JANUARY/FEBRUARY 2016 INC. www.acec.org

ENGINEERING AWARD-WINNING BUSINESS MAGAZINE ● PUBLISHED BY AMERICAN COUNCIL OF ENGINEERING COMPANIES TURNING BACK THE

Engineers Combat Threat of Rising Sea Levels

>> 2016 Legislative Outlook >> Expanding Into International Markets >> PLI Rates Hold Steady >> TranSystems Races to Help Sick Children

ENGINEERING INC. JANUARY/FEBRUARY 2016 ● Vol. 27, No. 1 26

33 Features 2016 LEGISLATIVE OUTLOOK 14 Industry leaders see indications that Congress will act on critical legislation. RACING TO HELP 20 TranSystems employees team up with Racing For Kids to rev the spirits of sick children. GOING GLOBAL 26 Guidance and resources for firms seeking opportunities in the international marketplace. SMOOTH SAILING 33 8 Results from the 2015 Professional Liability Insurance Survey of Carriers. Cover Feature TURNING BACK THE TIDES 8 2016 ANNUAL CONVENTION PREVIEW 40 Nation looks to engineering to address the threat of Join your colleagues at the 2016 Annual Convention rising sea levels. and Legislative Summit in Washington, D.C., April 17–20.

On the cover: Coastal areas such as New Orleans are increasingly affected by storm surge and rising sea levels. Departments

FROM ACEC TO YOU 2 BUSINESS INSIGHTS 42 MEMBERS IN THE NEWS 46 Advocacy gains set stage for further progress. CASE contracts reflect evolving Lucy named CEO of JQ; industry standards and practices. three-person team formed to MARKET WATCH 4 manage Geocomp. Construction projections rise, yet MERGERS AND industry executives remain cautious. ACQUISITIONS 44 GUEST COLUMN 48 How to maximize potential Making a list and checking it twice: LEGISLATIVE ACTION 6 for a successful firm sale. Managing risk through awareness. Congress passes, president signs five-year, $305 billion transportation bill into law.

COVER PHOTO: SCIENCE FACTION/GLOW IMAGES

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 Advocacy Gains Set Stage CHAIRMAN Ralph W. Christie, Jr. PRESIDENT & CEO David A. Raymond for Further Progress VICE PRESIDENT, Mary Ann Emely OPERATIONS VICE PRESIDENT, Steven Hall ur legislative victories in 2015 were capped by the recent five-year, GOVERNMENT AFFAIRS $305 billion transportation reauthorization—the first such long-term VICE PRESIDENT, Marie Ternieden funding bill in 10 years. We secured language in the new law to BUSINESS RESOURCES O AND EDUCATION promote contracting out and defeated amendments that sought to abolish DIRECTOR, COMMUNICATIONS Alan D. Crockett QBS and mandate in-sourcing of design services. We also achieved renewal of AND MEDIA the Export-Import Bank, infrastructure permitting reform, and energy grid STAFF EDITOR Andrea Keeney resilience measures. [email protected] Significant tax gains included extension of the R&D tax credit, bonus 202-682-4347 SENIOR COMMUNICATIONS Gerry Donohue depreciation, higher expensing levels and energy tax credits. WRITER Congress also passed an Omnibus Appropriations bill, funding defense, infrastructure, and facilities construction programs—avoiding the drama of a ACEC PUBLIC RELATIONS AND government shutdown. EDITORIAL ADVISORY COMMITTEE Several states also achieved major advocacy wins, some with the financial CHAIRMAN James Blake support of ACEC’s Minuteman Fund. Among those that won infrastructure MANIFEST LLC funding increases were Arizona, Georgia, Idaho, Iowa, Louisiana, Maryland, MANAGING EDITOR Christopher Brandon Michigan, New York, North Carolina and Texas. ART DIRECTOR Jeff Kibler All these gains at the national and state level provide our members with a PROJECT MANAGER Amy Stephenson Fabbri solid platform for the coming year and enhanced predictability and certainty in programming for members and clients alike. ADVERTISING SALES As we look to the New Year—and the Presidential and Congressional races Leo Hoch ACEC ahead—we intend to continue our aggressive pursuit of advocacy gains that 1015 15th Street, NW, 8th Floor matter most to our members, including multiyear funding for water and Washington, D.C. 20005-2605 wastewater infrastructure, a comprehensive energy bill and greater outsourcing. 202-682-4341 [email protected] Several of these issues are considered further beginning on page 14. Also featured in this edition of Engineering Inc. is the role engineers are playing in the response to rising sea levels—a serious environmental challenge facing our nation. (See page 8.) We wish you a happy and prosperous 2016! Engineering Inc., Volume 27, Number 1 (ISSN 1539-2694), is published bi-monthly by the American Council of Engineering Companies (ACEC), 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. Ralph W. Christie, Jr. David A. Raymond POSTMASTER: Send address changes to Engineering Inc., c/o ACEC, ACEC Chairman ACEC President & CEO 1015 15th Street, NW, 8th Floor, Washington, D.C. 20005-2605. © 2016 American Council of Engineering Companies. All rights reserved. This publication may be copied, downloaded from the ACEC website, stored in electronic or hard-copy format, and disseminated to third parties for educational and information purposes. ACEC expressly disclaims any liability for damages of any kind in connection with such copying, downloading, storage, and/or dissemination. By copying, downloading, storing and/or disseminating this publication, the recipient of this publication expressly agrees to defend, indemnify, and hold ACEC, its officers, directors, employees, volunteers and agents harmless from and against any and all losses, damages, claims, causes of action and liabilities, including reasonable attorneys’ fees and costs, arising out of or resulting from the recipient’s use of this publication. Notwithstanding the above, no part of this publication may be altered, resold, licensed, or used for any other commercial purposes without the prior written permission of ACEC. Recipients may opt out of receiving the electronic version of this publication from ACEC by sending an e-mail with the subject line “Unsubscribe” to ACEC at [email protected].

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

WWW.ACEC.ORG ACEC

Business Insurance Trust Providing Insurance Solutions and Services Engineered for Peace of Mind ...

IS YOUR INSURANCE DESIGNED FOR THE RIGHT YOUR ENGINEERING OR SURVEYING FIRM? COVERAGE

BUSINESS INSURANCE CREATED FOR ACEC MEMBERS THE RIGHT When it comes to insurance, one type doesn’t fit all. That’s PRICE why The ACEC Business Insurance Trust teamed with the insurance professionals at Marsh Sponsored Programs, a division of Marsh USA Inc., to create plans tailored We’ve used our specifically for the needs of our members. negotiating power to secure quality insurance COVERAGES AVAILABLE: coverage at highly Business Owners Package competitive rates. Workers’ Compensation Find out more. Commercial Auto Request a quote today by calling 1.800.338.1391. Umbrella Liability Or visit acecbit.com. Professional Liability Management Liability Personal Auto and Home Marsh Sponsored Programs, a division of Key Person Life Marsh USA Inc. In CA, dba Marsh Risk & Insurance Services CA Ins. Lic. #0437153 Key Person Lump Sum Disability 74365 Copyright 2016 Marsh LLC. All rights reserved.

ENGINEERING INNOVATIVE SOLUTIONS SINCE 1983.

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

he U.S. economy has Put-in-Place Construction Forecast been steadily growing Estimated Percentage Growth for several years, U.S. T 2016 2017 2018 2019 gross domestic product is fore- cast to top 3 percent in 2016, Total Residential 9% 7% 8% 8% unemployment is hovering Total Non-residential Buildings* 7% 5% 5% 6% around 5 percent and interest Total Non-building Structures** 3% 3% 5% 5% rates are at historic lows. Total Put-in-Place 7% 5% 6% 7% That’s welcome news for *Includes lodging, office, commercial, health care, educational, religious, public safety, amusement and recreation, transportation, the construction sector. The communication and manufacturing value of construction starts has **Includes power, highway and street, sewage and waste disposal, water supply, and conservation and development climbed from $435.3 billion Source: FMI in 2010 to a projected $674.3 billion in 2015, and market Total Construction Activity by Cycle nowhere near what is required forecasters see continued— Cyclical Trough (T)=100, Based on Constant Dollars to meet needs, and the and even accelerated—growth 190 nation’s water infrastructure through 2018. 175 remains sorely underfunded. 2011–?? Despite an overall, positive 160 “There is huge pent-up construction market outlook, 145 demand across the entire the ACEC Engineering Business 130 infrastructure sector but a Index (EBI) showed a small 115 lack of political backbone— 1982–1991 1991–2011 but steady decline in optimism 100 on the federal, state and local 1975–1982 for five consecutive quarters. 85 levels—when it comes to pay- The latest survey, completed ing for it,” says CDM Smith 70 at the end of December 2015, T T+2 T+4 T+6 T+8 T+10 T+12 T+14 T+16 T+18 T+20 Chairman and CEO Stephen showed a slight rebound in Years from Cyclical Trough Hickox. optimism. Source: Dodge Data & Analytics “Right now, the people “We’re nowhere near the top who control the purse strings of the construction cycle,” says in-place construction rather ally begins. Analysts estimate believe they will lose their Kyle Camp of Dodge Data & than the value of construction that the engineering cycle jobs if they vote to spend Analytics, which tracks con- starts, presents a similarly precedes nonresidential con- money,” says Gannett Flem- struction activity nationwide. rosy picture through 2019, struction by as much as 24 ing Chairman and CEO Bill “We should be feeling really forecasting an average annual months. So, while the con- Stout. “We need for them to good right now, but we’re only growth rate of 6.3 percent to struction market is expected believe they will lose their feeling OK.” $1.31 trillion. Within that to top out in 2018–2019, jobs if they don’t.” forecast, nonresidential con- engineering firms could see Another factor taking its Strong Industry struction growth will average their business peak as early as toll on CEO confidence is Forecasts about 5.2 percent annually, 2016. global instability, including According to Dodge Data and residential construction Another factor, says HDR the growing threat of regional & Analytics, the value of will grow about 8 percent. Engineering President Eric conflicts and weakness in construction will grow at an In this positive market Keen, is unease about the many major economies annual rate of 7.3 percent environment, why are engi- public sector. “There is around the world—especially through 2018. But Dodge neering firm leaders feeling uncertainty on the federal the apparent slowdown in also expects that the overall cautious? budget and the election. As China. economy will cool in 2019 One factor is timing. Engi- a result, we see 2016 and Finally, Dodge’s Camp says and 2020, with the construc- neering firms make most of 2017 as being relatively slow the engineering industry has tion market falling by about 4 their money in the project growth.” seen a significant decoupling percent each year. planning phase, but the mar- Even though Congress of individual market sectors. FMI, which bases its pro- ket data only begins measur- passed a long-term transpor- In the past, the market as a jections on the value of put- ing when construction actu- tation bill, funding levels are whole tended to rise and fall RICHARD NEWSTEAD

4 ENGINEERING INC. JANUARY / FEBRUARY 2016 MarketWatch

at the same time, with a few water supply and wastewa- come back strong, driven by a which now allows counties outliers. Today, he says, the ter, primarily because the push for renewable energy and to impose taxes that are dedi- various sectors tend to rise situation in those sectors has conversions to natural gas. cated for transportation infra- and fall on their own, creat- become so critical that there is “We see that as being a structure. “I’d like to see more ing a jumbled picture that can no alternative. huge market for us,” Keen states step in and do that,” be hard to decipher. “We’re facing aging infra- says. “More and more clients he says. structure, are looking for alternatives to Standout Sectors sustainability issues and coal. We also see upgrading Regional Several market sectors are water scarcity throughout the our transmission and distribu- Differences forecast to perform well over Southwest and West,” Hickox tion systems as really strong When looking for the best the next three to four years. says. “These are big issues that going forward.” regional markets, CDM The environmental field will have to be addressed.” On the other hand, trans- Smith’s Hickox says, “Follow is expected to grow at better Keen agrees, adding that portation will continue to lag, the people.” than 6 percent annually. “We he expects to see “an increas- according to all indications. On a broad scale, the U.S. see this sector as continuing ing focus on stormwater “There has to be a shift. population is draining out to strengthen,” says Hickox. disposal.” The federal government must of the Northeast toward the “The EPA has cut back on its Keen is also optimistic continue to play a major role, South and Southwest. As a funding for cleaning up the about the energy sector. but the growth in funding is result, engineering firm leaders large hazardous waste sites, Though it is in the doldrums going to have to come from expect those markets to grow. but we’re seeing an increasing right now—primarily due the states and localities,” says “Our most active markets amount of private activity.” to the drop in the price of Stout. will continue to be Texas, Hickox is also bullish on oil—he anticipates that it will He points to California, California and ,” says Hickox. HDR’s Keen concurs, adding Arizona to the mix— “They’re putting a plan in place to attract business to the state”—and Oregon. The Northeast bucks that trend in one critical market sector. “A lot of the infrastruc- ture in the Northeast and Mid-Atlantic—whether it’s transportation or water—is just worn out and has to be replaced,” says Stout. “The Northeast has been making some big investments in infrastructure, such as the Tappan Zee and Bayonne bridges,” says Keen. “Despite the funding constraints, we expect to see a continued push to address our aging infrastructure.”

