www.thezweigletter.com celebrating 2 0 YEARS DECEMBER 17, 2012, Issue 987

TRENDLINES Copy success Price of entry $70,000 $60,000 $50,000 See what more successful firms than yours are $40,000 $30,000 doing, straight from ZweigWhite’s surveys. $20,000 $10,000 e’re down to the end of the year now and everyone seems to be $0 Civil Engineer Civil Structural Structural Engineer Electrical Electrical working on their business planning. Part of that process usually Engineer Mechanical Mechanical

W Engineer Mark involves benchmarking how your firm compares to other, similar A/E/P Zweig or environmental firms. I can see this is happening based on sales of our survey products. We just had the biggest single-day sales of surveys 2012 2013 I have seen here in years last week. It’s crazy. Salaries for entry-level engineers at My problem with benchmarking has always been: Whom are you leading engineering firms are on the comparing yourself to? While most firms in this business seem rise this year. For example, the 2013 preoccupied with finding other firms that are their exact same size, or “Salary Survey of Northeast & South discipline, or based in Peoria like they are, the real issue in my mind Atlantic Engineering Firms” finds may be finding other firms in this business that are super successful, that the median base salaries for key and comparing yourself to them. Our “Successful Firms Survey” looks engineering titles at the entry level at companies that are growing faster (average of 20 percent or more for increased from 2012 to 2013: civil the past three years) and are more profitable (average profitability of engineers from $48,600 to $56,680, 24.5 percent of net service revenue) than the bulk of the firms in this structural engineers from $50,253 business. to $57,408, electrical engineers from $49,504 to $60,400 and mechanical

EDITORIAL I like this survey. It’s one we can all learn from. Here are some engineers from $48,000 to $60,560. interesting tidbits from it: – Margot Suydam, Survey Manager ❚❚ Successful firms budget more for marketing – 8.6 percent of rev- enue on marketing versus 3.5 percent for all others. I have always believed there was a relationship between marketing budget and growth and profitability. FIRM INDEX Bioengineering Group...... 5 ❚❚ Successful firms have higher chargeability rates – ranging from Bracken Engineering, Inc...... 11 64.3- to 65.6 percent versus 57.3 percent for other firms. Having Carney Engineering Group...... 5 principals and managers who work on jobs (instead of spending all their FPM Group...... 9 time on corporate management) and less support people goes a long way Fuscoe Engineering, Inc...... 9 to help utilization rates. High utilization makes it easier to make money – Kleinfelder...... 12 plain and simple. Luckett & Farley...... 5 See MARK ZWEIG, page 2 MacKay Sposito...... 3 Merrick & Company...... 11 The important thing for you to be thinking about is SAM, Inc...... 9 Stantec...... 12 whom you are modeling yourself after. Make sure Sullivan International Group, Inc...... 11 it is a company that is more successful than yours Thornton Tomasetti...... 12 Wiley|Wilson...... 11 is – not less! Withers & Ravenel...... 9

INSIDE TO OUR SUBSCRIBERS: Due xz TOP PLAYER: Carving a path to success. Page 3 Handling to the upcoming holidays, The Zweig Letter will not be xz PM PERSPECTIVES: PM resolutions for the published on Dec. 24. We New Year. Page 7 on-the-job errors will return on Dec. 31. Happy xz HR: Hiring for potential or experience? Page 9 Holidays! xz FINANCE: Debt or cash for purchases? Page 11 Page 5

THE VOICE OF REASON FOR A/E/P & ENVIRONMENTAL CONSULTING FIRMS THE ZWEIG LETTER | DECEMBER 17, 2012, ISSUE 987

MARK ZWEIG, from page 1 A/E BUSINESS NEWS ❚❚ Successful firms charge higher MODERATE RECOVERY PREDICTED: headed higher,” Basu said. “ABC predicts fees and manage their fees bet- Associated Builders and Contractors higher marginal income tax rates to reach ter. High profit firms have effective released its 2013 economic forecast pre-Bush levels, as well as an increase in tax multipliers of 3.37 versus 3.08 for for the U.S. commercial and industrial rates on capital gains and dividend income. In all other firms. Having a brand name construction industry, and it shows the addition, ABC expects the payroll tax credit to and providing high quality – along continuation of a modest recovery for sunset in the first quarter of 2013. with being willing to ASK for a better nonresidential construction next year. “The U.S. economy is presently expanding fee – all contribute to higher multipli- “ABC predicts nonresidential construction at a 2 percent rate,” Basu said. “Even in the ers. Higher multipliers make it easier spending will expand 5.2 percent in 2013,” absence of a dive off the federal precipice, to hire good people, spend money on said ABC Chief Economist Anirban Basu. the nation will struggle to achieve 2 percent I.T., and spend money on people. “Given the remarkably deep reductions growth next year as certain tax rates rise in nonresidential construction spending and as federal spending growth slows and ❚❚ Successful firms employ the since the onset of the downturn, one perhaps turns sharply negative. simple tool of regular project would expect more robust growth during progress reports to all clients on “Gross domestic product (GDP) has expanded the fourth year of broader economic for 13 consecutive quarters, which has all projects. Seventy five percent to recovery. all successful firms send out periodic reduced vacancy rates in certain segments PM reports, compared with only 68 “Thanks to a handful of segments and in key metropolitan areas,” Basu said. percent of all other firms. I will never experiencing more rapid economic “ABC’s forecast for GDP growth next year know why everyone doesn’t do this. recovery, much of the construction is between 1 percent and 2 percent. If the It is cheap and easy to implement and expansion next year will be in categories nation falls off its fiscal cliff, recession will heavily associated with private financing,” follow, with GDP falling between 2 percent clients like it. It improves collections Basu said. “Due largely to constrained and 3 percent for the year. and client relationships. capital budgets at state and local “With the elections now behind us, the hope ❚ ❚ Successful firms use continu- government levels, as well as ongoing is the White House and Congress will be able ous client feedback collected turmoil in Washington, D.C., publicly to successfully navigate the nation past its through a formal process. Sixty funded construction spending is expected fiscal cliff,” Basu said. seven to 75 percent of successful to be flat next year, and perhaps worse. firms have a process for ongoing cli- “If that happens, the latter half of 2013 “The fastest growing major U.S. industry could be surprisingly good for nonresidential ent feedback versus only 51 percent during the last year in terms of absolute activity given the large volume of construction for all other firms. Regular polling of job creation was professional and projects that were put on hold during the past, potential, and current clients business services,” Basu said. Because course of 2012. However, the baseline and then publishing the information many firms in this category use office forecast calls for only moderate expansion – good and bad – for all staff to see space, office-related construction in nonresidential construction spending next is a very powerful tool if you want to spending is expected to rise 10 percent year.” really have outstanding service. in 2013. ❚❚ Successful firms have harder “Consumer confidence also has working people in their manage- progressed,” Basu said. “Accordingly, ABC ment jobs. If you can get your prin- predicts total commercial construction cipals and PMs to work more hours, will expand roughly 10 percent next everyone will work more hours and year. Other industries positioned to you increase your production capacity experience rising levels of investment include power, up 10 percent; lodging, up at no cost to the firm. 8 percent; health care, up 5 percent; and 38 West Trenton Blvd., Suite 101 Fayetteville, AR 72701 ❚❚ The average work week in suc- manufacturing, up 5 percent. Mark Zweig | Publisher cessful firms for PMs is 50 hours “Nonresidential building construction [email protected] versus 45 in all other firms. It’s employment is expected to expand 2.1 João Ferreira | Managing Editor 57 hours in successful firms for prin- percent in 2013, slightly better than the 1 [email protected] cipals versus 50 in all other firms. percent performance estimated for 2012,” Christina Zweig | Contributing Editor People only work like that if they are Basu said. “Construction materials prices [email protected] happy and challenged, and not upset should rise a bit more rapidly in 2013 than Tel: 800-466-6275 with the company. Seems obvious! they did in 2012, with substantially more Fax: 508-653-6522 volatility to be experienced from month to E-mail: [email protected] There’s so much more good month next year. Online: www.thezweigletter.com information in here. The important Twitter: twitter.com/zweigwhite “Despite ongoing slowdown in many Blog: zweigwhite.blogspot.com thing for you to be thinking about of the world’s largest economies, ABC – as the end of the year approaches Published continuously since 1992 by ZweigWhite, anticipates many investors will opt to Fayetteville, Arkansas, USA. ISSN 1068-1310. – is whom you are modeling yourself invest in hard assets as a way to avoid Issued weekly (48 issues/yr.). $475 for one-year after. Make sure it is a company that volatility in equity and bond markets,” membership, $775 for two-year membership. is more successful than yours is – Basu said. Article reprints: For high-quality reprints, not less! “Whether or not the nation falls off its including Eprints and NXTprints, please contact The fiscal cliff – a collection of spending YGS Group at 717-399-1900, ext. 139, MARK ZWEIG is the chairman and CEO of or e-mail [email protected]. ZweigWhite. Contact him with questions or cuts and tax increases that kick in at the comments at [email protected]. end of the year – certain taxes likely are © Copyright 2012, ZweigWhite. All rights reserved.

