JULY/AUGUSTJULY/AUGUST 20142014 INC. www.acec.orgwww.acec.org

ENGINEERING AWARD-WINNINGAWARD-WINNING BUSINESS MAGAZINE ● PPUBLISHEDUBLISHED BBYY AAMAMERICANMEERRIICCAANN CCOUNCILOOUUNCNCILIL OOFF ENENGINEERINGGINEERING COCOMPANIECOMPANIESMPANIES

Corps of Engineers Lt. Gen. >> CEOs Weigh Public vs. Private THOMAS Client Dynamics >> Competition Keeps BOSTICK PLI Rates Steady Values ACEC >> Power Generation Partnership Undergoes Steady Transformation WORKING TO MAKE THE CONSULTING ENGINEERING INDUSTRY THE HEALTHIEST IN THE UNITED STATES INCREASE PRODUCTIVITY DECREASE ABSENTEEISM IMPROVE MORALE CONTROL HEALTHCARE COSTS

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+LZPNULK>LSSULZZPZH\UPX\LS`JYLH[LKPUP[PH[P]LHPTLK[VPTWYV]L[OLOLHS[OWYVK\J[P]P[`HUK ^LSSILPUNVMV\YTLTILYÄYT»ZLTWSV`LLZ-YVTIPVTL[YPJZJYLLUPUNZ[VLJVHJOPUNL_LYJPZL WSHUULYZ[VVUSPULJVTWL[P[PVUZ^L»]LJYLH[LKHJVTWYLOLUZP]L^LSSULZZZVS\[PVU+LZPNULK >LSSULZZPZVMMLYLKH[UVHKKP[PVUHSV\[VMWVJRL[JVZ[[V(*,*3PML/LHS[O;Y\Z[4LTILY-PYTZ DESIGNEDWELLNESS*64 *HSSVYLTHPS\Z[VNL[Z[HY[LK[VKH`!  ‹^LSSULZZ'HJLJSPMLOLHS[O[Y\Z[JVT ENGINEERING EXCELLENCE CALL FOR AWARDS 2015 ENTRIES 2015 CALL FOR ENTRIES

ENGINEERING EXCELLENCE AWARDS The American Council of Engineering Companies’ (ACEC) annual Engineering Excellence Awards (EEA) competition recognizes engineering firms for projects that demonstrate an exceptional degree of innovation, complexity, achievement and value. American engineering firms have entered their most innovative and complex projects and studies in competitions conducted by state member organizations (MOs). Qualifying projects at the MO state level are then eligible to participate in the ACEC national competition. Deadline for the national competition is Friday, January 9, 2015. EEA entries are accepted into one of 12 project categories: studies, research, and consulting engineering services; building/technology systems; structural systems; surveying and mapping technology; environmental; waste and storm water; water resources; transportation; special projects; small projects; energy; and industrial and manufacturing processes and facilities. A distinguished panel of 25-30 judges possessing a vast array of built environment and technical expertise will be convened over three days to evaluate and rank submissions for engineering excellence. The panel then selects top award winners—16 Honor Awards and eight Grand Awards. One Grand Conceptor Award will be selected from the Grand Award winners as the overall best engineering project. Projects from all across the world are rated on the basis of: uniqueness and/or innovative application of new or existing techniques; future value to the engineering profession and perception by the public; social, economic, and sustainable development considerations; complexity; and successful fulfillment of client/owner’s needs, including schedule and budget. Every year, ACEC’s Engineering Excellence Awards (EEA) Gala provides firms with national recognition and a venue to showcase their talent and expertise in a dramatic setting. The annual black-tie EEA gala—to be held on Tuesday, April 21, 2015—celebrates, with pride and elegance the most outstanding project achievements of the engineering profession. All National Recognition Award Winners will be showcased during the EEA Gala awards program.

2 ENGINEERING EXCELLENCE AWARDS ENGINEERING EXCELLENCE AWARDS

ACHIEVING NATIONAL RECOGNITION ACEC’s 2015 Engineering Excellence Awards competition showcases the year’s best engineering achievements to a national audience of clients, industry leaders and decision-makers. All National Recognition Award Winners are recognized, and the top 24 winning projects are highlighted at the annual EEA Gala, the black-tie event known as the “Academy Awards” of the engineering industry. This event will be held on Tuesday, April 21, 2015, at the Washington Marriott Wardman Park in Washington, D.C. More than 600 members and guests attended the 2014 EEA gala, which was held during ACEC’s Annual Convention and included members of Congress along with international, federal, state and regional officials.

ELIGIBILITY submittals will not be counted against only once in any category. However, Any engineering or surveying firm is the member submittal limitations after a project entered in Category A eligible to enter the awards program, outlined here. has been constructed, it may be entered regardless of whether the firm is a Engineering or surveying projects in a different category – B through L – member of ACEC. 4 that have won awards in other in the year when eligible. state or national organizations’ Each entry must consist of three GENERAL CRITERIA programs are welcome in the ACEC 7 components: Both member and non-member EEA competition. nnOfficial electronic entry firm entries must be submitted 1 Projects entered in the nnUSB flash drive containing to the ACEC national competition 5 competition may have been submission materials through an ACEC state Member executed anywhere in the world. nnPhotographic display panel Organization (MO). Research and Studies (Category A) Non-compliance with the rules may Each entry should be submitted or Surveying and Mapping projects (Category D) must have been publicly disqualify an entry. Please read the 2 to the state MO in accordance requirements thoroughly. with local rules for the entry. Contact disclosed by the client between Nov. 1, your state ACEC MO office for details. 2012 and Oct. 31, 2014. Construction Note: See “Preparing Your Entry” for However, entries submitted to the of projects (Categories B through L – the Engineering Excellence Awards. ACEC national competition must be with the exception of D) must have ACEC will not be responsible electronically submitted in accordance been substantially completed and ready 8 for any damages to or loss of an with the rules and requirements for use between Nov. 1, 2012 and entrant’s official Project Submission outlined in this brochure. Oct. 31, 2014. Form, USB flash drive or photographic display panel. Each MO may submit 10 entries See “award categories” section for full 3 from its own membership, plus one listing of all eligible categories. The ACEC Engineering Excellence member entry for every five, above 10 Entries in the national competition 9 Awards committee reserves the that were submitted to the MO. A MO 6 may be placed in any one of the right to determine, and change if may submit any non-member entries 12 categories. The entering firm must necessary, the eligibility and category judged by the MO to be legitimate select the one category that is most classification of any entry. candidates for entry in the national appropriate. A project may be entered competition. Such non-member

WWW.ACEC.ORG 3 2015 CALL FOR ENTRIES

JUDGING RATING GUIDELINES FOR JUDGING Entries will be judged on the basis of: Each entry will be evaluated based on the following five categories, which are key elements of the project description nnOverall engineering excellence in each of the 12 categories text required in the electronic submittal described below. nnThe work performed by the entering firm only 1. Uniqueness and/or innovative applications of nnThe rating guidelines listed. new or existing techniques...... 20% Winners and affiliated MOs will be notified shortly after judging 2. Future value to the engineering profession is completed. and perception by the public...... 20% 3. Social, economic and sustainable AWARDS development considerations...... 20% All submissions are considered National Recognition Award 4. Complexity...... 20% Winners. The panel of judges will select 24 awards at their 5. Successful fulfillment of client/owner needs...... 20% discretion – eight Grand and 16 Honor Awards. A Grand Total...... 100% Conceptor Award will be selected from the eight Grand Award winners. The Grand Conceptor will be announced at the gala as the top national winner selected by the judges, whose decisions RATING GUIDELINE DEFINITIONS on all awards are final. Awards will be presented to the clients/ 1. Uniqueness and/or Innovative Applications of New or owners and entering firms submitting the winning entries. Existing Techniques: nnDoes the entry demonstrate the use of a new science or a PUBLICITY breakthrough in the general knowledge of engineering? The public relations and marketing value of participation in nnDoes the entry represent a unique application of new or the national EEA program is substantial. All national winners existing technology, techniques, materials or equipment? will be highlighted in ACEC’s public relations program, which 2. Future Value to the Engineering Profession and benefits all U.S. engineering firms. Working with participating Perception by the Public: firms and MOs, ACEC staff will contact local media to nnWill the entry redefine current engineering thinking? announce winners and their awards. Through national and MO efforts, display panels can be exhibited in such public venues as nnDoes the entry advance a positive public image of city and state administrative buildings, universities, shopping engineering excellence? centers and office buildings. These activities enhance direct 3. Social, Economic and Sustainable Development business development benefits for both local and national award Considerations: winners. Further benefits are gained through feature stories nnDo the solutions identified produce secondary benefits of presented in firm brochures, newsletters and other publications. value to the community environment? nnDoes the entrant’s approach provide society with social, economic, or sustainable development benefits?

CALL FOR ENTRIES – CATEGORIES

CATEGORY A: nn Project feasibility studies/ CATEGORY C: CATEGORY E: CATEGORY F: CATEGORY G: economic/risk Studies, Research and Structural Systems Environmental Waste and Storm Water Water Resources nn Value engineering Consulting Engineering nn Foundations nn Hazardous waste nn Wastewater collection/ nn Hydraulics, hydrology Services CATEGORY B: nn Tunnels nn Solid waste treatment and disposal nn Surface and groundwater Non-design services, Building/Technology nn Buildings nn Restoration/reclamation/ nn Residuals management supply development projects not involving the Systems nn Seismic design remediation and reuse nn Treatment preparation of construction nn Towers nn Air quality nn Graywater systems nn Transmission, distribution documents consisting of but nn Mechanical/electrical/ nn Bridges nn Noise nn CSOs & storage not limited to the following plumbing nn Stadiums nn Recycling nn Mine tailings nn Watershed management types of projects: nn Computer/technology nn Waste pond management nn Agricultural nn Water use reduction nn Communications CATEGORY D: nn Carbon sequestration nn Storm water nn Flood risk management nn New products, materials nn Acoustics and trading management nn Climate adaptation Surveying and Mapping and technologies nn Software systems nn Mitigation nn Erosion control nn Coastal and eco-system Technology nn Expert testimony nn Sustainability or carbon restoration nn Basic research and studies neutrality nn Geometrics, ALTA, land nn Locks/dams/water nn Computer/software nn Efficiency certification title and rights surveys control structures technology standards, e.g. LEED® nn Control, GPS, monitoring nn Irrigation nn Technical papers nn Energy efficiency - new or construction surveying nn Public outreach/ and retrofit nn Survey mapping, GIS/LIS, involvement nn Secure facilities (military/ photogrammetry 4 nn Water conservation research/correctional) nn Security plans nnDoes the entrant’s contribution to the project If any part of an entry does not meet requirements listed, improve the health, safety or welfare of the public that portion of the entry may not be presented for judging. or affected environment? Please follow the guidelines. 4. Complexity: No reference to other awards is permitted in your nnDid the entry successfully address highly complex criteria or submitted materials. unique problems? In any given year, an entry may be submitted through only one nnWere extraordinary problems of site, location, MO. If a project was entered in more than one MO competition, hazardous conditions, project requirements, or similar elements present? it is the responsibility of the affected MOs to decide which one will enter the project in the national competition. nnDid the entry require the use of out-of-the-ordinary technology or ingenuity for achievement of the DATES TO REMEMBER project’s goals? January 9, 2015 — Submitted materials MUST BE 5. Successful Fulfillment of Client/Owner Needs: RECEIVED by ACEC. Materials received after that date will nnDid the engineer or entrant successfully engage the client/ NOT be accepted. All materials submitted for judging in the owner in the overall project development process? national competition become the property of ACEC and may nnWas it an economical and cost-effective solution? be used in ACEC publications. Panels may be used for displays nnHow did the final cost relate to the original budget estimate? or other promotional or educational purposes. Submitted materials will NOT be returned. nnHow closely does the entrant’s solution meet the total goals of the client/owner? January 21, 2015 — The entrant’s company representative, as listed on the entry form, must be available by phone. nnDid the entrant meet the client’s time schedule? February 20-22, 2015 — Judging takes place in Washington, D.C. PREPARING YOUR ENTRY April 21, 2015 — EEA Dinner and Gala Awards Program in This section describes all required submission materials for Washington, D.C. entering the 2015 ACEC EEA competition. All materials must be submitted exactly as designated below. Digital files must SUBMISSION REQUIREMENTS be PC compatible and appropriate to the information being The following three main components must be submitted with submitted (i.e., Microsoft Word for text, high resolution JPEGs, the national EEA competition entry: photos or other images, Adobe PDFs, etc.). I. Official electronic entry If the submission does not meet the requirements listed, it II. USB flash drive containing submission materials may be disqualified. III. Photographic display panel **NOTE: No QR Codes or embedded links are permitted in any portion of an award submission**

CATEGORY H: CATEGORY I: CATEGORY J: CATEGORY K: CATEGORY L: Transportation Special Projects Small Projects Energy Industrial and Manufacturing Processes and Facilities nn Highways nn Safety and security nn Total project construction nn Transmission and distribution nn Rail nn Corrosion protection/cathodic budget does not exceed nn Power generation nn Petrochemical nn Airports protection $2.5 million. At the entrant’s nn Renewable energy nn Biotech nn Marine/ports nn Program and construction discretion, except for entries nn Cogeneration nn Manufacturing nn Public transit management in Category A, projects under nn Energy storage technologies nn Heavy industry nn Intermodal facilities nn Land development $2.5 million are not limited to nn Energy usage reduction nn Industrial waste nn Trenchless technologies/ this category programs nn Materials handling directional boring nn Demand side management nn Mining, metallurgy, mineralogy nn Recreational facilities nn Subsurface engineering