Gerry Donohue is ACEC’s senior communications writer. He can be reached at [email protected]. RICHARD NEWSTEAD

JANUARY / FEBRUARY 2016 ENGINEERING INC. 5 Legislative Action

Congress Passes, President Signs Five-Year, $305 Billion Transportation Bill Into Law

CEC secured a key legislative priority with to encourage state DOTs to partner with private the enactment of the Fixing America’s Sur- firms “to strengthen project performance, improve Aface Transportation Act, or the FAST Act, domestic competitiveness, and create jobs.” ACEC a five-year reauthorization of federal highway, tran- will coordinate closely with the U.S. DOT on sit and rail programs. The law features a 10 percent implementing the measure. increase in funding over current levels and a num- During House committee debate on the bill, ber of important Council-backed policy reforms. ACEC worked with committee leaders to defeat “This is a huge win for our industry,” said several threats to industry positions. Amendments ACEC President and CEO Dave Raymond. “After were filed to mandate government insourcing of years of uncertainty and unpredictability, we finally certain engineering services, to require flawed cost- have a stable federal program that will enable state benefit analysis of contracting decisions, and to and local agencies to move forward with critical repeal QBS requirements for federal-aid highway projects all across the country.” projects. ACEC voiced strong objections to these The FAST Act provides $225 billion for high- pernicious changes, and none of the amendments way programs over five years, an increase of more were approved. than $20 billion over current funding, including The legislation also features project delivery IMAGES RICHARDS/GETTY J. PAUL $207 billion in formula funds to the states, $4.5 streamlining reforms backed by ACEC, such as Congress billion for a new discretionary grant program further integration of planning decisions into Clears aimed at improving freight mobility, and $1.4 bil- environmental reviews, accelerated decision mak- lion for TIFIA loans and credit assistance to lever- ing, programmatic mitigation plans, delegation of Export-Import age additional investment. Annual state highway NEPA review authority to states and the expan- Bank funding will increase from $39.7 billion in F.Y. sion of categorical exclusions. 2016 to $43.4 billion in F.Y. 2020. Congress transferred $70 billion from the Reauthor- Transit programs will receive $61 billion over General Fund into the Highway Trust Fund to ization five years, an increase of nearly $6 billion above supplement existing transportation revenues and current levels, including $48.7 billion in formula support the five years of funding increases in the ongress approved funds to state and local governments and $11.5 bill. Although the law does not raise federal gas or ACEC-supported billion for capital investment grants. Congress also diesel taxes, it does include research and develop- Clegislation to reau- included a separate reauthorization of passenger ment grants for state pilot projects to test mileage- thorize the Export-Import rail programs funded through the General Fund based user fees and other alternative revenue Bank for four years as part (not the Highway Trust Fund). The law authorizes mechanisms. of a larger transportation $10.4 billion over five years, including $2.6 billion “We still have some work to do convincing poli- package. for Amtrak improvements in the Northeast Cor- cymakers and the public on increasing transporta- During House debate, ridor and $2.2 billion for state rail grants. tion user fees,” said Raymond, “but passage of this ACEC and its coalition The FAST Act includes a provision recogniz- bill—the first long-term transportation bill in a allies were able to defeat ing the value of private engineering and design decade—demonstrates what we can achieve with 10 separate amendments services and urges the Secretary of Transportation sustained advocacy and political engagement.” to strip or weaken the reauthorization language in the transportation package. The reauthorization language also includes ACEC-backed provisions to expand the scope of energy projects eligible for bank financing. KEVIN BURKE/GLOW IMAGES BURKE/GLOW KEVIN

6 ENGINEERING INC. JANUARY / FEBRUARY 2016 Legislative Action

ISSUES ON THE MOVE WHAT’S NEXT Transportation Package FHWA, states focus on imple- Signed Into Law mentation in 2016 Tax Extenders Package Congress to revisit larger tax code changes in 2016 ACEC/Michigan Scores Transportation Funding Victory n Nov. 10, Michigan Governor Rick Snyder signed into law a major road funding package that will generate up to Oan additional $1.2 billion per year through a gas and diesel tax increase, an increase in registration fees, and the reprioritizing of $600 million from the state’s General Fund for transportation. The new law represents a great victory for the advocacy efforts

TIM GRAHAM/GETTY IMAGES TIM GRAHAM/GETTY of ACEC/Michigan, which worked within a broad-based business coalition to build support for the legislation. Transportation Package The ACEC Minuteman Fund provided a grant to ACEC/ Includes ACEC-Backed Michigan to help raise public awareness of the initiative. Energy Policies Ta x E x te n d e r s nergy and Commerce tively respond to emergencies Signed Into Law Committee Chairman affecting the nation’s energy EFred Upton added system. rior to adjournment, solar will be extended but provisions to the five-year sur- congressional tax phased out over five years. face transportation program Pwriters finalized leg- Most of the remaining provi- adopted by Congress that islation to extend a number sions, including the Section include significant portions of of expired tax provisions 179D energy efficient com- a comprehensive energy bill important to the engineer- mercial buildings tax deduc- approved by his committee. ing industry. The package tion, will be extended for The energy title in the new extended 52 tax provisions 2015, retroactive to Jan. 1, law emphasizes provisions to that expired at the end of and 2016. bolster resilience and reliabil- December 2014. The permanent provisions ity in the nation’s electric grid. The legislation makes sev- are seen as a step toward Additional language directs eral provisions permanent, comprehensive tax reform, the Department of Energy to including the R&D tax credit, which is not expected until outline the feasibility of creat- higher Section 179 expensing 2017. In 2016, the Senate

ing a Strategic Transformer IMAGES WILLIAMS/GETTY TOM levels, parity for transit bene- Finance Committee and Reserve to quickly respond Rep. Fred Upton (R-Mich.) fits, and a measure to make it House Ways and Means Com- to natural and manmade easier for firms that convert mittee are expected to con- threats to these critical com- The energy provisions were from C corporations to S cor- tinue developing tax reform ponents, and the law includes drawn from a larger energy porations to access the firm’s legislation, with possible provisions to enhance the package (H.R. 8) approved by capital. Bonus depreciation action on changes to interna- energy secretary’s authority the Energy and Commerce and tax credits for wind and tional tax provisions. to respond to threats to the Committee over the summer, nation’s critical energy infra- and they had strong bipartisan structure. The new law also support. ACEC is working with For More News includes provisions to resolve Chairman Upton to advance For weekly legislative news, conflicts with environmental other elements of his energy visit ACEC’s Last Word online regulations to more effec- package in 2016. at www.acec.org.

JANUARY / FEBRUARY 2016 ENGINEERING INC. 7 Tu r n i

BackBy Samuel Greengard t

8 ENGINEERING INC. JANUARY / FEBRUARY 2016 Nation looks to engineering to address the threat of rising ning sea levels theTIDES

t’s difficult to open a newspaper or read social media without seeing a mention of how something is affecting the environment. Yet, beyond all the discussions, arguments and political viewpoints concerning the role humans play in this, one simple fact stands out: sea levels are on the rise and coastal areas are increasingly affected by , and engineers are being called

TORSTEN JENSEN/GETTY IMAGES Iupon to do something about it. >>

JANUARY / FEBRUARY 2016 ENGINEERING INC. 9 Storm surge from Superstorm Sandy destroyed scores of homes in Mantoloking, N.J. MARIO TAMA/GETTY IMAGES

The entire east coast of the United 23 years of satellite altimeter measure- Taking Action States is particularly vulnerable as ments,” says R. Steven Nerem, a profes- “The undisputed fact is that sea levels rising sea levels could sor of aerospace engineer- are not going down,” says Michael impact—and perhaps even ing at the University of McMahon, senior hydro-meteorologist displace—between 20 to Colorado. at HDR Engineering. “It means that for 30 million people spanning He pointed to a 2014 many U.S. east coast cities there are only 20 cities with populations study conducted by the two options…move the city further from over 100,000, according National Oceanic and the coast, or build enormous sea walls.” to a report in the journal Atmospheric Adminis- HDR is working with New York City Proceedings of the National tration (NOAA), which on its plan to make city buildings and Academy of Sciences. Those found that at 45 tide infrastructure more resilient against the cities include Boston, gauges around the Atlantic effects of rising tides and storm surges. Miami, Virginia Beach, and Gulf of Mexico coasts, Flooding after Superstorm Sandy left Sacramento, New Orleans, “It means that the frequency of flooding 43 dead and more than $19 billion in Jacksonville and New York. for many U.S. had increased at 41 loca- damage. New York City’s $20-billion Research shows that sea tions. Moreover, the rate of resiliency plan calls for a complex system levels across the Northeast east coast cities increase was accelerating at of permanent levees, storm barriers and Coast rose nearly four there are only 28 of the locations. other defenses. inches between 2009 and two options…. “The loss of ice from James Schlaman, director of water 2010. Along the coast from move the city Greenland, Antarctica and resources at Black & Veatch says the slow Boston to North Carolina, mountain glaciers contrib- and incremental nature of the ice melt sea levels are rising three to further from the utes to about one-third in the Polar Regions means that a rise in four times faster than the coast, or build of the increase. We also sea levels may not be entirely apparent global average. enormous sea are witnessing a thermal in some areas until a major storm surge The evidence is irrefut- walls.” expansion of the oceans, occurs. At that point, severe flooding able. “We have a very pre- which further contributes could wreak havoc on infrastructure, MICHAEL McMAHON cise global view of sea level to ,” Nerem including freshwater systems. HDR ENGINEERING change based on nearly says. “The bottom line is that there are a lot

10 ENGINEERING INC. JANUARY / FEBRUARY 2016 Hatch Mott MacDonald was retained to develop the Mantoloking Sea Wall, the largest and longest coastal resilience sheeting project ever constructed in New Jersey.