2 © Copyright 2012. ZweigWhite. All rights reserved. THE ZWEIG LETTER | DECEMBER 17, 2012, ISSUE 987

TOP PLAYER Carving a path to success MacKay Sposito has ly enhances our brand. The timing of 3) The company comes first. We used making the list couldn’t have been bet- to say our people come first. This undergone a transformation ter. MacKay Sposito just spent the last change to the company comes first is under Tim Schauer; they’re two years investing in a significant re- less a change and more redefinition of branding effort that culminated in our what the company’s primary purpose now a Hot Firm. critical mass brand launch in Septem- is to us. For MacKay Sposito, the com- ber of this year. This recognition adds pany must be healthy and financially stable with an optimistic outlook so uring the Great Recession, MacK- timely credibility that our recent re- that it can serve its employees (its own- Day Sposito took very concrete branding efforts are in fact motivated steps to overcome the odds. As a con- ers included). I like the analogy of a life by growth and evolution, not by des- raft. What is more important? Every sequence, the Vancouver, Wash.-based peration or convenience. single person in the raft or the raft it- 100-person consultant in energy, pub- self? A failed raft means no survivors. TZL: List three ingredients that lic works and land development, placed This became real to us as we looked at No. 54 on THE ZWEIG LETTER 2012 allowed you to thrive when oth- carrying all of our billable employees Hot Firm List. ers have failed in difficult times? as the firm’s utilization performance In other words, what makes a Hot took a downward trend. In other words, Here, President and CEO Tim Schauer Firm in 2012? the raft was getting smaller and for the describes how that was accomplished, benefit of the raft some people had to among other things. TS: get in the water for a while or we would all be in the water. THE ZWEIG LETTER: How does it 1) Bad news does not get better with age. Fear of failure is a powerful mo- feel to be a Hot Firm? TZL: In 10 years, do you think you will still be a Hot Firm? What are “We stopped hoping and began to implement the major threats to business suc- deliberate business and strategic plans. cess today? We recognized that hoping for the market to TS: I don’t know if we will be on the list in 10 years. I know it will be hard come back, or hoping for opportunity to grab to maintain our current growth curve us, or hoping that our clients were satisfied, that got us here. I do know that making the Hot Firm List won’t be a direct fo- Tim Schauer, and hoping our employees weren’t as worried cus for us that drives our business plan President and each year. We will focus on helping our CEO, MacKay as we were about the future, would not help clients be successful and making our Sposito. us make the Hot Firm List.” communities better places to do busi- ness, to live, and to play. If we accom- plish these goals, I believe our compa- Tim Schauer: We have admired those tivator. Breathing into the very real ny will have lots of return business, we firms ranked as ZW Hot Firms for possibility that if you don’t make the will be growing and profitable, and if many years. It has been a very proud necessary hard decisions (to cut costs, that gets us on the Hot Firm List… I’ll moment for our owners and our em- layoffs, ownership changes, reduce be thrilled. ployees. While I have received some benefits, etc.) while simultaneously generous recognition this year for mak- reinvesting money into the company I think the major threats to business ing the ZW Hot Firm List as well as oth- to chase new revenue, your company success today for are the same as they er growth awards from our local and re- could fail on your watch. Do not pro- have been, but the margin for error or crastinate when dealing with internal gional business journals, I have to be cushion is thinner. I think there are a problems that are eating your firm’s candid that recognition is not mine to few paradigms or beliefs that settle on future. accept personally. My partners and our business leaders that can constrain and employees deserve credit too for fuel- 2) Hope is not a strategy. We stopped threaten success in business, and here ing our recovery and our record growth. hoping and began to implement delib- are a few that stand out for me. erate business and strategic plans. We I am grateful they have the confidence ❚ recognized that hoping for the market ❚ Our problems are unique! No one in my leadership to continue to choose else has ever had a problem like this, me to sit behind the wheel and steer. to come back, or hoping for opportuni- ty to grab us, or hoping that our clients therefore we necessitate a unique solu- tion (invent the wheel on our own). I TZL: How valuable will the Hot were satisfied, and hoping our employ- see this most often with internal opera- Firm status to your brand? ees weren’t as worried as we were about the future would not help us make the tions and human resources. TS: Making the Hot Firm list definite- Hot Firm List. See TOP PLAYER, page 4

