ENGINEERING INC. MARCH/APRIL 2015 G Vol

MARCH/APRIL 2015 INC. www.acec.org

ENGINEERING AWARD-WINNING BUSINESS MAGAZINE G PUBLISHED BY AMERICAN COUNCIL OF ENGINEERING COMPANIES >> Combating Commoditization >> Engineers in State & Local Government

>> Black & Veatch Rebuilding Homes and Lives SENATOR >> Keys to Success In Asia-Paciﬁ c Market ORRIN

HATCHTAKES ON TAX REFORM

ENGINEERING INC. MARCH/APRIL 2015 G Vol. 26, No. 2 18

BREAKING THE MOLD 18 Commoditization: How to overcome a major threat to a firm’s success. APP TO ORDER 25 When an off-the-shelf app won’t meet your firm’s need, build one that does. MAKING A QUALITY-OF-LIFE DIFFERENCE 30 8 How Black & Veatch’s Christmas in October initiative Cover Feature is rebuilding homes and lives in Kansas City. SENATOR ORRIN HATCH 8 LEADING THE PAC The chairman of the Senate Finance Committee takes 39 ACEC/PAC smashes fundraising records with on tax reform. $835,000. Features 2015 ANNUAL CONVENTION PREVIEW 44 ENGINEER-ELECT 12 Join your colleagues at the 2015 Annual Convention Engineers who hold public office bring a knack and Legislative Summit in Washington, D.C., for problem solving to state and local government. April 19–22.

Departments FROM ACEC TO YOU 2 GUEST COLUMN 46 MEMBERS IN THE NEWS 50 Stemming the tide of Land development eyes recovery WSP Global executive commoditization. from recession hangover. appointments following acquisition of Parsons Brinckerhoff. MARKET WATCH 4 BUSINESS INSIGHTS 48 Entry strategy for the Learn to successfully manage your MERGERS AND Asia-Pacific market. A/E business; CASE Standard of ACQUISITIONS 52 Care white paper. 2014 a record year for LEGISLATIVE ACTION 6 engineering M&A. Tax reform momentum builds; ACEC urges Congress to pass long- term transportation bill.

COVER PHOTO: GARY LANDSMAN

Engineering Inc. promotes the advocacy and business interests of ACEC by offering news, legislative analysis and business practice information to member firms, clients, opinion leaders and policy makers.

The articles and editorials appearing in this magazine do not represent an official ACEC position or policy unless specifically identified as doing so. From ACEC to You ENGINEERING INC. THE OFFICIAL PUBLICATION OF THE AMERICAN COUNCIL OF ENGINEERING COMPANIES AMERICAN COUNCIL OF ENGINEERING COMPANIES Stemming the Tide CHAIRMAN Richard C. Wells PRESIDENT & CEO David A. Raymond Of Commoditization VICE PRESIDENT, Mary Ann Emely OPERATIONS VICE PRESIDENT, Steven Hall GOVERNMENT AFFAIRS he pernicious effects of commoditization are felt in virtually all VICE PRESIDENT, Marie Ternieden professions these days, but perhaps nowhere more acutely than in BUSINESS RESOURCES AND EDUCATION engineering. According to ACEC’s Engineering Business Index (EBI), T DIRECTOR, COMMUNICATIONS Alan D. Crockett members consider commoditization a critical threat to their firms’ success, AND MEDIA surpassed only by public funding constraints and an adverse economy. STAFF EDITOR Andrea Keeney The trend toward commoditization, which continues unabated, is driven [email protected] by a complex array of factors. How you can help your firm overcome those 202-682-4347 SENIOR COMMUNICATIONS Gerry Donohue factors and protect your bottom line is the subject of our feature article. WRITER (See page 18.) Tax policy also has a major impact on ACEC members, and our cover ACEC PUBLIC RELATIONS AND interview with Senate Finance Committee Chairman Orrin Hatch EDITORIAL ADVISORY COMMITTEE (R-Utah) reveals the challenges ahead in comprehensive tax reform. CHAIRMAN James Blake (See page 8.) McMURRY/TMG, LLC In addition, this issue highlights how ACEC/PAC Champions from MANAGING EDITORS Corey Murray, Christopher Brandon coast to coast applied creative strategies to help ACEC/PAC smash ART DIRECTOR Jeff Kibler fundraising records in 2014, with sights now set on the Council’s $1 PROJECT MANAGER Amy Stephenson Fabbri million goal. (See page 39.) A new regular feature looks at how member firms are excelling as ADVERTISING SALES corporate citizens in their communities. The first firm to be profiled in Leo Hoch ACEC this series, Black & Veatch, has developed a successful housing program 1015 15th Street, NW, 8th Floor that benefits the urban areas in which the firm operates. (See page 30.) Washington, D.C. 20005-2605 Finally, this issue includes a fascinating profile of engineers who serve in 202-682-4341 [email protected] public office. (See page 12.)

Engineering Inc., Volume 26, Number 2 (ISSN 1539-2694), is published Richard C. Wells David A. Raymond bi-monthly by the American Council of Engineering Companies (ACEC), 1015 15th Street, NW, 8th Floor, Washington, D.C. 20005-2605. Periodicals ACEC Chairman ACEC President & CEO postage paid at Washington, D.C., and at additional mailing offices. Annual subscriptions are $24 for members (included in dues as a non-deductible amount); $45 for U.S. non-members; $65 for institutional subscriptions. Back issues are $15.

POSTMASTER: Send address changes to Engineering Inc., c/o ACEC, 1015 15th Street, NW, 8th Floor, Washington, D.C. 20005-2605. © 2015 American Council of Engineering Companies. All rights reserved. This publication may be copied, downloaded from the ACEC website, stored in electronic or hard-copy format, and disseminated to third parties for educational and information purposes. ACEC expressly disclaims any liability for damages of any kind in connection with such copying, downloading, storage, and/or dissemination. By copying, downloading, storing and/or disseminating this publication, the recipient of this publication expressly agrees to defend, indemnify, and hold ACEC, its officers, directors, employees, volunteers and agents harmless from and against any and all losses, damages, claims, causes of action and liabilities, including reasonable attorneys’ fees and costs, arising out of or resulting from the recipient’s use of this publication. Notwithstanding the above, no part of this publication may be altered, resold, licensed, or used for any other commercial purposes without the prior written permission of ACEC. Recipients may opt out of receiving the electronic version of this publication from ACEC by sending an e-mail with the subject line “Unsubscribe” to ACEC at [email protected].

Engineering Inc. subscribers: If you have a mailing address correction or need to add or remove an employee from the Engineering Inc. mailing list, please contact the ACEC Membership Department at [email protected] or call 202-347-7474 and ask for Member Records.

WWW.ACEC.ORG Sutong Bridge Fred Hartman Bridge Taizhou Bridge Suzhou, China Houston, Texas Jiangsu, China

With nearly 100,000 employees serving clients in more than 150 countries around the world, AECOM is a premier, fully integrated infrastructure and support services firm. Our people are united by a shared commitment to create, enhance and sustain the world’s built, natural and social environments.

With revenue of almost $20 billion, AECOM is a leader in all of the key markets it serves, including transportation, facilities, environmental, energy, oil and gas, water and government. AECOM has provided engineering services on some of the world’s longest and most innovative bridges.

Woodrow Wilson Bridge Washington, D.C. www.aecom.com MarketWatch By gerry donohue Entry Strategy for the Asia-Pacific Market

ore than half of the enough to sustain a focused Davert. “You’re not going to Operating world’s population presence,” says Marshall just show up and compete Down Under Mlives in Asia—a Davert, MWH government successfully.” Australia has been a first port percentage that is forecast and infrastructure president MWH’s acquisition of the of call for many U.S. firms to increase. Asian GDP is for the Americas and Asia English firm Watson Hawks- heading to Asia. They have expected to grow by 5.6 per- Pacific. ley in 1990 brought with it a established a presence in its cent in 2015, and seven of the Kleinfelder President and network of established offices friendly confines, built up 10 fastest-growing economies CEO Bill Siegel tells of work- in numerous British Com- staff and knowledge and then are in Asia. ing on projects on a half- monwealth countries, includ- expanded into other markets. But the Asia-Pacific mar- dozen Pacific islands for a cli- ing Australia and Hong Kong, “It’s reasonable for U.S. ket is a study in contrasts. ent. “It wasn’t just a logistical as well as a Taiwan office, companies to be successful in It includes two first-world challenge,” he says, “but we which acts as a springboard Australia and New Zealand,” economies, Australia and had to register as a corporate into the Chinese market. says Davert. “It’s a relatively Japan, and a host of third- entity on each one.” CH2M HILL gained its large market, and the rule of world economies. It is home Registering can be a chal- broad Asian presence by law and contracting proce- to two huge fast-growing lenge. For example, in Brunei, acquiring the U.K. firm Hal- dures are similar.” economies—China and India, which Forbes magazine ranks crow four years ago. “Halcrow For most of the past decade, which are expected to gener- as the fifth-richest country in has supplied about 50 percent Australia’s market has been ate 25 percent of global GDP the world, half of the board of our Asia Pacific staff,” says strong, as it has provided the by 2019—and to the four members of a registered com- Nye. “That includes all the coal to power the Chinese eco- smallest economies, including pany must be Brunei residents. people in Hong Kong, half the nomic engine. But as Chinese Tuvalu, which has an annual “The importance of under- people in Australia and a good growth rates have slowed, the GDP of less than $40 million. standing the culture can’t be number in Malaysia.” Australian economy has fallen Many of these markets overstated,” says Davert. HDR Managing Direc- off. welcome foreign firms, while Several firm leaders caution tor of Australian Operations “Probably 50 percent of others, for all intents and pur- that certain legal and ethi- David Bell says, “We entered those revenues have dried up poses, are closed to foreigners. cal issues can put a company [Australia] carefully and cau- in the past few years,” says Even the larger markets— afoul of the Foreign Corrupt tiously, did our homework HDR’s Bell, “but we expect China, India, Japan and South Practices Act. “When it comes and then acquired three good Australia to re-emerge in Korea—can be inhospitable to to ethics and com- organizations.” 2016.” Western firms, due either to pliance, you have Kleinfelder’s formal regulations or informal to be vigilant and “One of the Siegel also pur- hurdles. protect yourself,” sued business in “Western firms doing busi- Nye says. challenges is Australia. “We ness in Asia have run into determining if followed where difficulties dealing with the Strategic you’re going into our existing cli- different markets and cul- Entry a new market ents are spending tures,” says CH2M HILL Asia Given the unique for a single money and con- Pacific Managing Director character of many assignment or tracting for ser- Steve Nye. “But because of the of these countries, vices, and where global tilt towards Asia, with firm leaders say to set up camp. we see long-term its rapidly growing economies acquisition is the What is your economic growth. and emerging middle class, only viable entry strategy for Australia was an it’s where a lot of firms want strategy. the long term? obvious choice, to be.” “Parachut- One project so we opened s ing a guy into a an office there,

doesn’t make a etty Image Market Challenges market and grow- studied the mar- G our/ “You have to be in multiple ing the business business,” says ket and then b Bar sectors in a lot of these mar- organically is a Steve Nye of acquired a couple E kets because they aren’t big nonstarter,” says CH2M HILL. of firms.” Scott

4 ENGINEERING INC. March / April 2015 MarketWatch

country are, “China has been a hard PACIFIC OCEAN and do you place for us to do business,” have the poli- says Davert. “We had 1,000 cies, processes people in China; now we’re and leadership down to about 100. To truly to operate in compete in China and India, these geog- you need to have a critical raphies,” he mass of 4,000 to 5,000 peo- says. “Some- ple, and you need to operate times the in multiple markets.” INDIAN OCEAN opportunities Nye concurs: “History can be good, tells us that very few Western but your abil- firms have done particularly ity to win well in China, and those them and that do well focus on mul- deliver them tinationals. An American profitably may company building a manu- not be as good facturing facility in China as you think.” will bring a U.S. engineering In Brunei, firm with them because they for example, have a level of comfort about receivables can the quality of work they will often stretch get.” to more than The Indian market can be 300 days. equally difficult for West- Filling the void, says Nye, and surging economies, are “There’s business to be done ern firms to penetrate. The will be infrastructure invest- investing in infrastructure at there,” says Nye, “but you market is extremely price- ment. “Spending on urban a much faster pace than the have to be able to fund your sensitive—Western firms transportation infrastructure United States, and they like operation in the meantime.” have difficulty competing on the east coast [of Australia] to contract with American against low-cost local service will be in the tens, if not hun- firms because of their stability China and India providers. In addition, proj- dreds, of billions of dollars.” and quality. CH2M HILL’s Despite their size and poten- ect funding can be uncertain, Kleinfelder’s Siegel is also Nye warns, however, that it tial, neither China nor India and schedules can stretch optimistic: “We feel there’s isn’t enough to just follow the is high on the target lists for out interminably due to per- a lot of room for growth in money. American firms. mitting and environmental Australia.” “One of the challenges is On one hand, China is delays. Most big projects in Aus- determining if you’re going embarking on some of the MWH is one of the few tralia—and in many Asian into a new market for a single largest engineering projects in American firms with offices countries—use design-build assignment or to set up camp,” history, including a series of in India, employing about for contracting and public- says Nye. “What is your huge hydroelectric dams on the 100 people. However, its private partnerships (P3s) for strategy for the long term? Yarlung Tsangpo River and the primary presence is its Pune financing. Australia has intro- One project doesn’t make a South-North Water Transfer Resources Center, where a duced a unique twist to P3s business.” Project, which is estimated to staff of 400 designers works called “Alliancing,” in which Sometimes, he adds, the cost close to $40 billion. On on projects for the firm’s the government entity is an biggest-spending coun- the other hand, the Chinese offices in other countries. active member of the project tries may not be the best market can be xenophobic and team and actually shares in the destinations. brutally price-competitive, and Gerry Donohue is ACEC’s profits and losses. “It’s more important to foreign firms must navigate senior communications writer. Many Asian countries, with know how the money will be a seemingly endless maze of He can be reached at their growing middle classes spent, what the rules in the bureaucratic rules. [email protected].