of different potential scenarios, but all of To combat rising sea levels, he says, Mantoloking, N.J. It’s the largest them lead to varying levels of problems.” the emphasis must be on adaption and and longest coastal resilience sheeting Schlaman said. “We must resilience. “There is a need project ever constructed in New Jersey. recognize and address the for coastal communities to The project, which will replenish the reality that rising sea levels focus on greater resilience will touch a lot of people’s and better protections in lives and have a major order to ensure a more sus- This property in Ft. Lauderdale experiences impact on infrastructure.” tainable future. This means periodic, non-storm-related flooding several days Schlaman says Black & addressing wide-ranging a year. By 2019, model projections show that this Veatch is working with issues, including erosion property will experience more than 14 days officials in California, control and stabilizing per year. Louisiana and elsewhere to shorelines, building natural develop plans and projects, barriers, protecting struc- including dual-feed pump “We must tures from flooding, pre- stations, seawalls and emer- recognize and venting the leaching of salt gency generation systems. water into fresh ground- Hatch Mott MacDonald address the water, guarding freshwater CEO Nick DeNichilo notes reality that supplies, and aiding utili- that coastal flooding can rising sea levels ties that can be impacted set off a chain reaction of will touch a by flooded coastlines.” disastrous events such as Hatch Mott MacDonald power failures; flooded tun- lot of people’s is involved in several proj- nels, rail lines and subways; lives and have a ects aimed at mitigating and an array of other prob- major impact on the effects of sea level rise. lems, including an inability infrastructure.” Among them: designing to obtain fuel or buy food and constructing a new JAMES SCHLAMAN during a major storm like sea wall along three-and-a- BLACK & VEATCH Sandy or Katrina. half miles of oceanfront in

JANUARY / FEBRUARY 2016 ENGINEERING INC. 11 oceanfront with 200-foot-wide beaches nuisance flooding occur- areas, depth of flooding, and dunes with a crest elevation of 22 ring on a far more frequent frequency of flooding and feet, will protect about 8,000 homes. basis—particularly in South when flooding is more The company is also working with New Florida and low-lying areas likely to occur. Already, the York City to assess and possibly reinforce such as the Chesapeake Bay. city has identified 16 areas the Triborough Bridge and tunnels in the Flooding can overwhelm that require adaption and city. drainage systems; con- 38 capital projects aimed McMahon noted how storm water taminate freshwater supplies, at flood management and discharge becomes a major issue as sea block roads, cause erosion, resilience; while Miami has levels rise. “During a heavy rain, all the and damage buildings that “We are seeing authorized a five-year, $300 storm water is supposed to be dumped aren’t meant to be exposed water in the million plan to install 60 into the ocean, but when you have rising to salt water. pumps in Miami Beach. tides, getting storm water into the ocean “We are seeing water streets of Miami, Meanwhile, Boston becomes problematic,” he says. in the streets of Miami, Fort Lauderdale Mayor Martin J. Walsh Addressing this unfolding problem is Fort Lauderdale and other and other areas is focusing on a regional nothing short of daunting. At the heart areas when there is no rain when there is approach to rising sea levels of the issue is the historic federal struggle or no storm,” says Albert by announcing a multi-city to adequately fund existing infrastructure Slap, founder and CEO of no rain or no living-with-water summit. improvements, let alone develop new Coastal Risk Consulting, storm.” Among the key areas that infrastructure designed to protect high- which provides detailed ALBERT SLAP will be affected by rising risk coastal areas as sea levels rise. flood forecasts down to the COASTAL RISK sea levels: the city’s Logan parcel level for communities CONSULTING Airport. Cities/States React and other entities. Kathleen White, who Several U.S. cities and states are realizing Slap notes that Fort Lau- leads the U.S. Army Corps their vulnerability and beginning to take derdale is looking to develop a detailed of Engineers’ (USACE) Climate Pre- action. The major problem so far has been model to better understand flood-prone paredness and Resilience Community of

The city of Miami Beach is installing drainage pipes and storm water pumps meant to keep rising sea levels from inundating low-lying areas. JOE RAEDLE/GETTY IMAGES JOE RAEDLE/GETTY

12 ENGINEERING INC. JANUARY / FEBRUARY 2016 Practice, says that engineering solutions typically revolve around several approaches: constructing sea or flood walls; building or raising levees; installing pumping sys- tems; developing secondary or backup power supplies; rein- forcing bridges, tunnels and subway systems; and upgrad- ing both freshwater and wastewater treatment sites. Because most of these projects require large capital investments, White says that government officials and engi- neers must consider a variety of options, including adapting natural habitats, retrofitting existing infrastructure and building new systems. “There is a need to prepare for rare and catastrophic events but also to address more frequent problems,” she says. Among other things, USACE is working to quan- tify the benefits of various Pedestrians walk through Miami Beach’s city streets, which approaches, including natu- flooded in September 2015 due to a combination of rising sea ral defenses like protecting levels and seasonal high tides resulting from lunar orbit. wetlands and building sand IMAGES MARIO TAMA/GETTY berms. White says that one of the Netherlands has been cycle approach, we are likely to face even the challenges is simply the battling the sea for centu- steeper costs, along with loss of property differences in geography and ries. Today, the country is and life, in the future. The grand chal- tidal conditions in different protected by a sophisticated lenge is to recognize that we are subjecting locations as there cannot be network of channels, locks our infrastructure to these events and that a one-size-fits-all approach. and surge barriers that we’re going to have to make major capital “From an engineering per- theoretically would only investments in order to deal with sea level spective, it’s necessary to be breached by a one-in- rise.” consider both the frequency 10,000-year storm and Schlaman believes efforts to combat and severity of events, is a world model for best rising sea levels must involve mitiga- including low-energy and “If we do not defending against the sea. tion plans that cross traditional silos and high-energy-type events. It’s begin to address “The U.S. is slowly find- boundaries. “Many of these potential important to make smart these needs and ing itself in a similar place problems and challenges transcend any investments that take risk as the Netherlands—when one agency or government entity. A more and potential damage into take a lifecycle building barriers against holistic and comprehensive approach is account when determining approach, we the rising tide is the only essential,” he says. the types of solutions that are likely to face recourse,” McMahon said. “There’s also a need to move from reac- can be put into place and even steeper “All it takes is that one tive to proactive. Many communities are how much they cost.” monumental, game-chang- still in a state of complacency because McMahon predicted that costs, along with ing event to generate the this is a somewhat insidious issue. They the U.S. would follow the loss of property needed emphasis.” are going to see sea level change sneak up lead of the Netherlands and life, in the Rather than becoming on them because they haven’t yet been regarding future investment future.” bogged down by the poli- impacted by an event.” ■ in resiliency against rising NICK DENICHILO tics, DeNichilo says: “If we tides. With much of its HATCH MOTT MACDONALD do not begin to address Samuel Greengard is a technology writer land mass below sea level, these needs and take a life- based in West Linn, Ore.

JANUARY / FEBRUARY 2016 ENGINEERING INC. 13 By Alan Joch 2016 LEGISLATIVE HOPEFU SIGNS

14 ENGINEERING INC. JANUARY / FEBRUARY 2016 E OUTLOOK: It’s an election year, but many industry leaders see indications that Congress will still act FUL on critical legislation residential election cycles represent opportunities for big changes—at least that’s what candidates promise in their stump speeches. In reality, the months leading up to voting day are often characterized by inaction, especially in an era when representatives from both political parties are more focused on waging political Pbattles rather than passing needed legislation. But many industry leaders say 2016 offers hopeful signs of legislative progress, pointing to the five-year transportation bill and the two-year budget deal passed late last year. >> DEPOSIT PHOTOS/GLOW IMAGES

JANUARY / FEBRUARY 2016 ENGINEERING INC. 15 Are these agreements an indication that could get even more conten- two issues. If we improve the second year of the 114th Congress tious in an election year, so our infrastructure, I believe will be more productive than its first, and attempts to reach compro- the additional dollars not that representatives and presidential can- mises on key issues—even only will have a huge posi- didates alike will be increasingly willing to those with bipartisan sup- tive economic impact but champion legislative issues important to port—might be viewed as will help reduce the dam- the engineering industry? showing weakness or suc- ages from future natural Member Firm leaders from throughout cumbing to the other side,” disasters. It’s a double win.” the nation, who are also part of ACEC’s says Jon Nishimura, presi- Comprehensive tax Government Advocacy or Federal Agen- dent of Fukunaga & Associ- “We’ve spent reform is also a top-of-mind cies and Procurement committees, weigh ates. “So I don’t anticipate $6 trillion legislative need among in on these prospects as they reflect on the a lot of compromise and some engineering execu- industry’s legislative outlook in the com- deal-making.” in Iraq and tives. “It’s important to the ing year. John Woods Jr., principal Afghanistan, business of engineering at Woods Peacock Engi- and I think the for Congress to address Question #1: As we embark on neering Consultants, voices sentiment of the comprehensive tax reform,” a presidential election year, a similar theme. “I don’t says James Porter, corporate how productive do you expect believe members of either people in this transportation manager at Congress to be on legislative issues party go home and tell their coming year J-U-B Engineers. “We need important to engineering and why? spouses, ‘My way or the will be let’s start a balanced approach that “It’s my belief that many elected officials highway,’ but that’s the way taking care of simplifies things and treats now seem to realize they must show vot- members treat each other in all business structures fairly. ers they’re being productive doing the Congress,” he says. “Some our home base.” We also need to preserve people’s business,” says Philios Angelides, representatives don’t want to GARY LAPAILLE cash accounting, where our president of Alpha Corporation. “As a give the president a success, MWH GLOBAL companies pay taxes when result, I’m more optimistic that in the and he doesn’t want to give we are actually paid for the upcoming session we’ll have a little more representatives a success. It’s depressing.” services we deliver, versus accrual account- cooperation to produce tangible results.” ing, where we pay taxes when we provide Gary LaPaille, senior vice president Question #2: Which industry issues the service.” of government affairs at MWH Global, would you most want to receive A congressional committee has pro- agrees. “I’m very hopeful that under the significant legislative progress in posed forcing large firms to use the latter speakership of Paul Ryan some of the 2016 and why? method. “Accrual accounting would be tantrums that small factions caused in the “I can’t imagine a bigger stimulus for the tough for us because we don’t always fully House over the last several years are now economy than infrastructure—it’s the one collect on everything we have out for bill- behind us, and representatives can work proven area where when you invest the ing, which represents significant cash flow together to address the needs of the U.S.,” appropriate funds, then job growth and for the industry,” Porter says. he says. “Many people have come to the tangible public benefits come out of it,” Greater attention to water projects realization that enough is enough, and I Angelides says. would also boost the industry in the hope that will prevail in this upcoming Some closely pair infrastructure months ahead, says LaPaille. “We’d love year.” modernization with another important to see a Water Resources Reform and Devel- Other leaders see signs that important issue—resiliency. “We ought to rebuild opment Act (WRRDA) for 2016,” he says, issues are being discussed in new and our infrastructure in a more resilient man- referring to legislation enacted in 2014. potentially more productive ways. “The ner as we continue to see the impact of “WRRDA is significant because our water infrastructure discussion used to focus on climate change,” says Don Armour, senior infrastructure is disintegrating, and at the public safety—bridges are crumbling and vice president at Stantec. same time, we have a growing population roads are cracking up,” says Robert Scaer, “We’ll be able to lessen the damages that needs new delivery systems in tar- president and COO of Gannett Fleming. and recover more quickly from natural geted areas throughout the U.S.” “Now I’m noticing an interesting change disasters—whether it’s wildfires in the LaPaille would also like further discus- in Washington where the rhetoric is shift- West, in South Carolina, torna- sions about the California Emergency ing to competitiveness. There’s a growing does in the Midwest or a superstorm Drought Relief Act, which proposes water sense that new investments are the Ameri- in the Northeast—with an across-the- infrastructure funding worth $1.3 billion. can thing to do because everybody wins. board effort by the federal government Scaer hopes to see Congress act on We will grow our competiveness in the to address both our infrastructure needs additional water-related imperatives. world and create many new jobs. That’s and our resiliency needs,” Armour says. “The infrastructure in our inland water- something that resonates with people.” “The engineering industry has to beat this ways has to be addressed,” he says. “The Memories of legislative gridlock and drum so that congressional leaders and lock systems for moving barges on rivers Washington infighting, however, are still the executive branch really understand the are vitally important to the economy, fresh in the minds of many. “Politics importance and the linkage between these but they’re vulnerable to failure because

16 ENGINEERING INC. JANUARY / FEBRUARY 2016 Complex challenges. Connected expertise.

Denver International Airport O’Hare International Airport Toronto International Airport Denver, Colorado, U.S.A. Chicago, Illinois, U.S.A. Toronto, Ontario, Canada

Every day, we help clients meet the most pressing challenges of our time.