3 THE ZWEIG LETTER | DECEMBER 17, 2012, ISSUE 987

TOP PLAYER, from page 3 ❚❚ Promoting and modeling a work life make more money to replace the dol- balance is essential. This does not nec- lars they give away, but they can’t make The realization that you are not unique essarily mean a 40-hour work week, but more time. That gift is permanent. and someone else has traveled this path being flexible to accommodate your em- before enables you to be open-minded ployees (and your) personal life obliga- TZL: Describe the most challenging and assume a posture that enables you tions, such as coaching your kid’s team, thing you have ever done/the big- to learn from others who have faced getting exercise, and volunteerism. gest challenge you have taken on your same challenge before. Unless you Work doesn’t start at 8 a.m. and end at outside of work. like to invent instead of solve. 5 p.m. anymore, so why should we cling ❚❚ Someone else will fix that. This one to the paradigm that everything else TS: I am a self-confessed bicycling ad- is not isolated to business but it casts must only happen outside that time? dict. I’ve been riding seriously for more a shadow on our futures. I believe it than 20 years and racing more than 10 has seeped into many aspects of our TZL: On a personal note, do you re- years. I don’t win very often, but the society. Whether it is improving public member your first paid job? What biggest challenges are not winning rac- education, or improving the regulatory did you learn then that still influ- es – sometimes it is just finishing. I en- reform, or achieving reasonable costs ences the way you work today? tered and finished the Mt Hood Clas- for healthcare insurance, to our erod- TS: I worked as a cook and dishwash- sic stage race only once (2010) and I ing transportation infrastructure. Far was dead last of the finishers. The last too many business leaders believe they er at McDonald’s in high school and I day (day 4) was a 90-mile, 5-hour day, do not have enough time to help (with worked a few more fast food jobs. These time and money) solve the problems are basic but hard jobs that must be with 10,000 feet of climbing just to fin- they observe around them. My perspec- done well or customers aren’t happy or ish last. I rode the last 80 miles by my- tive is that many of these problems worse – get sick. I learned that every self. One of the hardest things I’ve ever are like satellites in a degrading orbit job is important to someone and there done. Check “do a bicycle stage race” off around our businesses and over time is pride in excelling no matter how ba- the bucket list! threaten our ability to succeed in busi- sic your job is. I do not under appreci- TZL: What lesson learned would ness. I believe my generation was pro- ate any job that involves food prep or you pass along to a recent college vided much in the way of opportunity physical labor. They may not pay as well graduate embarking on a career in to thrive and if we wish for our busi- as my job, but it doesn’t mean their job nesses to succeed beyond us we have the A/E/P and environmental con- is easier. to pay it forward through helping to sulting fields? fix these problems. I am committing to TZL: Do you hold someone (inside TS: The lessons I would pass along to work harder “to help fix that” in my pro- or outside the industry) as a spe- fessional and personal life and bring as a fresh graduate would be that get- cial mentor? How did this person many others along for the ride as I can. ting the highest grades and where you influence who you are? went to school do not matter. If they do TZL: What are the major trends you TS: My father (Al Schauer) has been an matter, find another company to work must embrace to stay competitive? important mentor both inside and out- for. Being technically brilliant and the smartest person in the firm won’t get TS: The major trends or truths that I side the industry. His unwavering self- embrace are: confidence and optimism that he will you very far if you can’t communicate always succeed as long as he is honest, it well or work as part of a team. Inter- ❚ ❚ Business is about relationships. Service respectful, and willing to work hard- personal skills are more scarce in this is first and the product we provide is er has always empowered me. His core industry than technical talent. Learn second. value is, “Always do the right thing no how to be a team player and how to ❚❚ More and changing communication matter what, even when no one is look- take pride in serving others because methods necessitate flexibility. Adapt ing.” He talked and walked this in his these factor more into success in this to whatever communication tools are career and it has served as a corporate industry than being the best designer. necessary to be accessible to your cli- and personal compass for me. ents and employees, whether it be tex- TZL: What question would you ask ting, instant messaging, email, Skype, TZL: What’s the one trait you most of another Hot Firm leader? GoToMeeting, LinkedIn, Facebook. admire in people and why? Like them or not, they are being used TS: What is your leadership transition around you. Ignoring them makes you TS: Generosity, especially when talk- plan? If you are a Hot Firm leader like less competitive. ing about their time. People can always me, then likely your firm has rising stars like we do that are enabling you to be at the helm of a Hot Firm. If you don’t “(My father’s) unwavering self-confidence and optimism have a plan, then they don’t know your that he will always succeed as long as he is honest, plan, then they are likely making their own plan, which may or may not in- respectful, and willing to work harder has always clude you or your firm. We are working empowered me. His core value is, ‘Always do the right on our own leadership transition plans now for our rising stars and I trust our thing no matter what, even when no one is looking.’ situation is not unique. Knowing what He talked and walked this in his career and it has served other Hot Firm leaders are doing would be valuable, rather than inventing the as a corporate and personal compass for me.” wheel on our own.

4 © Copyright 2012. ZweigWhite. All rights reserved. THE ZWEIG LETTER | DECEMBER 17, 2012, ISSUE 987

GROWTH Handling on-the-job errors Three firm leaders answer a lot of reasons – some- take. We would review times for reasons that it, understand why the the question, offering are beyond the con- error occurred (judg- conciliatory approaches. trol of the individual. ment error, inexperi- Usually they also in- ence, system or pro- By BRYAN SULLIVAN volve teachable mo- cess error, or random Correspondent ments. The cost of mis- outside effect) and takes can be huge, but learn from it. If prop- entoring and guiding a team can Wendi the cost of losing key Josh Carney, erly handled, the mon- Mprove to be a difficult task, espe- Goldsmith, CEO, staff is also no small President, Carney etary loss can result in cially when you see a rising team mem- Bioengineering thing. We would find Engineering far more value in learn- ber grapple with an assignment and Group. the right way to assess Group. ing and experience to fault, and although we prevent such things “Everyone makes mistakes, and for consider accountabil- in the future. It would not affect their a young rising star to do so is not ity to be crucial, we do prospects in our company unless it be- not approve of point- came a regular occurrence or if they shocking. Those who do not make ing the finger of blame, failed to take responsibility for it. That mistakes are playing it too safe.” especially when the in- last one is the most critical; the one fa- dividual is a great per- tal flaw for us in an employee would be former, but still relying on mentoring blaming others for mistakes. We have then make a mistake. It’s a challenge and development as a leader. Based on zero tolerance for that.” for even the most seasoned leader. similar situations we have dealt with How this situation is handled is vital in the past, I would envision a loss of Ed Jerdonek, president to keep employees from being afraid to raise/bonus to drive the point home. and CEO of Luckett venture out of the realm of average and We would then focus on helping the in- & Farley (Louisville, challenge themselves. dividual learn the lesson well and also KY), a multi-disciplin- ensure that others within the firm do ary architectural, en- Great thinkers and famous individuals gineering, interior de- have often said that without making too. On the flip side, when people risk new things and succeed, we sing their sign, program manage- mistakes, greatness is never achieved. ment and construction praises! Our business happens to en- For example, Winston Churchill once management firms, dorse and practice risk-based design Ed Jerdonek, said, “All men make mistakes, but only President and says, “Any architectur- methods, for subject matter includ- wise men learn from their mistakes.” CEO, Luckett & al, engineering or in- ing sea level rise adaptation and miti- And James Joyce said, “A man’s mis- Farley. terior design firm that gation. Our work in New Orleans in- takes are his portals of discovery.” hasn’t suffered from volved supporting many key employees a costly mistake made So, to see how top firm management in doing things differently than what by a rising star probably doesn’t have handle errors made on the job, we post- the client stated they wanted, and re- any employees! Sure, we’ve all been sulted in our project team (counting ed the following question to three A/E there – myself included. Unfortunately, public and private partners intimate- leaders. the most effective way to have a lesson ly involved in the work) winning many permanently seared into your brain is Q: One of your rising star princi- national awards, from the Army Corps to make a big hairy mistake and then pals (potential leader) makes a big Innovation Award, to the ACEC Grand shoot your way out of it. Nobody gets mistake on a project he/she is han- Conceptor Award in 2012, among oth- penalized for making mistakes at Luck- dling as a project manager. This er- ers. We are dedicated towards support- ett & Farley; our employee-owners ex- ror or mistake will cost the firm ing innovation and rapid adoption of ercise good judgment and technical thousands of dollars – if not more. new approaches, hence more interest- ability with strong problem solving How do you deal with this situa- ed in promoting a firm-wide culture of skills, but the occasional landmine does tion? What are the person’s pros- rigorous risk taking.” get stepped-on. When that happens, pects of continuing their rise in- we assume responsibility and solve the side the company? Josh Carney, president of Carney En- gineering Group (York, PA), a for- problem – period! Pointing fingers or Wendi Goldsmith, CEO and founder of ward- looking, multidiscipline engi- blaming others is a one-way ticket to a Bioengineering Group (Salem, MA), neering firm, said, “Everyone makes lost client relationship. We practice our a science, engineering, landscape de- mistakes, and for a young rising star to A/E ‘Employer of Choice Continuum,’ sign, energy planning, and construction do so is not shocking. Those who do not which includes lots of training and les- management firm, toldT HE ZWEIG make mistakes are playing it too safe. sons about recognizing your personal LETTER that, “Mistakes get made for We would deal with it as with any mis- See ERRORS, page 8