March / April 2015 ENGINEERING INC. 5 Legislative Action

Congress Eyes Highway Trust Tax Reform Fund Fix, Long-Term Transportation Momentum Builds Reauthorization resident Obama and several congres- eaders in the House and The most significant challenge Introduced legislation sional leaders continue to express Senate are working to iden- facing Congress is how to fund the creating a one-time tax Pinterest in simplifying the federal Ltify a way to shore up the program and bridge the $15 bil- holiday on repatriated tax code, though significant differences depleted Highway Trust Fund and lion annual gap between current earnings as revenue for remain. advance a long-term reauthoriza- funding levels and revenues into Highway Trust Fund. Treasury officials are focused on lower- tion of federal highway, transit and the Highway Trust Fund. Several ing the top corporate tax rate, which at 35 safety programs. The current short- Senate Republicans have expressed percent is the highest among developed term extension expires May 31. openness to increasing federal gas nations. The chairmen of the House and ACEC joined with other stake- and diesel taxes as one potential Senate tax-writing committees also want holders in securing the signatures option, in part because the price of to lower tax rates paid by pass-through of 285 members of Congress to a oil has dropped significantly over businesses, such as S corporations and letter urging House Speaker John the past year. House leaders have partnerships. ACEC continues to advocate Boehner (R-Ohio) and Minority been less supportive and point to for comprehensive tax reform that treats all Leader Nancy Pelosi (D-Calif.) other tax code changes, including Sen. Barbara Boxer business structures equally. to make passage of a long-term repatriation of overseas corporate (D-Calif.) There is also disagreement over whether transportation bill a top priority. earnings, as a path forward to tax reform should be revenue-neutral or “We are united in our conviction supplementing the Trust Fund. increase the overall tax burden. The admin- that now is the time to end the Sens. Barbara Boxer (D-Calif.) istration and many in Congress agree that cycle of short-term extensions that and Rand Paul (R-Ky.) have intro- tax reform could present an opportunity to kick the can down the road by duced legislation to provide a one- divert needed revenues into the Highway doing the work needed to pass a time tax holiday on repatriated Trust Fund. multi-year surface transportation earnings, cutting the rate from The window for complex legislation bill,” the bipartisan group wrote. 35 percent to 6.5 percent and Sen. Rand Paul (R-Ky.) such as tax reform will begin to close as “To make this happen, we support depositing the revenues into the the presidential election cycle accelerates. efforts to develop a long-term Highway Trust Fund. Reps. John However, the tax-writing committees are sustainable revenue source for our Delaney (D-Md.) and Richard expected to continue working toward tax nation’s transportation network as Hanna (R-N.Y.) have introduced Introduced reform even if a bill won’t be up for a vote soon as possible. Otherwise, we the Infrastructure 2.0 Act, which Infrastructure 2.0 Act until after the 2016 election. ACEC con- will not be able to enact a trans- establishes a mandatory 8.75 per- to boost Highway tinues to engage with congressional leaders portation bill that truly meets our cent tax rate for existing overseas Trust Fund. to ensure that the engineering industry’s tax nation’s economic and infrastruc- earnings. According to the policy priorities are considered. ture needs.” sponsors, it could produce enough Senate Finance Committee Chairman The Senate Environment and revenue to fill the gap in the High- Orrin Hatch (R-Utah) offers his vision for Public Works Committee is way Trust Fund for six years and comprehensive tax reform beginning on expected to unveil its reautho- capitalize a new $50 billion Ameri- page 8. rization legislation in the com- can Infrastructure Fund to finance ing weeks. In a recent hearing, transportation, water, energy, com- Chairman Jim Inhofe (R-Okla.) munications and educational facil- Rep. John Delaney said passage of a long-term, fis- ity projects. President Obama has (D-Md.) cally responsible bill is the com- supported a similar approach in mittee’s foremost priority. “The his 2016 budget proposal. Recent conservative position is to pass a comments by congressional leaders bill instead of short-term exten- suggest that some form of repatria-

es sions,” which cost taxpayers more tion is under serious consideration ag money because of project deferrals as a way to shore up the Highway and delays, he said. The bill will Trust Fund, though some mem-

rrer/Getty Im rrer/Getty likely be similar to the six-year bers prefer that repatriation be a bill unanimously approved by the handled in the context of corpo- Rep. RIchard Hanna

Andrew H Andrew committee in 2014. rate tax reform. (R-N.Y.)

6 ENGINEERING INC. March / April 2015 IssuEs on the move What’s Next MAP-21 Reauthorization Action needed by May

Tax Reform House, Senate committee action possible in the spring

Senator Hatch Introduces ACEC-Backed H-1B Visa Reform Legislation bipartisan group of the possibility of raising it as senators led by Senate high as 195,000, depending on A Finance Committee economic conditions. The bill Chairman Orrin Hatch would also remove the limit (R-Utah) introduced the on H-1B visas for advanced rk la Immigration Innovation Act of STEM degree holders, recap- C k ill c 2015, legislation that would ture unused green cards and es/B nksto ag update the H-1B visa system allow spouses of H-1B visa Thi e/ AP Im c

o to make it easier to attract holders to work. g and keep top-tier engineering ACEC has long supported FAA Proposes Rules talent in this country. ACEC reforming the H-1B visa for Drone Use; ACEC sent Senator Hatch a letter of system to allow engineering support. firms to hire the skilled people Developing Industry Input The legislation would they need to serve their clients

rk he Federal Aviation Administration (FAA) has increase the cap on H-1B visas when American engineers are la C released a set of proposed rules for regulating ill from 65,000 to 115,000, with not available. es/B commercial use of small unmanned aircraft ag T systems (UAS). AP Im Under the rules, unmanned aircraft must weigh less than House Votes to Increase 55 pounds and be operated only during daylight hours at Full-Time Employee a maximum height of 500 feet above ground level. The Delineation in Affordable regulations would prohibit automated flights and require UAS to remain within sight of the operator at all times. Care Act The rules would allow, but not require, an operator to he House of Representatives passed the Save Ameri- work with a visual observer who would maintain constant can Workers Act, which raises the threshold defining visual contact with the aircraft. The operator would still need full-time employees under the Affordable Care Act to be able to see the UAS with unaided vision (except for T from 30 hours to 40 hours per week. ACEC and other busi- glasses). UAS operation would be restricted around airport ness organizations support the legislation. flight paths and locations that pose a threat to other aircraft, es

ag Under the health care law, employers with more than 50 people or property. full-time employees must offer qualified health insurance or UAS operators would be required to pass a written test pay penalties. ms/Getty Im ms/Getty on aviation rules and aeronautical knowledge to be certified. ACEC worked with a broad coalition of business organiza- Willia No further pilot rating would be required. om

T tions in supporting the legislation. The House approved the ACEC will be submitting feedback to the FAA on the measure by a vote of 252-172. Similar legislation has been proposed rule. Contact Matt Reiffer at [email protected] introduced in the Senate. Officials at the White House say with questions or comments. President Obama would veto the bill. The Council also continues to participate on an FAA Rulemaking Task Force on larger UAS operated beyond es

ag the visual line of sight. The task force is identifying potential industry applications, including facility inspections, surveying For More News and mapping, along with near- and long-term operational ms/Getty Im ms/Getty For weekly legislative news, barriers and risks. Willia visit ACEC’s Lastd Wor online om

T The small UAS rule is expected to take up to two years to be finalized. at www.acec.org.

March / April 2015 ENGINEERING INC. 7

Sne ator Orrin H atch Unveils His Vision A ddresses comprehensive tax reform and infrastructure funding

s a seven-term senator, Orrin Hatch (R-Utah) is now the Senate’s senior Republican and chairman of the Senate Finance Committee. His 38-year career includes spearheading passage of both the Balanced Budget Amendment to the Constitution and the America’s Security Act. As committee chairman, AHatch will have a vital voice on numerous legislative issues affecting engineering firms. In this exclusive interview with Engineering Inc., the senator offers y Landsman ar G his perspectives on the importance of tax reform, the hy by hy by p development of a long-term highway bill and the

Photogra funding of infrastructure. >>

March / April 2015 ENGINEERING INC. 9 ACEC: As the chairman of the With these principles as our guideposts, the president and his past budgets. And, Senate Finance Committee, you will I believe Congress will be able to develop don’t forget, the White House received have a major role in shaping efforts strong consensus on a plan that will more than $600 billion in new revenue in to reform the tax code in 2015. What rebuild the system in a way that will spur the fiscal cliff deal that passed Congress a outcomes are you looking to achieve economic growth, jumpstart job creation few years ago. in a comprehensive tax reform and, once again, restore prosperity to the Clearly, the issue of raising revenue package? American people. through tax reform is a subject of great I’ve said it many times before and I’ll debate amongst both parties. But before Sen. Orrin Hatch: Comprehensive tax say it again: I’m willing to work with addressing the issue of revenue, Congress reform is no longer optional—it’s essen- anyone—Republican or Democrat—to and the administration must first work tial if we’re going to get our economy reform our nation’s tax code. And I look together to move the ball forward in a rea- moving again. And promoting growth in forward to continuing this effort in the sonable and responsible manner to actually jobs and the economy must be our first 114th Congress and, if necessary, beyond. reform the code. and most important goal. This means finding consensus on poli- In December, I released a report ACEC: ACEC represents over cies that will help to lower the rates and drafted by my staff on the Senate Finance 5,000 engineering firms that are broaden the base. We need to simplify the Committee titled Comprehensive Tax a mixture of C corporations, S code and make it easier and more efficient Reform for 2015 and Beyond. This report corporations, partnerships, LLCs for individuals and families. We also need outlines the major issues policymakers and sole proprietorships. Do you to make the tax code more competitive for will have to confront as we undertake think Congress should pursue American job creators. This means lower- tax reform. The report is corporate-only tax reform ing the corporate tax rate and shifting to not a tax reform plan and “We also need or tax reform that treats a territorial tax system with base erosion is instead a discussion of all business structures protections. Pro-growth tax reform will ideas and principles that I to make the equally? mean more income, more jobs and more hope will be the first step in tax code more opportunities for all Americans. The rev- a renewed bipartisan effort competitive for Hatch: My preference has enue question would be resolved through to reform our nation’s tax American job always been to do comprehen- this process. code. sive tax reform on a bipartisan As the report outlines creators. This basis because America’s anti- ACEC: It is generally expected in detail, comprehensive means lowering competitive tax system hurts that tax reform will combine lower tax reform should embrace the corporate tax growth, is unfair and is too tax rates with a broader tax base seven key principles: eco- rate and shifting complex. through eliminating various tax nomic growth, fairness, Should the administration credits and deductions. ACEC simplicity, permanence, to a territorial show real leadership and opt to Member Firms understand the need competitiveness, promoting tax system with put forward a detailed proposal for tradeoffs, but there are some savings and investments, base erosion on how to resolve the problems provisions—such as proposed limits and revenue neutrality. protections.” on the business side of the on cash accounting—that would be tax code—including proper very problematic for engineering treatment of pass-through firms, even with lower tax rates. Do entities—I would be willing to you think all tax preferences should listen and consider their ideas. be on the table for discussion, or are there areas you think Congress ACEC: One of the major should avoid when reforming the points of disagreement tax code? between the White House and Congress is whether Hatch: Certainty in the tax code is a very tax reform should be used important factor in allowing businesses to as a means for raising plan their affairs, make investments and cre- revenue or remain revenue ate jobs. And these job creators don’t want neutral. Do you believe bad certainty—they don’t want to hear that this difference can be their taxes are going up. Congress should overcome in order to move provide this certainty by making permanent a reform bill forward? the provisions that are worthy of remaining in the law and eliminating those that are not. Hatch: In my view, America This Congress and the Finance Commit- needs tax reform for tax reform’s tee will continue with its efforts to examine ACEC Chairman Richard Wells with Sen. Hatch. sake—not tax hikes disguised as a variety of tax preferences to see what tax reform, as we’ve seen with works and what doesn’t. In my view, when

10 ENGINEERING INC. March / April 2015 From left: Sen. Orrin Hatch meets at his office on Capitol Hill with ACEC President Dave Raymond and ACEC Chairman Richard Wells. we reduce or eliminate certain tax prefer- private partnership ideas have Works and the House Committee on Trans- ences, we should use the revenue generated been proposed to assist states portation and Infrastructure have held hear- to lower tax rates. and local governments in financing ings examining new proposals to finance infrastructure projects, such as infrastructure, but these mechanisms in and ACEC: Transportation-related infrastructure banks, lifting the of themselves do not address the funding revenues into the Highway Trust Fund volume cap on private activity bonds side of the equation, which is mostly repre- aren’t keeping pace with spending for water/wastewater projects, and sented by the Highway Trust Fund. levels or funding needs. ACEC has other tax mechanisms for leveraging Keeping that in mind, I’m in favor of repeatedly said that all options have private investment. Are these the considering any approach that allows states to be on the table for a long-term, approaches that Congress should be and communities to be better able to make sustainable financing solution. What pursuing? and implement decisions regarding the are the prospects for the House, infrastructure they need. However, we need Senate and the administration to Hatch: First, we need to be clear on the to make sure that any financing mechanism reach consensus on this issue before difference between funding and financing. is in the interest of taxpayers and doesn’t MAP-21 funding expires in May Already, committees such as the Senate simply shift costs around without also creat- 2015? Do you see this happening as Committee on Environment and Public ing efficiencies. n part of a reauthorization bill or as an element of a larger agreement on a Fast Facts for Sen. Orrin Hatch tax or budget deal? Personal Professional Hatch: I’ve advocated for the development • Birth date: March 22, 1934 • Attorney, Pringle, Bredin, and Martin of a long-term highway bill that will give the • Wife: Elaine Hansen Hatch (Pittsburgh) 1962–1969 transportation community stability and pre- • Children: 6 • Attorney, various firms (Salt Lake City) dictability. I firmly believe Congress should • Grandchildren: 23 1969–1976 examine all potential options when it comes • Great-grandchildren: 14 • U.S. senator from Utah, 1977–present to creating a viable solution to this problem and look forward to working with my col- Education Senate Committee Assignments leagues on the Senate Finance Committee • University of Pittsburgh, J.D., 1962 • Finance Committee to establish a sound financial structure for • Brigham Young University, B.A. • Health, Education, Labor and Pensions the Highway Trust Fund next year. (history), 1959 Committee • Judiciary Committee ACEC: With the decline in federal revenues, a variety of public-

March / April 2015 ENGINEERING INC. 11

Engineer-

Engineers who also hold state and Elect local public office are rare, but they bring a knack for problem solving to government