5 2015 CALL FOR ENTRIES

I. OFFICIAL ELECTRONIC ENTRY ●● Uniqueness and/or innovative application of new or All project information shall be submitted electronically. existing techniques. ● Each document must be uploaded separately through ACEC’s ● Future value to the engineering profession and Awards Submittal Portal. The electronic entry must contain perception by the public. ● all of the following items: ● Social, economic, and sustainable development considerations. Electronic Project Submission Form located on the ●● Complexity. 1 ACEC website — http://www.acec.org/awardprograms/ ●● Successful fulfillment of client/owner needs. engineering-excellence-awards. Once the entrant has completed the project submission form, the form can be printed Include total project budgeted cost, total project actual cost, out so it can be signed by all required parties. This form can entrant’s portion of the budgeted cost, entrant’s portion of then be uploaded as part of the electronic project submission. the actual cost, scheduled and actual date of completion (as indicated on the Electronic Project Submission Form). NOTE: You must submit entry fee payment with the electronic Project Submission Form. ($1,100 for ACEC members; d. SUMMARY: Describe in layman’s terms why this project is $3,500 for non-ACEC members.) Refer to your MO for state worthy of special recognition (word count between 100 - 500 competition fees. words). Explain all factors that comprise the project’s unique- ness and complexity, such as innovative engineering, chal- Original completed entry form must be signed by both the lenges faced and overall social impact. NOTE: This summary entrant and the client/owner (senior executives/officials), will provide the basis for all ACEC publicity on the project. stating that the submitted project was substantially completed KEY PARTICIPANTS and ready for use between Nov. 1, 2012 and Oct. 31, 2014. 5 List the key participants on the project including firm The following project information must be uploaded name, address, phone number, website, and e-mail address of individually and included with your Engineering Excellence each participant. Include contractors, subcontractors, other Awards submittal. engineers, architects and designers significantly involved in the project. Specifications: 8.5” x 11”; 3-hole punched. CLIENT/OWNER LETTER (one page max.) Letter PHOTOS OR GRAPHICS 2 addressed to ACEC describing the relationship of the 6 Six different photos or graphics (one per page) with client/owner and entrant in the development of the project and captions describing the subject matter (refer to “Photograph how it exceeded the client/owner’s needs. Guidelines” below). Captions shall begin with: Photo 1, EXECUTIVE SUMMARY (one page max.) Overview Photo 2, etc. High resolution JPEG files; 300dpi. 3 of project. Describe the problem and solution; project title and entry category must appear at the top of the page. Photograph Guidelines: Specifications: 8.5” x 11”; 1” side margins; double-spaced text; Because the photographs will be projected on a large screen 12 pt. minimum size font. during the EEA gala, it is very important to submit sharp, high- quality, high-resolution images. PROJECT DESCRIPTION (five pages max.) Tell the 4 story of the project. Address items a, b, c, and d as listed Three of the photographs should show the completed project below; project title, entry category, and page number must and provide the highest level of visual impact for publicity. appear at the top of each page. Entrants may use text, photos, Three of the photographs should display the planning, startup, graphics, or charts as needed. Specifications: 8.5” x 11”; 1” side and/or construction phases of the project. margins; single-spaced text; 12 pt. minimum size font. One enlarged, unmounted, glossy photograph will be Text must include the following: requested from each of the 24 national winners at a later a. ROLE OF ENTRANT’S FIRM in the project. time for ACEC’s EEA display wall in Washington, D.C. The judging committee will select this photo from those submitted b. ROLE OF OTHER CONSULTANTS participating in with the entry. the project. c. ENTRANT’S CONTRIBUTION TO THE PROJECT: A PHOTOGRAPHIC DISPLAY PANEL brief description of the entrant’s contribution addressing each 7 Small-size copy of the photographic display panel. of the following Rating Guidelines (refer to “Rating Guideline Specifications: JPEG; 300dpi. Definitions” above for detailed rating, judging, and weighting information):

6 ENGINEERING EXCELLENCE AWARDS MEDIA LIST b. Back lamination thickness: 5 mil 8 E-mail addresses of local newspapers, TV, and radio stations c. Panel stock thickness before lamination: no more in Excel format. If the MO or entrant prefers to handle all local than 5-6 mil and national publicity for the project, include a statement to that effect. Specifications: Excel file; 8.5” x 11” or 11” x 17”. d. Total panel (with lamination) thickness: 15-16 mil NOTE: Framed or mounted panels will NOT PRESS RELEASE (two pages max.) be accepted. 9 Press release that clearly and concisely describes the project and the entrant’s participation, based on information presented 2. VELCRO ATTACHMENTS: Four, 9-inch long strips of in the Project Description. Also describe the value of the Velcro (the hook side only) must be placed vertically on project to the community including information such as the the back, near each corner of the panel. number of people served, cost savings, etc. Do not reference 3. PHOTOS/GRAPHICS: Maximum of 6 photos and/ other awards the project has won. Specifications:double-spaced; or graphics shall be used on the panel. Each image shall 8.5” x 11”. be a minimum of 7” x 5” or 35 square inches in area. A SUPPLEMENTARY REPORT background photo is not considered a photograph. 10 Include a supplementary report containing the findings 4. TEXT/FONTS: Panel text may not exceed 250 words portrayed with text, graphs, or photos, as needed. total, not including captions. Font sizes: 32 pt. minimum font for text or descriptions; 28 pt. minimum font for NOTE: This report is ONLY required for Category A submittals. captions and graphics. II. USB FLASH DRIVE 5. REQUIRED ELEMENTS: The front on the panel shall USB Contents & Specifications: One USB flash drive (to be sent also include the ACEC logo (download from ACEC to ACEC with Photographic Display Panel). Include labels on website), title and location of the project or study, client/ USB and Photographic Display Panel with firm name, project owner’s name and location, and entering firm’s name and name and category. Test the USB flash drive on different location (minimum 32 pt. font size). computers to ensure that it is not machine-dependent. 6. CORNER SPACE: Leave a 2”x 2” space in the upper right-hand corner of the panel that is free of text or images. Include each of the following items in the file type indicated, in Do not leave the “blank” space as a white square; the the order given, and with the titles shown: background scheme should continue, but will be partially 01 Electronic Project Submission Form covered by the review committee’s coding label. 02 Client/Owner Letter 7. BACK OF PANEL LABEL: Add a label to the back of the panel with the name of the entrant’s firm, the firm address, 03 Executive Summary the project name, and the entry category. 04 Project Description NOTE: If production/printing services for your photographic 05 Key Participants display panel are not available in your community, contact 06 Six Photos or Graphics Daisy Nappier at ACEC for sources. 07 Photographic Display Panel 08 Media List; Excel File 09 Press Release SHIPPING 10 Supplemental Report Photographic display panels must be rolled and shipped in mailing tubes. III. PHOTOGRAPHIC DISPLAY PANEL All materials including the electronic submission must be received by Panel text and photos should demonstrate the challenges, January 9, 2015. solutions, innovation, complexity and unique aspects of key project elements. The panel should be prepared with high- Ship USB flash drive and Photographic display panel to: quality photos and graphics with minimal text. American Council of Engineering Companies Attn: Daisy Nappier Photographic panel requirements: 1015 15th Street, NW, 8th Floor Washington, D.C. 20005-2605 1. PANEL SIZE: 30” x 30” square, with a matte finish, laminated front and back as follows: a. Front lamination thickness: 5 mil

WWW.ACEC.ORG 7 SAMPLE OF OFFICIAL ONLINE ENTRY FORM NOTE: If your firm was responsible for the entire project, then the Entrant’s Portion of the Total Project Construction Budget should equal the Total Project Construction Budget. If your firm was not responsible for the entire project, then the Entrant’s Portion of the Total Project Construction Budget should be only the amount of the project construction budget for which your firm was responsible. Furnish all information requested below for each entry (signatures by the submitting firm(s) and the client(s)/owner(s) are required). Firm, project, and client/owner’s name should be typed or printed as they are to appear on the award. Please limit the project name to 45 characters. A fee of $1,100 per entry for ACEC members ($3,500 for non-ACEC members). ABOUT THE PROJECT Project Name ______(limit to 45 characters) Judge this entry in the following category (check one):  A. Studies, Research, and Consulting  D. Surveying and  G. Water Resources  K. Energy Engineering Services Mapping Technology  H. Transportation  L. Industrial and  B. Building/Technology Systems  E. Environmental  I. Special Projects Manufacturing Processes  C. Structural Systems  F. Waste and Storm Water  J. Small Projects and Facilities Project Location: City ______State ______U.S. Congressional Representative’s name in district where entering firm is located______U.S. Congressional Representative’s name in district where project is located______What state/MO (member organization) is sponsoring this submission?______(Budgeted and/or actual costs may not apply to some studies in Category A) Completion/Use Dates: Scheduled ______Actual______Category A Costs: Budgeted $______Actual $______Construction Costs: Total Project Budget $______Total Project Actual $______Entrant’s portion of Total Project Budget $______Entrant’s portion of Total Project Actual $______ Check box if project was awarded through QBS process. ABOUT THE FIRM(S) SUBMITTING THE PROJECT EnteringSAMPLE Firm(s)______Firm CEO______Firm Representative______Must be available by phone on Wednesday, January 21, 2015 (phone calls will only be made if there are clarifications or additional information required for your submittal) Address (no P.O. Box) ______City ______State ______Zip______Phone (_____) ______Cell (_____) ______Fax (_____) ______E-mail ______I hereby authorize submission of this project into the American Council of Engineering Companies’ 2015 Engineering Excellence Awards competition. Senior Executive/Principal ______Title______Signature ______Date______Address (no P.O. Box) ______City ______State ______Zip______Phone (_____) ______Fax (_____)______E-mail ______ABOUT THE CLIENT/OWNER(S) OF THE PROJECT Client/Owner(s) ______I believe the work of the engineer meets the intended uses and expectations for the project and hereby grant permission to enter this project in the ACEC 2015 Engineering Excellence Awards competition, and authorize publication of its outstanding features, unique aspects, or innovations. I confirm that the project was substantially completed and ready for use between November 1, 2012 and October 31, 2014. Client/Owner Representative ______Title ______Signature ______Date______Address (no P.O. Box) ______City ______State ______Zip______Phone (_____) ______Fax (_____)______E-mail ______

AMERICAN COUNCIL OF ENGINEERING COMPANIES Daisy Nappier  1015 15th Street, N.W.  8th Floor  Washington, D.C. 20005-2605 8 ENGINEERING EXCELLENCE AWARDS 202-347-7474  [email protected] ENGINEERING INC. 14 JULY / AUGUST 2014 ● VOL. 25 NO. 4 8

18 Features PUBLIC VS. PRIVATE 14 Top engineering CEOs target growing private sector markets while public sector projects inch back to normalcy. MEETING THE NEED 18 ACEC Coalitions provide innovative tools to spur business growth.

2014 PROFESSIONAL LIABILITY INSURANCE SURVEY OF MEMBER FIRMS 23 Competition keeps rates low and claims frequency in check. SUSTAINING INDUSTRY MOMENTUM 28 GARY LANDSMAN GARY Members of the 2014–2015 Executive Committee Cover Feature point to marketplace gains. STAYING ON MISSION 8 2014 FALL CONFERENCE 34 Lt. Gen. Thomas Bostick on the Army Corps of Don’t miss the chance to hear top political and Engineers’ partnership with ACEC, its role in infrastructure industry leaders at the Fall Conference on the development and the need to prioritize projects. Big Island in Hawaii.

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FROM ACEC TO YOU 2 BUSINESS INSIGHTS 38 Emphasis on private client markets. Rural utility service approves latest EJCDC documents; new LEGISLATIVE ACTION 4 e-book series launches. Tax extenders legislation stalls; ACEC- backed reforms in House defense bill. MEMBERS IN THE NEWS 41 Robert E. Chaput, Jr., named MARKET WATCH 6 president and CEO of S.W. Major transformation for power Cole Engineering, Inc. generation market. MERGERS AND RISK MANAGEMENT 36 ACQUISITIONS 44 Strategic document retention for Not as much deal activity in huge 6 effective post-project risk management. New York market as you might expect. 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 Emphasis on Private Client Markets CHAIRMAN Richard C. Wells PRESIDENT & CEO David A. Raymond VICE PRESIDENT, Mary Ann Emely fter being hit hard six years ago, engineering markets are finally showing OPERATIONS VICE PRESIDENT, Steven Hall significant recovery. Private markets are particularly strong, led by the GOVERNMENT AFFAIRS energy sector. A VICE PRESIDENT, Marie Ternieden Across a broad front, commercial clients, who previously stockpiled cash, are BUSINESS RESOURCES AND EDUCATION now spending again. Banks and financial institutions are lending again. DIRECTOR, COMMUNICATIONS Alan D. Crockett More than two thirds of all professional engineering services are performed for AND MEDIA private clients—in power, petroleum, industrial and commercial facilities, housing STAFF EDITOR Andrea Keeney and land development. This private work is expected to grow stronger through [email protected] 2015 and beyond. 202-682-4347 SENIOR COMMUNICATIONS Gerry Donohue In contrast, the public sector remains sluggish because of declining or WRITER uncertain federal and state funding streams. Water-supply projects were down 5.6 percent in 2013. Wastewater projects were down 5.1 percent. A lone bright ACEC PUBLIC RELATIONS AND spot was transportation, with a 7.5 percent increase, although over an already EDITORIAL ADVISORY COMMITTEE low base. CHAIRMAN James Blake The Council is therefore ramping up its attention to private client practice, McMURRY/TMG, LLC even as we continue to promote greater public funding. We want to make sure MANAGING EDITOR Corey Murray that private market issues and opportunities are emphasized in our business ART DIRECTOR Jeff Kibler and legislative agendas. Our Fall Conference will feature a special panel on PROJECT MANAGER Amy Stephenson Fabbri "Opportunities in Booming Energy Markets." This issue of Engineering Inc. includes insights from top Member Firm CEOs ADVERTISING SALES on private markets, how a transformation is underway in the power market, and Leo Hoch ACEC how competition is keeping professional liability insurance rates in check. 1015 15th Street, NW, 8th Floor Our upcoming Fall Conference, Oct. 22–25, at the Hilton Waikoloa Village on Washington, D.C. 20005-2605 the Big Island in Hawaii is shaping up nicely, so register now to take advantage of 202-682-4341 [email protected] incredible rates for a five-star experience.