5 THE ZWEIG LETTER | DECEMBER 17, 2012, ISSUE 987 Remote control

Does your business management visitors. A fire, hardware failure, disgruntled employee, power problem or software virus can have system belong in the cloud? a devastating effect on a company’s productivity.

ince I started accounting software consulting During Hurricane Sandy many of our clients on Sin 1986 I have had to graduate to different the East Coast were down and out of business for June technology platforms about every 10 years. It started days. Our company was fully operational and our Jewell with DOS in the ’80s, then Windows, Client Server, employees were able to move to a different location and about 12 years ago came web-based systems. Now and access all of our systems online. we have the cloud, and our clients are asking: Should we do this and it is more cost-effective? We also had a client whose server died recently and when they went to restore the backup from their To answer this, you must evaluate your strategic Deltek Vision system, they found that their backups growth plans, IT strategy and tolerance for risk. Many had failed. They lost 18 months of data and had to A/E firms have applications in the cloud already, such incur a huge expense to recreate the lost transactions. as payroll, online bill pay with the bank, employee self-service, and recruiting. I recommend looking at Both of these companies would have reduced or the benefits, cost factors, as well as the risk factors, to eliminated their losses if their systems had been on determine the best way to go. the cloud and not in their offices. Professional data centers used by hosting/Software-as-a Service (SaaS) Is moving to the cloud cost-effective? providers must be compliant with many security The true costs of internally hosted systems include standards, which are continuously changing and the cost of the software licenses, annual maintenance, need to be tested regularly. They are also in very servers, server software and other licenses (e.g. SQL, secure buildings with power and Internet backup virus protection, etc.), IT support and maintenance, able to withstand a two-week outage, and redundant the cost of upgrades, backup systems and time to operation in a remote location. A thorough evaluation manage them. Many people overlook many of these of your internal IT systems might show that you costs in assessing the value of outsourcing their can reduce risk of disaster by outsourcing some of systems. your critical systems to a professional company that GUEST SPEAKER GUEST focuses a great deal of resources on maintaining a My virtual company has had its entire infrastructure, state-of-the-art secure environment. including email, SharePoint for document management, and our Deltek Vision accounting and What is our IT strategy? The world of IT man- CRM system in the cloud since 2006. This has saved agement and consulting has changed a lot over the my company a lot of money in increased employee last five years. IT managers must be more strategic productivity, shared resources, ability to quickly scale as they advise their company executives on strategies when growing, and reduced risk of lost data and to help them succeed with rapidly changing technol- disaster such as failed hardware and power outages. ogy. An IT director who is still managing the day-to We have remote access anywhere in the world, almost -day troubleshooting of the firm, and not taking an no down time, and our IT and capital expenditures active role in helping the company use technology to have been nominal. be competitive, may find that their position is not as highly valued in the years ahead. Outsourcing can be What is the risk? Most companies assume that a strategy that allows the company to grow without their systems are more secure than those hosted or investing in hardware and software that will become managed in a professional data center. However, we obsolete, requiring maintenance and support, and can frequently see that server rooms are not as secured as allow the IT resources to become experts in new tech- they should be, with limited power and Internet back- nology rather than having to learn the intricacies of up sources and accessibility to most employees and managing the servers and application support.

What kind of cloud do we need? If you’ve determined that the cloud is a viable option, you’ll want to next look at the different types of cloud of- Studies show that over the next five years ferings. The cloud is just another metaphor for hav- most companies will start to move many ing your software applications and data hosted on the of their critical systems to the cloud. See JUNE JEWELL, page 8

6 © Copyright 2012. ZweigWhite. All rights reserved. THE ZWEIG LETTER | DECEMBER 17, 2012, ISSUE 987 PM resolutions for the New Year