Our engineers, architects, designers, planners, scientists and management and construction services professionals work together on projects of all scales in over 150 countries. From some of the world’s premier airports to infrastructure, urban development and national security, our connected Los Angeles International Airport approach creates better outcomes for people, Los Angeles, California, U.S.A. communities and the world.

www.aecom.com

4614_AECOM_ACEC_Aviation_Ad_NovDec2015_FINAL.indd 1 10/9/15 4:18 PM practices. The Design-Build resources, both in numbers and required Efficiency and Jobs Act of training, to deliver the program,” notes 2015, a bill that would Angelides. “We don’t graduate enough limit single-step, design- engineers, so we need to continue to build contracting to proj- reinforce H-1B programs for trained ects worth $750,000 or less, foreign professionals and work for long- is one of several options. term education reform in this country. “In a two-step contracting We must get young people excited about process, the design-builder engineering and organically grow our or construction teams future workforce to sustain infrastructure submit their qualifications development programs.” to the government, which Nishimura agrees. “We must encourage then shortlists three to the development of a future generation of John Woods Jr., of Woods Peacock Engineering Consultants, five of the most qualified problem solvers by giving students tools testifies in 2011 before the House Small Business Committee. teams,” Woods says. “The for moving society forward by making shortlisted firms, if they so education of our young people a high they’re the original structures. We need choose after seeing the final competitors, priority. STEM—science, technology, to pay significant attention to this area in then devote resources to preparing price engineering and math—is the key, which the near term.” and design proposals. In a single-step means we must create a strong foundation Funding isn’t the only challenge sur- process, there’s no ability for government in this critical area.” rounding new water and infrastructure to know whether one team has better A comprehensive energy plan also tops projects, according to Angelides. “There (or even any) qualifications compared many wish lists. “We would benefit from are problems with how the government to another. Lowest price becomes the a plan that encompasses everything from grades water infrastructure and civil works qualifier. That’s a killer for large, and in domestic oil production and exports to projects, leaving a lot of great projects particular small, businesses that don’t have nuclear power and renewable energy, sitting idle,” he says. “Unfortunately, large marketing staffs to prepare proposals including hydropower, which is impor- the current grading and scoring system to try and win contracts.” tant in the West,” says Porter. only looks at first-year metrics, without He’d also like candidates to push the taking into consideration the multiyear Question 3: What engineering Federal Aviation Administration to issue funding mechanisms and industry issues would guidelines for using unmanned aerial delivery strategies for major you most like to see a vehicles (UAVs), or drones, for business. projects.” presidential candidate “UAVs would benefit engineers in a num- Nishimura would like to address as part of his or ber of ways,” Porter says. “For example, see new rules for sharing her campaign platform I’d like to use them for bridge inspections. risks when implementing to reach the White Today, we use climbers to photograph new technologies, which House? truss bridges in some cases. I’d rather look he says are needed to help “We’ve spent $6 trillion in at a video screen than the pictures that a promote innovation. “Shar- Iraq and Afghanistan, and climber took, because I can control where ing risks and responsibili- I think the sentiment of I’m looking and what I’m looking at. I ties could help us develop “I can’t imagine the people in this coming think drones have the ability to change innovative designs and try year will be let’s start taking our business as much as GPS has.” new methodologies,” he a bigger care of our home base,” says Finally, some engineers want to hear says. “The onus for trying stimulus for the LaPaille. “If the two presi- stump speeches devoted to public trans- something new should not economy than dential nominees—whoever portation. “Our increasing workforce of be placed on any one party, infrastructure— they are—both talk about millennials wants to live in downtown whether it’s the contrac- the U.S. economy and infra- areas to use transit systems rather than tor, engineer, designer or it’s the one structure, then the mem- drive cars,” Scaer says. “As a result, our owner. Of course, there proven area bers in Congress from the company is moving offices into town cen- must be a thorough analysis where when respective parties will push ters near light rail lines, and the efforts are beforehand, but if every- you put in the the same agenda. So I hope going over well. In Phoenix, for example, body works together and no everyone will be pushing in we just relocated to downtown. So now individual party will be held money, job the same direction.” I’m able to fly into the airport, take a totally liable if a problem growth and The engineering work- train to the light rail system, and use it to arises, it could foster a will- tangible benefi ts force is also an important come right to the office. This is exactly ingness to adopt new ideas.” come out of it.” issue. “Even if we had all what employees want.” ■ Other Capitol Hill watch- the money needed for infra- PHILIOS ANGELIDES ers are calling for changes in structure modernizations, Alan Joch is a business and technology ALPHA CORPORATION government procurement we don’t have the human writer based in Francestown, N.H.

18 ENGINEERING INC. JANUARY / FEBRUARY 2016 Do you need to be licensed in multiple states?

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

An NCEES Record simplifies and expedites the comity licensure process. Once established, it • Contains most – if not all – of the materials needed for comity licensure • Can quickly and easily be transmitted to any licensing board • Is accepted by licensing boards nationwide Let NCEES keep track of your record, so you can focus on what’s ahead.

START BUILDING YOUR NCEES RECORD TODAY ncees.org/records RACIN

TO20 ENGINEERING INC. JANUARY / FEBRUARY 2016 HELP Corporate Social Responsibility

Left: Pro Mazda Series drivers Kenton Koch (left) and David Ostella (middle) and IndyCar driver Simona de Silvestro (right) visit a young patient at Ochsner Medical Center in New Orleans before the 2015 Indy Grand Prix of Louisiana. Below: IndyCar driver Graham Rahal visits a patient at the University of Kansas Medical Center.

TranSystems employees team up with Racing For Kids to rev the spirits of sick children

hen Michael Cuddy, a TranSystems employee volunteering with the Racing For Kids charity, visited sick children in the hospital this past August, he found the experience both difficult and NG rewarding. Cuddy shadowed professional racecar driver Justin Wilson on a trip to Janet Weis Children’s Hospital Win Danville, Pa. They handed out hats and coloring books to kids battling cancer, recovering from car accidents and By Calvin Hennick undergoing treatment for a number of other ailments. >> LP JANUARY / FEBRUARY 2016 ENGINEERING INC. 21 Left: IndyCar driver Jack Hawksworth signs a hat for a patient at the Loma Linda University Medical Center Children’s Hospital. Above: TranSystems employees from the Columbus and Cleveland, Ohio, offices join Indy Lights driver Zach Veach (left) and Racing For Kids national spokesperson Robbie Buhl (second from right) to visit patients at Akron Children’s Hospital. “It took me a while to get used to it,” ing out and trying to brighten the day up.” says Cuddy, a senior vice president who Following their visit, tragedy struck. works at the firm’s Philadelphia office. “I Wilson, who had spent his Friday trying taken to the same hospital that he had vis- walked in one room and the kid had a cast to lift the spirits of kids in hospital beds, ited. All the kids wrote notes. on from head to toe.” was hit in the head by crash debris from “He was definitely a very personable Some of the kids were shy, he says, but another driver’s car during the ABC Supply guy,” Cuddy adds. “You could tell he really Wilson, who signed autographs and talked 500 at Pocono Raceway that Sunday. He enjoyed what he was doing. There was one about video games, was good at getting died the next day. young boy, probably about six or seven, them to open up. “Seeing a smile come to “It was hard, just having been with the playing with Matchbox cars in bed. Justin their face, you knew you were doing some- guy,” Cuddy says. “Justin actually told ended up playing with him with the cars, thing good for them,” Cuddy says. “The a story [during the hospital visit] about and doing a mini-racing thing in his bed. parents pulled me aside and were just say- another racer in New York who made a The kid got a real kick out of that.” ing how grateful they were for people com- hospital visit and then got injured and Cuddy says he plans on returning to the hospital for another Racing For Kids visit this summer if he has the opportunity— Pit Stops not only because of his positive experience Racing For Kids partners with the following hospitals and health care institutions: seeing Wilson with the children, but for All Children’s Hospital St. Petersburg, Florida personal reasons, too. Cuddy’s 19-year- Akron Children’s Hospital Akron, Ohio old nephew has battled a chronic medical condition throughout his life, which is one Glenwood Autism and Behavioral Health Center Birmingham, Alabama reason Cuddy was inspired to volunteer Beaumont Children’s Hospital Grosse Pointe, Michigan with the charity. Blank Children’s Hospital Des Moines, Iowa “I’ve seen firsthand the heartbreak that Children’s Hospital of Wisconsin Milwaukee, Wisconsin families go through,” he says. “So when Cook Children’s Hospital Dallas, Texas this opportunity presented itself, it was Children’s Hospital of Michigan Detroit, Michigan something that I felt like I had to do. It Children’s National Health System Washington, D.C. just spoke to me.” Halifax Health Medical Center Daytona, Florida Seeing the Difference Henry Ford Medical Center – Cottage Grosse Pointe Farms, Michigan More than a decade earlier, Brian Larson, Loma Linda University Medical Center Loma Linda, California TranSystems’ CEO and chairman of the McLaren Northern Michigan Petoskey, Michigan firm’s board of directors, was introduced to Miller Children’s & Women’s Hospital Long Beach, California Racing For Kids at an event in 2004. Ochsner Health System New Orleans, Louisiana “I was moved by what they were accom- Riley Hospital for Children at IU Health Indianapolis, Indiana plishing,” Larson says. “It was targeted Peyton Manning Children’s Hospital at St. Vincent Indianapolis, Indiana toward the actual children in need, with Texas Children’s Hospital Houston, Texas that one-on-one element to it, where they’re trying to change their day and you The Hospital for Sick Children Toronto, Ontario can see it firsthand. You can see it and

22 ENGINEERING INC. JANUARY / FEBRUARY 2016 Partnering with you to improve quality of life. We are 28,000 smart, talented and driven people committed to exceptional and sustainable outcomes. We collaborate. We innovate. We deliver results. We are Arcadis. Improving quality of life.