Engineering Inc., Volume 25, Number 4 (ISSN 1539-2694), is published Richard C. Wells David A. Raymond bi-monthly by the American Council of Engineering Companies (ACEC), ACEC Chairman ACEC President & CEO 1015 15th Street, NW, 8th Floor, Washington, D.C. 20005-2605. Periodicals 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. © 2014 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.

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AECOM is a global provider of professional technical and management support services to a broad range of markets, with revenues in excess of $8 billion. Our approximately 45,000 employees — including architects, engineers, designers, planners, scientists as well as management and construction services professionals — deliver visionary solutions to the challenges facing our clients in more than 150 countries. AECOM has provided engineering services on some of the world’s longest and most innovative bridges.

Tappan Zee Bridge New York, U.S.A. image: New York State Thruway Authority www.aecom.com Legislative Action

House, Senate Committee Tax Extenders Advance F.Y. 2015 Transportation Legislation Stalls he Senate is attempting to complete Spending Bills consideration of a package of tax pro- he House of Representatives and Senate Appropriations Committee have Tvisions, S. 2260, which expired at the approved their respective F.Y. 2015 spending bills for the Department of end of 2013. Democrats and Republicans dif- TTransportation. Both bills would maintain highway and transit funding levels fer over what amendments will be offered. under MAP-21. The legislation includes extensions of Highways would receive nearly $41 billion in both bills, consistent with current provisions of interest to ACEC Member levels and contingent on a reauthorization or extension of MAP-21. Transit pro- Firms, such as the R&D tax credit, parity for grams are funded at $11.1 billion in the Senate committee bill (S. 2438), including employer-provided transit benefits, increased $8.6 billion for formula grants, consistent with MAP-21, and $2.16 billion for capi- Section 179 expensing limits, and the wind tal investment grants, an increase of $220 million for new projects. The House- energy tax credit. The tax benefits would be in passed bill (H.R. 4745) limits transit new starts funding to $1.7 billion for ongoing effect for 2014, retroactive to Jan. 1, 2015. capital expansion projects. Senate Republicans want to offer an Both bills would fully fund the Airport amendment to repeal the medical device tax Improvement Program at $3.35 billion, that was part of the Affordable Care Act. But the current authorized level. The Sen- Senate Finance Committee Chairman Ron ate bill would increase FAA facilities and Wyden (D-Ore.) wants to keep any amend- equipment by $130 million to $2.61 billion, ments directly related to the tax extenders in while the House bill maintains current S. 2260. funding. Instead of taking up the entire package of To meet lower overall budget totals, the tax extenders, the House Ways and Means House bill cuts TIGER multimodal grants Committee approved several bills to make cer- from $600 million to $100 million and tain tax provisions permanent. These include

AP PHOTO/NICK UT AP PHOTO/NICK reduces Amtrak funding from $1.4 billion the R&D tax credit, small business expensing to $1.2 billion, a $200 million reduction to capital improvements and debt service. and bonus depreciation. The House approved By contrast, TIGER grants are funded at $550 million in the Senate bill and permanent extension of the R&D tax credit Amtrak funding would be maintained at the F.Y. 2014 level of $1.4 billion, includ- in May by a vote of 274 to 131. Additional ing $1.05 billion for capital expenses and debt service. floor votes are expected in the House this The current fiscal year ends Sept. 30. The House and Senate must resolve summer. their differences or approve a continuing resolution before that date. Final action on the tax extenders is likely to occur after the November election. House Approves ACEC-Backed Reforms in Defense Bill he House-passed bill limits the number of short- ban the use of reverse auctions National Defense listed firms to five. by agencies when procuring TAuthorization Act of ACEC opposes the one-step design and construction ser- 2015 includes ACEC-backed process because it essentially vices from small businesses. design-build reforms and selects the lowest acceptable offer ACEC has long opposed the prohibitions against so-called and burdens design firms. The government’s use of reverse reverse auctions. cattle-call nature of the process auctions, in which bidders are Rep. Mick Mulvaney disincentivizes firms from invest- allowed to reduce their bids (R-S.C.) offered an amend- ing in innovative design solu- over a set period based on their ment to the defense bill that tions. Using the two-step process competitor’s submittals. The would require the use of the and limiting the qualifications- bill reinforces existing QBS two-step design-build contract based short list to five enhances requirements for A/E services. selection process for projects of each firm’s probability of selec- The Council is working to $1 million or greater, when the tion and encourages them to secure similar reforms in the

design-build process is appro- HAMBURG AP PHOTO/HARRY invest in design efforts. Senate’s version of the defense priate. In those instances, the Rep. Mick Mulvaney (R-S.C.) The defense bill would also authorization bill.

4 ENGINEERING INC. JULY / AUGUST 2014 ISSUES ON THE MOVE WHAT’S NEXT MAP-21 Reauthorization Action on short-term extension by August Procurement Reforms Possible Senate action expected in the fall Tax Extenders Final action after Election Day

Regulatory Actions on

DWIGHT NADIG/GETTY IMAGES NADIG/GETTY DWIGHT Wetlands, Carbon Emissions Congress Looks to Prompt Industry Pushback Short-Term Highway he Environmental Protection Agency and U.S. Army Trust Fund Extension Corps of Engineers have proposed to broaden the scope ongressional leaders are committed to passing a Tof the Clean Water Act beyond navigable and interstate short-term patch for the Highway Trust Fund, with waters to include upstream tributaries, adjacent wetlands and Cfinancing options emerging to keep the fund solvent other waters that could impact the chemical, physical or biologi- through the end of the year. cal integrity of those waters. ACEC has been telling Congress for months that the Federal jurisdiction over these waters has been questioned in U.S. Department of Transportation will be unable to make several Supreme Court decisions, leading to uncertainty for the timely project reimbursement payments to states when regulated community and inconsistent determinations by agency the balance of the trust fund is depleted this summer. officials. Groups in construction, manufacturing, mining, agri- The funding uncertainty is already forcing transportation culture, housing and real estate have already expressed concerns departments to postpone or cancel projects. about a significant expansion of federal permitting authority. The Senate Finance Committee has crafted a proposal to supplement the Highway Trust Fund with $8.4 billion, which would provide enough funding for an extension of MAP-21 through Dec. 31. The Preserving America’s Transit and Highways Act would prevent the shortfall in the trust fund projected to hit in late July, modifying numerous tax provisions to offset the additional funds, including several nontransportation-related items. House Republicans were reportedly considering another round of federal pension changes and increases in Pension Benefit Guaranty Corporation premiums, a budget maneuver used to offset spending increases in MAP-21 in 2012. Senate Finance Chairman Ron Wyden (D.-Ore.) and Ranking Member Orrin Hatch (R-Utah), were negotiating with House Ways and Means Chairman Dave Camp

(R-Mich.) on a bi-partisan solution that could pass both IMAGES STUDIO/GETTY YAGI houses in July. EPA also released its Clean Power Plan proposal in June, which An extension through the end of the year would leave calls for the power sector to cut carbon emissions by 30 percent open the possibility of taking up a long-term transportation below 2005 levels nationwide by 2030. reauthorization in a post-election session. Many Power plants account for roughly one-third of all domestic stakeholders and infrastructure supporters in Congress greenhouse gas emissions in the United States, and while there believe the lame-duck period presents the best opportunity are limits on arsenic, mercury, sulfur dioxide, nitrogen oxides and for raising sufficient revenue to pay for a six-year bill. particle pollution from power plants, there are no national limits A short-term fix for the Highway Trust Fund and on carbon dioxide pollution levels. enactment of a long-term reauthorization supported by Opponents of the rule in the energy and manufacturing sec- stable and growing revenues continue to be high priority tors, including the American Petroleum Institute, have expressed advocacy items for ACEC. concerns that the proposal is not consistent with the administra- tion’s own “all of the above” energy policy. The U.S. Chamber For More News of Commerce released a report saying such regulation could raise consumer prices for electricity, kill jobs and slow economic For weekly legislative news, growth. visit ACEC’s Last Word online ACEC has solicited comments from Member Firms and is at www.acec.org. working with affected client organizations on response actions.

JULY / AUGUST 2014 ENGINEERING INC. 5 MarketWatch BY GERRY DONOHUE Steady Transformation Ahead In Power Generation Market

emand for electrical lations is steadily transforming (16 percent) and renewables power will slowly and the industry. That’s not an easy (16 percent). Dsteadily grow over the thing to do. next 20 years, increasing by just “Power is really hard to Natural Gas Rising less than 1 percent annually change,” says Jack Hand, presi- The development of hydraulic through 2040. dent and CEO of POWER fracturing and horizontal drill- Coal has long dominated Engineers, Inc. It takes hefty ing techniques has opened a power generation. It currently investments and long lead pipeline to the nation’s shale accounts for 37 percent of sup- times to build new power gas reserves. And that work will ply, followed by natural gas (31 facilities. That’s why change only increase. USEIA projects percent), nuclear (16 percent), will happen slowly. The United shale gas production will more renewables (12 percent) and States Energy Information than double by 2040, from hydropower (7 percent). Administration (USEIA) 7.8 trillion cubic feet/year to But coal’s supremacy in the projects that natural gas won’t 16.7 trillion cubic feet/year. power generation market is surpass coal as the nation’s pri- Such dramatic supply expan- about to wane. The combina- mary power generating source sion has many immediate tion of cheap and plentiful until 2035. By 2040, natural impacts—natural gas prices natural gas, programs encour- gas will account for 35 percent have plummeted and chemical aging renewable fuel use and of power generation, followed companies and other manufac- tighter emissions control regu- by coal (32 percent), nuclear turers have repatriated factories.

But its full force is only now IMAGES PHOTOGRAPHY/GETTY THOMAS AND PATTY RON Electricity Generation by Fuel being felt across the industry. threaten coal’s future. The Mer- (Percentage of market) “Up until fracking, natural cury and Air Toxics Standard, 2012 2040 gas plants were running at which takes effect in 2016, and Coal 37% 32% about 35 percent capacity,” says the Obama administration’s Hand. “Today we’re over 50 recent decision to cut carbon Natural Gas 30% 35% percent. The word on the street emissions from power plants by Nuclear 19% 16% is we won’t start building new 30 percent by 2030 will signifi- Renewables 12% 16% plants until when we get to 60 cantly increase operating costs Oil and Other Liquids 1% 1% percent of capacity.” for many coal plants. Utilities Source: USEIA But give it a few years. Work must weigh whether to retool on several new natural gas those facilities or shutter them. plants should kick into high Dean Oskvig, president Permitted Plants by Primary Fuel Type gear in 2016, says Hand, who and CEO of Black & Veatch’s Primary Fuel Type Capacity (MW) % of Total adds, “Once it gets going, I energy business, anticipates a Natural Gas 20,961 48.2 really don’t think it’s going to surge in requests to retrofit coal Wind 12,716 29.2 slow down.” plants, even if on a limited- According to the American time basis. “Each plant is its Solar 5,132 11.8 Public Power Association’s own story and will have to be Coal 2,560 5.9 (APPA) latest Report on New addressed on a case-by-case Geothermal 671 1.5 Generating Capacity, power basis,” he says. “That work Hydro 494 1.1 plants totaling 47,525 mega- won’t continue forever, though, Other 317 0.7 watts (MWs) are currently and before too long all the big in permitting. Of those, 48 plants will be done.” Waste 169 0.4 percent are natural gas plants. Even with those upgrades, Biomass Gas 50 0.1 Coal plants, which accounted USEIA estimates that 50,000 Agricultural 49.9 0.1 for 40 percent of plants in per- MWs of coal-fired capacity will Byproduct mitting in 2009, make up less be retired by 2021. Biomass Solid 28 0.1 than 6 percent. Rather than retiring or Source: APPA Two key regulations further retooling a plant, Hand says

6 ENGINEERING INC. JULY / AUGUST 2014 MarketWatch

some utilities are changing Meanwhile, the future of tack completely. “They can nuclear power is in flux. Near- turn an existing facility into a term retirements of plants will natural gas plant. They don’t cut the generating capacity have to pay for the infrastruc- from 102,000 to 98,000 MWs ture, other than adding the gas by 2020. line,” he says. “The industry is watching how the five reactors under Renewables construction go, in terms Percolating of cost and schedule,” says Wind and solar power are pro- Oskvig. “After that, they’ll jected to grow significantly in decide on whether to make the coming years, filling some some moves.” of the void left by coal, but Hand says he is bullish on “they will never be base load,” the long-term potential of Hands says. nuclear power generation. “It Hand expects more utilities makes too much sense,” he says. to combine solar and natural gas in single facilities, a move Gerry Donohue is ACEC’s senior that would reduce a firm’s car- communications writer. He can bon footprint. be reached at [email protected]. YOUR FINDNEXT ENGINEER on ACEC’s Job Board . . . Since the ACEC Job Board’s inception in August of 2005, over 2,795 member fi rms have posted job openings and more than 27,000 job seekers have posted resumes. Find your next new hire at: Where today’s engineering job seekers go to fi nd their next jobs. www.acec.org/jobbank/index.cfm

JULY / AUGUST 2014 ENGINEERING INC. 7 M PHOTOGRAPHY BY GARY LANDSMAN Staying on MISSION Lt. Gen. Thomas Bostick talks about USACE’s partnership with ACEC, its role in infrastructure development and the need to prioritize

n May 2012, Lt. Gen. Thomas Bostick became the 53rd U.S. Army Chief of Engineers and Commanding General of the U.S. Army Corps of Engineers (USACE), serving as the senior military offi cer overseeing the majority of the nation’s civil works infrastructure and military construction. AsI commanding general, he is responsible for more than 33,000 civilian employees and 700 military personnel who provide project management, construction support and engineering expertise in more than 130 countries. He is also responsible for the Corps environmental protection projects; restoring thousands of acres of wetlands; and emergency response after a disaster, whether natural or manmade. In this exclusive Engineering Inc. interview, Bostick talks about challenges facing the Corps, how congressional funding limitations affect the work of his organization, and why he values

PHOTOGRAPHY BY GARY LANDSMAN GARY BY PHOTOGRAPHY the partnership between the Corps and ACEC.>>