There’s no better time to make tells us people learn more from making mistakes than through doing something correctly. So given that we some changes than the present. are all far from perfect, we must have learned a lot by now. In your organization, this likely falls under the he holidays are coming fast upon us. With that category of “lessons learned.” Make a habit of shar- Christine Tcomes the end of another calendar year. Projects ing these lessons. And more importantly, really make time for quality checks so we are the only ones that see Brack are behind us, the election is behind us – but plans and goals lie ahead. them – not the client. ❚ As leaders, we certainly know that growth is ❚ Synchronize marketing and project When selling our services, we enthusi- more than just revenue. Growth is also personal, management. astically try to out wordsmith the next firm out there. professional, and organizational improvement. The We’re client oriented, fast-track and Agile, innovative best place you can dedicate emphasis for change this solutions providers, and trusted advisors. Be mindful year is in the area of project management. that these descriptors come with promises you will actually have to deliver (quick turnarounds) and will The following is a suggested recap of actions you generally always cost more money than you planned can try to implementing immediately. These ideas (more meetings, more calls, more everything). Check are extracted from my 2012 series of articles in how your marketing slogan may quietly be gobbling up THE ZWEIG LETTER. Choose one or two and your fee. make the best of them. If you’ve been successful at implementing some ideas this year, try for more. ❚❚ Set a purpose for training. Our industry thrives Knowing how good it feels to make changes that on gathering knowledge and we push to be experts stick is a big boost to organizational confidence and through more and more learning. However, project makes additional changes in practice so much easier. management training won’t cure a weak system – whether one manager sits through a session or sev- ❚❚ Reduce everything that has “project” written eral do. Give strong consideration for everyone that on it. Firms have too many people they call “project touches a project to learn best practices – then the en- managers” reading too many project reports for too tire team can really work in harmony. And just as firm many “open” projects. Define what it truly means to be leaders continue to beat the drum on marketing efforts a project manager and designate only those who can or the strategic plan, relevant and useful aspects of shoulder those responsibilities and know where a proj- project management should be a regular conversation ect stands without having to crank out reams of paper. piece. PM PERSPECTIVES ❚❚ View mistakes positively. Science and research ❚❚ Don’t be broken down by the bad days. I imagine you had more lousy days than you anticipated this year. Sometimes it seemed there simply wasn’t a way out or a solution in sight. No one is a superhero. So if you lack the strength to get through, please try any combination of the following to tide you over: vent to a balanced, disconnected person, do something to treat yourself kindly, get some fresh air and breathe deeply, get some exercise and move about and, finally, just start over in the morning. Clearer minds always prevail.

This list does not even exhaust the small places where project management can be improved – so it’s worth thinking of what is unique to your firm and pledge to change. Even when you slip a little or have If you’ve been successful at implementing an all-out failure keep in mind that it is all part of some ideas this year, try for more. Knowing the process. You have the ability and opportunity to start again tomorrow. We commit to resolutions to how good it feels to make changes that stick break a bad habit or improve. Good luck and happy is a big boost to organizational confidence and 2013. I hope it is a prosperous one for you! makes additional changes in practice so much CHRISTINE BRACK, PMP, is a principal with ZweigWhite who specializes in business planning and project management best easier. practices. Contact her at [email protected].

7 THE ZWEIG LETTER | DECEMBER 17, 2012, ISSUE 987

IN BRIEF CALENDAR A SHINING EXAMPLE: The results of the 2011 Emporis Skyscraper WOMEN IN DESIGN CONFERENCE: In the near future, women are Award are now in: in is the projected to account for 51 percent of total labor force growth, says winner of the renowned architecture prize for new skyscrapers. the U.S. Department of Labor, Women’s Bureau. Every year, Emporis’ expert international jury (www.emporis. Yet, women make up less than one-quarter of the architecture work com) rewards ten skyscrapers completed in the previous force, 9.7 percent of the civil engineering profession, and roughly calendar year. The award is being given for the 12th time. 13 percent of other engineering professions. The winners were chosen from over 220 skyscrapers completed ZweigWhite will present a conference May 9-10, 2013 in Boston in 2011. 8 Spruce Street, the first skyscraper by the architect focusing on issues that relate to women in the male-dominated Frank Gehry, and also known as The Beekman or New York design and environmental professions. by Gehry, won over the jury with its magnificent undulating stainless steel facade. Commenting on the choice, the jury The program is now being organized by Claire Keerl, principal and said: “8 Spruce Street stands out even in ’s already director of corporate marketing and Christine Brack, principal and remarkable skyline. It is a major new architectural landmark for director of consulting, both with ZweigWhite. The multi-day event New York.” will include roundtable discussions, focus groups, networking sessions, as well as keynote presentations by industry leaders. The sculptured form of Skidmore, Owings & Merrill’s Al Hamra Tower earned it second place in the ranking. Despite its great Issues that will be covered include: height, the skyscraper fits harmoniously into Kuwait City’s ❚❚ Work/life balance urban landscape. The tower is engineered to take account of ❚❚ Women as bosses climate conditions: the south façade, with limestone elements cladding a concrete wall, protects the building from the searing ❚❚ Mentoring women in design, engineering, and environmental desert sun and impressed the jury from both architectural and consulting functional points of view. ❚❚ Encouraging women to enter the profession DBI Design’s Etihad Towers were voted into third place, the jury ❚❚ Physical presence (how this impacts coworkers and clients) praising the complex as a particularly harmonious ensemble ❚❚ Career paths for women of buildings. Critical to the decision were the soft, curving contours of the towers: these suggest the shape of sails and ❚❚ Women and the path to principal are intended to evoke Abu Dhabi’s history as a port. The jury of ❚❚ The age factor experts also singled out the exceptional facade of silver and blue ❚ glass. ❚ Alternative careers for women in design and environmental professions 8 Spruce Street is now the third New York tower to win the ❚ . The very first award (2000) went ❚ WBE status to New York , while won the coveted For more information about this upcoming conference email architecture prize for 2006. That makes New York City, the world Claire Keerl [email protected] or log on to capital of high-rise architecture, the city to which the Emporis www.zweigwhite.com/conference/women-in-design-and- Skyscraper Award has most often been awarded. environmental-professions

JUNE JEWELL, from page 6 cloud. Many A/E firms have parts of their business in the cloud already. Putting the email, accounting system and Internet by a third party company. Many software publish- other business applications in the cloud, in a SaaS model ers are offering a SaaS solution in which they provide their or having it hosted, has been done for years and is an software on an annual subscription basis rather than buy- excellent option that can allow your company to focus more ing the software outright. They manage the system for you, resources on what it does best, and allow the experts to including updates and support, and you just pay an annual manage what they do best. fee. You can quit using the system, or downsize your licens- es, after your SaaS term expires, and have no assets to capi- JUNE JEWELL is the author of the upcoming book Find The Lost talize or depreciate. Dollars in Your Business and CEO of Acuity Business Solutions. Acuity is an award winning Deltek partner focused on helping A/E firms and government contractors find opportunities, win business, deliver Studies show that over the next five years most companies projects, and increase their profitability. Read more tips for A/E firms at will start to move many of their critical systems into the her blog at www.AcuityBusiness.com/blog.

ERRORS, from page 5 port of Luckett & Farley and its lead- integrity. We learn from it, shake it off ership – even if that means writing a and then move on without any inter- Moment of Truth by leaving the people check. While we don’t encourage our nal baggage. Besides, our rising stars we interact with wanting more Luckett employee-owners at Luckett & Farley are harder on themselves than we ever & Farley, not less. A big mistake offers to make a habit of strengthening our could be. If Luckett & Farley punished our rising stars the perfect opportuni- client relationships through Service our employee-owners for their mis- ty to perform Service Recovery by ad- Recovery, when mistakes ultimately takes, I never would’ve made it to presi- dressing the problem with the client in do occur (and they will), they offer out- dent and CEO; I’ve made more than my a direct, honest and speedy manner – standing opportunities to show our cli- fair share of mistakes over the years. then fix the mistake with the full sup- ents our firm’s culture, character and We’re all human.”