By Bob Woods ngineers are known for providing imaginative solutions to pressing social challenges, which allow Americans to drink clean water, enjoy new technologies and travel safely and efficiently. Elected officeholders in state and local government also seek meaningful answers to Equality of life issues faced by their constituents. But in the instances when engineers can utilize their technical proficiency while fulfilling responsibilities as an elected mages I officeholder, the benefit to the public is magnified. etty G hy/ p In this special Engineering Inc. report, a quartet of current and former state and local officeholders, who are also engineers, share their problem-solving

Fotis Vrotsis Photogra experiences in government.>>

March / April 2015 ENGINEERING INC. 13

Pathway to Putting Experience engineering from Missouri University of Public Service To Work Science and Technology (formerly Uni- Charles Busby is CEO During his first term, versity of Missouri-Rolla), “I always had and president of Orion Costello became chair of the an interest in politics,” he says. “As a kid, Engineering in Mississippi city’s Flooding and Drainage I thought I’d like to get involved at some and also a freshman legisla- Committee, where he was level of government.” tor in the state’s House of able to champion issues that Lally did just that as soon as he moved Representatives. He rep- were important to him. “We to Kansas City after college, volunteer- resents the nearly 24,000 created Renew Houston, ing for various political campaigns while constituents of District “On a program to reinvest in simultaneously launching his engineering 111, an industrial region in environmental infrastructure by combining career at Black & Veatch and going back the state’s southeast corner new revenue from a drain- to school for an MBA in finance. He later that includes his home- issues, my age fee and a conservative relocated to Overland Park, a community REPRESENTATIVE RICK CATLIN, 20TH DISTRICT

North Carolina General Assembly town of Pascagoula. The backgroundHouse of Representatives is approach to municipal of about 175,000 residents. In 1992, State Legislative Building 51-year-old Busby has long a majorRaleigh, NC 27601asset. funding,” he explains. Now when the local councilman announced been civically active, from I approach called ReBuild Houston, his early retirement, the local Democratic serving as sophomore class the program aims to replace Party appointed Lally to replace him. president to Little League everything about 70 percent of Hous- “I had nine months to see if it would coach to member of the factually and ton’s street and drainage sit well with my career and my family,” he local planning commission. technically, and infrastructure over 20 years says, referring to the time before his seat “It’s important that you not politically.” at a cost of up to would be up for election. “I got into it demonstrate to the voters, $8 billion. and loved being involved in helping shape Rick Catlin prior to running for office, In assessing how his back- the community.” That positive experience Catlin Engineers & that you’re willing to give of ground factored into the convinced him to run, successfully, for a Scientists yourself for the good of the bill’s passage, Costello, now full term in 1993 and again in 1997. He N.C. General Assembly public,” he says. 61, says, “The fact that I’m and his wife had three young children at Representative In 2011, a group of local an engineer and a specialist the time, and he’d moved on to another citizens recruited Busby to in storm-water management firm as a managing consulting engineer. seek his first elected office. After passing gave me a level of credibility “It was a real balancing muster with GOP leaders in Jackson, the in talking to the public.” act,” Lally, now 53, admits. state capital, “I felt this tremendous pres- Likewise, Mike Lally, vice Although he juggled it all sure to have answers for all the woes that president at Olsson Associ- with aplomb, when his sec- plagued Mississippi, and I simply didn’t ates, an engineering design ond term ended in 2001, have those answers,” he says. He finally firm headquartered in Lin- Lally opted to retire from decided that the only way to find them coln, Nebraska, acknowl- politics. “I loved what I was was to run. “I needed to ask the right edges that his resume doing, but my kids were questions, and I was comfortable that I made him an effective city older, and I knew I couldn’t could do that.” In the election, he nipped councilman for nine years be the father I wanted to the incumbent—a lawyer—by 35 votes. in Overland Park, Kansas, be by trying to make a liv- Stephen Costello took a less deliber- a suburb of Kansas City. “Whether we ing and doing the political ate route than Busby to public office. As “There’s no doubt that being were dealing thing.” president of Costello, Inc., the Houston- an engineer, especially from with roads, based civil engineering and surveying the public works perspec- Connecting the Dots firm he co-founded in 1991, he focused tive, was extremely helpful traffic, storm- As much as being an engi- less on civics and more on improving the in understanding what we water or other neer enhanced Lally’s job fourth-largest U.S. city’s crumbling streets were trying to accomplish,” projects, as councilman, what he and drainage systems. But in 2008, when he says. “Whether we were the guys in learned in public office his local ACEC chapter—which had been dealing with roads, traf- has boosted his career at advocating for infrastructure investment fic, storm-water or other public works Olsson, which he joined and storm-water management—suggested projects, the guys in public appreciated my in 2004. “Understanding that one of its members run for city coun- works appreciated my back- background. how city governments work cil and man the bully pulpit, Costello ground. They knew that I They knew that has been very beneficial,” raised his hand, if reluctantly. ‘got it’ in terms of regula- he observes. That became “Before that moment, I never, ever tions and certain aspects of I ‘got it.’” apparent while recently thought I’d be in politics,” he concedes. “I science and engineering.” Mike Lally working with a client in had a successful engineering practice, and Even before Lally earned Olsson Associates Missouri on a sanitary sew- my wife and I were empty nesters. I don’t his bachelor’s and mas- former city councilman age system. “We needed to know why I volunteered.” ter’s degrees in geological Overland Park, Kansas meet with the mayor, the

14 ENGINEERING INC. March / April 2015 groundbreaking restoration

ECS is the lead environmental consultant and the geotechnical engineer of record for this complex array of 6 buildings, oﬀ shore piers, and dock. ECS is also performing materials testi ng and inspecti on services for this urban renewal project. “This is a once in a lifeti me redevelopment project. ECS is privileged to provide a sizeable contributi on to the historic reshaping of Washington, DC’s Southwest Waterfront. ” - Pam Oelerich, ECS Environmental Professional

Rendering Courtesy of The Wharf: Hoﬀ man-Madison Waterfront

ENGINEERING CONSULTING SERVICES GEOTECHNICAL CONSTRUCTION MATERIALS TESTING ENVIRONMENTAL FACILITIES www.ecslimited.com

™ city council person who oversees public works, the city manager and the public The Engineer Who Would Be Mayor works director,” he recalls. Lally was able Stephen Costello, Houston to convince them to raise taxes to fund city council member at-large the project. and president of Costello, “Nobody wants to raise taxes,” he Inc., has announced his asserts, “but I had a certain amount of intention to run for mayor of empathy for the mayor and the other offi- Houston in 2015. cials. I’ve been in their shoes and understand the thought process they’re going Q: How does your engineer- through. I had to make similar decisions ing background help you as all the time. My training as city council- an elected official? Houston mayoral candidate Stephen Costello (center) and man has been invaluable in serving vari- A: We’re problem-solvers. In his wife, Debra, meet with Chief of the Houston Police ous clients today.” Department Charles McClelland. On the other hand, Rick Catlin, presi- order to be a problem-solver, dent and owner of Catlin Engineers and you have to step back, take Scientists in Wilmington, North Caro- the emotion out of the issue, just look at the facts and try to develop a series of lina, doesn’t make much of a connection solutions. When I first got on the council, other members would come to me with between his engineering practice and his an issue and ask what I thought. It was rewarding to know that we are respected as public service. “Very little of what I do in a profession, and they value our position. But as an engineer, sometimes that does politics relates to my business,” says the get in the way. We might think this is the right solution, but in any political world, District 20 representative in the North there are a number of viable solutions. Sometimes there are solutions that don’t Carolina General Assembly. He’s in the solve the problem entirely, and there’s a compromise everyone is happy with. So midst of his first term after more than you have to be able to feel comfortable with those types of conclusions. I call it the 20 years of active leadership on local and gray area. It’s related to how you interface with the public and those who either state commissions. Yet like Busby, Costello and Lally, agree or disagree with you. Catlin brings his engineering experience to bear in the political realm. “As Q: As an avid amateur athlete who’s completed more than 40 marathons, you an environmental engineer, I understand know about running, so what are your thoughts about running for mayor of the economic benefits of a healthy envi- Houston this year? ronment, clean water, adequate water A: I made the decision to run for mayor about a year ago. The city is a giant ser- supplies, healthy beaches and navigable vice organization. It’s really no different from an engineering firm that is a service waterways,” he states. “I research legisla- organization. I want to bring my business practices and engineering skills to the tion like an engineer does designs. I often city to improve the quality of life. I want to give back to the city. draw charts and algorithms to make sure we understand the legal wording, because Q: Besides infrastructure, what other local issues are important to you? I’m not a lawyer. On environmental A: I’ve also been involved in social, public health and economic-development issues, my background is a major asset. I approach everything factually and techni- issues. One is the “food desert” issue. We’re advocating for access to healthy cally, and not politically.” food in underserved neighborhoods. I met my wife in a local grocery store, when Catlin, 60, points to the wide range of we were two teenagers working part time, over 40 years ago. This issue not tangible and intangible qualities that engi- only solves a public health-related problem, but provides part-time jobs and is an neers possess—which are assets in pursu- economic-development driver when you get other retail stores moving into those ing elected office. “We, as professional neighborhoods. engineers, live by ethical standards,” he says. “We bring nonpolitical solutions Q: Why should more engineers consider pursuing elected office? to issues that have not been viewed from A: Infrastructure is part of every service you provide to the public. People take for our perspective for many years. We have a granted turning on the faucet and flushing the toilet, that when it rains the water strong focus on infrastructure, regulatory just drains somewhere. If we’re providing public safety, the police officers and fire- efficiency, public health and safety, educa- fighters have to drive on the streets we design. As engineers, we need to bring to tion and environmental protection. There are people with expertise in other areas, the forefront the requirements necessary for infrastructure investment. Someone but it’s good to balance the tools and once told me, we are the generation of users. The generations before us built our resources in politics.” n cities, and we’ve been using what they built, but we haven’t been refurbishing it for the next generation. We have to change that dynamic and be the generation that Bob Woods is a technology and business rebuilds our city for the next two generations. writer based in Madison, Conn.

16 ENGINEERING INC. March / April 2015 Isn't it time your document management tools grew up?

The first document management solution for contractors.

Download your free trial at http://info.skysiteprojects.com/tools Breaking the

Commoditization: Mold How to overcome a major threat to a firm’s success

By Samuel Greengard n this era of rapid change, from globalization to emerging technologies, delivering value to customers and clients is more complicated than ever. A/E firms find themselves facing an increasingly competitive and cutthroat marketplace—with clients Iwho don’t always recognize or want to recognize differing values in products and services. The result is that as pricing pressures increase, so does the risk of engineering services becoming g

commoditized.>> Ann Cuttin

18 ENGINEERING INC. March / April 2015 Ann Cutting In more than 900 differences in professional trend toward standardization, efficiency responses by Member Firm services such as engineer- and uniformity. CEOs, presidents and chair- ing—differences in exper- William D. Lawson, an associate pro- men to the ACEC Engineer- tise, quality and the people. fessor in the Department of Civil and ing Business Index quarterly “These incorrigible clients Environmental Engineering at Texas Tech survey in 2014, commod- will never see engineering University and a former practitioner in the itization was consistently other than ‘get the lowest field, says, “It’s about consumers desiring named the third biggest price,’ and there are engi- systems—and companies responding by threat to an engineering neering firms that actually creating systems—that deliver products firm’s success, behind only “People win that kind of commod- and services in a reliable and expected way. adverse economic trends purchasing itization battle.” A certain amount of autonomy is forfeited and a lack of public/private That commodity model by professional services firms in order to funding. engineering is an approach that often satisfy the demands of the marketplace.” services aren’t upsets other practitioners. Lawson believes that this ongoing A Growing Threat as awed by “Commoditization devalues trend—accelerated by information tech- All businesses face pricing professional the industry as a whole,” nology and macroeconomic factors—con- pressures, but it’s clear that says Mike McMeekin, presi- tributes to a belief by some that all A/E things have changed in the knowledge as dent at Lamp Rynearson & firms are essentially equal and that price A/E industry over the last they once were. Associates and chairman of is a suitable criterion to differentiate and few decades. While products It’s a reality ACEC’s Management Prac- assess knowledge and expertise. “People such as steel, coffee and pork that cuts across tices Committee. purchasing engineering services aren’t as bellies are clearly commodi- The challenges of com- awed by professional knowledge as they ties, engineering and design professions and moditization to the industry once were. It’s a reality that cuts across services increasingly face fields.” are magnified due to several professions and fields.” many of the same pricing William D. Lawson factors: technology and pressures—even at firms that Texas Tech University growing access to data and Facing the Challenge are acknowledged industry information, social media Navigating an increasingly challenging leaders. Today, more procure- tools that allow organizations business environment and conquering ment strategies and selection processes to see what’s taking place in the field, and commoditization requires new thinking, focus heavily on lowest-cost providers. an abundance of players in the A/E field, a more strategic business framework and “I’m not surprised at all that commod- including upstarts located outside the U.S. a high level of communication with both itization is ranked so highly among threats As Terry L. Giles, president and CEO prospective and existing clients. While to an engineering firm’s success,” says Ray of Giles Engineering Associates, explains: some firms may succeed by cutting costs Kogan, president of Kogan & Company, a “Technology is a double-edged sword. It and improving efficiency—including turn- strategy and management consulting firm introduces new opportunities but also new ing to foreign firms that handle drafting for the design and construction industry. challenges.” work and other less strategic tasks at one- “It’s always been a chief concern among Databases, maps, aerial photos, satellite fifth or one-tenth the cost—the overall industry leaders and specifically since the images and reports that once required spe- equation is far more complex. The reality beginning of the recession.” cific knowledge or proprietary access are is that there’s no single or simple fix. Kogan explains that during the recession now widely available online. It’s now pos- One supported strategy is to continue clients and firms were increasingly com- sible to access special libraries with a click to educate and encourage lawmakers and pelled to emphasize lower costs—from rather than embarking on a several days’ government agencies to enforce existing the client’s view to get a project started, trek across the country. At the same time, Qualifications-Based Selection (QBS) and from the firm’s view to keep people design and engineering firms—as well as laws. In the ACEC Engineering Business employed. those contracting with these companies— Index, 41 percent of survey responders He says that scenario added to the can outsource discreet tasks to consultants believe this, more than any other factor, is notion of there being no differentiation in and third-party providers, often at signifi- the best defense against commoditization. the engineering product—a notion that is cantly lower prices. Finally, Giles says, the McMeekin works within professional growing today and representing the indus- concept of value is changing. “In many societies and organizations to advance try’s own version of a “recession hangover.” cases, clients view reports and other docu- QBS processes. “It is important that we Most experts believe that some comments as commodity items. There is a lack have laws and procedures in place that moditization has always occurred—and of understanding about what is required focus on qualifications,” he says. “We some practitioners actually thrive as low- to produce and interpret them.” must work together and with other pro- cost commodity players because they’re The result is downward pressure on fessional societies in both the public and able to deliver basic or turnkey services pricing. Sociologist George Ritzer, a dis- private sectors to create a framework based very efficiently. tinguished professor at the University of on value and qualifications.” Kogan notes there will always be cli- Maryland, has coined the term “McDon- ACEC was the driving force that ents who will never understand or accept aldization” to address an overarching social prompted Congress to adopt the Brooks