WWW.ARCADIS.COM touch it yourself and feel like benefit the charity. you’ve made a difference in a Pat Wright, the execu- number of lives.” tive director of Racing Racing For Kids was For Kids, says that Lar- founded in 1989 by Dr. Bill son “quickly saw exactly Pinsky and has focused on what it was that we did.” improving the morale of Wright praises TranSystems critically ill children through employees for their involve- driver visits to hospitals and ment—especially for their other health care facilities. “I don’t think hospital visits, which he The group also raises money I’ve ever met says have a concrete impact for children’s hospitals, with on children. much of the money going a kid that “These visits are an toward playrooms and con- isn’t excited important part of recovery tributing to the cost of care about racecars therapy for the kids we see,” for some patients. Since its and racecar Wright says. “It takes their inception, the organization has minds off their treatment, it conducted more than 550 hos- drivers. They’re gives them hope and it puts pital visits in the U.S., Brazil, superheroes, a smile on their faces. And IndyCar Series racing star Sebastian Bourdais Canada, Japan, Australia and maybe even the doctors that see these meets with a patient at Detroit Medical Center’s Children’s Hospital of Michigan. Mexico, reaching more than more so than a kids tell us that they get bet- 28,000 children. Additionally, ter faster. Kids with IVs and the group has raised and dis- football player poles, they’ll jump in the I’ve ever met a kid that isn’t excited about tributed nearly $6.5 million to or another racecar like there’s nothing racecars and racecar drivers. They’re hospitals and other health care professional wrong. It’s amazing to see.” superheroes, maybe even more so than organizations. athlete.” Wright tells the story of a football player or another professional The racing tie-in makes the a visit by Robbie Buhl, a athlete. There’s something intrinsically KANON COZAD charity a natural fit for Tran- former Indy- cool about racecars and TRANSYSTEMS Systems, which specializes in Car racer and racecar drivers.” transportation infrastructure, the group’s Chuck Stenzel, a Tran- but Larson says it was the hospital visit national spokesman. While Systems principal based in program that drew him in. Buhl was interacting with a Chicago, says some of the “Kids get a kick out of interacting with child in a wheelchair, the boy kids are too young to rec- the professional athletes,” he says. “They gave a thumbs-up signal, and ognize the racing pros, but go through the entire children’s wing, stop- his mother burst into tears. It that doesn’t diminish their ping room to room if the kids are in private was the boy’s first communi- enjoyment. “I don’t think rooms. If they’re in a larger room, [the driv- cation since his car accident. they know them by name, ers] just go bed to bed. For the kids that are “We know we’re doing the but they know that they ambulatory, they’ll have a racecar down on right thing when we see some- “I was moved by drive racecars,” he says. “I the lawn of the hospital. The kids that are thing like that,” Wright says. what they were think they make the con- able to will come on down with their IVs accomplishing. nection that it’s a famous and get a chance to sit in the car, see the car Superheroes person, and they drive a car and have fun outside for a while.” For many TranSystems It was targeted more than 200 miles per During its partnership with Racing For employees (no small number toward the hour. It’s pretty cool to have Kids, TranSystems has raised more than of whom are race fans), it is actual children someone like that come in $300,000 for the charity, and this year the immediately apparent why in need, with to see them. goal is $50,000. Each year, the company visits from racecar drivers pro- “I think it’s very valuable holds an internal “FunDrive,” with the vide special moments for kids that one-on-one when you can help children firm matching all employee donations. going through a tough time, element to it, like that and put a smile on Employees are also encouraged to partici- and they leap at the opportu- where they’re their face for a little while,” pate in the charity’s hospital visits, and the nity to help. trying to change Stenzel adds. “We’re going company even incorporates Racing For “I’m a very passionate to continue to be a part of Kids into client events. For example, Tran- fan and participant when it their day and this.” ■ Systems is a sponsor of the Rahal Letter- comes to motor sports,” says you can see it man Lanigan Racing team, and when the Kanon Cozad, chief informa- fi rsthand.” Calvin Hennick is a firm invites clients to the racetrack, Larson tion officer for TranSystems. BRIAN LARSON business, technology and and other executives spread the word about “I know how exciting that TRANSYSTEMS travel writer based in Racing For Kids and hold silent auctions to can be to kids. I don’t think Milton, Mass.

24 ENGINEERING INC. JANUARY / FEBRUARY 2016

RANDY LYHUS Going By Bob Violino

GlGuidanceo baland resources for fi rms seeking opportunities in the international marketplace

This is the first or many U.S.-based engineering firms, achieving in a three-part true business growth means moving beyond series offering advice for the nation’s borders to find customers overseas. engineering But doing business internationally requires a firms seeking specific outlook and skill set—and firms that to expand master these traits stand a much greater chance services of success. into the “There is a growing trend of A/E firms expanding into international Finternational markets that is being driven by an increase in market. market opportunities abroad,” says Carol Bell, director of international project development at Stanley Consultants and

RANDY LYHUS RANDY chair of ACEC’s International Committee.>>

JANUARY / FEBRUARY 2016 ENGINEERING INC. 27 LET Engineering Inc. WORK FOR YOU JULY/AUGUST 2012 FIND INC. ENGINEERING www.acec.org YOUR NEXT AWARD-WINNING BUSINESS MAGAZINE ● PUBLISHED BY AMERICAN COUNCIL OF ENGINEERING COMPANIES >> Innovation for International Projects ENGINEER on ACEC’s >> PLI Rates Hold Steady >> House Bid To Restrict Highway Funds Job Board . . . Defeated ReachGlobal Since the ACEC Job With an How to Succeed in Foreign Markets Board’s inception ad in in August of 2005, Engineering Inc. over 2,923 member you can: fi rms have posted job openings and more • REACH your clients than 27,000 job and colleagues . seekers have posted • ENHANCE business resumes. Find your prospects. next new hire at: • THANK those www.acec.org/jobs important to your Where today’s success. Contact ACEC Assistant Director of engineering job Marketing Rachael Ng seekers go to fi nd at 202-682-4337, by e-mail at [email protected], or visit the website at their next jobs. www.acec.org/advertising “We see many foreign gov- United States Agency of a project or program lifecycle, from ernments working diligently for International planning to implementation to monitoring to improve the quality of life Development (USAID) and evaluation.” for their citizens, which leads Created in 1961, USAID is U.S. engineering firms often struggle to the development of infra- the lead government agency with the application of codes, standards structure projects such as working to end global and processes that may not be appropri- sanitation, water, wastewater, poverty. With staff in more ate in a developing country context. “The roads and bridges, and power than 100 countries and a challenge is how to be flexible with the generation and transmis- mission to speed interna- engineering practice without sacrificing sion,” Bell says. “U.S. fi rms have tional development, it offers quality, integrity or sustainability,” Pasch Bell—whose firm, Stanley a reputation engineering projects in a says. “Similarly, cost structures vary tre- Consultants, has an extensive variety of sectors, including mendously across and within the countries international portfolio—cau- for doing health, education, environ- where USAID works.” tions that international work quality work, ment, economic growth, and isn’t without significant chal- and clients agriculture. lenges. “It has a lot of risks, worldwide desire Engineering and related from unfamiliar contract projects are crucial elements terms to payment,” she says. the expertise of USAID’s international “Once a firm decides it wants and experience programs, according to John to pursue international work, of U.S. and Pasch, a senior engineer at A contract with USAID can provide it should endeavor to know other Western USAID. “Infrastructure cuts valuable international experience for firms the local market and the cul- across just about every part while reducing risk typically associated ture of the country it wants industrialized of USAID’s portfolio,” he with foreign transactions. The agency sup- to work in.” countries.” says. ports small business through its Office When seeking interna- CAROL BELL A recent assessment of of Small and Disadvantaged Business tional opportunities, firms STANLEY CONSULTANTS USAID’s global develop- Utilization (OSDBU). “Many of our new should be cautious of local ment portfolio from June partners first gain USAID experience as a agents who claim they’re well 2011 to July 2013 identified subcontractor,” Pasch says. “OSDBU can connected and can provide jobs for a fee. engineering and infrastructure activities provide advice to small businesses seeking “These individuals usually claim to have in 100 percent of the 69 operating units subcontracting opportunities.” brothers and cousins or family members surveyed, including an active construction For more information, go to connected at the highest level,” she says. portfolio of more than $5.6 billion. www.usaid.gov. “There’s nothing wrong with this; just Projects range in size from very small to don’t believe everything you hear.” very large, and the agency offers competi- Also, don’t accept fees in local currency tive opportunities for a unless you understand exactly what the broad range of engi- risks are, how stable the currency is and neering firms. how easy it is to move or exchange to U.S. “USAID works dollars. to build part- “Most importantly, avoid countries nerships and where corruption is rampant or is a way of provide business,” Bell says. “This is perhaps the assistance greatest risk of working overseas—it is like to solve maneuvering through a minefield. Paying some of under the table to win a job, even if done the world’s by a local contractor, places you at addi- most tional risk of breaking the law.” complex Bell recommends looking for opportuni- problems,” ties on projects funded by U.S. govern- Pasch says. ment agencies or leveraging the resources “We recognize offered by these organizations. “They all engineers and have projects that U.S. firms can compete engineering [for] and win based on professional quali- firms as profes- fications without price competition,” Bell sional problem- says. solvers who can Following are profiles of three agencies support interna- that can help engineering firms launch or tional development expand their international business efforts. throughout all phases

JANUARY / FEBRUARY 2016 ENGINEERING INC. 29 Millennium Challenge to answer market entry questions, find Corporation (MCC) partnerships and counsel firms on doing MCC, created by Congress in 2004, is an business in the market.” independent U.S. foreign aid agency that All types of engineering firms would fights global poverty through economic benefit from this guidance, Baker says. growth. The agency awards large, five-year “Our office does an assessment of each grants called compacts for projects in a Nash says. “This is unique to MCC, and firm to determine needs, understand variety of sectors, including agriculture, to achieve this MCC has a pool of highly competency and evaluate market viability. education, land administration, water and qualified engineers and infrastructure Smaller firms need to have niche expertise sanitation. and environmental specialists who work to compete globally.” “A bulk of our funds—70 percent of very closely with engineering consultants Baker says firms looking for interna- the more than $10 billion committed to throughout an assignment.” tional work should consider two keys date—go toward engineering and con- For engineering firms considering things: market knowledge and market struction of infrastructure projects in a global work, MCC provides informa- access. variety of sectors,” says Jonathan Nash, tion on project opportunities in partner the managing director of MCC’s Infra- countries via procurement notices with structure, Environment and Private Sector global coverage and one-to-one meetings. Division. The agency offers conferences and pub- The agency provides opportunities for lic events to educate firms on its project engineering firms already established in development and project delivery systems, “Knowing your market before you get the international market as well as those and it connects interested firms with proj- there is the key to success,” Baker says. interested in expanding overseas. “Firms ect teams in its compact countries. “Look at key market factors of a few pro- are hired for sector studies, due diligence, For more information, go to spective markets and compare the oppor- project assessments, feasibility studies, www.mcc.gov. tunities with your core competencies to detailed engineering designs, project man- see if there is a fit.” agement and construction International Trade To be successful, firms must make a supervision for a range of Administration (ITA) long-term commitment to that market. both large- and medium- Established in the U.S. “The important thing to remember,” scale infrastructure projects Department of Commerce Baker says, “is you are not alone when in the energy, water/waste- in 1980, ITA provides a it comes to researching and selecting water, irrigation, transporta- worldwide network of trade markets.” tion and vertical structures professionals to strengthen ITA’s website provides considerable sectors,” Nash says. the international competi- information, including “Doing Business MCC’s compacts are pre- tiveness of U.S. industry. in (Country)” documents. pared within a short period Its U.S. Commercial Ser- For more information, go to of time. “Typically, this vice counsels companies www.trade.gov. ■ means that sector studies, “Knowing your on overall marketability of environmental assessments, market before products or services, market Bob Violino is a business and technology feasibility studies, right-of- you get there trends or sizes, customary writer based in Massapequa Park, N.Y. way studies and resettlement distribution and promotion implementation, detailed is the key to practices, and market entry engineering designs, and success. Look requirements. construction bid documents at key market In-country experts work- Coming Soon are completed within two factors of a few ing at U.S. embassies and dditional organizations that years,” Nash says. “And full consulates can help engi- Acan assist engineering firms implementation of MCC’s prospective neering firms understand with expansion into international grant—including delivery markets, and local market conditions. markets will be highlighted in future of the final product—has compare the “In each of the embassies issues of Engineering Inc. Agencies to be completed within five opportunities and consulates around the to be profiled include: United States years.” world there is a dedicated Trade and Development Agency MCC also has fixed with your core person to assist design firms (USTDA); Overseas Private Investment compact budgets that can- competencies in the market,” says Matt Corporation (OPIC); Export-Import not be increased if there are to see if there is Baker, an international Bank (Ex-Im Bank); Office of the cost overruns. “For these a fi t.” trade specialist at the Com- United States Trade Representative reasons, all project prepara- MATT BAKER merce Department. “For (USTR); Multilateral Development Bank tory work has to be done INTERNATIONAL TRADE instance, in China we have (MDB); World Bank; and InterAmerican within a short time and with ADMINISTRATION five A/E/C specialists who Development Bank (IDB). high precision upfront,” work with engineering firms

