead the Owners Representative Team, concentrating on public and institutional projects in the New England area. Paul brings over 20 years experience in the private and public sector construction markets. In his new role, he will manage multiple MOCA projects and further develop the commercial sector business. Woody Gregory, CCM Chris and Paul are two (2) of only sixteen (16) Certified Construction Managers (CCMs) in the New England Region. “Having two CCM’s on staff will quickly establish MOCA as a leader in Owners’ Representative Services, and build on our proven leadership in Project Control Services”, stated Kevin Bernier, President & CEO of MOCA Systems. MOCA is currently the only firm in New England with two (2) CCM’s on their staff. Brown Joins Parsons As Vice President, Business Development Bob Derrick, PE Cardamone Named Director of CM for Port of Long Beach The Long Beach Board of Harbor Commissioners has promoted Gary J. Cardamone, who has more than 25 years of experience in port and harbor-related development, to the newly created position of director of construction management. The new position is part of an ongoing reorganization of Port administration designed to improve operational efficiencies. Cardamone will lead the newly formed Construction Management Division, part of the Port’s Engineering Bureau. Cardamone, who joined the Port in 2002, had been serving as the Port’s deputy chief harbor engineer in charge of construction management. Parsons has announced that Gregory V. Brown, PE, was recently hired as vice president of business development for the Bridge & Tunnel Division. In this role, he will be responsible for strengthening and growing Parsons’ market position in the western United States. Brown has 27 years of diverse experience developing and managing projects that involve the planning, design, and construction of bridges, tunnels, and a wide variety of other transportation-related structures. He holds a bachelor’s degree in civil engineering from The University of Vermont and is a licensed professional engineer in California, Nevada, and New Mexico. Construction Leads Again in a Dismal Statistic Construction is number one again in on–the–job deaths, but overall it is safer, according to new data from the U.S. Bureau of Labor Statistics. In his new position, he will oversee construction of the Port’s capital improvement program, valued at about $200 million annually. He will also oversee the Surveys Section. BLS says the number of construction fatalities rose nearly three percent in 2006 and construction’s more than 1,200 deaths again made it the industry with the largest number of annual on-the-job fatalities. But the construction fatality rate went down in 2006, its second consecutive annual decline, as the number of workers in the industry continued to climb, BLS data show. Cardamone is a CMAA Board of Directors and Executive Committee member, vice chairman of CMAA, a member of the Board of Directors and the Executive Committee. Infrastructure: State, Local Spending Tilts to Maintenance MOCA New Hires in Massachusetts MOCA Systems, Inc announced the addition of two senior professionals to its growing team. Chris Simmler was hired as Vice President and Paul Hemphill was hired as Senior 14 CMAdvisor According to the Congressional Budget Office states and localities spend a much greater share of their public transportation and water infrastructure budgets on operations and maintenance than federal agencies do. These states and localities account for more than half of public transportation and water infrastructure spending. In a report issued in early August, CBO says states and localities provided 76.5% of the $312.2 billion spent on infrastructure in 2004. Federal funds were the other 23.5%. CBO says that ratio has been “quite stable” for 20 years. Of the 2004 total, 54% went for operations and maintenance and 46% for capital projects. CBO says that split has been fairly constant since the early 1980s. About 63% of state and local infrastructure dollars went to O&M in 2004. About 75% of 2004’s federal aid was capital expenditures. Gilbane Is CM For University Of Michigan Business School Gilbane Building Company is providing CM services for the University of Michigan Stephen M. Ross School of Business. This $120 million facility is designed to support a new learning curriculum and help create the best possible environment for both faculty and students. The building is six stories high at the center and three stories high around the perimeter totaling 245,000 square feet. Some of the project’s features include a 500seat auditorium, classrooms with the capacity of accommodating up to 95 students, faculty terrace, and a casual study lounge and fitness center. This project involves an 180,000 sf demolition and the reconstruction of 237,500 sf, with 7,500 sf of new space under the existing Kresge Library. Work began on this project in early 2006 and should reach completion