20 ENGINEERING INC. March / April 2015 While strategy, planning, and execution are all essential ingredients to business success, at the heart of every winning organization is a thriving culture driven by informed, ethical, and decisive leadership. With deep practical experience across the engineering and construction industries, Crossroads Advisory is the go-to firm for transformations that ensure sustainable success. Our passion is making your organization wildly successful and securing your legacy.

previous CROSSROADS

CROSSROADS

CULTURE | transformation, teambuilding, executive coaching, leadership, ethics, corporate social responsibility CROSSROADS CROSSROADS STRATEGY | baseline and planning, M&A, technology A GOVERNANCE | board support, organization, safety, quality B CROSSROADSand excellence CROSSROADS

BUSINESS business growth, turnarounds, POSITIONING post-crisisA support, special events B – Gregory Sauter

CULTUREContact Gregory Sauter, President and CEO at 800-970-1572 [email protected] | crossroads.com.co CROSSROADS ADVISORY

C D The intersection of culture and performanceCROSSROADS KICKS C D STRATEGY’S BUTT EVERY TIME. Act in 1972 requiring Best Defense Against Commoditization the use of QBS for the procurement of architect Educate lawmakers and government agencies to and engineering services. enforce existing Qualifications-Based Selection 41% By law, QBS mandates laws and increase application. that since engineering is a Enhance marketing of a firm’s specialized expertise highly skilled service—a and capabilities to more effectively warrant 20% service that directly affects procurement that’s based on qualifications. ENGINEERS the health, safety and Eliminate service offerings that have been welfare of the public—it commoditized and avoid clients that commoditize 19% those services. is important that only the ARE SMART. most qualified and expe- Increase specialty services offered to create a 17% rienced firms be tasked competitive differentiator. with these critical func- tions and not be selected Create a separate “no frills” business unit that 3% on the basis of cheapest works only on commodity services. WE UNDERSTAND price. While efforts to 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% circumvent QBS occur, ENGINEERS. ACEC remains active in Source: ACEC Engineering Business Index (Fourth Quarter, 2014) ensuring that the law’s mandates are followed. QBS is used by all results, Giles says. “The expertise your says Bill Siegel, president and CEO of Engineers have great problem-solving skills. federal agencies, 46 state governments, and staff displays and how they demonstrate Kleinfelder. “The thing that’s important They value logic, precision, and brevity. We get many localities throughout the nation. and communicate their knowledge is to focus on is that coffee may be a com- it, and that’s why our course, “Eff ective writing for extremely important. If you go to a meet- modity, but people spend $5 at Starbucks Engineers” is so successful: it focuses on helping Differentiation ing as the principal of the firm, you can’t when they can spend about 50 cents at Kogan says a primary key to combating be the only person that speaks; you have a 7-Eleven,” he says. “Commoditization engineers develop strategies to streamline the commoditization is differentiating your to have the rest of your staff, whoever exists—it is driven by buyers—but it’s all writing process and write more eff ective documents. firm by portraying “superior intellect” on you happen to bring to a meeting, par- about differentiating yourself in the eyes a particular project. “What a client really ticipating. This includes young associates of a client. The real issue is whether we Skeptical? We’ve taught engineers at companies wants is what’s upstairs,” he says. who are handling many of the tasks and allow this to happen to our industry.” such as Intel, Stryker Orthopaedics, the US Army, “Presenting to a client that your firm interacting with key people at the client At Kleinfelder, this differentiation EMC, and VMware how to apply their critical is a true knowledge leader in a particular firm,” he says. “It’s critical that they have begins with rejecting projects that aren’t area, possessing specialized expertise that a level of confidence and the knowledge a good match. Siegel says that a firm can thinking skills to the writing process. adds perceptible value, is what will make a to address important tasks and engage establish itself as a technology leader, a client willing to pay extra.” in technical and business service-centric organization or a low-cost The result? Their engineers spend less time Another important step is discussions.” provider, but not all three. Ultimately, planning, writing, and revising and write to boost your firm’s market- Another way to protect it’s critical to “figure out which parts of better documents. ing and communicate the a firm from commoditiza- the business allow you to differentiate value of the expertise and tion is to eliminate service yourself and which parts are in fact a Our courses are customized to fi t your needs and capabilities you provide. Be offerings that have been commodity. You have to focus on value in clear about what makes your commoditized or consider the areas where you have an advantage,” are off ered as one, two, or three-day workshops. design and engineering ser- breaking off a still profitable he says. vices stand out. but commoditized activ- “It’s important to think in a more flex- Contact us to schedule a no-cost consultation today. Giles Engineering Associ- ity into a separate unit or ible and agile way,” McMeekin says. “You Visit us at the ACEC Annual Convention and Legislative ates trains engineers and company. Similarly, firms have to constantly monitor the business Summit, April 19-22, Booth #605. other professionals to ask a “Presenting to benefit by adding new and environment, technology and the over- detailed set of questions and a client that higher-margin products and all marketplace and understand how to work with clients in a highly your firm is a services and marketing them stand out.” collaborative way. “We work true knowledge effectively. “The environ- “Every client has their own hot but- to save money, create more ment is constantly chang- tons,” Kogan says. “If you can demon- efficient projects and solve leader in a ing, and there’s a need for strate superior intellect that addresses a problems. The goal is to particular area is ongoing analysis and client’s highest priorities, and impress create a long-term relation- what will make re-evaluation,” Lawson says. them with your thought leadership in that ship and deliver maximum a client willing specific area, then you will have effectively value,” Giles says. Forward Thinking combated commoditization.” n Catchy slogans and lofty to pay extra.” Understanding the dynam- Writing Training for Professionals mission statements don’t Ray Kogan ics of today’s business Samuel Greengard is a technology writer necessarily translate into Kogan & Company environment is essential, based in West Linn, Ore.

877-24WRITE (877-249-7483) | [email protected] 22 ENGINEERING INC. March / April 2015 ENGINEERS ARE SMART. WE UNDERSTAND ENGINEERS.

Engineers have great problem-solving skills. They value logic, precision, and brevity. We get it, and that’s why our course, “Eﬀ ective writing for Engineers” is so successful: it focuses on helping engineers develop strategies to streamline the writing process and write more eﬀ ective documents.

Skeptical? We’ve taught engineers at companies such as Intel, Stryker Orthopaedics, the US Army, EMC, and VMware how to apply their critical thinking skills to the writing process.

The result? Their engineers spend less time planning, writing, and revising and write better documents.

Our courses are customized to ﬁ t your needs and are oﬀ ered as one, two, or three-day workshops.

Contact us to schedule a no-cost consultation today. Visit us at the ACEC Annual Convention and Legislative Summit, April 19-22, Booth #605.

Writing Training for Professionals

877-24WRITE (877-249-7483) | [email protected] Empower your field enterprises with mobility technology for construction services, engineering, and inspection.

Agile Frameworks MetaField® field information management system uses standard mobile devices for remote gathering of information. Configure and brand your own entry forms and reports for literally any field activity including observations, inspections, field tests, discrepancy management, etc.

To arrange a comprehensive no-cost ROI analysis, please call Agile Frameworks at 800.779.1196 today!

www.agileframeworks.com Spotlight on IT

oftware apps have changed Sthe way engineers work. APP One app turns the iPad into a to high-resolution function plotter and scientific calculator, while another Order contains more than By Bob Violino 300 mechanical engineering When an conversion formulas. off-the-shelf Apps like Autodesk ForceEffect even app won’t allow you to sketch meet your concept designs ﬁ rm’s needs, and apply loads build one until your design is that does optimized. >> RANDY LYHUS RANDY

MARCH / APRIL 2015 ENGINEERING INC. 25 Such apps, short for appli- mercial software products. • SmartUse allows building and cations, are connected to the This strategy provides a infrastructure owners and construc- Internet and run on every- number of potential ben- tion team members to quickly and thing from desktop comput- efits as well as challenges easily review, annotate, compare and ers to mobile devices such for firms. share plans. as smartphones and tablets, Before exploring that • FotoIN Mobile is an automated and they’ve revolutionized option, let’s look at some mobile management solution that how engineers and project of the more popular engi- captures, documents and files site managers collaborate and neering apps on the market photos in customers’ storage reposito- communicate in the field. “You build that engineers are using for ries, the cloud or in-house. In essence, they’ve become it means you a variety of design applica- • BIManywhere is a visual BIM col- essential tools for A/E firms. tions. These and many laboration platform for construction Plenty of popular off-the- own it, and other apps can deliver a and facilities management. shelf apps are available today you can change range of benefits to engi- for all sorts of processes. the application neering firms. What to Consider While field management when you G Bluebeam Revu for the Sometimes firms can’t find the right and collaboration apps iPad is frequently used app to meet their needs, or the right are among the most com- want to.” to create and view PDF app at the right price. That’s when a monly used, firms are tak- ROB McKINNEY plans, mark up project build-your-own strategy can be the best ing advantage of a diversity THE CONSTRUCTION APP files and collaborate with approach. of available industry apps. GURU domestic and international This strategy can provide greater flex- These products run the work groups. ibility. “You build it means you own gamut from simple to complex and cheap • Autodesk’s BIM 360 Field construc- it, and you can change the application to expensive. tion management software enables when you want to,” says Rob McKin- In some cases, however, it makes sense almost anytime, anywhere access to ney, of the Construction App Guru, who for firms to build their own apps in-house project data throughout the building consults with construction and engineer- or use highly customized versions of com- construction lifecycle. ing firms about technology. Another possible benefit of building your own app is increased security, McKinney says. If, for example, a firm is working on a contract for a government or military client that has stringent security requirements, an off-the-shelf software product might not be suffi- ciently secure to meet the demands of the client. Some larger firms have their own Find the Lost Dollars Business Management Training for AEC Professionals is a 10 staff of app developers they can turn to, hour online course that provides an innovative approach with the following benefits: McKinney says. Many smaller and mid- sized firms, however, don’t have internal • Transform Project Managers into Business Managers staff and will need to look outside for • Increase Utilization, Win Rate and Project Profit Margin help. These firms can hire an experi- • Hold Your Staff Accountable for Measurable Results enced developer, either full time or on • Create/Track Individual or Team Goals for Continued Success retainer, to build an application within • Self-Paced, Engaging, Fun Format with NO Time Out of the Office its cost parameters. • Continuing Education Credits that produce return on investment When hiring a developer to create a single app, it’s important to keep in Courses include: 9 Areas Where Firms Lose Money, Project Financial Management, mind that you will be paying the devel- Marketing/Business Development, Time Management and more! oper not only to initially build the app, but for any necessary revisions and pos- VISIT THE WEBSITE FOR A PREVIEW OF THE CONTROLLING SCOPE CREEP COURSE! sibly for versions to run on multiple *Also learn more about the Business Management Assessment Tool that allows you to mobile operating environments, such as evaluate your people, processes and technology from your team’s perspective. iOS and Android, McKinney says. Smaller firms also have the option of leveraging online platforms to create rel- www.AECBusiness.com/ACEC1 atively simple applications, such as daily reporting, McKinney says. For example, Intuit Inc.’s QuickBase is a cloud-based

26 ENGINEERING INC. MARCH / APRIL 2015 Is Your Technology Investment INNOVATIVE or OUTDATED? Project-Based Business Management Software for AEC Firms

Client Resource Project Mobile Field Financial Human Capital Relationship Management Management Service Management Management Management & Procurement & Accounting Management & Analytics

Business Intelligence (BI) • Document Management • Collaboration • Regulatory Compliance

The paradigm for Architecture, Engineering & Construction (AEC) firms is changing more rapidly than ever before. Sustained growth depends on flexibility, agility, and adaptation to changing business objectives at many levels or layers within an organization. As a result your business management software investment should enable business process flexibility, support organizational change, and foster rapid adaptation to evolving operational and market needs. It should not be a series of silos and bottlenecks, rather a unified ecosystem that provides role specific insight to anticipate rather than react to rapid change. To meet these demands, Sopris AEC software for Microsoft Dynamics provides agile project-based business management software that enables your firm to stay innovative with leading edge practices, thereby delivering insights that enable better decisions and guide adaptive processes that optimize results.