30 ENGINEERING INC. JANUARY / FEBRUARY 2016 UNCLE SAM WANTS YOU TO FIX AMERICA’S INFRASTRUCTURE

The American Council of Engineering Companies is made up of thousands of the nation’s LUNPULLYPUNÄYTZHUKO\UKYLKZVM[OV\ZHUKZVMLUNPULLYPUNWYVMLZZPVUHSZ^VYRPUNL]LY` KH`[VLUOHUJLV\YYVHKZIYPKNLZ[YHUZP[Z`Z[LTZHUKV[OLYJYP[PJHSPUMYHZ[Y\J[\YL>L HYLYLHK`[VNV[V^VYRHUKNL[[OLQVIKVUL=PZP[\ZH[ACEC.org

2015 Professional Liability Insurance Survey of Carriers SMOOTH SAILING

By Maureen Conley ALL RIGHTS RESERVED FOR GABRIEL PASSARELLI/GETTY IMAGES PASSARELLI/GETTY GABRIEL FOR RESERVED ALL RIGHTS rofessional liability insurance (PLI) remains relatively inexpensive and widely available, according to ACEC’s latest survey of insurance carriers conducted jointly with industry partners. Eric Moore, vice president of Moore Insurance Services and Ppresident of a/e ProNet, calls it a “Goldilocks” market. “You’ve got insurance capacity out there, a lot of new carriers, construction spending is at its highest level since 2008 and you’ve got stability in rates,” he says. >>

JANUARY / FEBRUARY 2016 ENGINEERING INC. 33 Characteristics in the Premium Determination Process (1 is the highest level of infl uence; 8 is the lowest)

RLI Euclid Aspen Aspen Markel Liberty Beazley Hanover Hanover ACE USA XL Group XL Company Company Company Travelers Ironshore Insurance Insurance Insurance Insurance Insurance Insurance Insurance Insurance Euclid A/EEuclid Navigators Navigators Managers - - Managers Allied World World Allied Professional Professional Management Management Underwriters Underwriters Company, Inc. Company, AIG/Lexington AIG/Lexington HCC Speciality HCC Berkley Design Design Berkley AXIS Insurance AXIS Location of firm 37746316668874547 Location of projects 46875617777787778 Type of practice 242125 1 23 3 3 323 1 32 Type of projects 15454414454445353 Annual billings 61121111 1261 1 1211 Claims history 52333213211232424 Firm experience 73567715542656666 Other **688*****556**85 *Did not answer Source: 2015 ACEC Professional Liability Insurance Survey of Carriers

The results of the 2015 while, Moore says some condos, residential developments and PLI Survey of Carriers are established carriers have wastewater treatment projects. Small consistent with the past few aggressive pricing he hasn’t design firms tend to pay a higher rate for years, says Tim Corbett, seen in a while. PLI: 3.5 percent of billings versus 1.5 per- founder and president of Travelers expects the cent for mid- to large-sized firms, Corbett SmartRisk and a member market to remain stable. observes. of the ACEC Risk Manage- “We’re not seeing any Growing firms may see premiums ment Committee. This year major changes in exposure increase even if rates are stable. Rapp says the committee worked with coming,” says Managing it’s a good market for Travelers’ insureds, the American Institute of “Everybody Director John Rapp. “The with the three-year weighted average of Architects, the AIA Trust analytics are billings up 7 percent. “At and the National Society continues to so good these the low point of the reces- of Professional Engineers chase after the days, we sion, the question was ‘How to survey 18 carriers. Com- same dollars.” aren’t really do you get your clients to mittee member John Far- TIM CORBETT surprised by keep the lights on?’ Now, rar, vice president of Clark SMARTRISK anything.” it’s ‘How do you manage Dietz, notes that these car- Jim growth?’” Rapp says. riers together insure about Schwartz, Bea- 95 percent of ACEC Member Firms. zley’s U.S. A&E focus group Choosing a Carrier leader and underwriter, Carriers may have impor- Rate Trends attributes the soft market to “You’ve got tant differences in their Of the carriers surveyed, 12 offered pre- historically low losses from coverages, approach and dictions about where rates are headed. major disasters combined insurance style. Kevin Collins, senior Most expect rates to rise, with five antici- with large capacity. Claims capacity out vice president for profes- pating increases of 1 to 2 percent and four have been substantial, there, a lot of sional lines at Victor O. expecting higher increases. “Everybody however. new carriers, Schinnerer & Company, continues to chase after the same dollars,” Carriers may be more urges firms to pay close says Corbett, observing that all carriers selective about the firms construction attention to claims han- but one are looking to increase their share they underwrite. Type of spending is at dling, risk management of the $1 billion engineering PLI market. practice, annual billings its highest level services and overall policy Moore says new entrants to the market and claims history are the since 2008 coverage. are keeping rates stable, as they tend to most important factors that “Firms should know price aggressively to pick up market share. contribute to rate, Farrar and you’ve who’s running the pro- Professional Liability Agents Network says, and certain projects got stability in gram,” Moore says. In some (PLAN) President and BancorpSouth and companies with a poor rates.” cases, a new entrant may Insurance Services Senior Vice President claims history may experi- ERIC MOORE actually be an established Ken Estes says some carriers that under- ence rate hikes. Structural MOORE INSURANCE carrier or may be managed priced when they first entered the market and geotechnical engineers SERVICES, A/E PRONET by experienced people who are raising rates to cover losses. Mean- cost more to insure, as do know the industry.

34 ENGINEERING INC. JANUARY / FEBRUARY 2016 W>E'E/^zdZZ/dKZz hE/d^dd^ > ƌŽǁ&ƌŝĞĚŵĂŶ'ƌŽƵƉ͕ZŝƐŬ^ƚƌĂƚĞŐŝĞƐŽŵƉĂŶLJ < h^/EŽƌƚŚǁĞƐƚͬ<ŝďďůĞΘWƌĞŶƟĐĞ  ^ƚƵĐŬĞLJ/ŶƐƵƌĂŶĐĞ Z ĂŶĐŽƌƉ^ŽƵƚŚ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ  ĞĂůĞLJ͕ZĞŶƚŽŶΘƐƐŽĐŝĂƚĞƐ ͕^ĂŶŝĞŐŽƌĞĂ ĂǀŝŐŶĂĐΘƐƐŽĐŝĂƚĞƐ/ŶƐƵƌĂŶĐĞƌŽŬĞƌƐ K h^/ŽůŽƌĂĚŽ d ĂŵŝůůĞƌŝΘůĂƌŬĞͬ^ŵŝƚŚƌŽƚŚĞƌƐ   ^ƵŶĐŽĂƐƚ/ŶƐƵƌĂŶĐĞƐƐŽĐŝĂƚĞƐͬh^/&ůŽƌŝĚĂ ' ƌŽǁ&ƌŝĞĚŵĂŶ'ƌŽƵƉ͕ZŝƐŬ^ƚƌĂƚĞŐŝĞƐŽŵƉĂŶLJ ,/ &ŝŶĂŶĐĞ/ŶƐƵƌĂŶĐĞ͕>ƚĚ͘ / dŚĞ,ĂƌƚǁĞůůŽƌƉŽƌĂƟŽŶ />EŽƌƚŚ ,ŽůŵĞƐDƵƌƉŚLJΘƐƐŽĐŝĂƚĞƐ  ;W/ͿWƌŽĨĞƐƐŝŽŶĂůŽŶĐĞƉƚƐ/ŶƐƵƌĂŶĐĞŐĞŶĐLJ />ĞŶƚƌĂů ,ŽůŵĞƐDƵƌƉŚLJΘƐƐŽĐŝĂƚĞƐ />^ŽƵƚŚ dŚĞƌĂŶĞŐĞŶĐLJ /E KůĚEĂƟŽŶĂů/ŶƐƵƌĂŶĐĞ / ,ŽůŵĞƐDƵƌƉŚLJΘƐƐŽĐŝĂƚĞƐ <^ ,ŽůŵĞƐDƵƌƉŚLJΘƐƐŽĐŝĂƚĞƐ  ůĞdžĂŶĚĞƌΘ^ĂŶĚĞƌƐ/ŶƐƵƌĂŶĐĞŐĞŶĐLJ D ůĂƌŬ/ŶƐƵƌĂŶĐĞ DͬͬEŽƌƚŚĞƌŶs / D WŽŽůĞWƌŽĨĞƐƐŝŽŶĂů>ƚĚ͘ D/ ;W/ͿWƌŽĨĞƐƐŝŽŶĂůŽŶĐĞƉƚƐ/ŶƐƵƌĂŶĐĞŐĞŶĐLJ DE ,͘ZŽďĞƌƚŶĚĞƌƐŽŶΘƐƐŽĐŝĂƚĞƐ D^ ,h/ŶƚĞƌŶĂƟŽŶĂů'ƵůĨ^ŽƵƚŚ DK dŚĞƌĂŶĞŐĞŶĐLJ 7KH3/$XWKRULW\IRUWKH$(&RPPXQLW\6LQFH Dd dŚĞ,ĂƌƚǁĞůůŽƌƉŽƌĂƟŽŶ E dŚĞ,ĂƌƌLJ͘<ŽĐŚŽŵƉĂŶLJ Es ŵĞƌŝĐĂŶ/ŶƐƵƌĂŶĐĞΘ/ŶǀĞƐƚŵĞŶƚ E, WŽŽůĞWƌŽĨĞƐƐŝŽŶĂů>ƚĚ͘ E:EŽƌƚŚ ^ŝŶŐĞƌEĞůƐŽŶŚĂƌůŵĞƌƐ͕ZŝƐŬ^ƚƌĂƚĞŐŝĞƐŽŵƉĂŶLJ 7KHSHUVRQDOVHUYLFHRI RQH E:^ŽƵƚŚ tŽƌƚůĞLJͬWŽŽůĞWƌŽĨĞƐƐŝŽŶĂů>ƚĚ͘ ED Z͘:͘ĞĂŶΘƐƐŽĐŝĂƚĞƐ EzEŽƌƚŚ WŽŽůĞWƌŽĨĞƐƐŝŽŶĂůʹEz/ŶĐ͘ 7KHFRPELQHGUHVRXUFHV Ez^ŽƵƚŚ ^ŝŶŐĞƌEĞůƐŽŶŚĂƌůŵĞƌƐ͕ZŝƐŬ^ƚƌĂƚĞŐŝĞƐŽŵƉĂŶLJ E Θd/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ RI PDQ\ E dZ:WƌŽĨĞƐƐŝŽŶĂů'ƌŽƵƉ K, KƐǁĂůĚŽŵƉĂŶŝĞƐ K< DĐ>ĂƵŐŚůŝŶƌƵŶƐŽŶ/ŶƐƵƌĂŶĐĞŐĞŶĐLJ 7KDW·V3/$1 KZ h^/EŽƌƚŚǁĞƐƚͬ<ŝďďůĞΘWƌĞŶƟĐĞ WĂƐƚ tŽƌƚůĞLJͬWŽŽůĞWƌŽĨĞƐƐŝŽŶĂů>ƚĚ͘ WtĞƐƚ KƐǁĂůĚŽŵƉĂŶŝĞƐ Z/ ĂŵŝůůĞƌŝΘůĂƌŬĞͬ^ŵŝƚŚƌŽƚŚĞƌƐ W>EŝƐĂŶŽŶͲƉƌŽĮƚŽƌŐĂŶŝnjĂƟŽŶŵĂĚĞƵƉŽĨĂ ^ Θd/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ ^ dZ:WƌŽĨĞƐƐŝŽŶĂů'ƌŽƵƉ ƐĞůĞĐƚŐƌŽƵƉŽĨŝŶƐƵƌĂŶĐĞĂŐĞŶĐŝĞƐƐƉĞĐŝĂůŝnjŝŶŐŝŶ dE ƌŽǁ&ƌŝĞĚŵĂŶ'ƌŽƵƉ͕ZŝƐŬ^ƚƌĂƚĞŐŝĞƐŽŵƉĂŶLJ ƌŝƐŬŵĂŶĂŐĞŵĞŶƚĂŶĚůŽƐƐƉƌĞǀĞŶƟŽŶƉƌŽŐƌĂŵƐĨŽƌ dyEŽƌƚŚ DĐ>ĂƵŐŚůŝŶƌƵŶƐŽŶ/ŶƐƵƌĂŶĐĞŐĞŶĐLJ dy^ŽƵƚŚ h^/^ŽƵƚŚǁĞƐƚ ĂƌĐŚŝƚĞĐƚƐ͕ĞŶŐŝŶĞĞƌƐ͕ƐƵƌǀĞLJŽƌƐĂŶĚĞŶǀŝƌŽŶŵĞŶƚĂů hd ŵĞƌŝĐĂŶ/ŶƐƵƌĂŶĐĞΘ/ŶǀĞƐƚŵĞŶƚ  ĞŶĐŚŵĂƌŬ/ŶƐƵƌĂŶĐĞ ĐŽŶƐƵůƚĂŶƚƐŝŶƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐ͕ĂŶĂĚĂ sd WŽŽůĞWƌŽĨĞƐƐŝŽŶĂů>ƚĚ͘ ĂŶĚWƵĞƌƚŽZŝĐŽ͘ s Θd/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ t h^/EŽƌƚŚǁĞƐƚͬ<ŝďďůĞΘWƌĞŶƟĐĞ ts KƐǁĂůĚŽŵƉĂŶŝĞƐ tŽƌŬŝŶŐǁŝƚŚĂW>EĂŐĞŶƚŐŝǀĞƐLJŽƵĚŝƌĞĐƚĂĐĐĞƐƐƚŽĂ t/ ,ŽůŵĞƐDƵƌƉŚLJΘƐƐŽĐŝĂƚĞƐ tz h^/ŽůŽƌĂĚŽ ǁŽƌůĚŽĨďĞŶĞĮƚƐ͘zŽƵ͛ůůƐĞĞƚŚĞĚŝīĞƌĞŶĐĞƐƌŝŐŚƚĨƌŽŵ WhZdKZ/K &ƵůĐƌŽ/ŶƐƵƌĂŶĐĞ ƚŚĞƐƚĂƌƚ͘ E  YƵĂĚƌĂŶƚ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ  DĞƚƌŝdžWƌŽĨĞƐƐŝŽŶĂů/ŶƐƵƌĂŶĐĞƌŽŬĞƌƐ D KůĚĮĞůĚ<ŝƌďLJƐĂƵ͕/ŶĐ͘ E ,h/ŶƚĞƌŶĂƟŽŶĂůƚůĂŶƟĐ E> ,h/ŶƚĞƌŶĂƟŽŶĂůƚůĂŶƟĐ Ed YƵĂĚƌĂŶƚ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ E^ ,h/ŶƚĞƌŶĂƟŽŶĂůƚůĂŶƟĐ KE WƌŽͲ&Žƌŵ^ŝŶĐůĂŝƌWƌŽĨĞƐƐŝŽŶĂů W ,h/ŶƚĞƌŶĂƟŽŶĂůƚůĂŶƟĐ Y ůĂƵĚĞĂƌƌLJZWƌŽĨĞƐƐŝŽŶŶĞůůĞ ^< YƵĂĚƌĂŶƚ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ zd YƵĂĚƌĂŶƚ/ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐ

&ŽƌĐŽŶƚĂĐƚŝŶĨŽƌŵĂƟŽŶ͕ƐĞĞƚŚĞ͞&ŝŶĚĂW>EŐĞŶƚ͟ŵĂƉ Ăƚǁǁǁ͘ƉůĂŶ͘ŽƌŐ͘ Claims remain a leading reason carriers won’t renew a policy, and nonrenewal is about the only reason Moore would suggest changing carriers. If you do see a claim, a carrier you’ve been with a few years is less likely to drop you, he says. “Make sure A firm that uses loss pre- you’re doing vention services may prove it is “able to handle a cer- business with tain kind of work—they’re someone with doing business right and experience come to us when they need that will be to,” Estes says. Unless a firm has had a poor claims- around—you handling experience or don’t want them wants a higher level of risk to fold up shop management services, the in three years brokers agree that stability and building the relation- so that when a ship are important. claim hits you’re Pat Mulligan, vice presi- the only one left dent at Marsh and a broker standing.” for the ACEC Business JOHN RAPP Insurance Trust, says it’s TRAVELERS

a great time to make sure IMAGES BERG/GETTY ALISTAIR a design firm is matched up with an appropriate insurance carrier. ers also report significant claims on public better than designers when it comes to With rates steady and business strong, projects such as schools, bridges, reservoirs documentation, giving them a leg up firms can pay more attention to what and wastewater treatment plants. on claims. Firms can use technology “to insurance program provisions they need Collins says, “Although they may be monitor construction if it’s part of their to reduce business risk and make their the largest source of claims, when you service, and to protect themselves against project opportunities stronger. “These overlay the amount of revenue generated potential claims,” he says. policy updates can make a difference on these projects, most compare to $1 In a recent study of mid-sized design in the performance of their overall pro- of loss for $1 of exposure.” He also calls firms, residential projects represent about gram,” Mulligan says. Matching designers them an easy point of entry 15 percent of Beazley’s expo- with the right carrier allows proper, sus- for design firms. Mixed-use sure based on fees and 40 tainable relationships to develop over the residential and commer- percent of losses. Schwartz long term. cial projects tend to have says condos are the biggest It may make sense to move to a car- owners that stay with the culprit, with less than 2 per- rier with aggressive pricing, as long as the project, with more interest cent of exposure but about forms and coverage stack up, Estes says. in selecting good products 20 percent of claims dollars. But if price is the only consideration and and maintenance over time, Also, claims can come in as the firm does not carefully compare poli- Collins adds, which can much as 10 years after the cies and risk management services, transi- positively affect risk. But he project is finished. Firms tioning may mean gaps in coverage. says regardless of the project “We’re all need to know what they’re type, nothing beats good getting into with these proj- Highest-Risk Projects risk management and con- subject to data ects and should document Committee member Dan Cecchi, execu- tract negotiations. breaches and the all decisions made by own- tive vice president of Collins Engineers Risk management com- compromising ers and developers so there Inc., says projects are growing in size mittee chair Jim Messmore, of personal is a written record when the thanks in part to public-private partner- senior vice president at homeowners association ships, and he expects claims to grow too. Hanson Professional Ser- information.” brings a claim. Annotated AL RABASCA Residential projects, particularly condos, vices, says some owners and photos can also help. XL CATLIN lead the pack of problem projects. Carri- contractors use technology While there is no magic

36 ENGINEERING INC. JANUARY / FEBRUARY 2016 SEI turns successful A/E executives into forward-thinking industry leaders.

SEI Class 22 begins September 2016. For details and registration, visit sei.acec.org

“SEI was a high-water mark for me in my development personally and as an engineer.”

Paul Hirst Caldwell Richards Sorensen SEI Class I bullet for condos, Rapp says premium credits for par- evaluation and testing of the product,” he it is important to scrutinize ticipating in them, Schwartz says. Manufacturers have strict liability— contracts, and some firms says. Some carriers offer a meaning a claimant really does not have have lowered their risk by mediation deductible credit, anything to prove if the product used including a “supermajor- and Moore says one offers in a project fails. But the owner would ity” provision requiring 75 an early resolution credit have to prove the designer was negligent percent of condo owners to that halves the deductible if in not meeting the standard of care, he agree before a claim can be a claim is resolved in fewer says. While carriers have defended these brought. Otherwise, condo than 180 days. He adds that claims successfully, Rabasca says they can projects require the same “The best fi rms by taking advantage of the be costly. risk management practices are those where carriers’ webinars, “not only Cecchi says carriers are also placing that designers should apply can you get the premium more emphasis on cyberthreats, with to all projects—just more the senior credit, but it offsets the cost” many adding coverage to existing poli- so. “Make sure you’re doing leadership is of meeting continuing edu- cies. Design firms control client data and business with someone involved in all cation requirements. portals between their clients’ systems with experience that will be the details.” As design-build projects and their own, which means firms may around—you don’t want become more widespread, need to be protected from the threat of a JIM SCHWARTZ them to fold up shop in Estes advises firms to get a breach, he says. BEAZLEY three years so that when a clear understanding of what “We’re all subject to data breaches and claim hits you’re the only one left standing,” says Rapp.

Managing Risk Schwartz says it’s impor- tant for firms to make risk awareness part of their culture, starting at the top. “The best firms are those where the senior leader- ship is involved in all the details,” from looking at contracts to investing in quality assurance and qual- ity control. He says firms should have written QA/ QC policies and make sure they are followed. Beazley offers risk man-

agement webinars and IMAGES GLOW

design-build means for a the compromising of personal informa- How Have Rates Increased (or Decreased) project, and talk with their tion,” Rabasca says. Compared With the Previous Year? broker about whether they Drones are also on the risk manage- could be taking on risks ment radar, Rabasca says, particularly that may not be covered. He since the Federal Aviation Administration 50% recommends firms confirm intends to require all nonrecreational Flat that the scope of services is drones to be registered. Many experts ● clearly defined. believe drones are another tool that 50% Al Rabasca, director of should not increase liabilities for design Increased

● industry relations at XL firms. But, as Rabasca cautions, firms Catlin, says he’s seeing a that use them need to follow registration trend in product liability requirements and continue to meet the cases against A/Es. In some professional standard of care so they don’t cases, owners have “dragged open themselves up to liability. ■ in the A/E on the theory Source: 2015 ACEC Professional Liability Insurance Survey of Carriers that they’re supposed to do Maureen Conley is a business and technology (12 of 18 firms responding) some kind of independent writer based outside Washington, D.C.

38 ENGINEERING INC. JANUARY / FEBRUARY 2016 35 MILLION TONS OF GOODS DELIVERED TO 29 MILLION BUSINESSES EACH DAY. THANKS,

DRIVABILITY

-XVWLQWLPHPDQXIDFWXULQJIDUPWRWDEOHIUHVKQHVVJXDUDQWHHGRYHUQLJKWGHOLYHU\şDV$PHULFDQEXVLQHVV moves, so do the demands on our nation’s roads. Congestion and traffic delays cost the trucking industry $9.2 billion a year.* Rough roads increase vehicle wear and tear.† It all adds to business costs and purchase prices.‡ $VSKDOWSDYHPHQWVDUHHDV\WRPDLQWDLQFRVWHIIHFWLYHO\HQVXULQJPD[LPXPSHUIRUPDQFHZLWKPLQLPDOGHOD\ for truckers and everyone who relies on them. Smoother, faster, fewer delays…that’s drivability. That’s asphalt.

LEARN MORE AT WWW.DRIVEASPHALT.ORG

* ATRI, Cost of Congestion to the Trucking Industry, 2014 • † TRIP, Bumpy Roads Ahead, 2012 • ‡ TTI, Urban Mobility Report, 2012

The APA is a partnership of the Asphalt Institute, National Asphalt Pavement Association and the State Asphalt Pavement Associations. annual convention and 100 Years of Excellence legislative summit

featured speakers A/E INDUSTRY’S FOREMOST Dana Perino POLICY, EDUCATION, AND Former White POLITICAL LOBBYING EVENT House Press Secretary and Co-Host/Political MARRIOTT WARDMAN PARK Commentator www.marriott.com/hotels/travel/ for Fox News “Political wasdt-washington-marriott- Outlook & the wardman-park/ 2016 Elections” The Washington Marriott Wardman Park, located in Washington, D.C. near Dupont Circle, is directly accessible by Metro – Red Line.

Room Rate and Hotel Reservations ACEC’s room rate is $319, single/double. ENGINEERING EXCELLENCE AWARDS GALA

* “Academy Awards of the engineering industry” - black-tie reception, dinner and awards ceremony

* After-Party featuring live music and dancing, free to all Gala registrants register now! www.acec.org APRIL MARRIOTT 17-20 WARDMAN 2016 PARK WASHINGTON, D.C.