JULY / AUGUST 2014 ENGINEERING INC. 9 Q. ACEC has valued its partnership really difficult to answer. Part of it goes they all need to retain some level of com- with USACE over many years. back to how we’re structured. We have petence, we’re pretty much steady at 40 Looking ahead, how would you nine divisions, 44 districts, seven labs percent. describe the importance of this and two centers—and each of them have partnership? different capabilities that are important Q. What are your major domestic A. The Army Corps of Engineers really for them to maintain some technical challenges regarding navigation, doesn’t do anything alone; we’re part of competence. What we are trying to do is water resources, flood control and a team. It’s organizations such as ACEC take a close look at how we’re structured other civilian activities? and others that are part of our overall and organized. I’ll use our Military Pro- A. I would say our first challenge is rais- success. In the future, I think it’s even grams as an example. In 2005 the Base ing awareness of the importance of our more important that our organizations Realignment and Closure created a huge infrastructure, the fact that the infra- work together. One of the points that amount of work for the Corps—$12 bil- structure is aging, and the responsibility my team often tells me about is how lion in projects that all had to be done for the American public and the Con- much work we do and how much the by 2011. In some of the districts that gress, and all of us working together, industry does. About 60 percent of our did not have a strong Military Program, to do something about it. President design work goes to architectural/engi- we grew the technical competence. But Roosevelt started a lot of it with the neering firms, and we retain about 40 now we need to bring some of that down New Deal, putting America to work in percent. That 40 percent allows us to because that work is no longer resonant. building much of the dams and levees retain enough talent within our orga- But what has happened over the years is and infrastructure we enjoy today that nization to do the kind of oversight we that the structure is relatively the same. does so much in terms of water sup- need to do. So I think the partnership is One could argue that maybe you don’t ply, navigation and flood risk mitiga- going to get even stronger, and with the need Civil Works competence in this tion. And we had a huge construction challenges we all face, it really must con- particular district, or you don’t need program in the 1950s and 1960s, but tinue to blossom. Military Programs in that district, or now much of that infrastructure is past maybe you don’t even need the district. its life expectancy and needs rehabilita- Q. What constitutes a satisfac- I think those difficult decisions are what tion or replacement. Along with that, tory level of core competency to we need to work on, because that would we’re working on environmental issues maintain the capacity to fulfill the address really how much technical com- and ecosystem restoration. But all that mission? Some federal or state petence we need in particular areas. Still, will not continue to go on forever in its agencies say to maintain core com- if I were to walk up to Congress and say, current capacity without an investment petency they need to do maybe 10 “I would like to merge these two districts in its future. My deputies keep talk- percent of design work. In this era and you are no longer going to have a ing about the four R’s: roads, runways, of tight budgets, many agencies district in your area”—that would not railways and rivers. Not many people have decided they can increase the be a pleasant conversation. But we need talk about our rivers, but look at what design load on the private sector to address the issue, just as the Army is rivers do for America—60 percent of and still maintain overall control of looking at brigade combat teams—Fort our grain and 25 percent of our hydro- the program without compromising Knox is losing its brigade combat teams power comes through these rivers. A quality. Where do you come out on and the 4,000 soldiers and families that large part of America’s economy is based this question? come with it. Those are tough decisions. on what we’re able to do on our inland A. To address your question of what I am saying that we’ll address what the waterways and our ports, but for the number is right—should it be 10 per- ultimate number is, but right now when longest time there was no discussion on cent or 20 percent or 30 percent—is you have that many organizations, and the value that this provides our coun- try. On a strategic level, the initial challenge is let’s talk about this; let’s get this into “We try to do the the national dialogue. The president has been doing just best we can with that. Two years ago, there was not much discussion about the the funds that the importance of our ports and our inland waterways. Today Congress provides it’s different, and I think a couple things are driving it. us—which are One is the post-Panamax ship and how the new Panama pretty signifi cant, Canal, when opened, will allow these large ships with but not enough.” 50-foot drafts to come in. We

10 ENGINEERING INC. JULY / AUGUST 2014 Past ACEC Chairman Gregs Thomopulos (left) and ACEC President Dave Raymond (right) meet with Corps Chief Thomas Bostick at USACE headquarters.

“The reality is that we respond well to crisis and disaster. We see that we need to do it, we invest the funds, it becomes a priority and we fi nish the work. We have a tougher time anticipating that a problem is coming.” have very few ports in America that can Q. How have current congressio- what ultimately cost us $130 billion over- accept these large ships. If we want to be nal funding constraints affected all because we couldn’t invest earlier. So economically competitive, we need to USACE operations? that’s the challenge. We saw the same do something about it. We were asked A. It is always a significant issue for any thing with Superstorm Sandy. I remem- to do a port strategy that helped lead to organization to finish a challenge on time, ber going up and down the coast with the “We Can’t Wait Strategy” that the on budget and to a high standard. The Governor Chris Christie and he would president announced in August 2012. reality is that we respond well to crisis and look at some areas where all the homes The strategy emphasized how we need disaster. We see that we need to do it, we were protected, the city was protected, to cut the bureaucracy and red tape and invest the funds, it becomes a priority and and there was a Corps project in front of move forward. It also specifically identi- we finish the work. We have a tougher it. Just two miles down the road, there fied ports that we need to get ready for time anticipating that a problem is com- was complete devastation with nothing post-Panamax ships—New York, New ing and then doing something about it. there, but there was an authorized proj- Jersey, Jacksonville, Charleston, Savan- Consider Hurricane Katrina and how the ect that could have been there if it could nah and Miami. New York and New protection system in New Orleans was have been funded. That’s our challenge. Jersey are moving along. Miami has even first authorized in 1965. Forty years of A related challenge is that we only have fronted the money, both their share and work on this project, and we were only so much money and end up spreading it the federal government’s share, so they about 50 percent complete when Katrina around almost like peanut butter, with also can be ready to go. That leads me to hit in 2005. Then we get $14 billion from few, if any, projects receiving the funding the other challenge. There is no way the Congress to respond to the disaster. The they need to be completed in a timely, federal government can pay for every- $14 billion was used to build the Hur- efficient way. Often we have to suspend thing that’s needed for this country’s ricane Storm Damage Risk Reduction construction when funds run out and infrastructure. So it’s important that we System, which subsequently withstood resume when more funds become avail- find alternative financing mechanisms. Hurricane Isaac in 2011. So in six years able. That’s really the crux of the issue— We need to execute a plan that will put we did what we couldn’t do in 50 years, how do you prioritize and finish projects us on a path to success. and in six years we did for $14 billion in a reasonable amount of time to provide

JULY / AUGUST 2014 ENGINEERING INC. 11 “I think the Corps should be looked at as a national security asset, because we are involved in defense, we are involved in diplomacy and we are involved in development— the three D’s.’’ the safety and the benefits the country there to the U.S. to study the Missis- but more importantly, we made every- expects from you? We try to do the best sippi River. We’re working in Pakistan to body understand the impact of what the we can with the funds that the Congress help on problems with dams, and Brazil drought can do to our national economy. provides us—which are pretty significant, wants to build 10 dams in 10 years and We now have the worst drought in 100 but not enough. Just take the projects is looking for technical assistance. In years in California and we are taking we’re working on today. Our Civil Works the end, this helps their stability, their significant measures to help combat what budget is around $5 billion, but to just economy and their security. I think the we’re seeing out there. I don’t like to finish the projects we’re working on today, Corps should be looked at as a national get into the debate on what is climate we need about $23 billion. We’re never security asset, because we are involved change or what’s causing climate change. going to receive $23 billion, so we’re in defense, we are involved in diplomacy We just know we are seeing a higher sea never going to be in that position, such and we are involved in development— level, and we’re seeing record droughts as with the surge barrier or a post-disaster the three “D’s.” I would not think of that impact our ability to conduct nor- where we had the funds to completely fin- this as siphoning off work from the U.S.; mal activities of navigation. The presi- ish the project. What we’re trying to do is instead, I think it’s important to con- dent even said: “When you have several do fewer projects and complete them to a tinue these relationships to help other 100-year storms in the same year, some- high standard and on time. countries when and where we can. thing is happening.” And that’s what we’re seeing—multiple storms of the Q. How do you view the Corps’ Q. When you look at the impact magnitude we would not have expected. international mission at a time of climate change on the nation, Those are just facts we have to deal with, when our nation’s focus on Asia- do you look at it as an immediate now and into the future. Pacific is expanding? problem or a long-term problem? A. I think they fit very well together. What level of criticality are we at Q. How do you foresee the Corps’ The Corps is really an amazing orga- presently? mission evolving from today’s pri- nization, a fact that may not be well A. I look at it as both a short-term and orities to those 10 years from now? understood in America, but is extremely a long-term challenge. Many don’t com- A. Several areas will continue to be appreciated and valued in the interna- pletely realize all that happened in 2011. important, such as our missions in tional community. I had no idea how We had a historic flood along the Mis- flood risk management, navigation and much the Corps was valued interna- sissippi. The work that our predecessors ecosystem restoration. We’re doing a tionally until I was asked to speak in did to build the Mississippi River and lot of work in climate change; we’ve Uganda to all the army chiefs of staffs Tributaries Flood Control system, start- seen the impact of rising sea levels, both for the African continent. I was the G-1 ing in 1928 after the floods of 1927, was with Katrina and with Sandy. I also of the Army and the head of person- the reason we didn’t lose a single life in think the research and development nel at the time, but they introduced me that 2011 flood. However, because we we’re doing as we look to the future as the next Chief of Engineers. Guess didn’t lose any lives, most people don’t is going to be vitally important. I also what all the questions were about? They realize that this was a flood of record— like the ongoing efforts to work collab- were about the Corps of Engineers and all because of our predecessors having oratively with other countries to jointly how could they build their own Corps the foresight to look forward. The very find solutions to some of the chal- of Engineers. The Corps is seen as a next year, we had a drought of immense lenges we face. At the same time, we’re beacon of hope and goodwill in a lot proportions that affected the Mississippi the nation’s largest public engineering of these countries. Most of the projects to the point that barge traffic almost agency, and when another agency needs we do are small and not very expensive, stopped. It took pushing to raise the help, we’re here to provide it. We’re but have huge impacts. We’re helping national dialogue on the importance working very closely with all federal Nigerian engineers do barge dredging for of what was happening on the Missis- agencies to assure that precious taxpayer their ports. We’re working in the lower sippi. We lowered the depth two feet by dollars are utilized in the most efficient Mekong River and have had a team from removing rocks from the Mississippi, and effective manner. ■

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www.agileframeworks.com PUBLIC VS. The Bottom Line By Alan Joch S. PRIVATE Top engineering CEOs target growing industrial and commercial markets e while public sector projects inch back to normalcy

fter a brutal economic recession followed by a slow, often painful recovery, U.S. engineering firms say the tide is indeed turning, due in large part to a surge in the private sector business. Even more encouraging: Growth in the energy industry, relaxed lending practices among banks and international investors and other factors point Ato continued gains in this market this year and beyond. Exactly how strong will private sector demand for engi- neering services be in the months ahead, and how will profits in these resurgent markets compare with those in the public sector? Executives at ACEC Member Firms weigh in on their public and private client experience and PPAMPICTURE/GETTY IMAGES PPAMPICTURE/GETTY their projections for the future. >>

JULY / AUGUST 2014 ENGINEERING INC. 15 Do you expect your firm’s industrial and commercial business to increase, “The overall decrease or stay the same in the next couple years? economy is “We spent the second half of last year doing some soul searching to understand inter- getting stronger, nal and external trends over the next three to five years relevant to commercial busi- but I’d still ness,” says Cyrus Izzo, co-president at Syska Hennessy Group, in New York City. “Our describe it as conclusion was that we absolutely see it increasing.” volatile.” He noted that a strong upturn is already ROBERT HIGGINS underway in the health sciences. “That BARGE, WAGGONER, SUMNER AND CANNON includes health care, research and laborato- ries,” Izzo says, adding, “We see continued strength in these areas,” especially for insti- starting to loosen a little bit,” Hart says. especially projects related to strengthen- tutions that focus on research. Rounding “In addition, we’re seeing clients with a ing the national power grid, such as high- out the growth markets now and in the backlog of cash that had accumulated voltage transmission lines running from immediate future: mission-critical assets, over the last few years. Now, they are will- northern Canada to the Mexican border. such as data centers and other facilities ing to spend it, and they’re seeing business “This country has a long way to go, as does designed to house important resources and opportunities that are encouraging them Canada, in creating a secure and reliable transportation projects, such as airports. to do so.” grid infrastructure, and that’s been very “We saw commercial business come back “The overall economy is getting stronger, good business for us,” Graves says. two years ago, and we expect it will con- but I’d still describe it as volatile,” says Rob- Raymond Messer, CEO of Walter P tinue to grow for another three or four ert Higgins, president and CEO of Barge, Moore in Houston says: “We’re seeing an years,” says Michael Hart, principal and Waggoner, Sumner and Cannon in Nash- increase in the commercial work for large CEO for M-E Engineers, a mechanical and ville, Tenn., who adds that his firm has ben- projects, such as multistory commercial electrical engineering firm based in Denver. efitted from new and expansion projects in office space. We’re currently involved in “But, of course, anything can happen.” Nashville, the greater Tennessee areas, and several of those types of jobs.” Underlying this upward trend is a throughout the Southeast. He attributed some of the upturn to recovery of sorts in the banking indus- “Business is coming from the energy pent-up demand. “People were waiting, try. On the heels of a near-crippling industry and from increasing activity in the waiting, waiting during the downturn— collapse of the credit market, U.S. and housing market, as well as from overseas they wanted to see what was going to hap- international banks and lending institu- companies,” Higgins says. His firm recently pen with the economy,” Messer says. “For tions subsequently adopted a conserva- did work for a German company invested those of us in the South, the energy boom tive approach to business loans. “That’s in a U.S.-based metals plant. in particular is having a positive impact. As Burns & McDonnell CEO Gregory companies expand their operations, they Graves notes that the economic hangover may require additional office space or new coming out of the recession was “short and warehouse and industrial space.” pretty mild,” at least where his firm was concerned. What are the primary differences for Revenues for the Kansas City-based firm your firm when serving an industrial totaled $1.9 billion in 2013, up 23 per- or commercial client compared to a cent over the previous year. “Beginning public sector client? in 2009, our industrial projects improved “Public sector clients evaluate potential con- quite dramatically,” says Graves. He adds: tractors primarily through Qualifications- “Last year, our commercial business really based Selection,” Messer says. “Then you took off.” negotiate the scope of work and the fee.” He Today, the firm’s industrial and com- says the public sector also includes require- mercial business continues to expand. ments for contracting with underutilized “We’re in a couple of markets that are businesses, including minority and women- just red hot right now. One is the United owned firms. “In some areas of the pub- States and Canadian petrochemical sec- lic sector, such as transportation or energy, tor, where we expect growth between 15 contracts tend to be created on a time and Ray Messer percent to 20 percent for our company material basis. Because the contractors are Walter P Moore this year,” Graves says. guaranteed to not lose money, agencies jus- A second hot market is the energy sector, tify paying a lower profit margin.