Innovative Client Relations Management Technologies for Engineers Join Matt Pfohl, Executive Vice President of Sopris Systems and a panel of industry experts as they discuss these innovations and opportunities with Big Data, Mobility, Cloud, and Social Media. ACEC Annual Convention April 22, 2015 Stop by our booth at the convention for a chance to win a Microsoft Surface. www.soprissystems.com/events.html

10200 E Girard Avenue #C, Suite 350 | Denver, CO 80231 | 303-872-4926 | [email protected] | www.soprissystems.com platform that enables companies to build “Atkins has a large and industry-leading industry goodwill generated from the a variety of customized apps for different flood mapping business. As part of this application is far greater than the actual computing devices. business, we found that many of the amount of funds we could recover from “You can go into QuickBase and build questions the general public asked us in sales of the application.” your apps and then share them with town hall forums could be most effec- Another firm, MWH Global, devel- your team,” McKinney says. “The only tively answered with the help of a mobile oped an app called AutoForm that lets caveat is that it’s very Internet-dependent. application,” says Michael DePue, vice users collect data in the field while There’s no offline mode, so that can be an president of the Floodplain Hazard Man- offline. The data is entered in an easy-to- issue for access from remote areas.” agement group at Atkins. use form that reduces input errors, says Another company, Catavolt, offers an “In a town hall forum, the most com- Jim Dwyer, senior manager of mTOOLS enterprise application mobility platform mon flood mapping question is the exact product development at MWH. that allows companies to quickly create flood zone for a specific property,” DePue Forms can be created to handle simple mobile apps. says. “Combining the geolocation features or complex data relationships, Dwyer McKinney says some software compa- of a smartphone with a data mashup says. Form data includes text, drop- nies, such as Procore, allow customers to allowed us to answer this common ques- downs, checkboxes, dates, weather, pho- request new features to products through tion and many others on the spot in a tos with markup, GPS and signatures. online boards, and the features that public meeting, providing much faster “Existing enterprise data can be taken receive the most requests are incorporated customer service. As we deployed the into the field for reference and correc- into applications. original application in public meetings, tion, providing full data lifecycle capabil- Often, the decision on how to acquire we found many local officials and real ity,” Dwyer says. “When you are back apps comes down to cost, McKinney says, estate professionals really liked the tool, so online, all data captured in the field is and firms need to determine how impor- we decided to expand the use of it to the later synced to the enterprise cloud [via tant the app is to the business and how general public.” Microsoft SharePoint], allowing for much they are able to spend on applica- The technological requirements for automatic integration with dashboards, tion development versus buying the most building the application were relatively real-time analysis of data and immediate suitable commercial app. simple, DePue says. “However, the sub- generation of complex reports.” ject matter expertise needed AutoForm runs on iPads and iPhones Making It Work to deploy the app contents as well as Windows 8 devices. Firms that have developed was complex, and our in- Prior to the app, users were captur- their own apps are seeing house staff was best suited ing data using paper forms, which had results. For example, Atkins, to do that work,” he says. a number of quality issues, including a design, engineering and “It made sense to keep the incorrect data, errors uploading to a cen- project management firm, subject matter experts and tral database, delays in access to data and developed an application the development staff close delays in report generation. called FloodMap Mobile, together.” “An electronic form linked to the which gives floodplain The firm did not need enterprise database would solve these managers, city planners and to add new staff to cre- problems,” Dwyer says. “The introduc- emergency responders on- “Combining ate the app, DePue says. tion of the iPad by Apple tipped the demand access to critical the geolocation “Atkins maintains a robust scales and put us into action.” information in the field. information technology Existing products for the iPad and Using the mobile app, features of a group that offered all the iPhone did not integrate well with the engineers, community offi- smartphone necessary skills to design enterprise database, and they didn’t allow cials and customer service with a data and build the application,” existing data to be taken into the field, authorities have quick and mashup allowed he says. Dwyer says. “They also could not handle easy access to information When Atkins first complex, hierarchical data relationships,” about flood map numbers, us to answer developed the applica- he says. flood gauges and flood- this common tion, it charged a small fee MWH used its existing develop- plains. FloodMap Mobile, question and for the download. “This ment team to create AutoForm on both available for free at the many others on increased the complexity the iOS and Windows platform. “Our Apple, Android and Win- of the process within our developers had most of these skills from dows Phone app stores, can the spot in a company, since it required developing our mTOOLS product— also be used by real estate public meeting, direct deposit of fees and dashboards and reporting tools—for professionals and prospec- providing much tracking of small amounts SharePoint,” Dwyer says. “We just tive home buyers to under- faster customer of money,” DePue says. needed to learn some Objective C and we stand the flood risks for spe- “Ultimately, we found it were off to the races.” I cific properties and to get service.” more effective to offer the estimated flood insurance MICHAEL DePUE application for free. We Bob Violino is a business and technology costs based on home value. ATKINS continue to feel that the writer based in Massapequa Park, N.Y.

28 ENGINEERING INC. MARCH / APRIL 2015 Do you need to be licensed in multiple states?

To practice in multiple states, professional engineers need their licenses to be mobile.

NCEES records are accepted by licensing boards nationwide. Once established, your record can quickly and easily be transmitted to any state board to simplify and expedite your application for comity licensure.

You don’t have time for unnecessary paperwork. Let NCEES keep track of your record so that you can focus on what’s ahead.

APPLY FOR A RECORD TODAY ncees.org/records Difference 30 ENGINEERING INC. March / April 2015 Corporate Social Responsibility

By George Lorenzo How Black & Veatch’s Christmas in October Making initiative is rebuilding a homes and lives in Quality- Kansas City lack & Veatch takes corporate of-Life citizenship very seriously. Since the company began in h c 1915, robust, results-oriented

k & Veat corporate social responsibility c a l has always been a major part of its culture, says James Lewis, chief administrative officer of the hy Courtesy of B hy Courtesy p ra g Bglobal engineering firm headquartered in Difference Photo Kansas City, Mo.>> March / April 2015 ENGINEERING INC. 31 “We have our values that we have most corporations,” he says. gram Manager Greg Clum. been living with for a while, and those “They are our biggest part- Beginning in February, an are integrity, shared ownership, common ner, period.” extraordinary amount of pre- purpose, stewardship, respect, account- Nearly 8,500 Kansas City planning and organization ability and entrepreneurship,” Lewis says. homes have been improved occurs to make this volun- “We encourage our people to demonstrate by Christmas in October teer effort happen. Business those values.” since the program started, unit champions from each of One of the ways the company does so is and Summers says Black & the company’s 10 divisions by actively supporting its local communities Veatch volunteers renovated work with volunteer house with charitable initiatives, such as Christ- more than 800 of them. “The fact that captains and co-captains to mas in October, a volunteer organization “We operate on a $300,000 we are making identify project needs and that rehabilitates the houses of low-income annual budget,” he says. recruit volunteers. homeowners in the Kansas City area—at “In the last three years, a difference The champions review no cost to them. Black & Veatch has been Black & Veatch has donated right here in our all applications for assis- Christmas in October’s primary sponsor $320,000 through their backyard, in the tance Christmas in October and provider of hands-on volunteers for 30 Building a World of Differ- neighborhoods receives and begin a house of the 31 years the organization has existed. ence Foundation.” The foun- inspection process that runs In rebuilding houses, lives and neigh- dation provides charitable where our through May. Then, over borhoods, the Christmas in October donations and employee vol- families live several weekends, volunteers volunteers help needy families, the elderly, unteers to organizations and and work, really inspect the houses they the disabled and veterans live in safety, programs around the world. gives you the plan to renovate on the big warmth and dignity. As the organization’s day in October. “They put largest volunteer base, each year Black Banner Year energy to keep together the material list & Veatch supplies an average of 650 In 2014, Black & Veatch coming back and start pulling together hands-on workers, who repair as many supplied 850 volunteers to and doing it the volunteers,” Clum says. as 60 houses in one day, according to work on 41 home renovation every year.” “Everything is lined up so Christmas in October’s Executive Director projects, says Black & Veatch that in that one day we do Gre g Clum John Summers. “Black & Veatch’s sense Senior Vice President and the work on all the houses. Black & Veatch of corporate responsibility goes beyond Christmas in October Pro- There is a tremendous amount of work that goes into that one Saturday.” Additionally, Black & Veatch volunteers perform Christmas in October “lead- in” projects throughout the year. In 2014, for instance, a team of Black & Veatch interns renovated the base- ment of a church located across the street from an inner-city alternative high school, creating a meeting space with a computer room for students to use after school instead of hanging out on the streets.

Moment of Impact Summers says Black & Veatch’s support for Christ- mas in October makes a huge difference in people’s lives. “This is getting out of your bed, getting dirty, going to places where folks are literally living in third-world conditions and changing their lives.

32 ENGINEERING INC. March / April 2015 At Chartwell, we offer fi nancial solutions to companies exploring ownership alternatives. We provide strategic advisory, corporate fi nance, transaction, and valuation services and are recognized leaders in the ESOP community, having completed over 500 transactions in this arena. Today, our dedicated AEC team provides services to more than 50 companies in the industry. Put our extensive expertise to work for your fi rm by engaging the professionals at Chartwell.

Build the bridge to your tomorrow by visiting chartwellfa.com or by calling 612-230-3100.

For nearly 20 years, our team at Chartwell has not only done a great job of conducting our annual valuation, they have been our strategic partner as we grew our ESOP from inception in 1995 to the mature 100% ESOP ownership structure we enjoy today. Chartwell has consistently provided us with timely and valuable counsel regarding our options as our ESOP evolved, and helped us educate our employee owners along the way. Jon Carlson CEO — Braun Intertec Corporation

UNCOMPROMISING VALUES INNOVATIVE SOLUTIONS PROVEN EXECUTION Aerdv tisement

EA Engineering, Science, and Technology, Inc., PBC Leading the Way for Socially Responsible Business

There is a growing market in the U.S. for socially MacFarlane, EA’s President and CEO. “Becoming a 100% responsible businesses; according to B Lab nearly 70 ESOP-owned PBC shows that we walk the walk and talk million U.S. consumers state a preference for making the talk.” purchasing decisions based upon their sense of a company’s social and environmental responsibility. EA ESOPs and architecture/engineering/consulti ng (AEC) Engineering, Science and Technology, Inc., PBC (EA) is fi rms seem to have a mutual affi nity. According to Nancy an interdisciplinary environmental services fi rm that has Wiefek, Research Project Director at The Nati onal Center embraced this movement wholeheartedly by pairing for Employee Ownership, a search of public fi lings for an Employee Stock Ownership Plan (ESOP) with public ESOP plans shows that approximately 7% of all ESOPs benefi t corporati on (PBC) status, and the sum of this are sponsored by architectural and engineering related pairing is far greater than the parts. This combinati on companies. Perhaps this stems from the fact that AEC makes EA a “fi rst-mover” among major nati onal fi rms tend to be owned by their employees in the fi rst environmental consultancies as a 100% ESOP-owned place, and ESOPs can perpetuate this ownership model PBC. while adding signifi cant tax effi ciencies.

EA embraced the employee ownership concept years ago Beyond the tax advantages, ESOPs are generally credited when the ESOP acquired a signifi cant equity ownership with improving employee morale and producti vity. In interest. To further this concept, in December 2014, EA 2009, the Employee Ownership Foundati on, in its 18th completed a transacti on in which its ESOP became the Annual Economic Performance Survey, found that 88.2% 100% owner of all EA common stock. As a 100% ESOP- of surveyed companies agreed that creati ng employee owned S corporati on, all of the S corporati on’s flow- ownership through an ESOP was “a good decision that through income is reported to the tax-exempt ESOP has helped the company.” By owning a stake in the trust. EA employees receive a tax-deferred benefi cial company in which they work, employees have increased interest in EA stock and thus share in the growth and dedicati on to their company, which in turn leads to value of the company. This important benefi t gives reduced turnover and more stability among top talent. employees a stake in EA’s success, and provides a great way to save for reti rement. “ESOPs are an excellent way to provide broad- Also in December 2014, EA amended its corporate charter based employee ownership, to become a public benefi t corporati on under Delaware and the next step is to align law. As a PBC, EA remains a for-profi t corporati on, now management incenti ves operati ng with an expanded corporate purpose and with with the company’s a requirement to promote and report on the delivery of strategy, which ulti mately its specifi c public benefi ts. benefi ts all shareholders, including the ESOP.” “EA’s core purpose is to improve the quality of the environment in which we live, so it’s only appropriate -Matt Keene, Managing Director at Chartwell, works with EA that we initi ated these changes,” commented Ian on management compensati on and incenti ves Aerdv tisement “Given our environmentally focused mission, our employees’ interest in supporti ng our communiti es, and our fi rm’s commitment to sustainability, EA is well-aligned to operate as an ESOP and a PBC.”

- Ian McFarlane, President & CEO of EA Engineering, Science, and Technology, Inc., PBC

EA has long recognized that its people are its most for those businesses that display strong commitment important asset, and the ESOP enables EA employees to to social responsibility, ESOPs and PBCs are two unique directly benefi t from the company’s success. ways to appeal to this market. The transiti on to 100% ESOP ownership and PBC status is a pioneering step in While ESOPs have been in the U.S. for decades, PBCs the AEC industry and will perpetuate EA’s long-standing are a new class of corporati on designed to enable for- commitment both to the environment and to its profi t corporati ons to produce tangible benefi ts while employees, community, and broader society. operati ng in a responsible and sustainable manner. To date, 27 states have adopted legislati on creati ng such “The transiti on to a 100% ESOP enti ti es, and the requirements vary from state to state. fi rm highlights EA’s long-standing To become a Delaware public benefi t corporati on, a commitment to its employees and company must identi fy one or more specifi c public benefi ts in their certi fi cate of incorporati on, which they creates a truly sustainable employee- must promote, track, and report to shareholders at least owned fi rm.” biennially. -Lynn DuBois, Partner at ESOP Law Group, represented the trustee of the EA ESOP for The status of PBC helps those companies compete for its December 2014 transacti on talent – and customers. B Lab reports that millennials now represent 50% of the global workforce, and one of About EA Engineering, Science, and Technology, Inc., their principle desires in the workplace is to work with PBC meaning. These young professionals understand that EA is a 100% ESOP-owned public benefi t corporati on that only socially responsible companies carry the label of provides environmental, compliance, natural resources, PBC, which is defi nitely an advantage in att racti ng the and infrastructure engineering and management best of today’s talent.In EA’s case, the PBC designati on soluti ons to a wide range of government and industrial supports its environmental stewardship, which is a draw clients. Headquartered in Hunt Valley, Maryland, for both present employees and future hires. EA employs more than 400 professionals through a network of 23 offi ces across the conti nental U.S., as well With the growing market in the U.S. for socially as Alaska, Hawaii, and Guam. In business since 1973, responsible businesses, the designati on of PBC is a EA has earned an outstanding reputati on for technical major draw for clients as well. Becoming a PBC does not experti se, responsive service, and judicious use of client contradict profi tability – it complements it. According resources. For more informati on about EA, visit www. to Cone Communicati ons, 86% of consumers are more eaest.com. likely to trust a company that shows the impact of its cause eff orts. Electi ng to become a PBC is an excellent For more informati on: way for a company to signal to current and prospecti ve Melissa Smith, EA Engineering, Science, and Technology, Inc., PBC clients that it will exercise corporate social responsibility. [email protected] MacFarlane of EA commented, “We see our clients’ own Matt Keene, Chartwell commitments to sustainability and green procurement matt [email protected] as a growing trend that is here to stay. Adopti on of PBC Lynn DuBois, ESOP Law Group status in our company charter means that, in additi on [email protected] to conti nuing to provide high quality environmental services, we will plan, measure, and report on EA’s progress in delivering our specifi c public benefi ts, which will further disti nguish and enhance the value we create for ourselves, our clients, and our environment.” The material in this article is provided for informational purposes only and is not to be regarded as a substitute for fi nancial, legal, or other professional advice. The reader seeking With the growing consumer demand and preference such advice is encouraged to confer with an appropriate professional consultant or attorney. Executi ve Compensati on Annual ESOP Valuati on Annual ESOP Valuati on Consulti ng Sale of Company to ESOP Trustee Advisor Trustee Advisor Corporate Advisor Corporate Advisor