8 © Copyright 2012. ZweigWhite. All rights reserved. HR A SUPPLEMENT OF THE ZWEIG LETTER DECEMBER 17, 2012, ISSUE 987 RECRUITING Hiring for potential or experience? It depends on the position it that, because now Howard agrees. She says that recent- you have an entry-lev- ly SAM, Inc. has been hiring more sea- and professional licensure el individual with ex- soned people because the open posi- requirements, among other perience to mold into tions dictated a certain level of experi- the organization for ence; potential was not really an issue things. growth for the compa- there. ny as well as their ca- By LIISA SULLIVAN However, for 2013, SAM, Inc. has made Correspondent reer path and growth,” Carla Erickson, Erickson says. a conscious decision to really make a iring the right people for the right Director of HR, push for hiring more graduates right Hjob is a fussy process. In some cas- Withers & Kelly Howard, talent out of college. es, firms let the position dictate wheth- Ravenel. acquisitions coordina- er potential or experience will play a tor at SAM, Inc. (Aus- “They are eager to work hard, willing more important role in hiring; others tin, TX), a surveying, aerial mapping to learn, and tend to soak up so much say that experience is the only way to and engineering firm, says that they knowledge,” Howard says. go. also look to interns to fill more entry- level like positions. Exam ability to grow. Fus- coe Engineering, Inc. (Irvine, CA), a “Potential is “College graduates are ideal for man- 97-person firm that provides civil en- very difficult agement grooming. And, they are also gineering for land development and able to take the RPLS (registered pro- public infrastructure, hires candidates to judge.” fessional land surveyor) exam (you based on both experience and potential have to be a college graduate to do this ability to grow within the firm. For instance, Kevin in Texas.),” Howard says. Phillips, CEO at FPM Pamela Fleming, HR manager, says Group (Ronkonko- She says that SAM, Inc. recently had a that the first thing you need to deter- Kevin Phillips, summer intern whom they hired. He is CEO, ma, NY), a full service, mine is what each position within the FPM Group. multi-disciplined engi- now doing some survey tech work and team you are hiring for needs for the neering firm, says that also field work. long term. For example, does the situ- he usually hires based “There is no doubt that he is being ation require someone who aspires to a on experience. groomed for a project manager posi- higher-level position (is there a realis- tic opportunity for them)? Or, does the “Potential is very difficult to judge,” he tion,” she says. situation call for someone who is going says. “It falls into the category of ‘gut to master their role and remain content feel’ and that can be the deciding fac- Senior-level experience. Now, and engaged at that level? Once you es- tor in a hire.” when it comes to hiring for upper-lev- el positions, experience seems to play tablish that, you can determine what Entry-level potential. At more of a role. you’re looking for. Withers & Ravenel (Cary, NC), a full- “For example,” Erickson says, “if you “At Fuscoe, we definitely look for quali- service civil and environmental con- are hiring a geologist or stormwater ties in candidates who show that they sulting engineering firm, Carla Erick- engineer, you must look at their past are passionate about what they do, and son, director of human resources, says experience, education and profession- that choosing between experience and will be able to provide the best possi- potential really depends on the open al certifications and licensing. In the ble service to our clients,” Fleming says. position. situation of a geologist position we re- “It is also important that they want to cently hired for, the position warranted grow professionally.” “We are very much into hiring interns someone with landfill experience, field for the summer and depending on the geologic assessments (soil assessment, Is it necessary that they want to be a department, we try to get the upper groundwater monitoring, delineation future leader? Fleming says, “Not nec- classmen to work while they are back to of soil and groundwater contamina- essarily. As long as they aspire to be the their classes (school work always first!). tion) and project management expe- best at what they do and their desire This way you are training the individu- rience. This type of position could not to stay on top of new technology and al with the potential of hiring that stu- be filled with candidates with a college best practices is strong, then you are in dent when they graduate. It is a great education, but required actual field and a good spot and you will get a well-bal- grooming process, if you want to call office experience.” anced team.”