16 ENGINEERING INC. JULY / AUGUST 2014 “On the other hand, some private sector our being able to help them meet those companies are fair on their fees and loyal to needs,” says Higgins. “When that happens firms based on past performance,” Messer we don’t see major differences in the indus- says. “Private sector clients also tend to want trial or public sector. It’s more a project-by- more changes during the design process and project difference.” have schedules that are faster paced. There “Profitability is dependent on many fac- are exceptions, but generally, once a decision tors, but generally speaking we see stable Cyrus Izzo is made, it’s time to move forward.” profits in both private and public sector Syska Hennessy Once the contract is awarded, the work projects,” Izzo says. “If we do the right Group process for private and public sector cli- amount of homework early on with our ents is similar, Izzo says. “In both cases, go/no-go decision, we should see the same we maintain high service standards across city like Kansas City. But if I were forced level of profitability. Where you see wild all our accounts. We go through the same to generalize, I would say that industrial fluctuations is if a firm does not do that rigor on both fronts, from the schematic and commercial clients have the ability upfront due diligence to make sure it’s the design and conceptual thinking for the to be more focused on what’s best for the right type of project and client with the project right through to cutting the ribbon project versus what’s best for the project right cultural fit. That’s where you might and move-in day.” and what looks the best politically. That see some wild differences in profitabil- Overall, he says commercial clients have more negotiating latitude than their public sector counterparts. Private firms aren’t bound by the need for an open bid process “We saw commercial business or laws and regulations specific to the fed- eral sector. “We go through a rigorous go/ come back two years ago, and we no-go decision process internally before we expect it will continue to grow even think about pursuing work, whether in the public or private worlds,” Izzo says. for another three or four years.” “We’ll pass on many opportunities if we MICHAEL HART don’t see how we can really add value to M-E ENGINEERS the project. Pursuing a project isn’t inex- pensive—it costs quite a bit of money to go after a project, so we want to make sure that our win rate is as high as it could pos- certainly makes life a little easier for project ity, and, of course, we try to avoid those sibly be.” managers in industrial and commercial situations.” Graves notes that it’s difficult to general- markets, which translates into faster deci- Hart points out how the amount of ize about serving the public sector because sion-making, without a doubt.” upfront resource investment that goes into working for the federal government is so “Public sector clients always have winning a public sector project can get to different from working for a federal con- to watch how the money is being spent the point where it isn’t worthwhile to pur- tractor. “In the same way, working for state and how decisions are being made,” says sue. “You may lose a significant amount of departments of transportation is also com- Hart. “There are usually numerous parties money whether you hit or miss on some pletely different from working for a big involved in making those decisions from jobs. Private sector wins are often driven by an overall managerial and administrative a low bid, but the clients usually don’t ask standpoint. So there are a lot more hoops for as much upfront work prior to making to jump through for everybody, including the selection.” the clients themselves. In the commer- “It’s really a big mixed bag. You may not cial world things go a little faster because have as many projects in the public sector you are dealing with only a couple of peo- that you lose money on, but you also don’t ple who are part of the decision-making hit the grand slam, home runs because the body. They can make decisions on the fly negotiations tend to be so tough,” Messer and decide to do something any way they says. “Profit margins per project are higher want—it’s their money.” in the private sector and you may hit that grand slam, but for every home run you What has been your firm’s also have a lot of bunt outs. So I would say experience regarding profitability of in the aggregate, depending on the year, industrial and commercial projects profitability in the two areas ranks about compared to public sector projects? the same.” ■ Gregory Graves “We find that the biggest factors when it Burns & McDonnell comes to profitability are the client hav- Alan Joch is a business writer based in ing a clear understanding of its needs and Francestown, N.H.

JULY / AUGUST 2014 ENGINEERING INC. 17 Meeting the

ACEC Coalitions providing innovative Needtools to spur business growth

By Maureen Conley he Council has always provided guidance and support for the nation’s engineering firms to help them maximize profitability. ACEC’s six professional coalitions help address specific needs of the industry. In this special feature, the heads of ACEC’s Tcoalitions examine trends, outline special concerns, and note their specific resources and programs to

move Member Firm businesses forward. >> IMAGES BARRAUD/GLOW MARTIN

18 ENGINEERING INC. JULY / AUGUST 2014 MARTIN BARRAUD/GLOW IMAGES Business Climate expert about “some of the dynamics and The improved economy brings much opportunities for engineers” in the oil and enthusiasm for the future, but it also pre- gas industry, says Snyder. sents challenges for firms. One of those challenges is how to man- Policy, Financing age lingering uncertainties, says Andrew Infrastructure policy and funding is another Rauch, chairman of the Council of Ameri- wildcard that ACEC’s coalitions are keep- can Structural Engineers (CASE) and ing a close eye on for members. secretary-treasurer of BKBM Engineers In today’s tight budget environment, in Minneapolis. And, after years of finan- design professionals need to find ways to cial struggles, there is plenty of that. “You “get the most efficient job done” and “do never know if that project you started yes- Andrew Rauch more with limited resources,” says Anthony terday will get postponed tomorrow,” and Bartolomeo, chair of the Design Profes- no one is truly comfortable with their cur- sionals Coalition (DPC) and president rent backlog of work, he says. and CEO of Pennoni Associates, Inc., in While CASE may not be able to elimi- Philadelphia. nate such uncertainties entirely, Rauch To help, DPC is working with ACEC says the coalition is aiding its members to implement a strategic plan that includes in other ways, such as by “keeping risk partnerships with other industry groups management costs down and helping busi- committed to addressing common business nesses run more effectively using some of issues, such as deferred maintenance on the tools that we have.” CASE is currently infrastructure. developing guidelines for members about By working together, Bartolomeo says how to best manage risks to their overall DPC and its partners can achieve more business, as well as to specific projects. momentum and support for solutions that Improvements in the real estate and might require large initial investments of land development sectors are current public funds. issues the Land Development Coalition Also on DPC’s agenda is reauthoriza- (LDC) is helping its members navigate, Michael Snyder tion of the transportation-funding bill says Chair Michael Snyder, senior vice (MAP-21), which is due to expire this year, president at Dewberry in Lanham, Md. and continued funding for the Highway With the overall economy picking up Trust Fund, which is slated to run out of in this sector, the coalition has created money by August, says Bartolomeo. DPC special programs and publications to keep has joined other interest groups in a push members current on ever-changing mar- to get legislation through both houses of ket conditions and emerging trends in Congress, an effort that requires “giving the industry. One other important focus legislators what they need” to better under- for the coalition will be helping members stand the impact these and other funding navigate the maze of regulations and per- initiatives have on the industry. mitting requirements that firms encounter Policy and tax issues are also of interest to from state to state. member firms—and coalitions are moni- LDC went from not having any profes- toring several issues, such as the Afford- sional practice publications just a few years able Care Act (ACA). Matthew Murello, ago to an entire library devoted to helping chair of the Small Firm Council (SFC) and firms navigate the “new trends happen- president of Lewis S. Goodfriend & Assoc. ing in land development today,” Snyder Anthony Bartolomeo in Whippany, N.J., says ACA mandates says. And the coalition continues to add have changed since the law was enacted in new publications to its library. Through tough, especially in a growing, if uneven, 2010. “People are asking, ‘Now what do I the rest of this year, its main focus will be marketplace. “Some sectors are hotter than do?’ and this kind of uncertainty is keeping developing a new guide to manage firm others, but it is still not a robust national everybody up at night,” Murello says. staffing issues. This guide will help firms economy, so sales and what’s going on in Most SFC members fall below the increase staffing levels now that more proj- our core markets continue to be an issue 50-person threshold for the act’s “employer ects are going forward by clients. Firms for everyone,” Snyder says. mandate,” a requirement to provide will need guidance on how to increase To combat these issues, LDC is invit- employees with health insurance cover- staff, since they haven’t needed to in the ing business development experts to speak age—but that doesn’t exempt them from past few years. at its conferences. At the recent ACEC the implications of the legislation. Small Growth is a good thing, but keeping Annual Convention, for example, LDC firms must keep pace with current federal track of changes in the marketplace is members heard from an energy market requirements and try to anticipate “what is

20 ENGINEERING INC. JULY / AUGUST 2014 coming next,” he says. Helping members Rather than fight change, COPS understand this changing landscape is high encourages its members to embrace it. on SFC’s agenda for 2014. As GPS and other technologies evolve, designers will need help using the latest Increased Competition equipment and learning to marry these As work picks up, the need for capable innovations with existing surveying prac- talent also increases—which often can pit tices and principles, Guida says. firms against one another. Building Information Modeling Small firms routinely struggle to hire (BIM) is another technology that’s and retain the best and the brightest changing the game for U.S. engineer- employees, especially when larger com- ing firms, particularly those involved petitors can offer higher salaries, says Matthew Murello in mechanical, electrical and plumbing, Murello. “One of the key issues for every says DeSantiago. small business is how to take younger To adjust to this revolution, CAMEE employees and develop them as leaders in is developing tools to help its members the company,” he says. To help its mem- effectively transition to BIM. While bers hire and retain top talent, SFC spon- BIM guaranteed to be a major part of sors workshops and roundtable sessions a firm’s future, questions remain about where professionals share information, when and how to use it—and that’s part learn from one another and engage in of what CAMEE is helping its members some “group therapy.” SFC recently hired figure out. an outside human resources consultant to provide a two-day seminar on grooming New Toolkits the next generation of leaders. To help their members adjust to a chang- For Michael DeSantiago, chair of the ing business and economic climate, many Council of American Mechanical and of ACEC’s professional coalitions have Electrical Engineers (CAMEE) and presi- released new toolkits for use in solving the dent of Primera Engineers Ltd. in Chi- most pressing industry challenges. cago, it comes down to standing out in the Michael DeSantiago COPS continues to update its safety crowd. checklist and standards, says Guida. As As an industry, “we need to learn to be technology evolves and one-man survey the employer of choice,” he says. Engi- crews work more efficiently, surveyors neers have a lot of options. They can go need to think about “how to keep one overseas or work for technology compa- guy safe when he is out by himself. Guida nies. That’s why it’s important for firms to says safety is COPS’ No. 1 priority, fol- provide an attractive option. lowed closely by technology. That’s why CAMEE plans to “be on In addition to developing risk man- campus as early as the start of the school agement guidelines, Rauch added that year to get in front of these young engi- CASE has convened a special committee neers before they are all spoken for,” he to develop guidance on implementing the says. code of standard practice for steel joists; Across the country, CAMEE and its another committee is updating a series of members are also sharing ideas about standard contracts based on comments employee retention. Simple ways to inject from outside counsel. These contracts fun into the workday are especially impor- cover different types of structural engi- tant, says DeSantiago. There is “a lot of Ralph Guida neering projects, from consulting with competition for engineers, and it’s going project owners to hiring another engi- to get more intense. Getting students to neering firm to providing specific services, go into technical careers is tough enough. New innovations, including global such as special inspections. Getting them to choose your firm is positioning systems (GPS) and geospa- Rauch echoes the theme shared by all tougher still. Your firm has to become the tial mapping, have remade the entire ACEC coalitions when he says CASE is kind of place young up-and-comers want sector. “We used to lay out a lot of con- committed to providing tools that will to work at.” struction staking, but now that can be “keep you out of trouble and make proj- done with machines that have GPS,” ects run more smoothly.” ■ Technology and Innovation says Ralph Guida IV, chair of the Coun- When you work in a field dominated by cil of Professional Surveyors (COPS) and Maureen Conley is a business and technology, change is inevitable. Just ask a president of Guida Surveying in Irvine, technology writer based outside Washington, member of the nation’s surveying industry. Calif. D.C.

JULY / AUGUST 2014 ENGINEERING INC. 21

BEYOND/GLOW IMAGES BEYOND/GLOW 2014 PROFESSIONAL LIABILITY INSURANCE SURVEY OF MEMBER FIRMS FOR F.Y. 2013 Competition Keeping rates low and claims frequency in check By Maureen Conley ith stable premiums and plenty of many as half reporting billings increases of professional liability insurance (PLI) 5 percent or higher. Overall claim frequency is unchanged carriers competing for market share, from 2012. Member Firms that responded U.S. engineering firms that responded to this year’s survey spent nearly 45,000 to the most recent ACEC PLI Survey personnel hours defending a total of 408 of Member Firms indicate the market is claims and spent upwards of $100 million ripe for testing new insurance options. to resolve them. Of those claims, firms con- sidered only 22 percent to be frivolous. W When asked to describe what contrib- Of the 375 Member Firms who As the business climate improves, con- uted to claims, two factors rose to the top: responded to this year’s survey, 18 percent ventional wisdom would suggest premi- errors and omissions (51 percent) and com- used the competitive landscape to switch ums should increase. But PLI is still a good munications problems (45 percent). Con- to a new PLI carrier. Of those, some 55 buy. Eighty-six percent of responding firms tracts continued to be a larger issue for percent said lower premiums were a factor, said their deductibles were unchanged in smaller firms compared with larger firms while 32 percent looked for better policy F.Y. 2013, despite the fact that 62 percent (40 percent and 22 percent, respectively). terms. of firms reported higher revenues, with as Third-party claims, a new category on this

JULY / AUGUST 2014 ENGINEERING INC. 23 Again, Catlin claims service is ranked #1 by the American Council of Engineering Companies. The 2014 American Council of Engineering Companies (ACEC) Professional Liability Survey has ranked Catlin #1 for claims service for the third time. In this survey, the Catlin team that specializes in Design Professional, Construction and Environmental claims received the top score. When faced with a professional liability claim, Catlin is committed to providing our clients the most responsive service possible. So, it’s no wonder that 100% of respondents in the 2014 ACEC Survey indicated that they were satisfied with our claims handling and 4 out of 5 gave us the highest possible marks for customer satisfaction. Out of all the insurance carriers considered, nobody earned higher scores for claims service than Catlin. To learn more about our commitment to exceptional service, visit us at CatlinUS.com/claims.