Recapitalizati on and Buy-side Transacti on Annual ESOP Valuati on restructuring of Company Consulti ng Sustainability Consulti ng Trustee Advisor Trustee Advisor Trustee Advisor Trustee Advisor

Chartwell is proud to be a Gold Sponsor of the ACEC 2015 Annual Convention in Washington DC & the CFO Council Program

Monday, April 20 Tuesday, April 21 1:45-3:00pm 8:00-9:30am “Six Steps for Increased Proﬁ tability in A/E Firms” “Hot Topics” Presented by June Jewell, AEC Business Solutions CFO Roundtable Discussion Moderated by Chris Staloch, Chartwell 3:30-4:45pm “Insights on Successful Firm Valuation” 2:00-3:15pm Presented by: Joe Skorczewski, Chartwell “ESOP Sustainability, Repurchase Obligation, & Proper Plan Implementation” Presented by Ryan Graham, Chartwell

3:30- 4:45pm “The Impact of New Regulations and Tax Policies” CFO Roundtable Discussion Moderated by Katharine Mottley, ACEC

UNCOMPROMISING VALUES INNOVATIVE SOLUTIONS PROVEN EXECUTION Before After that it was just a way of life for her,” Clum says. “She had learned how to make do. All she really wanted was peace and quiet when it got stormy at night.” The Black & Veatch team improved the elderly woman’s home and made it much more livable. She was extremely grateful and satisfied with the end results. “You are really making a difference, not just for that homeowner but for the community,” Clum says. “This is our home. People with engineering and technical disciplines have skills that really match well with what Christmas in October is all about. The fact that we are making a difference right here in our backyard, in the neighborhoods where our families live and work, really gives you the energy to keep coming back and doing it every year.” n

They are leaving them with heating, run- says. “Despite numerous reconstructive George Lorenzo is a freelance business, ning water, bathrooms that work and surgeries, pain and loss of mobility, the education and technology writer based in kitchens that work, and doors that will homeowner always greeted us with a smile Williamsville, N.Y. lock and windows that close. It is differ- and uplifting words. It was great to see ent than any other thing I have been part our collective families getting to know one of. It is the CEO and his wife out there another personally, and working on a house. They don’t do it for we were inspired with publicity or anything. They do it because each interaction.” it is the right thing to do.” Clum tells a story Black & Veatch Associate Vice President about a woman in Keith Small tells an inspiring story. A her 80s who was seek- Kansas City homeowner was involved in a ing the repair of her debilitating car accident several years ago leaky bathroom ceiling; that caused severe damage to his legs. He rainwater would drip underwent extensive surgery, but unfortu- into her tub and keep nately one of his legs had to her awake be amputated. Small and a at night. team of volunteers inspected When the the man’s home and devel- inspection oped a plan to make it more team mem- accessible—remodeling the bers entered bathroom and installing grab her house, Christmas in October bars and a wheelchair ramp they found volunteers. on the front porch—but they windows discovered some additional in desper- challenges. The furnace and ate need of air conditioning unit were “I came away repair, a broken furnace, broken. Christmas in Octo- from that no hot water and serious ber completely renovated the experience electrical problems. For man’s home and installed a several years, she sat close newly repaired air condition- with a deep to an open kitchen oven ing unit and furnace in time appreciation for heat, heated water on for him to arrive home after for persevering the stovetop, and used his amputation surgery. through life’s a dishrag to screw and “I came away from that unscrew a light bulb experience with a deep setbacks.” in her bathroom. “She appreciation for persevering Keith Small had made do with all through life’s setbacks,” Small Black & Veatch those problems for so long

March / April 2015 ENGINEERING INC. 37 true research, ahead of the curve.

Unique Solutions, Unparalleled Research.

IMS helps Architects, Engineers and Construction rms navigate through research materials from thousands of public agencies with daily veried advance notices, project updates and awarded contract reports tailored to t your specic needs.

Get ahead of the competition. start today with a TWO-WEEK FREE TRIAL

www.IMSinfo.com | 888.467.3151 $1 million goal

LEADINGTHE

$834,705 PAC aCEC/paC Champions reveal strategies that helped smash fundraising records in 2014. Sights now set on $1 million

By Stacy Collett

alifornia PAC Champion Stephanie Wagner is not shy about extolling the virtues of ACEC/PAC to any group of state directors who will listen. Armed with her PowerPoint presentation, she describes “everything that’s happening good for their firms from a national advocacy perspective,” including the 9 percent tax Cdeduction for A/E firms, repeal of the 3 percent withholding mandate, a new four-year aviation bill and passage of MAP-21.>> YAGI STUDIO/GETTY IMAGES STUDIO/GETTY YAGI

MaRCh / apRIl 2015 ENGINEERING INC. 39 “I’m trying to educate PAC is currently the largest without the help of the state-, local- and them from the beginning PAC in the A/E industry national-level PACs,” he says. “They help and make them aware of all and in the top 4 percent of open the doors so we can have good dis- that ACEC/PAC has done,” all association PACs in the cussions with legislators. It gives us access Wagner explains. “My goal country, having grown more that 10 years ago we would never have is to get people saying, ‘OK, than 500 percent in 10 years. dreamed of.” when do I send you my “The changes in attitude ACEC/Florida and ACEC/Vermont check for this year?’ Then I’ll have been occurring about made PAC goals for the first time ever know I’m successful.” our PAC,” says ACEC/PAC in 2014, while ACEC/New York and Wagner’s tenacity, along “It’s becoming Vice Chairman Chris Rob- ACEC/Illinois PACs had the highest with that of other PAC more evident ertson. “We started to turn fundraising totals in the entire ACEC/ Champions across the the tide five or six years ago, PAC nation. Their PAC Champions country, has helped the that engineers and it’s still coming in.” were also active in organizing fundraising Council’s political action see a clear ACEC/PAC has become events for members of their congressional committee (ACEC/PAC) connection especially important to small- delegations. reach a record-breaking year between their business owners. “A good ACEC/New York members raised over in terms of receipts, dis- percentage of our members $66,000—the most ever by any state— bursements and total people business and are small businesses. I am a through fundraisers such as golf tourna- involved. In 2014, ACEC/ what goes on small-business owner,” Cum- ments, Broadway events and “A Day at PAC receipts were $834,705, in Washington mings says. “I feel that my the Races” at Saratoga. exceeding 2013’s record total every year— contribution creates a voice “We tried to tailor it to the local and of $770,000. in Washington because I’m regional needs,” says ACEC/New York The number of individual that’s why working collectively. Indi- President Jay Simson. “New York is contributors who made people are vidually, it would be lost in divided into eight regions, each with dif- donations totaled 2,386, becoming more the sea. We’re much better as ferent events for their members,” such also a record. First-time engaged.” a single voice.” as golf outings for the mid-Hudson and givers made more than a Long Island regions and a Broadway mat- ANDY CUMMINGS third of those contributions New York, Illinois Enjoy inee performance of Carole King’s ACEC/PAC CHAIRMAN (37 percent). Fundraising Rivalry Beautiful for members in Manhattan. “It’s becoming more evi- Robertson credits the orga- “We’ve been most successful in tying dent that engineers see a clear connection nization’s fundraising success to the hard the event with meeting a public official or between their business and what goes on in work of its state and local counterparts. officials in the event,” Simson says, noting Washington every year—that’s why people At the national level, “we can’t do it that Rep. Sean Patrick Maloney (D-N.Y.), are becoming more engaged,” says Andy Cummings, ACEC/ PAC chairman. He points to infrastructure allotments in December’s $1.1 trillion federal spending authorization as an example of the industry’s growing influence. “This latest vote, I think, is an example of the strength of our PAC and how engineering is viewed in terms of helping our infrastructure and the economy.” ACEC/PAC is the nation’s only political action committee protecting the legislative ACEC/New York President interests of engineering firms. Jay Simson (right) is joined It plays an essential role in by Rep. Elise Stefanik the success of ACEC’s overall (R-N.Y.) and Joseph Amato advocacy program by support- of Cameron Engineering & ing pro-business candidates, Associates during the “A Day on a bipartisan basis, who sup- at the Races” fundraiser at port the engineering industry’s Saratoga Race Course. agenda in Congress. ACEC/

40 ENGINEERING INC. MaRCh / apRIl 2015 A BUSINESS SYSTEM BUILT TO WORK THE WAY YOU DO.

Introducing BST10 A process-driven business management software solution built specifically for the world’s leading engineers.

More than 100,000 architects, engineers, and environmental consultants Visit BSTGlobal.com today rely on BST solutions every day to manage their businesses. Our integrated software solution helps you increase project and resource visibility, or call BST Global. advance customer relationships, and improve financial oversight. +1 (800) 726-3300

Whether your firm has 200 or 20,000 staff, BST10 is designed to help you create, manage, and share business tasks faster than ever before – so you can get back to engineering the future.

© BST Consultants, Inc. All rights reserved. BST Global logo is a trademark of BST Consultants, Inc. a member of the powerful House Trans- In California, ACEC An additional $183,500 portation and Infrastructure Committee, members are making a was disbursed to leader- mingled with members at a reception at a strong PAC resurgence ship PACs and national Member Firm’s Times Square office before under the leadership of party committees in the the Broadway show. new PAC Champion election cycle, and another New York State Sen. David Carlucci Stephanie Wagner, who $45,500 was disbursed (D-Rockland/Westchester) took part in has taken a divide-and- after the election to help a mid-Hudson region golf outing and conquer approach to both newly elected mem- briefed attendees on his legislative agenda her first year in the role. bers and incumbents retire and infrastructure interests. With 22 local chapters campaign debt from the Simson says that in the engineering in the state, she is asking 2013–2014 election cycle. industry, “we think our issues are com- members at the chapter ACEC/Tennessee, mon sense, but congressmen get thou- levels to identify wor- for instance, recom- sands of requests every year from industry thy candidates and key John Forcier, Vermont PAC mended disbursements PACs who are spinning things their way. issues throughout the Champion, helped ACEC/Vermont to the campaigns of U.S. When we get them to understand, they vast territory. reach its PAC goal for the first Sens. Lamar Alexander become our allies.” “These kind of events time in 2014. (R-Tenn.) and Bob Corker While ACEC/Illinois raised some really speak to the can- (R-Tenn.) as well as U.S. $65,000 for ACEC/PAC in 2014, its didates, when they get the funds directly Rep. John J. Duncan Jr. (R-Tenn.). six-year reign as ACEC’s top fundrais- from their constituents,” Wagner says. “All three candidates have a very solid ing state ended. “We’re not happy with “We’re above our levels from the same record of being pro-business members of second place,” says ACEC/Illinois Execu- time last year. It’s a process.” Congress and have been incredibly active tive Director Dave Bender of the state’s Arkansas PAC Champion Jeffrey in advocating for the development and friendly rivalry with ACEC/New York. Geurian learned early in his career that expansion of our nation’s infrastructure,” “Starting Jan. 1, we’re going to reclaim it’s the engineer’s responsibility to rep- says Tennessee PAC Champion and former that crown.” resent the community when it comes to ACEC/National Chairman Jerry Stump. Bender credits the advocacy of Illinois infrastructure improvements and qual- “Sen. Corker was one of the vocal PAC Champion Chip Craddock and ity of life in general. “If we didn’t stand advocates on record for improving the ACEC/Illinois President John Carrato up and come together and be the voice, funding mechanisms for infrastructure,” in getting members to contribute. The then nobody else would,” he says. “If Stump says. “Congressman Duncan has state organization’s 20 committee chair- something was going to change, some- been a longtime advocate of freedom persons were also heavily engaged in the body had to have that voice to speak out from government competition, another fundraising process, which featured more for change.” issue that is really important to our orga- than $7,500 raised through PAC raffles Today, his state members are actively nization. Sen. Alexander is known of member-donated items, such as iPads, involved in supporting candidates who as someone who can work with all Google Chrome notebooks and GoPro share ACEC’s mission. “We were most parties and someone who can effect cameras. active with Rep. Bruce Westerman good legislation.” (R-Ark.). He is a professional engineer As 2015 gets underway, PAC leaders Engaging With Legislators and has a unique awareness of what the are confident that contributions will con- Aids State Efforts nation needs to succeed,” Geurian says. tinue their upward trend with additional In addition to fundraising, ACEC/Illi- The state also made numerous special education and awareness of what the nois also serves as a valuable resource to requests to ACEC for additional PAC PAC provides. the representatives. “People like to talk contributions for worthy congressional “There are so many things that the to their congressman about the condi- candidates, and all were accommodated, federal government does that affect our tions of their roads and the traffic when he says. “We thought they were impor- businesses,” Simson says. “You might commuting to work,” Bender says. tant, and we were never turned down, think of the transportation and water “Engineers can really be a big help with contributing to a victory.” bill, but there are also business and tax that and explain what’s involved and why policies that affect the smallest firms the member of Congress has to make Disbursing Funds to in rural areas to the very large mega- some tough decisions. We volunteer to Deserving Candidates firms.” That includes everything from help them educate their constituents on In the 2013–2014 election cycle, cash accounting or different types of tax the process.” ACEC/PAC disbursements topped deductions to investments in energy, Bender says ACEC/Illinois has built $1,466,600, which went to 287 U.S. he adds. “Everybody is affected by it. strong relationships with three of its U.S. House and Senate candidates, with So building those relationships and representatives who serve on the House 271 candidates winning (94 percent). educating members is critical.” n Transportation and Infrastructure Com- ACEC/PAC supported 175 Republicans, mittee—Dan Lipinski (D-Ill.), Rodney 170 of whom won, and 112 Democrats, Stacy Collett is a business and technology Davis (R-Ill.) and Cheri Bustos (D-Ill.). of whom 101 won. writer based in Chicago.

42 ENGINEERING INC. March / April 2015 Comprehensive Online instruction and review for FE, PE, practice—anywhere, anytime and SE exams Leading exam preparation since 1975

LICENSE YOUR ENGINEERS

Michael R. Lindeburg, PE, PPI’s founder, has set the standard in publishing the highest-quality books, online practice, and courses for over 3 million exam candidates. PPI IS THE SOURCE AND THE SOLUTION FOR FE, PE, AND SE EXAM PREPARATION

Let us help you build a company that not only attracts the best engineers, but attracts the best clients. Our corporate solution takes the guesswork out of preparing your employees to pass while saving valuable time and expense.