towards the end of 2008. CH2M HILL Selected as $5-billion Panama Canal Expansion Program Manager The Panama Canal Authority (ACP) has awarded CH2M HILL, a global full-service engineering, construction and operations firm, the Program Management contract for the $5.25 billion Panama Canal Expansion program. Subcontractors on the team include DHV Group, Grupo TYPSA, CSA Group, and Earth Consultants International. “We are proud to contribute our global experience to help build not only one of the world’s major infrastructure projects, but to build it in such a way as to leave a lasting legacy of sustainable socio-economic growth and environmental responsibility,” said Michael Kennedy, president of CH2M HILL Transportation Group. “We are thrilled to support Panama’s incredible vision for its future.” The expansion project involves building a new set of massive locks on both the Atlantic and Pacific ends of the existing canal and will include substantial excavation and dredging. The project schedule calls for the first “Post Panamax” vessel to transit through the expanded canal in 2014, the 100th anniversary of the completion of the original canal. A Post Panamax vessel is the term for ships that are larger than a Panamax and do not fit in the original canal. After expansion, the Panama Canal is expected to be able to handle vessels up to 12000 TEU in size (equivalent to 12,000 “20-foot equivalent unit” containers). KMK Consulting Ltd. Joins AECOM KMK Consultants (KMK), an Ontario, Canada-based engineering firm specializing in water, wastewater and municipal engineering, has joined AECOM and UMA. By adding KMK, AECOM has bolstered its presence in the growing Canadian infrastructure market. AECOM will now have more than 1,300 professionals in offices across Central and Western Canada. “We view the addition of an outstanding firm like KMK to the AECOM family as an important step forward in the advancement of our strategy in the Canadian infrastructure market,” said John M. Dionisio, AECOM president and chief executive officer. “In addition to expanding our Canadian business, this acquisition strengthens our global expertise in the area of water and wastewater.” Gilbane Selected as PM for Sweetwater Union High School District The Gilbane Building Company has been chosen to provide program management services to the Sweetwater Union High School District in the San Diego area. The district serves over 42,000 students in grades 7-12, as well as thousands of adult learners, and is one of the largest school districts in Southern California. The architect is BCA Architects, with Gilbane’s Western regional office overseeing the work. The bond program is currently valued at $644 million with potential matching state funds of an additional $300 million for a total of nearly $1 billion. The projects will be focused on 16 high schools, 14 middle schools and 10 adult and vocational schools. Bossardt Corporation to Provide CM for Wisconsin School District The School District of New Richmond, located in St. Croix County, WI has retained Bossardt Corporation to support a $92,850,000 district-wide project including a new $15.95 million elementary school and a new $59.88 million high school. The School District plans to use $5 million to remodel West Elementary School and $8.1 million to renovate and convert the existing high school into the middle school. Construction for the new elementary school is expected to start in September 2007. ATS&R will provide the architectural services for the projects. September/October 15 Chapter News Congratulations to the Newest CCMs! Doreen Bartoldus, Malcolm Pirnie, Inc., Los Angeles, CA Tim Beaty, Las Vegas Valley Water District, Las Vegas, NV Brian E. Bingman, Orange County Sanitation District, Fountain Valley, CA Dhrubajyoti Biswas, EBA Engineering, Inc., Baltimore, MD Randall Bryan, Parsons, Pasadena, CA Derek E. Davis, CH2M HILL, Inc., Santa Ana, CA Michael Dyer, Olympic Associates Company, Seattle, WA Dean Fisher, Orange County Sanitation District, Fountain Valley, CA Charles Glave, Harris & Associates, Concord, CA Kurt Gray, Harris & Associates, Palm Dessert, CA Chicago Chapter The Chapter is hosting the 2007 National Conference & Trade Show in October. The Chapter’s involvement includes a wide variety of activities such as participating in the education session program, serving as hosts to non-member guests attending on “Prospects’ Day,” and setting up the tours offered to the attendees. Attendees will be able to visit with the Chicago Chapter members at the chapter’s booth in the CMAA registration area of the Sheraton Hotel & Towers. Houston Chapter The Chapter hosted its 4th annual Sporting Clays Event at American Shooting Centers. The participants shot 50 clay targets in four-person teams with each team receiving a prize. A Benelli shotgun was raffled off and each participant received a custom event T-shirt, compliments of CMAA. The teams enjoyed a barbecue lunch followed