SPECIALTY INSURANCE REINSURANCE AM Best rating of A (Excellent) XV

Accident & Health I Aviation I Casualty E&S I Energy I Environmental I Equine I Healthcare Liability I Marine I Multiline E&S I Profressional Liability year’s survey, factored into 43 percent of Reasons Why Firms Changed PLI Carriers claims. (by Firm Size)

What’s Your Specialty? Lower premium 55% New this year, the survey results were bro- Better policy terms 32% ken out into fields of practice. Not satisfied Gross revenue increased across all disci- with claims handling 19% Changed carrier based plines, according to the survey, with firms on advice of broker 18% specializing in electrical work reporting the Other reasons 16% largest increases. Not satisfied with 8% Geotechnical and structural firms pre-claims assistance reportedly made the fewest errors or Could not renew with 8% existing PLI carrier omissions that resulted in claims (25 per- Higher limits than 5% cent and 33 percent, respectively), while existing carrier provided Not satisfied with risk mechanical/HVAC and environmental management programs 3% firms attributed a much higher percentage 010203040 50 60 of claims to such mistakes (80 percent and 75 percent, respectively). Source: 2014 ACEC PLI Survey of Member Firms for F.Y. 2013 Bad contracts were a factor in half of all claims filed against both electrical and In this market, “most brokers have says the amount of firms turning down geotechnical firms. That compares with 20 access to multiple carriers” and are able work “amounts to a big deal” in the indus- percent or fewer claims filed against firms to secure acceptable terms, Todd says. But try. He says it’s evidence that, at least in that specialize in other disciplines. carriers may not deliver on projects that some engineering disciplines, it’s becoming Chuck Kopplin, a long-time member cost less than the limits the owner is seek- increasingly challenging for firms to meet of ACEC’s Risk Management Commit- ing; “at the end of the day, the limit has to the standard of care. tee, says success with contracts “depends make sense to the carrier,” he says. Carl Munkel, director of risk manage- on how well they are reviewed,” noting Though business is on the upswing, the ment for Nashville-based Gresham, Smith smaller firms are less likely to have dedi- survey revealed that a number of smaller and Partners (GSP), says contract terms cated risk managers on staff. firms continue to opt out of PLI cover- are the No. 1 reason that his firm turns More than half of environmental, age, explains Jim Messmore, senior vice down work. The 650-employee firm has geotechnical and structural engineering president at Hanson Professional Services, an in-house risk management group that firms that responded to the survey said Inc. Fourteen percent of firms grossing less does a “very thorough agreement review” they sometimes or frequently turn down than $500,000 opted out of PLI in F.Y. and seeks advice of outside counsel when work, compared with one-third or fewer 2013, compared with 10 percent in the necessary. Munkel sees terms and con- mechanical, electrical and civil firms. previous fiscal year and 2 percent in 2010. ditions getting “more onerous”—often Smaller firms are also less likely to have including warranties and higher standards Positive Economy, Troubling Trends claims, according to the survey. Ninety- of performance, inappropriate indemnifi- Kevin Collins, who manages the architects one percent of the smallest cation and defense require- and engineers program for insurance car- firms surveyed reported no ments, and unrealistic rier CNA/Victor O. Schinnerer &. Co., claims in F.Y. 2013. expectations for PLI cover- says his firm reported revenue increases for age. GSP attempts to miti- 21 straight months. Collins says insureds Walking Away From Work gate these terms through are averaging 3 percent annual growth, Exposure to risk or a lack negotiations, modifications with larger firms growing the fastest. Col- of insurance coverage has in scope, fee adjustments lins expects growth to tick up even higher, prompted some firms to turn or other means. Even when to 4 percent or 5 percent by the end of down work. Forty-three per- consulting for another firm, 2014. Jeff Connelly, program manager for cent of all firms surveyed said GSP will at least review the Marsh, the exclusive broker for ACEC’s they frequently or sometimes “The amount prime agreement, and in Business Insurance Trust, notes that as turned down work in F.Y. of fi rms turning some cases has worked with business improves throughout the indus- 2013, forgoing an estimated down work the prime consultant to try, design firms tend to seek higher levels $4.5 million in potential negotiate a better agreement of liability protection. fees. ‘amounts to a with the project owner. Jeff Todd, president of a/e ProNet, an Matt Richards, vice presi- big deal’ in the Mike Blankinship, who insurance network for architects and engi- dent of Wisconsin-based industry.” owns Davis, Calif.-based neers, is seeing this trend. He says the solu- Strand Associates and a co- MATT RICHARDS Blankinship & Associates, tion is often to find a second carrier will- vice chair of ACEC’s Risk STRAND ASSOCIATES Inc., says his firm sees more ing to provide the overage in coverage. Management Committee, onerous indemnity clauses.

JULY / AUGUST 2014 ENGINEERING INC. 25 The PL Authority for the A/E Community Since 1984 Causes of Claims riers, Richards says, but pre-claims assis- (by Firm Size) tance is also valuable. Error or omission of a Effective claims handling saves time and technical nature 51% allows designers to achieve “better results

Communications 45% and improve profitability,” Collins says. Some firms may change carriers to get

Third-Party Claim 43% “dollar-one defense,” under which a firm only pays its deductible if there is a settle- Project Management 24% ment or judgment, says Mike Cosgrove, CEO of Professional Concepts Insurance

Client/Project Selection 23% Agency and incoming president of the Professional Liability Agents Network. Contract 22% This feature often saves money, but it is generally available only to firms with

Other 12% revenues below $3 million. Aggregate deductible—wherein a firm makes a single 010203040 50 60 deductible payment, even if it has more than one claim in a single year—is another Source: 2014 ACEC PLI Survey of Member Firms for F.Y. 2013 feature that often entices firms to change carriers. Firms seeking higher coverage He says many municipal project owners firms that seek lower premiums and claims limits sometimes have no choice but to increasingly ask his firm to take on “liabil- handling satisfaction. “It’s kind of a vicious change, especially if their existing carrier ity that has nothing to do with the work yet predictable cycle. Go for the lowest can’t accommodate their needs. we do.” Agreeing to be held responsible price and you will, most likely, be dissatis- for someone else’s mistakes likely would fied with the claims handling.” When Claims Arise not be covered by PLI and could put a When selecting carriers, the top-three GSP’s Munkel says, “our firm is very aggres- firm and its assets at risk, he says. That’s factors firms considered, according to the sive in reporting potential claims and prob- why PLI contract review services are an survey, are broker recommendation (31 lems to its PLI carrier.” The firm teaches important piece of the best PLI coverage percent of firms surveyed ranked this most employees the process and makes report- agreements. important), price (28 percent) and claims ing easy. Then, as the end of its policy handling expertise or carrier reputation term nears, communications go out asking Switching Carriers (24 percent). employees if anything needs to be reported. Lower premiums are by far the biggest A proven track record and longevity in This avoids the possibility of a carrier deny- reason firms change carriers, according the A&E market is crucial, says Beazley ing coverage because a problem was not to the survey. That’s especially true for U.S. A&E Focus Leader Jim Schwartz. reported in a timely fashion, he says. smaller firms. Among firms grossing less “With the potential for nine-figure pay- The best carriers have experienced than $500,000, 23 percent outs and the possibility of claims handlers who work in partner- of those surveyed changed real volatility in claims, ship with firms to determine how best carriers in F.Y. 2013 and 71 firms need to make sure to approach a claim, explains Collins. percent of those firms made they are with a carrier that Oftentimes, these carriers intervene to the move in favor of lower understands the industry gather information and develop a plan insurance premiums. and will be there for the for resolving disputes, usually within 90 “Price impacts these firms long term,” he says. days of being notified of a claim. If the so much, yet the small firms Blankinship says he espe- team decides to settle, it is “always with the are the ones that don’t have cially values loss prevention informed consent of the insured.” in-house risk management,” training as a part of PLI XL is another carrier that prides itself says Al Rabasca, director of “Our fi rm is coverage. “It is easier to pre- on stepping in early to help firms avoid industry relations for the vent problems than resolve or mitigate claims. If a claim does result, design professional unit of very aggressive them,” he explains. PLI car- Rabasca says, XL often turns to mediation, XL Group. He said smaller reporting riers offer strategies for use which entitles the insured to a deductible firms especially need help potential claims “in the office, in the field, credit, adding that in the event a case can’t with contracts, education, and problems to and in negotiating with cli- be resolved quickly and equitably, XL is loss prevention and risk ents in a way that will pro- “fully prepared to defend the matter at management, “not just an its PLI carrier.” tect you, your firm and its trial” on behalf of its clients. ■ CARL MUNKEL insurance policy that reacts assets,” he says. Strand leans GRESHAM, SMITH AND when they have a claim.” He heavily on educational pro- Maureen Conley is a technology and business PARTNERS noted a correlation between grams offered by its PLI car- writer based outside Washington, D.C.

JULY / AUGUST 2014 ENGINEERING INC. 27 ll signs point to a much healthier engineering marketplace in 2014 and 2015. As the economy continues to improve, Aprivate industry is beginning to invest in new projects, governments are weighing long-term funding plans for infrastructure, and progress is being made toward national energy independence. Mo While a number of obstacles can still derail these positive trends, optimism about engineering markets is understandably strong among the 2014–2015 ACEC Executive Committee. In this special feature, ExCom members discuss promising opportunities in the marketplace and highlight leadership skills necessary to achieve success.

Energy Breakthroughs in shale oil drilling tech- niques, coupled with increased legislative sup- port for energy projects in many regions, have many of this year’s ExCom members enthusiastic about emerging energy markets. ExCom Chairman Richard Wells points to the nation’s progress toward exporting excess liquefied natural gas to other countries as another key indicator for sector growth. “If we can continue to use our indepen- dence, I think it will hold our prices down,” says Wells, who is also vice president for cor- porate development at Kleinfelder in Greens- boro, N.C. “Companies will then see more industrial jobs coming back into the United Richard Wells States because prices will be favorable for them to do business here from an energy perspective.” New ExCom Vice Chairman Ran- dall Neuhaus agrees. “We’re discover- ing more shale gas and other energy opportunities in the United States. The idea that we can become energy inde- pendent is something that we just didn’t think was possible a few years ago,” says Neuhaus, who is president and CEO at S&ME, Inc., in Raleigh, N.C. “I think that’s going to be a strong driver Randall Neuhaus

for our industry and for our economy.” BURTON C.J.

28 ENGINEERING INC. JULY / AUGUST 2014 Sustaining MomentumIndustry Thoughts from ACEC’s Executive Committee

By Stacy Collett

JULY / AUGUST 2014 ENGINEERING INC. 29

neer in Walnut Creek, Calif., says climate change and resilient construction are, for the first time, taking center stage in the national conversation. Resilience initiatives will have to move quickly though to catch the infrastruc- ture wave. “Nations are ready to spend bil- lions on infrastructure,” says Poland, who adds, that’s why the industry “needs to get proper standards and performance goals for resilient designs in place.” Manish Kothari Marilen Reimer International Projects Future market opportunities aren’t just ing in popularity with many governments. NAECE President Marilen Reimer sees confined to U.S. borders. Engineer- “Energy is a very important factor. We need a trickle-down effect just from the uptick ing firms are also looking abroad for new cheaper and more efficient power,” which in oil and gas projects in Colorado. “Other prospects, especially as international mar- will drive renewable resource projects for firms are tracking those oil, gas and wind and solar power,” he says. renewable energy projects to see where Chris Poland they lead,” such as building projects for Innovation new energy businesses or construction Telecommunications and electrical innova- projects for technology firms that are tions are powering business opportunities partnering with energy companies, says for Overland Park, Kan.-based Black & Reimer, executive director of ACEC/ Veatch. ExCom Senior Vice Chairman and Colorado in Denver. Black & Veatch Associate Vice President Clint Robinson points to an intrapreneur- Infrastructure ial mindset—taking skills the firm already Recent infrastructure funding news such has and translating them into new mar- as congressional passage of the Water kets. For example, he cites how Black & Resources Reform and Development Veatch recently used its knowledge of elec- Act in May, and continued progress on tric tower construction to design telecom the reauthorization of MAP-21, has been kets improve, says ACEC Chairman-elect towers for a booming mobile industry. encouraging, along with several transpor- Ralph Christie, Jr., chairman of Merrick The firm’s Smart Integrated Infrastruc- tation funding advances at the state level. & Company in Greenwood Village, Colo. ture group also worked with electric car- “I see a lot of the states we work in— “Even midsize and small firms can provide maker Tesla to design, construct and deliver Maryland, Pennsylvania, Virginia—pass- their expertise in certain markets interna- 70 of its 100 recharging stations. “We’re ing legislation to increase transportation tionally,” Christie says. As an example, his not in the transportation field, but we’re revenue,” says ExCom Vice Chairman and midsized Merrick & Company worked in certainly now in the field of providing elec- Treasurer Harvey Floyd, executive vice more than a dozen coun- tricity for batteries in cars,” president at KCI Technologies, Inc., in tries in 2013 and 50 coun- Robinson says. Sparks, Md. “The governor of Delaware tries in the last 10 years. has also proposed and is pushing for more “About 20 percent of our Private Sector funding for both transportation and water revenue was in interna- Opportunities resources.” tional work last year,” he Member Firms working Additionally, so-called “resilient cit- says. primarily in the private cli- ies”—featuring International infrastruc- ent market are optimistic Harvey Floyd infrastructure built ture projects will also be about legislation and incen- to more effectively driven by a growing global tives that promise to pro- withstand extreme population with increased mote new business oppor- weather events, along demands for water, trans- tunities, says new ExCom with earthquake haz- portation, energy, housing Vice Chairman Mitchel ard mitigation—are and other essentials, says Simpler, managing partner gathering steam. New ExCom Vice Chairman Ralph Christie at Jaros, Baum & Bolles in ExCom Vice Chair- Manish Kothari, presi- New York. “For the private man Chris Poland, dent and CEO at Sheladia Associates in sector, that includes continued energy tax principal and founder Rockville, Md. Kothari says “smart cities” credits, which they hopefully will continue of Chris D. Poland that require green buildings, green energy to do, incentives for R&D tax credits, Consulting Engi- and green urban planning are also grow- which also inspire people to take advan-