LEARN MORE AT PPI2PASS.COM/SOLUTION.

BE SURE TO VISIT PPI AT THE ACEC ANNUAL CONVENTION APRIL 19TH22ND IN WASHINGTON, D.C. Contact PPI at 650-593-9119 or at [email protected]. 2015 ANNUAL CONVENTION & L E G I S L AT I V E SUMMIT

APRIL 19–22, 2015 Marriott Wardman Park Washington, D.C. Join your colleagues at AC EC’s premier legislative event Lobby Congress on critical industry issues, gain valuable political and business insights, learn about new market opportunities from federal agency leaders, hear from top CEOs and attend leading-edge education

JIM PRUITT/THINKSTOCK sessions to make your firm more profitable.

COAST-TO-COAST/THINKSTOCK ACOLL123/THINKSTOCK

FROZENSHUTTER/THINKSTOCK

Marriott Wardman Park

44 ENGINEERING INC. MARCH / APRIL 2015 CAPTAINIFR/ISTOCK MARKETS AND BUSINESS MANAGEMENT FOCUS HOTEL I The P3 Challenge for A/E Firms INFORMATION I Engineering Opportunities with Smart Cities and Smart Cars Marriott Wardman Park L E G I S L AT I V E I Hot Markets in Commercial Development 2660 Woodley Road, N.W. I Workforce of the Future: Talent and Diversity Challenges Washington, D.C. 20008 I CEO Roundtables Phone: 202-328-2000 I Business and Legal Forums www.marriott.com/hotels/ SUMMIT I CIO, CFO and Emerging Leaders Tracks travel/wasdt-washington- marriott-wardman-park/

Across the street from the Marriott Wardman Park Hotel PNC/GETTY IMAGES PNC/GETTY

RICHARD NOWITZ/GETTY IMAGES RICHARD NOWITZ/GETTY The Marriott Wardman Park Hotel is located in Washington, D.C., minutes Join your colleagues at AC EC’s premier legislative event from the National Zoo, the National Cathedral, Embassy FEATURED SPEAKERS Row, and the vibrant Adams Morgan neighborhood, with unique shops, ethnic restaurants and active nightlife. The hotel is also easily accessible by Metro, near the Woodley Park Station on the Red Line.

PAUL J. RICHARDS/GETTY IMAGES RICHARDS/GETTY J. PAUL ACEC’s room rate for single or double occupancy ANDREAS RENTZ/THINKSTOCK ANDREAS FEDERAL PROGRAMS AND LOBBYING is $309, plus 14.5 percent General Stanley A. McChrystal I Congressional Issues Briefing tax. Room reservations Lessons in Leadership I Lobby Congress on infrastructure, energy, transportation, Former Commander of U.S. must be received by Friday, water and other key business issues and International Forces in March 20. After this date, I Afghanistan Federal business opportunities from officials at the U.S. Army rooms may not be available Corps of Engineers, Department of Defense, Naval Facilities or not available at this rate. Engineering Command, Federal Aviation Administration, Rooms are available until the General Services Administration, World Bank and cutoff date or until rooms in other agencies the ACEC room block are I Capitol Hill Visits gone, whichever occurs first. I ACEC/PAC Sweepstakes and Congressional Fundraiser To make your hotel reservation online, go to: TEAMING FAIR resweb.passkey.com/go/ I Small and large firms team for work on government contracts ACEC2015. You may also CNN call toll free 800-228-9290 Jake Tapper ENGINEERING EXCELLENCE AWARDS GALA Political Polarization: and reference “ACEC I Prospects for Progress “Academy Awards of the engineering industry”—black-tie Annual Convention.” CNN Chief Washington reception, dinner and awards ceremony, to celebrate the year’s Correspondent and anchor of the most outstanding engineering achievements For more information or CNN weekday television show I “Champagne After-Party,” featuring live music and dancing, to register online, go to The Lead with Jake Tapper free to all Gala registrants www.acec.org.

45 Guest Column By Jay Wolverton

Land Development Eyes Recovery from Recession Hangover

e all remember “the Challenges in the New World Those ropes include changes in the workforce and the way we good old days” of the support our clients. We have learned to maneuver in this new early 2000s, when the world through experience and a network of peers willing to economy was growing share information. and engineers were riding Challenge 1: We have a significant lack of talent. “The the development wave. lost generation,” as Michael Unger of Manhard Consulting in Then, in 2007, the wave crashed, and we’ve Centennial, Colo., calls them, are the engineers who were finish- W ing school just as the recession hit. “It’s the three-to-seven-year been slowly crawling back to sea level again. graduates—the ones who would have graduated in 2008 to When things were good, they were really, 2011—that we are missing. We have lost a generation of engi- really good: Builders and developers were neers who have gone on to do other things because there was little to no engineering work to do,” Unger says. building, land development engineers had More time and resources are being spent on training young plenty of work, and we were all busy, filling our engineers and bringing them up to speed, especially as technology days with work and profits. changes at an ever-increasing pace. However, this younger generation of engineers is eager to learn, willing to adapt and coming But when things were bad, they into an industry that they will help define. were really bad. The Great Recession that lasted from 2007 to (officially) Challenge 2: The role of the project manager is signifi- 2010 hit the land development cantly different than before. Though spending less, clients industry hard. With the downturn, often ask for so much more than before. We are playing a program many firms closed, consolidated or manager role, overseeing all aspects of the job instead of just doing just disappeared overnight, leaving the engineering work. We serve as the link between the owner and engineers without jobs and projects the developer, oftentimes setting up their connection and creating incomplete. Clients also disappeared the deal. We serve as counsel not only to the owner, but to the or stopped work. The industry broker, the developer, the attorney, the architect, and on and on. seemed to grind to a halt. Therefore, the job description for a project manager in today’s In 2011 and 2012, as the Great Jay Wolverton land development arena has drastically changed. We are now client Recession began to wane, we woke liaisons and partners instead of just technical engineers. up with a terrible hangover—the world was cloudy and we were Even though the Great Recession officially ended more than not completely ourselves as we grappled to figure out how to four years ago, we are still recovering—that’s what you’ll hear maneuver in this new, different and unsteady world. many in the land development industry say. The hangover, while Many of those who were laid off as the recession hit started fading, is still throbbing in the background. their own firms, creating more competition for less work and But we are tackling the challenges directly, creating networks with fees that were more competitive. Clients were taking fewer and training programs, sharing information with one another and risks, had fewer new projects to win and were tightening opera- molding the industry into something that is just as profitable and tions to meet the new demands of development. Though we good as before. now partner with our clients more than ever, it’s a challenge to With our hard work, one day soon we will wake up to find the get them to spend money. hangover is gone. On that day, we will be focused and our goals We are finding our ground in the “new world,” figuring out will be clear because we will have built the skills, talent and tech- how the new marketplace works and how we go about doing nology to move the land development industry forward. business, while still wiping off the dust from the collapse. The industry looks different than it did three decades ago Jerry C. (Jay) Wolverton Jr. is CEO of Wolverton & Associates, Inc., when I started out, and we are still learning the ropes in this in Duluth, Ga. He also is chairman of ACEC’s Land Development new environment. Coalition’s Publications Committee.

46 ENGINEERING INC. march / April 2015 TRANSPORTATION & INFRASTRUCTURE

BUILDINGS & FACILITIES

CONSTRUCTION MANAGEMENT

ENERGY SERVICES

Enduring. Driven. Visionary.

Reaching the century mark isn’t easy – you have to be quality-driven, client-focused, and have a vision for the future. At 100 years, STV is looking ahead. As an employee-owned rm, our planners, architects, engineers and construction managers have a stake in the business, and are committed to quality performance. We provide personal attention and timely solutions, with an eye toward sustainability. And with more than 40 o ces, we are a local rm with national resources. An employee-owned firm Offices nationwide When it comes to getting your project delivered right, Toll-free: 877-395-5459 [email protected] choose the rm that has the drive and vision to be the best. www.stvinc.com Business Insights

Engineer Your Business as Well as Your Projects

Successfully managing your A/E business requires technical know- normally impose, including for undesired outcomes that could how as well as a broad awareness of today’s best multidisciplinary occur even when the design professional meets the standard of care, business practices. Firm leaders must know the rules of manage- and with no compensation. This is an obvious attempt to reallocate ment and finance and how they work in the real world—from risk and responsibility to design professionals for things over which reading income statements to making complicated investment they have no control. decisions to managing both employee and client expectations. The Engineers Joint Contract Documents Committee (EJCDC) Effective navigation of business challenges in the current econ- recognizes that owners are pressuring engineers to include some omy also requires: form of indemnification of the owner. That is why EJCDC’s E-500: • Understanding the intricacies of human relations and related Agreement Between Owner and Engineer for Professional Services legal elements includes specific language that the engineer indemnifies the owner • Creating and managing client relationships and expectations against claims caused by the “negligent act or omission” of the engi- • Managing risk and drafting/adapting contracts neer. In most cases this would be covered by the engineer’s profes- • Knowing the fundamentals of business development sional liability policy, and it extends the • Understanding ownership transition and employee satisfaction engineer’s liability only slightly beyond ACEC’s benchmark education program course, The Business of what the law already imposes. E-500 simi- Design Consulting, is a unique playbook for building leadership and larly provides cross-indemnification by the managing your firm. The program will be held March 18–21 in owner for the engineer’s benefit. Dallas, Texas. It will feature an expert and experienced faculty of To review E-500: Agreement Between Owner and Engineer for industry practitioners, who will cover contemporary best practices Professional Services and the full array of EJCDC documents, visit and critical operational management techniques. Attendees will www.acec.org/publications/books-and-contracts and click the learn specific skills and techniques to help March 18-21, 2015 • Dallas TX “Contracts” link. them manage change and build success in The Business of Design Consulting A management intensive program for developing A/E firm leaders

Engineer Your Business performance management, strategic plan- as Smartly as you CASE White Paper on Standard of Care ning and growth, finance, leadership, owner- Engineer Your Projects The CASE Guidelines Committee’s white paper on Standard of ship transition, contracts and risk manage- Care is now available. ment, marketing and more. Many engineers who are licensed and practice in many states For more information, visit www.acec. know that what is customary in one state may not be so in another. org/calendar and click the “Business of Earn 22.5 PDHs! Codes and standards are becoming more standardized and national Design Consulting – Dallas 2015” link. in nature, leading to more uniformity and perhaps a higher level of engineering skills across the country. Gone may be the days when Indemnification Clauses an engineer can say, “We don’t do that around here.” In Engineering Contracts As a result, a good understanding of your legal responsibilities is More engineers are being asked—and often required—to sign more important than ever. This important white paper addresses contracts that may unfairly make them indemnify their client (and the legal implications of state codes and standards and highlights possibly others) against losses the client might suffer on the project. how their differences can affect engineers practicing in more than The indemnification clause can be so broadly worded that it could one state. It also discusses how to reconcile these differences. be applied to any loss the client may suffer, whether or not it is To download the white paper, visit www.acec.org/case/news/ attributable to the engineer’s activities. publications and click the “Standard of Care White Paper” link. Trade associations and professional societies have long con- demned such clauses because they impose liability on design professionals beyond their proper responsibility, involve exposure in ACEC’s Business Resources and Education Department provides considerable excess of what the law would normally require, and comprehensive and accessible business management education the risk involved is likely not covered under the design profession- for engineering company principals and their staffs. Visit ACEC’s online educational events calendar at als’ insurance. If owners seek additional protection, the most rea- www.acec.org/calendar/index.cfm or bookstore at sonable course is for them to obtain additional or special insurance. www.acec.org/bookstore, or call 202-347-7474, ext. 324, Instead, the strategy by many is to subject the design profes- for further information. sional, by contract, to greater responsibilities than the law would

48 ENGINEERING INC. MARCH / APRIL 2015 GETTING HOME TO WHAT MATTERS, THAT’S

DRIVABILITY

* Edelman Berland Driver Survey, 2014 | ** Edelman Berland Survey, 2013

55% of drivers today identify traffic delays due to road construction as the most frustrating part of their driving experience.* With off-peak construction, asphalt pavements leave roads open to traffic during rush hour. Surface maintenance and repair is quick, ensuring drivers have a smooth, high performance surface with minimal inconvenience. No wonder an independent survey found 87% of engineers, developers, transportation officials and other key stakeholders chose asphalt for its ease of maintenance.** Smoother, quieter, fewer delays… that’s drivability. That’s asphalt.

LEARN MORE AT WWW.DRIVEASPHALT.ORG

The APA is a partnership of the Asphalt Institute, National Asphalt Pavement Association and the State Asphalt Pavement Associations.

drivability - asphalt.indd 1 6/11/2014 12:11:56 PM Members in the News

On The Move

WSP Global, Inc., announced several CEO in 2013. Lowell McBurney was of its aviation division, responsible for executive changes following its purchase promoted to executive vice president. The business in North, Central and South of Parsons Brinckerhoff (PB): Former firm also appointed Jeff Burdick, Derek America. He is based in the Dallas/Fort PB COO Greg Kelly was named presi- Edge, Peter Glus, T. Wayne Holcombe, Worth region. Debra A. Fiori was named dent and CEO of the combined organi- Tim Llewellyn and Jim McConnell corporate vice president and global talent zation for the U.S., South America and to senior vice president in various U.S. director, succeeding David R. Goodrich, the Caribbean; former PB CFO John locations. who is retiring. She is based in Wash- Murphy was named president and CEO ington, D.C. Scott R. Armstrong was for Europe, the U.K., the Middle East, Omaha, Neb.-based HDR announced appointed vice president and alternative India and Africa; former PB President and executive changes following the firm’s project delivery business development COO for Asia Pacific Guy Templeton acquisitions of Brentwood, Tenn.- director for its transportation business was named president and CEO for Asia based Infrastructure Corporation of unit. He is based in Columbia, S.C. Pacific. David Cooper was appointed America (ICA) and Pooler, Ga.-based president of the U.S. buildings practice MEI, LLC. Former ICA CEO Butch The Burns Group appointed Steven and chief commercial officer for the U.S. Eley was named president of HDR | Bolt vice president of the highway region. George Pierson stepped down ICA. Former MEI CEO and owner Ralf group, following its acquisition of Orth- as president and CEO of PB on Dec. 31, Schwimmbeck joins HDR as a vice Rodgers & Associates, Inc. (ORA). 2014, but remains a WSP board member. president. Former ICA Division President Bolt, formerly ORA president, served two Mark Acuff was named COO of HDR | terms as ACEC/Pennsylvania president ARCADIS appointed John Jastrem ICA Engineering. (2010–2011 and 2011–2012). CEO of its North American activities and Joachim Ebert to COO for North Pasadena, Calif.-based Parsons Robert A. Lepore joined Kimley-Horn America. Both succeed Gary Coates, appointed James Kerr president of Par- as a regional vice president focusing on who is retiring after having combined sons Canada. He is based in Markham, strategic growth for the firm’s current and those roles for the past 22 months fol- Ontario, Canada. Perfecto M. Solis emerging transportation market sectors. lowing the departure of Steve Blake as was named senior vice president Americas He is based in Fort Lauderdale, Fla.