by awards and a few words from CMAA Board Member Dave Rathmann, CCM. This event is helping to bring recognition to CMAA in the greater Houston area. James Hicks, Wiley Hicks, Jr., Inc., Amarillo, TX Chuck Hodge, Orange County Sanitation District, Fountain Valley, CA James Hughes, Massachusetts Turnpike Authority, Boston, MA Michael Ingram, AG/CM, Inc., Corpus Christi, TX Jeffrey Curtis Jurgensen, Olympic Associates Company, Seattle, WA John L. Mauney, Trussmark Inc., Jackson, TN James M. McCulloch, HNTB Corporation, Bellevue, WA John Murillo, PinnacleOne, Tempe, AZ Ronald Nadzieja, Pinnacle One, Tempe, AZ David Rodriguez, M.S., PE, Orange County Sanitation District, Fountain Valley, CA Robert Schirripa, WorleyParsons, Pasadena, CA Jenk Seran, PinnacleOne, Los Angeles, CA Jason Smith, Construction Analysis & Planning, LLC, Santa Monica, CA Wayne Spence, California State University San Bernardino, San Bernardino, CA Ronald Weathers, Lassiter Richey Co., Inc., Tulsa, OK Thomas M. Williams, Brown & Cladwell Environmental Engineers, Olympia, WA 16 CMAdvisor New England Chapter The New England Chapter’s Annual Golf Tournament was a great success and netted more than $15,000. These funds will be used to award scholarships to construction management students in the New England area. Last year, the Chapter awarded $19,500 in scholarships and expects to exceed that amount this year. As a result of the efforts of chapter members on the Massachusetts Port Authority’s (Massport) staff, a Standards of Practice Review course will be held on October 31-November 2 at the Massport facilities. The course will be followed by the CCM examination on November 5. Massport expects as many as 15 of its employees to attend the class and sit for the exam. North Carolina Chapter A Public Works Night is being held in September, which brings together public officials, contractors, project managers and construction-related professionals to network and get a preview of the billions of dollars worth of public works projects about to hit the street. The majority of public agencies in the San Francisco/Oakland area will be represented and presentations will be made by the San Francisco PUC Deputy General Manager, the California State Labor Commissioner, and the Deputy Director for Caltrans District 4. A reformation meeting for the chapter will be held on September 19. President Bruce D’Agostino and Past Chapter Officer Mike Burriss are the featured speakers. Lunch is co-sponsored by Duncan Parnell, Stewart Engineering, and CMAA National. A large turnout of current members and prospective members is anticipated. Northern California The Northern California Chapter held its first Past President’s Golf Tournament in August with 106 registered golfers. More than $2,000 in prizes was presented to the participants. The event raised more than $5,000 for the Northern California Scholarship fund. Northern Ohio Chapter For the third year, the Northern Ohio Chapter is participating in the Holiday Re-pack at the Cleveland Foodbank. The Cleveland Foodbank was awarded the “Best Foodbank of the Year” award in 2006 and services a six-county region. The Chapter also extends an invitation to participate to other professional organizations in the construction industry and have had a great response in the past. Most of the donated food delivered to the Foodbank is in bulk quantities or needs to be sorted. The Chapter members donate their time to perform these sorting tasks, which is a great help to the Foodbank as it then spends fewer dollars on labor and more on food purchases. After two hours re-packing food, a Chapter networking event follows. For further information on this event taking place on November 8, contact Alice Ake at alice.ake@aboutpmc.com CMAA’s Spring Leadership Forum is coming to Baltimore. More than 250 top executives will gather to explore ways to lead their firms – and the 2008 Spring Leadership Forum profession – more effectively. B A Lt i M o r e , M A r y L A n d N M Ay 1 8 - 2 0 Be part of the movement. For more information, visit www.cmaanet.org or call 703-356-2622. September/October 17 “Leadership Tip” Motivation is critical to successful job performance. “Successful” job performance, however, must be clearly defined upfront, before the job even begins, and it must be defined in measurable, behavioral terms…which the team member understands and takes ownership of. Remember that employees will move themselves to action, do things for their own reasons, not necessarily yours. What motivates you might not motivate them. The effective leader understands that the three primary motivators in the workplace are meaningful work, recognition and sense of belonging. As part of the initial discussions you have with team members about successful job performance, try the question, “What motivates you?” Continued from page 17 San Diego Chapter In August, the Chapter hosted the Western Region Meeting. Representatives attended from the