9 THE ZWEIG LETTER | DECEMBER 17, 2012, ISSUE 987

ON THE MOVE CHAMPALIMAUD DESIGN HIRES: Champalimaud Design (New York, Michael Meyers – Fort Lauderdale. Meyers officially joined EDSA NY), a multidisciplinary interior design and planning firm, announced in Fort Lauderdale in 2000, and has been a vital team member for a the appointment of Edmond Bakos, who will serve as the firm’s new wide variety of EDSA’s international master planning efforts for managing director. Bakos, a registered architect, served for 18 years and resorts as well as golf and waterfront-oriented communities. as a principal and studio leader at Rockwell Group prior to joining Matt Renauld – Baltimore. Renauld, joined the firm in 2005 and Champalimaud Design. works in the EDSA Baltimore satellite office. He possesses a very Bakos’ extensive luxury hospitality and restaurant experience, broad range of talents from large scale planning to detailed site spanning 26 years, has positioned him as a leader in the design design, from local and regional projects to international work in China industry. He is recognized for his ability to collaborate with high- and Brazil. profile clients on complex projects to create innovative and engaging Nominations to senior associate: guest experiences. Past projects have included the first W Hotel, the Belvedere Hotel in Mykonos and the Cosmopolitan Resort and Casino Jeremy Belitz – Fort Lauderdale. Joining EDSA in 2002, Belitz has in Las Vegas. had the opportunity to work on a vast number of international projects from the conceptual design through construction document phases. Regarding the appointment, Alexandra Champalimaud, founder and principal of Champalimaud Design, said: “We are all delighted that Ed Jeong Park – Orlando. Park has been a member of the EDSA Orlando has joined us as a creative and business leader of our firm. He has a office since 2004. She has been project manager for many domestic proven record of creating emotionally engaging spaces that achieve and international projects and an essential part of the Orlando and his clients’ strategic objectives. And, given his strong business EDSA team. management, operations and financial management skills, I have Justin Rietema – Fort Lauderdale. Rietema became part of the EDSA every confidence that he can successfully expand our services and team in 2006. He has excelled in the production of concept design grow our business.” through detail design. “My career with Rockwell has been thoroughly rewarding, and I leave Masa Taguchi – Fort Lauderdale. Joining EDSA in 2005, Taguchi has with the highest respect for David Rockwell and the firm,” Mr. Bakos had the opportunity to work in various complex projects as designer added. “But, I found this opportunity irresistible. I have long admired and project manager. the work Champalimaud produces, and it is a great honor to become the firm’s managing director. Working with Alexandra and the strong Nominations to associate: team she has assembled, we look forward to broadening the creative Danny Bulemore – Fort Lauderdale. Bulemore joined EDSA in May offering to clients and, as always, focusing our efforts on the delivery of 2011. He quickly became immersed in the studio and understands of well-crafted and financially successful projects for clients.” EDSA’s design and planning process. He has demonstrated At Champalimaud Design, Bakos will oversee a staff of 35 and outstanding graphics and innovative design techniques, serving as a spearhead the firm’s expansion into new project types that leverage key player in the effort to help blend EDSA graphic styles with new the firm’s hospitality focus and innovative approach to create relevant technology. and differentiated design solutions for discerning clients. Jack Garcia – Fort Lauderdale. Garcia joined EDSA in 2007 as a CAD PSI HIRES: PSI (Oakbrook Terrace, IL), an independent engineering and technician. He has played an important part within the firm not only testing firm, announced that Derek Boese has accepted the position providing technical assistance to the studios, sharing his expertise of vice president overseeing their New Orleans operations. Boese has with AutoCAD, but also coordinating with clients and consultants. over 17 years of industry experience. Garrett Mattes – Fort Lauderdale. Joining EDSA in 2008, Mattes PSI provides a wide range of environmental engineering and has worked on many challenging and notable projects such as Tiger testing services, including environmental consulting, geotechnical Woods Dubai and the Al Ain Wildlife Park. engineering, construction materials testing and engineering, industrial Robert Micsak – Fort Lauderdale. Micsak joined EDSA in 2007. He is hygiene services, facilities and roof consulting, and specialty a very creative designer possessing good hand graphics. He is also a engineering and testing services. PSI operates from 100 offices in talented photographer and has been on several assignments to take North America, with more than 2,000 employees. photographs of EDSA projects. EDSA PROMOTES: Doug Smith, president and CEO of EDSA (Fort Neal Schafers – Fort Lauderdale. Schafers officially joined EDSA in Lauderdale, FL), a 200-person full-service planning, landscape 2007. He has been an important part of the coordination and design architectural, and urban design firm, recently announced the of the Al Ain Wildlife Park project and clients specifically request advancement of 14 professional staff members to the levels of vice his presence due to his accountability, sense of responsibility, president, senior associate and associate. Colleagues and EDSA coordination skills and knowledge. principals recognized individuals representing three of EDSA’s offices for their professional accomplishments and contributions to the firm. Brett Tagtmeyer – Fort Lauderdale. Joining the firm in 2008, EDSA retains outstanding industry talent through its performance- Tagtmeyer is very experienced in supporting the studios by producing based advancement structure, which rewards committed employees and packaging the conceptual and preliminary master plan submittals. at every level with ongoing professional opportunities within the He also has a strong ability to prepare design sets from the schematic company. design stages to construction documentation. “EDSA is dedicated to excellence and that includes the continued John Torti – Fort Lauderdale. Torti quickly showed his leadership skills progress, growth and satisfaction of its employees,” said Doug and started managing projects, including some of the urban design Smith, EDSA President and CEO. “We are proud to hold such an elite work that we are doing in Florida, and is able to coordinate with team of professionals whose passion, integrity and creativity are clients and consultants, as well as run a small team. consistently exceeding clients’ expectations and inspiring others to Lianying Wang – Baltimore. Wang began her career at EDSA as thrive as well. Their leadership, experience and quality of work are an a summer intern in 2007, officially joining the staff in 2011. Since asset to the future of EDSA.” rejoining EDSA she has taken on the huge task of coordinating much Promoted to vice president: of the studio’s China work.

10 © Copyright 2012. ZweigWhite. All rights reserved. FINANCE A SUPPLEMENT OF THE ZWEIG LETTER DECEMBER 17, 2012, ISSUE 987 DEBT Debt or cash for purchases? Some firms only trust the “We recognize the need super deals available for those willing in this economy to be to increase their balance sheets, it’s dif- dollar bill, while others are both conservative and ficult to say no to zero percent financ- willing to venture into the proactive, and while ing on items such as IT purchases. we do have an active lending market. credit line, it primari- Tim Davis, control- ly exists for any unan- ler at Sullivan Inter- By BRYAN SULLIVAN ticipated expenses that national Group, Inc. Correspondent Roy Mitchell, may come our way. In (San Diego, CA), an ap- plied science, environ- t’s all about the bottom line. And, CFO, MBP. 2009, we purchased a mental, and technolo- managing how and why a firm pur- small company based I gy firm that has been chases large items can make all the dif- out of New York City serving both the com- and that purchase was made in cash in- ference in the world when it comes to mercial and govern- stallments, a decision that was driven Tim Davis, budget. So, what are firms doing now? ment sectors, reports by the essential need to continue our Controller, Some are withholding purchases, stray- that the majority of its positive cash flow and to limit debt to Sullivan ing away from debt. Others are taking International major purchases are IT- the fullest extent possible.” advantage of zero percent financing Group, Inc. related. offers by companies for items such as software and heavy equipment. What’s A mixed bag. Some firms play both “We have seen an in- your firm doing? Is cash king or is debt sides of the financing fence – using cap- crease in promotional financing (i.e., still in? ital they have accumulated and taking 0 percent interest) and larger incen- advantage of historically low financing tive discounts from vendors,” he says. With record amounts of cash sitting that is still available. “The promotional financing helps us to on the sidelines in corporate America, Mark Henline, vice president and CFO avoid large cash outlays, especially at THE ZWEIG LETTER wanted to know the beginning of the year, when busi- at Merrick & Company (Aurora, CO), if, how and why leaders in the A/E cat- ness is seasonally slower.” egory are making their purchases. an employee-owned engineering, ar- chitecture, design-build, surveying, Using cash for acquisitions. Debt versus cash: Who’s king? planning, and geospatial solutions While using cash for small to mid-sized For some firms, it’s as simple as just firm, says that Merrick currently has purchases is still commonplace in to- saying “no” to debt to keep competi- very little funded debt which, in part, day’s economy, some firms are using tive and still grow. William Bracken, is reflective of a strong cash position. it for larger purchases, such as acquisi- president/principal engineer at Brack- “The funded debt that we currently tions, as well. en Engineering, Inc. (Tampa, FL), a have is traditional bank financing,” he 40-person multidiscipline engineering E. M. (Mac) Frankfort, vice president says. “Merrick uses a bank participa- firm, says that one of the reasons the and CFO at Wiley|Wilson (Lynch- tion agreement between two separate company has been able to grow in this burg, VA), a full-service professional ar- banks. This multi-bank relationship is current economy (averaging 30 percent chitectural and engineering firm, says very important in Merrick’s treasury for each of the last three years) stems that, “Over the last four years, we’ve strategy and, as a result, we will usu- from not carrying debt. used cash for most capital purchases. ally give our primary banks the first That includes software, hardware, a few Other firms believe that if purchases ‘shot’ at debt placement. To date, we autos and even an acquisition. The ac- are necessary, cash is king. have found our debt terms to be very quisition was the only truly major pur- competitive with what we might have chase. There has been little opportuni- With huge surpluses reported still on been able to secure on a ‘one-off’ ba- ty for making money with cash since the sidelines, putting this capital to sis from other, independent sources. interest rates have been so low, so our use is important. Roy Mitchell, CFO at Merrick has completed several acquisi- strategy has been to avoid debt in order MBP (Fairfax, VA), a multi-disciplined tions in the past couple years. We have to strengthen the balance sheet.” construction consulting firm, feels that used both bank financed and seller-fi- way. nanced debt (or form of deferred pur- So, the bottom line is this: No matter chase price payments) depending upon how purchases are made, figuring out “At MBP, we plan major purchases in the deal structure.” how to utilize a firm’s available cred- advance and our preferred method of it or cash enables a firm to steady its funding them is with cash,” he says. Zero percent financing. With course through turbulent times.