Greg Kelly John Jastrem Joachim Ebert Lowell McBurney Butch Eley Ralf Schwimmbeck

James Kerr Perfecto M. Solis Debra A. Fiori Scott R. Armstrong Steven Bolt Robert A. Lepore

50 ENGINEERING INC. March / April 2015 Calendar of Events

Welcome New Member Firms March 18–21 Business of Design Consulting—2015, Dallas

ACEC/Alaska Spectrum Engineering ACEC/Oklahoma 19 Characteristics of Higher- Stephl Engineering, LLC, Corporation, Auburn Enercon Services, Inc., Tulsa Performing Design Firms Anchorage ACEC/Kentucky ACEC/South Carolina (webinar) ACEC/Arizona Cann-Tech, LLC, Lawrenceburg Forsberg Engineering & PK Associates, LLC, Central Associated Engineers, Surveying, Inc., Charleston 24 Exit Strategies Using ESOPs Scottsdale Inc., Lexington Three Oaks Engineering, and Internal Buyouts (webinar) ACEC/Arkansas Connolly Consulting Columbia Consolidated Land Services, Engineers, PLLC, Lexington ACEC/South Dakota 25 Strategic Planning—Don’t Waste Inc., Mountain Home Integrated Engineering, PLLC, Electrical Engineering Your Time! (webinar) Lexington Solutions, Rapid City ACEC/California Jacobi, Toombs & Lanz, Inc., 26 The Competitive Value of Client CSDA Design Group ACEC/Tennessee , Louisville Service (webinar) San Francisco K.S. Ware & Associates, LLC, Civil Site Design Group, PLLC, Disney Construction Inc., Bowling Green Nashville April Burlingame ACEC/Louisiana ACEC/Texas GP Strategies, Escondido Blum Consulting Engineers, 1 Communicate Technical Topics Hale Engineering, San Diego BCP Engineers & Consultants, Gretna Inc., Dallas to Non-Technical Audiences Hillesland Consulting, Inc., CJG Engineering Group, (webinar) Granite Bay C-K Associates, LLC, Baton Rouge Houston Peters Engineering, 7 Proposals that Lose: Anatomy H&K Engineering, Inc., DFW Mechanical Group, LLC, Sacramento Wylie of the Worst Proposal Ever Transpedia Consulting Baton Rouge Environmental Fuel Systems, (webinar) Engineers, Santa Rosa ACEC/Maine Inc., d/b/a Chapman ACEC/Delaware W.H. Demmons, Inc., Portland Engineering, Boerne 8 How a Strong LinkedIn Baker, Ingram & Associates, ACEC/Massachusetts Five-G Consulting, Inc., Reno Presence Can Generate Leads Dover Fitzemeyer & Tocci HPI, LLC, Houston for Your Firm (webinar) ACEC/Florida Associates, Inc., Stoneham IKERD Consulting, Dallas Albeck Gerken, Inc., Tampa ACEC/Michigan Mesa Engineering, Inc., 9 How to Give and Receive Belt Engineering, Tampa 7GenAE, Kalamazoo Houston Effective Feedback (webinar) Metallurgical Engineering C2S Engineering, LLC, Coral ACEC/Mississippi Services, Inc., Richardson 14 The Death of ‘Old School’ Springs All South Consulting Paragon Structural Carnahan-Proctor-Cross, Engineers Business Development: What , Biloxi Engineering Ltd., Plano Margate Innovative Design and Your Future Leaders Need to Pivot Engineers, PLLC, Austin Epic Forensics and Engineering Services, LLC, Know (webinar) Engineering, Lake Worth ProNet Group, Inc., Hattiesburg Sugar Land FDS Engineering Associates, MS Engineering & 15 Legal Issues Unique to Design- Quality Custom Rail & Metal, Maitland Development, LLC Build (webinar) , LLC, Balch Springs Global Engineering Security Diamondhead Systems, Inc., Miami R-Delta Engineers, Garland 16 Be Memorable and Win ACEC/Missouri McGill Engineering, Inc., Sanchez-Salazar & More Work: The Difference- Howe Company, LLC, Macon Tampa Associates, LLC, San Antonio Rollie Johnson, Inc., Makers for Winning Proposals Mortensen Engineering, Inc., Serene Homes, Southlake Chesterfield (webinar) Tampa Valquest Systems, Inc., Richardson Quigg Engineering, Inc., ACEC/New Hampshire 19–22 ACEC Annual Convention TEC, Inc. Plant City , Hampton ACEC/Vermont & Legislative Summit, Cole Company, Inc., d/b/a Cole Reiss Engineering, Inc., ACEC/New Mexico Washington, D.C. Winter Springs JCB Engineering, Inc., Engineering & Construction, ZNS Engineering, L.C., Sandia Park Manchester Center 21 Writing and Editing for Bradenton ACEC/New York ACEC/Washington Readable Proposals (webinar) ACEC/Illinois CES Consultants, Inc., Dalton, Olmsted & Fuglevand, Laramore Douglass and Long Island City Inc., Kirkland 29 Mergers & Acquisitions 2.0 Popham, Inc., Chicago LiRo Engineers, Inc., Syosset Natural Systems Design, (webinar) Robert E. Hamilton, ACEC/North Carolina Seattle Consulting Engineers, Inc. , Mid-Atlantic Associates, P.A., ACEC/West Virginia Joliet Raleigh Geosyntec Consultants, To sign up for ACEC online seminars, go to www.acec.org/education. ACEC/Indiana ACEC/North Dakota Huntington Banning Engineering , Tait and Associates, Inc., ACEC/Wyoming Plainfield Bismarck JTEC, Jackson Additional information on all ACEC JustCos Engineering, Danville activities is available at Roger Ward Engineering, Inc., Indianapolis www.acec.org.

March / April 2015 ENGINEERING INC. 51 Mergers and Acquisitions By Neil Churma n 2014 a Record Year for Engineering M&A

he New Year marked economy, coupled with grow- and end markets for expan- ACEC Member DOWL the end of one of the ing corporate cash reserves and sion. We saw this figure dip HKM (Anchorage, Alaska) Tbiggest years ever for soaring share prices, contrib- during the recession when announced the addition of industry mergers and acqui- uted to the boom. firms focused more on shoring Buckhorn Geotech (Mon- sitions activity. The sheer In a statement, Ramboll up their existing positions in trose, Colo.), a civil, structural number of transactions among Group called North America their current geographies. and geotechnical engineering engineering firms, as well as “the world’s most attractive In many ways, 2014 may be firm, to its portfolio. the size and scale of the deal market for consulting engi- hard to top in terms of indus- ACEC Member S&ME making, was unprecedented in neering services.” This senti- try M&A activity, but there do (Raleigh, N.C.) announced numerous ways. ment appears to have been not appear to be any signs of its intent to purchase ACEC In 2014, we tracked 203 echoed by firms across the consolidation slowing down. Member Littlejohn (Nash- domestic deals (those involv- globe. In 2014, there were 25 As long as the U.S. economy ville, Tenn.), a planning, engi- ing a U.S.-based seller), which deals in which an international stays on the upswing—and if neering and environmental set a new industry high-water buyer merged with or acquired oil prices can find their foot- design firm. mark. This topped the previ- a U.S.-based firm—up from ing—we expect the pace of ACEC Member Ayres ous record of 180 deals, set 17 the year before. The U.S. deal making to continue, if Associates (Eau Claire, Wis.) in both 2008 and 2013, by market has proven to be a not ramp up, in 2015. entered into a letter of intent nearly 13 percent. destination for global firms, as to acquire SAA Design Group Beyond the remarkable economies in Europe, Asia and Recent ACEC Deal-Makers (Madison, Wis.). number of deals, last year saw Africa continue to face chal- January 2015 many of the largest transac- lenges. It remains to be seen if ACEC Member HDR tions in our industry’s history. the recent decline in oil prices (Omaha, Neb.) acquired o view the most up-to- In the November/December will affect this momentum, Infrastructure Corporation Tdate and “live” versions 2014 issue of Engineering but the broader U.S. market of America (ICA) (Brent- of the M&A heat maps and Inc., we covered several mega- appears to provide some cush- wood, Tenn.), a transportation to see the buyers and sellers deals, which were pervasive in ion to firms that are diversified engineering, asset maintenance in each state, go to 2014, and the trend has not in their markets and services. and management specialist, www.morrisseygoodale.com. slowed down. Danish firm Within U.S. borders, firms and MEI, LLC (Pooler, Ga.), a Ramboll Group merged with continued to expand into new liquid natural gas consulting Watch the M&A Takeaway 1,500-person ENVIRON of domestic markets. Last year, firm. video that accompanies Arlington, Va., in Decem- 114 deals involved two firms ACEC Member Strand this article, presented ber. Early this year, HDR based in different states, up Associates (Madison, Wis.) by Mick Morrissey at announced its acquisition of slightly from 111 in 2013. acquired O’Malley Engineers www.morrisseygoodale. 600-person Infrastructure This signals that U.S. firms (Brenham, Texas), a provider com/ACECMergers/ Corporation of America remain bullish on growth, as of civil engineering and sur- MarchApril2015 (ICA). The strength of the they seek out new geographies veying services.

December 2014 ACEC Member CP&Y (Dallas) acquired ACEC Member The Wallace Group (Waco, Texas), an engineering, architectural, survey and Neil Churman is principal subsurface utility engineering consultant of Morrissey Goodale firm. LLC—a strategy, M&A and ACEC Member CDM human capital solutions firm Smith (Cambridge, Mass.) serving the A/E/C industry. acquired The Louis Perry Churman, who is based in the Group (Wadsworth, Ohio), an firm’s Houston office, can be engineering, architectural and reached at nchurman@ design-build firm. morrisseygoodale.com.

52 ENGINEERING INC. March / April 2015 Providing Insurance Solutions and Services

Engineered for Peace of Mind Is Your Insurance Designed for Your Engineering or Surveying Firm?

Business Insurance Created for ACEC Members

When it comes to insurance, one type doesn’t ﬁ t all. That’s why The ACEC Business Insurance Trust teamed with the THE RIGHT insurance professionals at Marsh Sponsored Programs, COVERAGE a division of Marsh USA Inc., to create plans tailored speciﬁ cally for the needs of our members. ——————— THE RIGHT COVERAGES AVAILABLE: Business Owners Package PRICE ——————————————————— Workers’ Compensation We’ve used our negotiating ——————————————————— power to secure quality Commercial Auto insurance coverage at highly ——————————————————— competitive rates. Umbrella Liability ——————————————————— Find out more. Professional Liability ——————————————————— Request a quote today Management Liability by calling 1.800.338.1391. ——————————————————— Or visit www.acecbit.com. Personal Auto and Home ——————————————————— Key Person Life ——————————————————— Key Person Lump Sum Disability

Engineering innovative solutions since 1983.

Coverages may differ by state. All coverages are individually underwritten. For a complete description of coverage terms and conditions, refer to the Marsh Sponsored Programs, insurance policy. In the event of a loss, the terms of the policy issued will determine the coverage provided. This program is underwritten by Hartford Fire a division of Marsh USA Inc. Insurance Company, CA Lic. # 5152, One Hartford Plaza, Hartford, CT 06155, and its property and casualty insurance company affiliates. Key Person Insurance products are administered by Mercer H&B Executive Benefits, a service of Mercer Health & Benefits Administration LLC. Lump In CA, dba Marsh Risk & Sum Disability Coverage is offered by Lloyd’s of London. Underwritten and administered by Hanleigh, a Lloyd’s Cover Holder. Legal & General America Insurance Services life insurance products are underwritten and issued by Banner Life Insurance Company, Urbana, MD and William Penn Life Insurance Company of New York, Garden City, NY. Banner products are distributed in 49 states and in D.C. William Penn products are available exclusively in New York; Banner CA Ins. Lic. #0437153 does not solicit business there. 72214 Copyright 2015 Marsh USA Inc. The ACEC Business Insurance Trust (BIT) has authorized Marsh Sponsored Programs to make engineer’s Professional Liability Insurance (PLI) available to Member Firms. Neither ACEC nor The BIT endorses any one Professional Liability provider. It is the objective of Marsh Sponsored Programs to offer a choice of providers of PLI coverage. The selection of underwriters may change from time to time.

Project 72214 All Plans Ad Trim size: 8.375”x10.875” Bleed: 8.75”x11.25” Colors 4C=(4 color process) Choose health care by the numbers

Access to 99% Coverage1

Renewal 93% Rate2

More options. Preferred pricing. You belong with the engineering firms that consistently choose the ACEC Life/Health Trust to deliver value in numbers.

Call 1-877-279-6544 or visit uhctogether.com/acec24 for more information and to download “3 Keys for Choosing a Health Plan.”

Insured and serviced by:

1Network statistic based on GeoAccess information and UnitedHealthcare standard network access mileage criteria, 2013. 2Renewal rate based on average year-over-year ACEC Life/Health Trust persistency metrics. The American Council of Engineering Companies (ACEC), the ACEC Life/Health Insurance Trust and UnitedHealthcare Insurance Company are three separate legal operating entities and, as such, the organizations are governed and function independently. UnitedHealthcare’s services are provided with the authorization of the ACEC Life/Health Trust. Questions related to health benefits offered through the Life/Health Trust should be directed to 1-800-573-0415. Must be UnitedHealthcare insurance license products; and HMO products do not apply. ACEC membership qualification is determined by the association. Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. © 2015 United HealthCare Services, Inc.