following chapters: San Diego, Northern and Southern California, Colorado, Pacific Northwest, and Arizona. A full day’s activities included a facilitated discussion followed up by breakout sessions on specific topics selected during the discussion. Based on the evaluation of the attendees, it was a valuable session and well worth the time of the participants. In September, the San Diego Chapter celebrated its 5th anniversary. The celebration included cocktails and tacos at a pool side reception while the Chapter remembered its past successes and looked forward to future endeavors. South Central Texas On September 13, the Chapter participated as a supporting association for the “Alternative Project Delivery Strategies for Healthcare Facilities,” presented by the Rice University Building Institute. The Rice University Building Institute invited Vice Presidents from eight of the nation’s leading healthcare systems to discuss their current project delivery concerns. Each of these executives is responsible for creating a vast variety of new facilities and they are actively searching for the latest ideas from professionals responsible for design, engineering, and construction. Individual small workgroups will be lead by: BJC HealthCare, Intermountain Health, Kaiser Permanente, Memorial Hermann, Methodist Hospital, Sutter Health, Texas Children’s, and the Department of Defense’s Healthcare Transformation Division. Southern California McDonough Bolyard Peck, Inc. Business Operations Manager McDonough Bolyard Peck. Inc. is a multi-disciplined consulting engineering firm organized to assist clients in managing the construction process from initial budget, through design and construction, to successful project closeout. Established in 1989, MBP is recognized by the Engineering News Record as a national top-100 construction management firm. Due to continuous growth, we are seeking a Branch Operations Manager in Charlotte, North Carolina. The ideal candidate will develop a strategic business development plan for the Charlotte market and implement the plan with the support of Regional and Corporate resources. As the branch develops, the candidate will recruit and manage staff, implement and manage budgets and administer projects from conception to completion. Maintain open communication with the Regional Manager while maintaining the daily operations of the branch and overall coordination of the Branch workload. Provides quality assurance reviews throughout projects. Actively manage personnel, budgeting, costs, collections and business development within the branch. Responsible for weekly and monthly Branch reporting. Requirements. Bachelor’s degree and ten (10) years experience. PE license required. Knowledge of organizational management, construction management and project management techniques. Detailed knowledge of construction, principles of construction management and project controls. Attn: Human Resources If you are interested in this opportunity, please forward McDonough Bolyard Peck, Inc. 8315 Lee Highway, Suite 400 us your resume for Fairfax, VA 22031-2215 consideration, along with Fax (703) 245-5993 salary requirements. Email: recruiting@mbpce.com EEO/AAE 18 CMAdvisor On September 20, the Chapter held its Annual Meeting featuring the election of board members and officers as well as presentations of awards. The Volunteer of the Year was awarded to Lisa Sachs, CCM, Mary McCormick, and Tod Haynes, CCM; Mehdi Heydari, CCM received the President’s Special Service Award; and Raju Kaval, CCM was recognized as the CCM of the Year. Several member firms were honored for their contributions throughout the year based on the amount of money spent at chapter events. A tour of The Shops at Santa Anita is planned for mid to-late October and is being hosted by Caruso Development, as it’s one of the firm’s newest projects. Inspired by the scale and smalltown feel of Myrtle Avenue in Monrovia, The Shops at Santa Anita will create a quaint town center in the heart of Arcadia, providing unique outdoor shopping, dining, and entertainment amenities adjacent to the region’s most iconic landmark, the historic Santa Anita Park Racetrack. The Shops will build on the rich heritage of the racetrack, while creating an expanded and more exciting regional attraction that is one-of-a-kind. President’s Report Infrastructure Crisis Cries Out for the Value of CM/PM Bruce D’Agostino, CAE The collapse of an Interstate Highway bridge over the Mississippi River in Minneapolis in August has touched off a flurry of attention to an issue that has, in fact, been simmering almost unnoticed for decades. America’s basic infrastructure – roads, bridges, railroads, water and sewer systems, even air traffic control – is in serious disrepair and has been neglected for a long time. The I-35 bridge collapse prompted immediate action by the U.S. Department of Transportation to provide $50 million for short term recovery and clean-up. President Bush