11 THE ZWEIG LETTER | DECEMBER 17, 2012, ISSUE 987

TRANSACTIONS KLEINFELDER BUYS: Kleinfelder (San Diego, CA), a global science, federal clients, coupled with several office locations in and around architecture and engineering consulting firm, announced its second Washington, D.C., provides a perfect opportunity to leverage each Australian acquisition in the last five months. Alliance Environmental other’s strengths and provide even more services for our clients in Engineering & Consulting Pty Ltd (St. Kilda, AU) specializes in that area.” providing environmental services focused on the assessment, Founded in 1950, the firm has led a number of prominent projects investigation, and remediation of impacted land and water. The up and down the East Coast, including the infrastructure, access, transaction closed on Nov. 8, 2012, following a due diligence process and site design of the Washington Redskins’ FedEx Stadium and a and integration planning between the two firms. forensic analysis of the structural performance of the World Trade “Given Alliance’s strength in the retail petroleum assessment and Center following the 9/11 attacks, which was ultimately presented to remediation market, they represent a significant addition of in-country Congress. capability for Kleinfelder,” said Bill Siegel, Kleinfelder CEO. “This “We have gotten to know Stantec very well as one of our FEMA Risk acquisition, coupled with our recent acquisition of New South Wales- MAP STARR partners and found that our culture and values are very based firm, Ecobiological Group, will act as a springboard for our similar,” said Joe Skinner, Greenhorne & O’Mara president and CEO. growth in support of multinational clients throughout Australia and the “We have been looking for a strategic partner that would provide Asia Pacific.” a greater opportunity for us to grow and expand our services, and Founded by Andrew Johnston in 2006, Alliance provides Stantec provided that perfect strategic fit to complement what we environmental, project management, civil contracting and strategic can offer our clients.” advice services to clients in the petrochemical, manufacturing, Greenhorne & O’Mara will become the third firm to join Stantec in construction and real estate/development industries. The firm the last quarter of 2012. Twenty-one employees of New Brunswick- employs nearly 30 people working primarily out of the St. Kilda based Architecture 2000 joined Stantec, bringing their bilingual location, with additional staff working remotely in Sydney and Perth. architectural, master/urban planning, interior design, and project The entirety of the firm’s staff will now operate as part of Kleinfelder. management services to the company’s over 850 staff and 12 offices “The demand for environmental remediation services is growing in Atlantic Canada. Architecture 2000, which has also operated as rapidly, not only in Australia, but throughout the world,” said Johnston. Design Workshop Ltd. - L’Atelier De Design Ltée, has successfully “By becoming part of the Kleinfelder organization, our clients will completed over 1,000 commissions, representing construction value have access to the resources of a global firm, while continuing to in excess of $1.5 billion, and has designed numerous LEED-certified leverage the expertise of our local project managers that have served and high-performance buildings, as well as the award-winning Dieppe them well since 2006.” Aquatic Centre (Dan Hanganu Architectes/Architecture 2000 Inc., en Kleinfelder has been executing a strategic growth plan since 1992, consortium) and the Spanier-O’Neill Residence. and providing environmental services has been, and will continue Stantec also announced the completion of its acquisition of C3TS, a to be, an important aspect of overall company growth. During the Florida engineering and design firm with 150 employees. The move last few years, Kleinfelder has demonstrated a strong momentum established a much stronger presence for Stantec on Florida’s Atlantic of global expansion, opening its first offices in Australia (Melbourne) coast, bringing total staff in the state to more than 350 in 12 offices. and Guam in 2010 and its first Canadian office (Alberta) in 2012. Since opening its Melbourne office, the firm has grown business significantly with new and existing clients in the region. With the July 2012 acquisition of Ecobiological Group – the firm’s first international acquisition – and the most recent acquisition of Alliance, Kleinfelder anticipates continued growth in the region to eventually encompass its full suite of services to the water, transportation, energy, facilities FIRMS ON THE MOVE and government markets. STANTEC BUYS: North American design firm Stantec (Edmonton, TT OPENS IN SÃO PAULO: International engineering firmThornton AB) announced plans to acquire Mid-Atlantic-based engineering firm Tomasetti (New York, NY), announced the opening of a new office Greenhorne & O’Mara. The multidiscipline, 520-person firm will in São Paulo, Brazil. With this commitment, Thornton Tomasetti now expand Stantec’s presence and services across the U.S. Atlantic has 27 offices internationally, including offices in each of the “BRIC” coast, particularly in the transportation sector and with the U.S. nations – Brazil, Russia, India and China – where strong economies federal government. The transaction is expected to close by the end have emerged. The São Paulo office is part of the firm’s East U.S. of the year, marking the third firm to join Stantec in the last quarter of region, led by Senior Principal Michael Squarzini. 2012. Euclydes Trovato, director of engineering, is the local manager of Headquartered in Laurel, Md., with 16 offices spread throughout the the new office. The Brazilian native has 25 years of experience in Mid-Atlantic and Southeast regions, Greenhorne & O’Mara specializes structural design and analysis, critical integrity and structural safety in the design of transportation facilities and other infrastructure, assessments, and fatigue and fracture mechanics. including highway and bridge design, traffic engineering, master The move to São Paulo is strategic and timely, as the country planning and landscape architecture, structural engineering, U.S. continues preparations for the 2014 World Cup and 2016 Olympic Department of Defense services, and utilities design. Their work Games in Rio de Janeiro. This provides Thornton Tomasetti with also includes particular expertise in water resource projects with opportunities to contribute to the development of transportation – U.S. federal agencies, such as flood hazard mitigation and floodplain rail, aviation and marine – commercial, hospitality, healthcare and mapping, National Environmental Policy Act (NEPA) compliance, entertainment infrastructure. wetlands delineation and permitting, environmental impact Many of Thornton Tomasetti’s clients have made the move to Brazil, statements, and stormwater management. and the firm’s new office in São Paulo creates a stronger network of “Having Greenhorne & O’Mara join Stantec bolsters our already interaction and support. Additionally, Thornton Tomasetti’s recently growing presence along the U.S. Atlantic coast,” said Bob Gomes, launched Beijing office provides new opportunities for international Stantec president and CEO. “Their outstanding reputation with collaboration since Brazil is China’s largest trading partner.

12 © Copyright 2012. ZweigWhite. All rights reserved.