JULY / AUGUST 2014 ENGINEERING INC. 31 tage of new technologies and economic Executives will also need to adopt softer Mitchel Simpler growth with low interest rates continuing, skills to navigate a changing marketplace which allows the private sector to do more as today’s engineering leaders must have development.” a high “emotional intelligence,” Chris- Simpler says his firm emerged unscathed tie says. “In my mind, it’s really not only from the recent recession and was not understanding yourself but your team’s forced to lay off any of its engineers. It is capabilities and having a good, instinctive now in a favorable position heading into sense for market trends and what’s going on the economic recovery, taking advantage of in the world. Engineers aren’t trained in this what Simpler calls “the low cost of money.” and it’s hard to measure, but you know it In Denver, new ExCom member Lauren when you see it.” Evans is also predicting a healthy growth in These soft skills apply to more than just the private client market. “We got involved firm leadership. “More of us really need in environmental engineering earlier than to become leaders in society,” Evans says. other engineers, and business is on the rise “We should be out explaining to people here,” says Evans, president of Pinyon boldly but with caution, Robinson says. what needs to be done with our infrastruc- Environmental, Inc., based in Lakewood, “Take incremental steps toward big chal- ture and why.” Colo. She added that in the last six months, lenges. Big course changes are a lot more Public service is a common leadership the number of Phase 1 site assessments per- risky than a lot of small changes that will goal shared by many ExCom members. formed by her firm jumped 20 percent. eventually lead to a big shift.” Neuhaus calls this One challenge will be for leaders to find having a “servant- new ways to attract and keep young engi- minded attitude” neers, Floyd says. The down markets of and says, “a strong the last few years have forced many firms leader needs to to downsize. “Now, as things are turning be open to ideas around, you’re going to see an increased that best serve demand for engineers,” he says. “The goal the community.” for us is to create a challenging environ- He adds that the ment for our engineers so they’re not lured thought process away by the competition. We also have should be, “I’m to be able to find and recruit new talent here to serve our to build our staffs back up to handle the clients and all of increasing workload that we see coming.” our shareholders.” The next generation needs mentoring That doesn’t Dave Raymond Clint Robinson if it intends to climb the firm ladder, adds mean you can’t Reimer. “Key leaders must be willing to take risks. “The Leadership in a Recovering Economy engage the up-and-comers in the firm opportunities that are out there may not Taking advantage of growth opportunities sooner.” Her suggestions: “Work out an just fall in your lap,” Neuhaus explains. rarely occurs, however, without taking risks. arrangement with better communication Reflecting on the new marketplace, ExCom members agree that risk-taking can and mentoring. Engage those behind you ACEC President Dave Raymond says test firm leadership and in many cases force and help them strengthen their skills and that “along with these big opportunities some leaders to step outside their comfort move forward.” in energy, infrastructure and facili- zone to prepare their firms for the future. ties, major challenges lie ahead for the Across the board, ExCom members agree industry.” that the new marketplace requires foresight He cites legislative and regulatory battles, and taking chances. including long-term transportation fund- “Change is inevitable, but if you can ing, tax reform and energy regulations. anticipate the wave you can plan for it—or Responses by ACEC ExCom members be pushed by it,” says Kothari. “I tell my are emblematic of those throughout the team, let’s keep our eye out for the next field. “This is much more encouraging than wave and go surfing.” just a few years ago, when the common Poland agrees. “A firm leader really industry sentiment was of varying degrees needs to be very adaptable to change and of struggle,” Raymond says. “Today we are constantly look forward to find out where looking ahead optimistically and develop- you can move your industry in a way that ing new markets.” ■ serves a social need—and then build a prac- tice that surrounds that market.” Lauren Evans Stacy Collett is a business and technology The most successful firms will proceed writer based in Chicago.

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34 ENGINEERING INC. JULY / AUGUST 2014 Hotel Information Engineering Business Outlook-2015 Conference Highlights Hilton Waikoloa Village ■ Jon A. Carlson, CEO, Braun Intertec ■ More than 30 Business Management Seminars 69-425 Waikoloa Corporation, Minneapolis ■ CASE Risk Management Convocation Beach Drive ■ William C. Siegel, President & CEO, ■ Business and Legal Forums Waikoloa, HI 96738 Kleinfelder, San Diego ■ CIO, CFO, Emerging Leaders Tracks hiltonwaikoloavillage.com ■ Donald E. Stone, Jr., CEO, Dewberry, ■ CEO Roundtables Fairfax, Va. ■ Earn 21.75 PDHs and Network with Industry Leaders The Hilton Waikoloa Village, ■ Awards Presentations located on the Kohala Coast Opportunities in Booming Energy Markets of the Big Island of Hawaii, ■ Steve Bakken, Larson Engineering, and Social Events/Sightseeing Tours is a spectacular 62-acre radio host of “Energy Matters,” Bismark, ■ Local Color Night: “Surfs Up” with Jimmy Mac and oceanfront property. The North Dakota—The Bakken Boom the Kool Kats resort features 1,240 guest ■ Anthony Bartolomeo, CEO, Pennoni ■ Volcano and Waterfall Helicopter Tour rooms and suites and offers Associates, Philadelphia—The Future of ■ Picnic Snorkel Sail breathtaking tropical gardens, Marcellus Shale ■ Kohala Waterfall Hike abundant wildlife, ocean-fed ■ Kendall W. King, Principal, Freese and ■ Mauna Kea Summit and Stars Tour lagoons, a variety of water Nichols, Fort Worth, Texas—The Texas sports and world-class dining. and Gulf Energy Perspective ACEC/PAC Activities ■ Golf Tournament at the Hilton Waikoloa For more information Village Kings’ Course and to register online, ■ Sweepstakes Breakfast, including a $10,000 grand go to conf.acec.org. prize!

35 Risk Management BY GLEN R. MANGOLD AND CHARLES W. KOPPLIN Strategic Document Retention for Effective Post-Project Risk Management

onstruction is completed and the client has moved ings or material samples into its new facility. The last invoice has been paid submitted for approval along and the project is ready for closeout. Finally. with logs showing dates they The design professional should breathe a sigh of were received and returned. relief, right? After all, successfully navigating all those Reports documenting on-site Crisks wasn’t an easy job. But don’t exhale just yet. As most engi- observations and photographs neers know, liability does not end at project or report completion. should be kept, but not pho- That’s why it’s important to have a strong, enforceable docu- tographs that do not pertain ment retention policy. to services provided. Managing risks after the fact begins with closing out the proj- Because there is little initial ect by culling the files and deciding what documents need to be cost to taking photographs, retained. This applies to both hard copy and digital data. Do not there is a tendency to take under any circumstances throw your documents into a box, write photographs of everything them to electronic media and ship them off to a long-term stor- happening on a construction age facility. Your firm’s written record retention policy provides site. This could be problem- good guidance on what to retain and what should be destroyed, atic for the design profes- provided that policy is enforced. The worst document retention sional, especially if a photo is policy a firm can have is one they do not follow. taken of an unsafe condition

and the person taking the IMAGES IAN LISHMAN/GLOW What to Keep? photograph brings it to the attention of the site superintendent. In deciding what documents to retain, the firm should first review When retaining digital data, consideration should be given to its contract. The contract takes precedent over any firm policy and both the format of the data and the media on which it is stored. is a good starting point on deciding what to retain. A copy of all Ideally data should be stored in a format that is likely to be read- final documents including drawings, specifications, manuals and able in the future, such as a PDF, and not in a format readable reports should be retained. It may be of value to retain copies of only by a specific software program. Even if the firm is still using any documents generated for intermediate milestones such as a cli- the same software 10 years from now, it’s likely to be several ver- ent’s review or a permitting agency’s review. sions newer. Assuming the program can correctly read the file, can Any documents that the design profes- it be guaranteed that it will produce the same results? These same “The worst sional relied upon to perform their services precautions apply to media on which digital data is stored. document should also be retained, such as land sur- The risks associated with document retention when closing out veys, traffic studies, soils reports, and client- a project need to be well managed. Staff that was assigned to the rentention provided information. Additionally, all con- project most likely has been reassigned and are eager to clear their policy a firm tracts with the client and sub-consultants, desks and take on the challenges of their next project. By having a can have is along with any amendments, should also be written document retention policy and enforcing it, firms ensure retained. that staff will be given the guidance on what is important to retain one they do Written correspondence, such as letters, and what should be discarded. Such a policy streamlines the proj- not follow.” memos, transmittals, meeting minutes and ect closeout process and helps to better manage post-project risks. emails should also be retained, but draft copies should be discarded. Written documentation confirming Glen R. Mangold is the managing director of the Architects/Engineers any directions or information given verbally such as during tele- program for Markel Corporation, a provider of professional liability phone calls should be saved. Maintaining written documentation insurance. He can be reached at [email protected]. of information provided and decisions made during the project Charles W. Kopplin has more than 40 years’ experience as a consulting could prove to be invaluable. It is so much better and more believ- engineer, including 14 years as the risk manager for an ENR Top 500 able than relying on someone’s memory. Design Firm. He can be reached at [email protected]. There is no need to keep every email written about a project. Only keep those emails that document an action was taken or The material in this article is provided for informational purposes only something was sent, received or given. and is not to be regarded as a substitute for technical, legal or other During the construction phase there are many documents professional advice. The reader seeking such advice is encouraged to confer with an appropriate professional consultant or attorney. generated that also need to be retained. These include shop draw-

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Rural Utility Service Approves Latest EJCDC Contracts

Subject to the modifications indicated in the Rural Utilities ACEC Bookstore regularly for the latest e-book releases: www. Service (RUS) Bulletin 1780-26, the Engineers Joint Contract acec.org/bookstore. Documents Committee (EJCDC) developed the following ACEC Coalitions are also getting in on the e-book trend. documents, which were previously approved by RUS for pro- The Land Development Coalition recently released a new book curement of professional and construction services by loan and called Financial Planning for Successful Land Development Proj- grant recipients: ects. The publication is a compilation of documents developed • Agreement Between Owner and Engineer for Professional for firms specializing in land development services, including Services (EJCDC No. E-500, 2014 Edition) Ethical Cost Proposals for Land Development Services, Cost to • Agreement Between Owner and Contractor for Construc- Compete and Contract Negotiations and Establishing Finan- tion Contract (Stipulated Price) (EJCDC No. C-520, 2013 cial Controls for Successful Land Development Projects. Edition) Each document gives project managers a tool to anticipate a • Standard General Conditions of the Construction Contract project’s scope and cost, while simultaneously managing client (EJCDC No. C-700, 2013 Edition) expectations. To purchase publications from the Land Development In addition to these items, associated construction contract Coalition, or any of the ACEC Coalitions, visit www.acec.org/ documents, some of which are available through ACEC and bookstore. some of which must be developed by the engineer via instruc- tions in the Bulletin, are also available. Project-specific EJCDC SEI Celebrates 20 Years of documents approved prior to the effective date of this Bulletin Leadership Training are still considered approved. The ACEC Senior Executives Institute (SEI), the industry’s The Bulletin consists of exhibits with required modifications premier leadership development program, works on multiple that when combined with the standard EJCDC documents levels to help executives identify and explore their unique and appropriate drawings, specifications and other required brand of leadership style, with the goal of developing stronger, documents, create a complete set more effective corporate leaders. of engineering and construction Over 18 months, participants work to build core knowledge, contracts for use with RUS projects. skills and overall business acumen—and that is just the begin- RUS state offices are permitted to ning. SEI’s program is designed to encourage creative think- modify the guidelines in the Bulletin ing and vision beyond the day-to-day, or even year-to-year, when necessary to comply with state approach of A/E business management, resulting in a greater statutes and regulations. awareness of the ebbs and flows of the industry environment. By strengthening their leadership skills, participating execu- New E-Book Series tives can better articulate what matters most for themselves Launches and their businesses, thus creating an environment in which 2014 is the year of the ACEC compelling visions, goals and strategies emerge and take root. e-book. We are celebrating the Applications are currently being accepted for SEI Class 20, launch of this effort with two new which starts in September in Washington, D.C. To learn more, books: Winning Strategies for A/E/C visit sei.acec.org. Firms: An Executive’s Guide to Maxi- mizing Growth and Profitability by Clare G. Ross and Win More Work: ACEC’s Business Resources and Education Department provides How to Write Winning A/E/C Propos- comprehensive and accessible business management education als by Jim Rogers. for engineering company principals and their staffs. These books are available for sale Visit ACEC’s online educational events calendar at and immediate download in the community.acec.org/events/calendar or bookstore at ACEC Bookstore and will release www.acec.org/bookstore, or call 202-347-7474, ext. 324, to Google Play, iTunes and Amazon for further information. over the next few months. Visit the