signed legislation authorizing an additional $250 million to build a new bridge on the site, but this will require a congressional appropriation. Within CMAA, we need to accelerate a broad discussion of how we can best articulate the CM/PM “value proposition” for owners facing infrastructure projects. Meanwhile, Rep. David Oberstar (D-MN), chairman of the House Transportation and Infrastructure Committee, proposed a “National Highway Bridge Reconstruction Initiative” that would provide dedicated funding to states to repair, rehabilitate and replace structurally deficient bridges. In the Senate, Sen. Patty Murray (D-WA) has announced she will try to tack an additional $1 billion onto the Department of Transportation appropriations bill, to pay for bridge repairs. The $51-plus billion measure already faced a possible presidential veto. Some observers who have been tracking the deterioration of our infrastructure for years believe this money hardly even qualifies as a drop in the bucket. The American Society of Civil Engineers, for instance, has estimated it will take $1.6 trillion over a five-year period to put our public works in good order. Clearly, nothing like that much money is likely to be forthcoming. Equally clearly, significant funds will be dedicated to this area in the near future. Spending this money wisely is going to challenge municipalities and other infrastructure owners. Consider how the mayor of Minneapolis, along with some other leaders, have responded to the promise of major funding to rebuild the I-35 bridge. These leaders said, in effect: Let’s not rush headlong into building any old bridge just to get traffic moving again. Let’s pause, plan and try to come up with a true solution to our long-term transportation needs. America’s infrastructure woes will not be solved by crisis-driven interventions. They will require a systematic approach that prioritizes needs and gets the most out of the available funds. That is where we come in. Professional construction and program managers can bring great value to public sector clients in helping them set priorities and devise innovative tactics to get projects built quickly and within budgets. In some cases these new tactics will require some fundamental changes in the way the public agencies traditionally buy construction. Such options as design-build, for instance, risk allocation and performance specifications, need to be more widely considered and adopted in the public sector. Public-private partnerships can also play a key role, particularly if federal and state funds continue to be limited. An experienced CM or PM is ideally positioned to guide clients through this confusing new environment. Within CMAA, we need to accelerate a broad discussion of how we can best articulate the CM/PM “value proposition” for owners facing infrastructure projects. We need to be more alert to the opportunities that may arise over the next several years. Perhaps most of all, we will need to reach out more persuasively to public sector owners, including many who may have little or no experience in major construction projects. Executing large, complex projects on critical schedules within tightly limited budgets…that sounds a lot like what CMAA members do, doesn’t it? It remains to be seen how much real action is taken to address this long standing problem. But in general, our infrastructure dilemma cries out for someone to take a leadership role, and that’s a role for which CMAA members are ideally suited. Please share your thoughts with me by email to bdagostino@cmaanet.org. September/October 19 Professional Development Calendar CMs TalkLive! Series: Web-Assisted Learning Standards of Practice Review Courses: All you need to participate in CMAA’s webinars is an internet connection and a phone. Listen to the hour-long program yourself or with others via speaker phone. There is an informative Q&A session after each program. CMAA webinars offer continuing education credit of 1LU/1PDH/.1CEU. Wednesday, October 31 – Friday, November 2 8:00 am–6:00pm, hosted by the Massachusetts Port Authority Webinars take place 12:00 noon to 1:00 pm, Eastern time. Wednesday, November 7 – Friday, November 9 8:00am–6:00pm, hosted by Jacobs Engineering, Golden, Colorado. October 25, Winning The War For Talent Presenter: Thomas Emison, RSM McGladrey Inc. November 1, Leadership and Team Building Presenter: Charles B. Thomsen, FCMAA, FAIA, Advisory Director, Parsons December 6, Program Management Best Practices Presenter: Bill Van Wagenen, CCM, PE, CH2M HILL Registration Fees CMAA Members $80 per site Non-members $110 per site Construction Management Association of America 7926 Jones Branch Drive, Suite 800 McLean, Virginia 22102-3303 USA The Standards of Practice Review Course is available for those eligible candidates preparing for the Certified Construction Manager (CCM) Examination. For additional information, contact George Gehringer (703) 677-3367 ggehringer@cmaanet.org