38 ENGINEERING INC. JULY / AUGUST 2014 GETTING HOME TO WHAT MATTERS, THAT’S

DRIVABILITY

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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 fi 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  offi ces, we are a local fi 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 fi rm that has the drive and vision to be the best. www.stvinc.com Members in the News On The Move

Robert E. Chaput, Jr., was named presi- operations from the firm’s headquarters in (Smith is based in Richardson, Texas); dent and CEO of S. W. Cole Engineer- Westfield, Mass. Brian Hard to vice president of alterna- ing, Inc. Other management changes at tive project delivery services support for the firm: Chad B. Michaud was named London-based AMEC appointed Jeff Operational Shared Services (Hard is COO and executive vice president. He Reilly group president of strategy and based in Denver); Thomas Ahern to vice is also the manager of the Somersworth, business development. He will be based in president, director of contracts for Opera- N.H., office. Former President and CEO Houston. tional Shared Services (Ahern is based in Paul Kohler is now senior vice president. Washington, D.C.). Kohler, who remains on the board of Louis Berger Senior Vice President Ivan directors, is manager of the firm’s Gray, Keogh assumed direct leadership for all Tom Lothspeich and Dan Bender have Maine, office. Roger E. Domingo was firm activities in India. Keogh assumes been appointed vice presidents at Stanley promoted to vice president of construc- these responsibilities in addition to lead- Consultants. Lothspeich, who is based in tion services and Timothy J. Boyce ing the firm’s business in Asia. the firm’s Muscatine, Iowa, headquarters, was named vice president of engineer- is a senior project manager and manager ing. Gary Bucklin was promoted to vice Craig Pincince joined Oakbrook Ter- of the Power Generation Group of the president of geoscience services. race, Ill.-based Professional Service firm’s Energy Business. Bender is west Industries, Inc., as senior vice president regional manager of the firm’s Infrastruc- New York City-based Thornton Toma- of national sales. Pincince, who will be ture Business and is based in the com- setti announced that Andrew Goldbaum located in the firm’s Dallas office, will pany’s Last Vegas office. joined the firm as CFO. He will be based focus on the national retail, hospitality, at the firm’s New York City office. Also, developer, commercial and REIT/finance Jeffrey K. Luney joined the firm as a market sectors. ACEC Member Firm Named vice president in its Building Performance No. 1 Small Business in America – Forensics practice. Pasadena, Calif.-based Parsons announced the following promotions: he U.S. Chamber of Commerce William Hardy joined Tighe & Bond James Smith to vice president in its named Sanderson Stewart in as the firm’s COO. Hardy will oversee Environment & Infrastructure Group TBillings, Mont., Small Business of the Year. The Chamber selected the ACEC Member Firm from a record number of applicants. “Sanderson Stewart’s outstanding leadership, track record and operating style truly set it apart and make it a prime example of what it means to be a successful small business,” said U.S. Chamber President/CEO Thomas Donohue. The ACEC Member Firm, which focuses on land development and community planning, employs 70 Robert E. Chaput, Jr. Chad B. Michaud Andrew Goldbaum Jeffrey K. Luney professionals and has offices in Montana, North Dakota, Idaho and Colorado. “Wow! The No. 1 small business in America!” said President and CEO Michael Sanderson. “It’s such a tremendous honor for our exceptionally talented and dedicated team, who are truly the best of the best. So it’s very, very satisfying to see them get recognized on the national stage.” William Hardy Jeff Reilly Ivan Keogh Craig Pincince

JULY / AUGUST 2014 ENGINEERING INC. 41 Members in the News Welcome New Member Firms LET ACEC/Alabama ACEC/New York Orion Engineering, Inc., Theodore Calocerinos Engineering, PLLC, Engineering Inc. ACEC/Arizona Liverpool HilgartWilson, Phoenix Geotechnical Systems & Hill International, Inc., Phoenix Structures, PE, PLLC, Mannsville Jerome E. McGetrick and Hinman Consulting Engineers, Associates, Tucson New York City M3 Engineering & Technology ACEC/North Carolina Corporation, Tucson Three Oaks Engineering, Durham WORK McDougall Devcon, Phoenix ACEC/Ohio ACEC/Arkansas KZF Design, Inc., Cincinnati B & F Engineering, Inc., Resource International, Inc., Hot Springs Columbus ACEC/California ACEC/Oklahoma FOR YOU Chris D. Poland Consulting Marquardt Engineering, PLLC, Tulsa JULY/AUGUST 2012 Engineer, Walnut Creek STMS, Inc., Lawton D. Woolley & Associates, Inc., ACEC/Oregon Tustin INC. ESA Vigil-Agrimis, Portland www.acec.org ENGINEERINGAWARD-WINNING BUSINESS MAGAZINE ACEC/Colorado SEFT Consulting Group, Beaverton ● PUBLISHED BY AMERICAN COUNCIL OF ENGINEERING COMPANIES Bristol Engineering Services, ACEC/South Carolina Golden Hanna Engineering, LLC, Florence >> Innovation for Fulton Engineering, Inc. International , Projects Broomfield ACEC/South Dakota TSP, Inc., Sioux Falls >> PLI Rates Knight Piésold and Co., Denver Hold Steady MDP Engineering Group, P.C., ACEC/Tennessee >> House Bid Civil & Environmental Consultants, To Restrict Denver Highway Funds TAE Inc., Northglenn Inc., Franklin Defeated Triax Engineering, LLC, Denver GEOServices, LLC, Knoxville ACEC/Connecticut Strategic Services Company, LLC, Maryville Solli Engineering, LLC, Monroe Global ACEC/Florida ACEC/Texas Blackline Engineering, Houston Applied Sciences Consulting, Inc., Reach Tampa Broaddus & Associates, Austin How to Succeed in Foreign Markets CMT Engineering Inc. Bay Area Sinkhole Investigation & , Lubbock Engineering & Terminal Services, Civil Engineering, LLC, Tampa LP Devlen Engineering, Inc., , Houston Lake Mary GarzaBury LLC, Austin Johnson & Pace Incorporated TECS LLC, Tampa , Longview ACEC/Georgia Nova Engineering, Inc., Carrollton Pont Engineering, Inc., Marietta USA Professional Services Group, With an ad in ACEC/Illinois Inc., Dallas Bernal-Albano, Inc., Chicago ACEC/Utah Engineering Inc. ACEC/Indiana Cloward H2O, LLC, Provo CET Incorporated, Portage GEM Buildings, Brigham City you can: Loftus Engineering, Inc., Hoj Engineering & Sales, Inc., Indianapolis Salt Lake City ACEC/Louisiana S&S Worldwide, Inc., Logan • REACH your clients and colleagues . APS Design and Testing, ACEC/Virginia Baton Rouge Precision Engineering, P.C., Salem • ENHANCE business prospects. Compliance EnviroSystems, LLC, Rampart Engineering, P.L.C., Baton Rouge King William • THANK those important to your success. ACEC/Metro Washington, D.C. ACEC/Washington Summer Consultants, Inc., McLean Brienen Structural Engineers P.S., ACEC/Minnesota Tukwila Contact ACEC Assistant Director of Marketing Rachael Ng IMO Consulting Group, Minnetonka ACEC/Wisconsin at 202-682-4337, by e-mail at [email protected], or visit the website at Professional Engineering Services, IIW, P.C., Hazel Green community.acec.org/acecmainsite/publications/advertising Ltd., Wayzata

42 ENGINEERING INC. JULY / AUGUST 2014 Calendar of Educational Programs SENIOR EXECUTIVES INSTITUTE JULY 20 years Leadership that Inspires 8 Sharpen Your Communication Skills! (webinar)

10 If You Haven’t Planned It, You Can’t Control It — 2014 (webinar)

15 Defining a Winning Social Media Channel Strategy (webinar) SEI turns successful A/E 16 So What if You Stamp or Sign It? The Meaning of Using Your Professional Seal (webinar) executives into 17 The SEC Municipal Advisor Registration Rule: Does the Engineering Exemption Protect Your Firm? (webinar) forward-thinking 22 The New Wave of Engineering Firm Websites (webinar) industry leaders. 23 Creating a Social Media Policy (webinar)

24 Getting Out? Know Your Options (webinar) 29 Proposals that Lose: Anatomy of the Worst Proposal SEI Class 20 begins Ever (webinar) September 2014. 30 Business Continuity Planning for Severe Weather and the Impact on Engineering Firms. Preparing for the Unexpected (webinar) For details and AUGUST registration, visit

6 Business Development Training: Getting the Biggest Bang for Your Buck (webinar) sei.acec.org 12 Are You Fighting Fires Instead of Managing Your Employees — Summer 2014 (webinar)

19 Seven Secrets of Project Management (webinar)

20 Ten Keys to Business Continuity Planning — 2014 (webinar)

27 Mergers and Acquisitions 2.0 (webinar)

SEPTEMBER

2 Seize the Day! Strategies for Email Success (webinar)

3 Find the Lost Dollars — Six Steps to Increase Profits in Architecture, Engineering and Environmental Firms (webinar)

10 Legal Issues Unique to Design-Build (webinar)

11 Strategic Planning — Don’t Waste Your Time! (webinar)

17 How Buyers Buy (webinar)

23 Ten Top Tips of Terrific Communicators (webinar)

25 Opportunities Lost: 16 Missing Things from Most

To sign up for ACEC online seminars, go to www.acec.org/education.

Additional information on all ACEC activities is available at www.acec.org.

JULY / AUGUST 2014 ENGINEERING INC. 43 Mergers and Acquisitions BY NEIL CHURMAN New York State: Size and Economy Not Reflected in Deal-Making Totals

ith its combination Florida. Nationally, firms are navigation-related projects. nication, specialty architectural of size, economic spending more on acquisitions ACEC Member GZA lighting and control systems. Wactivity and engi- in the South and West. GeoEnvironmental (Nor- ACEC Member Stantec neering challenges, one might New York also boasts unique wood, Mass.) announced the (Edmonton, Canada) signed a assume that the state of New requirements for engineering acquisition of Laurel Oil & letter of intent to acquire JBR York—home to the most popu- services. Only certain types Gas Corp. (Clarksburg, W.Va.), Environmental Consultants lous city in the United States of entities can legally practice a provider of project manage- (Salt Lake City), a full-service and the third-largest in gross engineering in the state. Any ment and consultancy services environmental consulting firm. state product and total popula- firm seeking to break into the to oil and gas operators. ACEC Member Jacobs tion—is a hotbed of industry New York market through a ACEC Member Stantec Engineering (Pasadena, Calif.) mergers and acquisitions. merger or acquisition should (Edmonton, Canada) signed entered into an agreement to While more active than most, seek legal counsel and have a a letter of intent to acquire acquire Federal Network Sys- New York lags other states solid plan to ensure it can prac- USKH (Anchorage, Alaska), tems (FNS) (Ashburn, Va.), in deal activity. In 2013, we tice legally. a multidiscipline design firm a subsidiary of Verizon Com- observed nine industry deals in serving public and private sec- munications. FNS provides sys- which a New York-based firm Recent ACEC Deal-Makers tor clients. tems integration and communi- merged or was acquired. This ACEC Member KCI Technolo- ACEC Member Terracon cation, information technology placed New York behind Cali- gies (Sparks, Md.) acquired (Olathe, Kan.) acquired RGA and data security solutions. fornia, Texas, Florida, Colorado Redding Linden Burr (Hous- Environmental (Emeryville, and Pennsylvania and only ton), specializing in mechanical, Calif.), a provider of hazardous slightly ahead of much smaller electrical, plumbing and energy materials, industrial hygiene, o view the most up-to-date states, such as Georgia, Mary- services. safety, emergency response, Tand “live” versions of the land, Minnesota and Missouri, ACEC Member Hatch litigation and environmental M&A heat maps accompanying in terms of deal activity. Mott MacDonald (Iselin, construction management. this article and see who are the Firms, it seems, are more N.J.) acquired Coast & Har- In an interesting develop- buyers and sellers in each state, go focused on states with a tradi- bor Engineering (Edmonds, ment, though not yet officially to www.morrisseygoodale.com. tionally business-friendly envi- Wash.), which specializes in a deal, Balfour Beatty is ronment, such as Texas, or states protection and restoration of reportedly considering a sale Watch the M&A Takeaway that are experiencing significant coastlines, development of port of ACEC Member Parsons video that accompanies population growth, such as and harbor infrastructure and Brinckerhoff (PB), only five this article, presented years after acquir- by Mick Morrissey, at ing PB for the www.morrisseygoodale. 20142014 REPORTED REPORTED M&A M&A ACTIVITY ACTIVITY States by Total Activity: US vs Int’l Sellers: FirmFirm Sales Sales by by State State through through June June 1, 1, 2014 2014 21 or more Transactions Total US Sellers 78 equivalent of $626 com/ACECMergers/ 16 to 20 Transactions Total Int’l Sellers 28 11 to 15 Transactions US Sellers to Int’l Firms 8 million, according JulyAugust2014. 6 to 10 Transactions Int’l Sellers to US Firms 5 1 to 5 Transactions to Engineering News 5 No Transactions WA Record. Additionally,

MT ME ND 3 Balfour Beatty CEO VT OR MN 1 NH Andrew McNaugh- 1 4 SD 2 MA ID NY WI CT WY MI RI ton announced he is 4 3 PA leaving the firm. He NE IA NJ 2 1 3 MD DE NV OH DE assumed the CEO role 10 UT 5 DC IL IN 1 MD 1 3 2 CO WV CA 1 in January 2013. Neil Churman is principal KS MO VA KY ACEC Member Coff- consultant of Morrissey Goodale 4 NC 1 1 2 TN 1 OK man Engineers (Seattle) LLC – a strategy, M&A and AZ NM AR SC 2 acquired the assets of ACEC human capital solutions firm

MS AL GA 11 Member and electrical engi- serving the A/E/C industry. 2 AK TX LA neering and lighting design Churman, who is based in the 6 MOSS Engineering FL firm firm’s Houston office, can be

© Morrissey Goodale LLC 2014 (Honolulu), which specializes reached at nchurman@morrissey All Rights Reserved 1 HI in the design of power, commu- goodale.com.

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