LOBBY CONGRESS ON CRITICAL INDUSTRY Daniel Pink World-renowned ISSUES, GAIN VALUABLE business thought BUSINESS INSIGHTS, AND leader and author of three ATTEND LEADING-EDGE New York Times EDUCATION SESSIONS! bestsellers “Leadership and Infl uence”

CONVENTION HIGHLIGHTS

* General Session Panel: Insights from Former DOT Heads: Barry Schoch, former PennDOT Secretary, now with McCormick Taylor Paula Hammond, former Washington State DOT Secretary, now with Parsons Brinckerhoff Ananth Prasad, former Florida DOT Secretary, now with HNTB * Legislative Issues Briefing and Congressional Panel * Capitol Hill Visits * More than 25 advanced business management sessions Business Insights

Solutions for the A/E Industry

CASE Contracts Reflect Evolving success in performance management, strategic planning and Industry Standards, Practices growth, finance, leadership, ownership transition, contracts and The Council for American Structural Engineers (CASE) devel- risk management, and marketing. oped 17 contract documents to help firms manage risk and safety For more information, visit www.acec.org/calendar/ on structural engineering projects. A well- calendar-seminar/business-of-design-consulting-denver- written contract offers protection from 2016/. problematic language that could leave your firm vulnerable to costly disputes. Webinar Focus: Recent Developments The CASE Contracts Committee in Design and Construction Case Law updated each contract to reflect changing Design and construction law is complicated and replete with traps industry standards and practices. Each contract also includes lan- for the unwary. Staying abreast of recent developments in this field guage on both indemnification and risk allocation and incorpo- of law is important for managing risk and increasing profitability. rates expanded language on attorney and expert fee costs. These An upcoming webinar, Recent Developments in Design and Con- model contracts provide a template that can be customized to struction Case Law, will be held on January 27, 2016, from 1:30 address specific firm needs. to 3 p.m. EST. Attendees will have the opportunity to learn from All CASE contracts can be purchased from the ACEC Book- mistakes of other A/E firms. Topics will include how to understand store at www.acec.org/bookstore. recent developments and trends in design and construction law, how to identify risks associated with professional services delivery, Registered Continuing and how to review interpretations of the enforceability of relevant Education Program (RCEP) Grows contract provisions More than 60,000 professional engineers and surveyors now use For more information, visit www.acec.org/calendar/calendar- the Registered Continuing Education Program (RCEP.net) to webinars/recent-developments-in-design-and-construction- find and track their professional development activities. case-law/. The interactive, online continuing education system recog- ACEC Webinars provide quality programming on critical engi- nizes education providers that have been vetted using established neering business topics. They cover a wide range of practical day- continuing education standards, so to-day resources, knowledge-sharing opportunities and best practice practitioners can report professional guidance to enhance business operations and make firms more prof- development hours (PDHs) to state itable. ACEC Webinars offer 1.5 professional development hours licensing boards with confidence of unless otherwise specified. acceptance. A/E/C industry profes- For a full listing of ACEC live and on-demand webinars, visit sionals who need continuing educa- www.acec.org/education/webinars. tion hours can find more than 125 educational offerings on the RCEP master calendar of activities. FOR MORE BUSINESS INSIGHTS Practitioners use RCEP.net for storing certificates of comple- tion issued by RCEP providers, uploading important professional ■ Better Business Planning documents, maintaining a complete PDH history through the self-reporting of outside activities, and downloading transcripts. ■ Factoring Executive Compensation ■ Cyberattacks and Data Security Course Focus: Business of Design Consulting ■ High-Impact Proposal Writing ACEC’s highly regarded Business of Design Consulting course offers a Go to: www.acec.org/education/webinars/ unique playbook for building leadership and managing your firm at the most effective levels. ACEC’s Business Resources and Education Join us in Denver, March 23–26, 2016, where ACEC’s expert Department provides comprehensive and online- faculty of industry practitioners will review contemporary best accessible business management education. practices and critical operational management methods. The Visit ACEC’s online educational events calendar at course will highlight current strategies for critical, need-to-know www.acec.org/calendar/index.cfm or bookstore at business topics that will keep a business thriving despite a rapidly www.acec.org/bookstore, or call 202-347-7474, ext. evolving business environment. Attendees also will learn specific 324, for further information. skills and techniques to help them manage change and build

42 ENGINEERING INC. JANUARY / FEBRUARY 2016 March 23-26, 2016 • Denver CO The Business of Design Consulting

A management intensive program for developing A/E firm leaders

Advance the leadership potential of your best and brightest! Visit http://programs.acec.org/BDCSpring2016 for program agenda and registration information.

Earn 22.5 PDHs! Mergers and Acquisitions BY NEIL CHURMAN Maximize Potential for a Successful Firm Sale

ith industry M&A While baby boomers head you can understand your of trusted advisers can help tracking at record for retirement and seek to be options and choose a path you through the process. Wlevels, many engi- rewarded for the businesses for transition, the higher This team often includes key neering firm owners are likely they’ve built, millennials are the likelihood of success. An internal staff, legal counsel, wondering if they should sell often reluctant to “buy in” to internal transition may not M&A advisers, tax advisers their firm. firm ownership. This discon- be in your firm’s cultural and other consultants. One of the most important nect often makes a sale the DNA. If you choose to pur- 3. Create a dashboard of vital decisions an owner will make most viable transition option. sue a sale, you should start gauges. Keeping a keen and is what to do when it’s finally If you’re considering selling planning at least two years consistent eye on all the time to leave the business. your firm, preparation is the before you go to market. important industry metrics, Some firms will be able to key to success. Here are a few 2. It takes a village, so build such as multiplier, utiliza- transition ownership smoothly suggestions: one. Embarking on a firm tion and revenue factor, will from one generation to the 1. Get a head start in years, sale is a major undertak- not only help you keep your next, but many more will not. not months. The earlier ing. Establishing a team finger on the pulse of your

2015 REPORTED M&A ACTIVITY States by Total Activity: US vs Int’l Sellers: Firm Sales by State through December 1, 2015 21 or more Transactions Total US Sellers 213 16 to 20 Transactions Total Int’l Sellers 91 11 to 15 Transactions US Sellers to Int’l Firms 16 6 to 10 Transactions Int’l Sellers to US Firms 10 1 to 5 Transactions 5 No Transactions WA 1

MT ME 3 ND 3 2 VT 2 OR MN 12 NH 1 SD 6 MA 7 ID NY WI CT WY MI RI 8 2 1 4 PA 1 NE IA NJ 3 2 6 12 2 MD DE 1 NV DE 18 UT 6 OH DC IL IN MD 1 6 CO 1 WV 1 DC 3 CA 2 KS MO VA KY

7 NC 3 2 4 TN OK 2 AZ NM AR SC 2 6

MS AL GA 23 1 4

AK TX LA

10

FL

© Morrissey Goodale LLC 2015 All Rights Reserved HI

44 ENGINEERING INC. JANUARY / FEBRUARY 2016 Mergers and Acquisitions

business, but it will also give ACEC Member Terracon potential buyers confidence (Olathe, Kansas) acquired ■ To view the most up-to-date and “live” versions of the that you’re running a tight NORCAL Geophysical Con- M&A heat maps, and to see the buyers and sellers in each ship. sultants (Cotati, Calif.). state, go to www.morrisseygoodale.com. 4. Button up. Before embark- NORCAL offers geophysical ■ Watch the M&A Takeaway video that accompanies ing on a sale, it’s critical to technologies in support of this article, presented by Mick Morrissey, at have all aspects of your busi- geologic, groundwater, envi- www.morrisseygoodale.com/ACECMergers/JanFeb2016. ness in good order. All finan- ronmental and engineering cial and legal records need to investigations. be accurate and organized, and you should have regular OCTOBER 2015 controls, systems and report- ACEC Member Lochner ing in place that help facili- (Chicago) acquired Crossland tate business activities. The Acquisition (Houston), which higher the level of assurance specializes in right-of-way on your financial state- acquisitions and services. ments, the more confidence ACEC Member Fehr Gra- a potential buyer will have ham (Freeport, Ill.) acquired in your results, which can landscape architecture and help ease the due diligence planning firm Thomas process. Graceffa and Associates 5. Get used to the thought (Rockford, Ill.). 3,300-person international of subsurface soil investiga- of sticking around for a ACEC Member Ellis & development, geo-services and tions, environmental studies, while. Many sellers envision Associates (E&A) (Jackson- project management firm. water resources, geotechnical being on a golf course or a ville, Fla.) merged with Engi- ACEC Member Profes- engineering, and construc- fishing boat shortly after a neering Consulting Services sional Service Industries tion materials testing and firm sale, but the majority of (ECS) (Chantilly, Va.). E&A (Oakbrook Terrace, Ill.), a inspection. buyers will expect key prin- specializes in geotechnical engi- provider of testing and assur- ACEC Member RESPEC cipals to stay on for some neering, construction materials ance services to commercial (Rapid City, S.D.) acquired period of time. Employment testing, environmental engi- and civil construction markets Flat Rock Geographics (St. agreements of two to three neering, construction engineer- has agreed to be acquired by Paul, Minn.), a geospatial soft- years are common for key ing and inspection, and special Intertek Group (London), a ware company specializing in staff and are often a condi- inspection services. leading quality and safety solu- web- based mapping applica- tion to closing a deal. ACEC Member CLD Con- tions provider. tions. RESPEC also acquired sulting Engineers (Man- ACEC Member TRC Com- AQUA TERRA Consultants Recent ACEC Deal-Makers chester, N.H.) acquired Lake panies (Lowell, Mass.) agreed (Mountain View, Calif.), a NOVEMBER 2015 Sunapee Survey (Newbury, to acquire the Professional specialist in environmental ACEC Member Parametrix N.H.), a provider of land Services business segment modeling applications and (Seattle) has merged with surveying and septic design of Willbros Group (Tulsa, software development. transportation planning and services. Okla.). The business segment traffic engineering firm Inter- ACEC Member Enercon offers innovative engineering, Plan (Midvale, Utah). Services (Kennesaw, Ga.) EPC/EPCM, field solutions Neil Churman is principal ACEC Member Stantec acquired Terra Environmen- and integrity services to the oil consultant of Morrissey (Edmonton, Canada) acquired tal Services (Tampa, Fla.), and gas transmission market as Goodale LLC—a strategy, KBR’s Infrastructure Americas an advanced remediation well as government facilities. M&A and human capital division (Houston). KBR’s and environmental services solutions firm serving the Infrastructure Americas company. SEPTEMBER 2015 A/E/C industry. Churman, division adds 180 profession- ACEC Member Tetra Tech ACEC member Braun who is based in the firm’s als to Stantec’s infrastructure (Pasadena, Calif.) agreed to Intertec (Minneapolis) Houston office, can be design capabilities in the Gulf acquire Coffey International acquired Apex Geoscience reached at nchurman@ Region. (Chatswood, Australia), a (Tyler, Texas), a provider morrisseygoodale.com.

JANUARY / FEBRUARY 2016 ENGINEERING INC. 45 Members in the News On The Move

Stephen H. Lucy was named CEO of JQ, of the two firms. VanDuyne and Astourian (acquired by AECOM in 2014). Gill a Dallas-based structural and civil engineer- were former presidents of the firms. Both Mosseri also joined AKRF as a senior vice ing firm. Gary Jaster, founding partner companies will continue to operate inde- president and will be part of the firm’s traffic and principal, will continue to serve in an pendently as subsidiaries of IMEG and will and transportation practice. He also came advisory capacity during the leadership tran- integrate their operational infrastructure from URS/AECOM, where he served as sition period. Lucy joined JQ in 1994 as a during the coming year. a vice president for business development, co-founder of the firm’s Dallas office. operations manager and a principal-in- Anthony B. Bouchard joined Boston- charge/project manager. Both are based in Following the retirement of President and based CDM Smith as North American unit the firm’s New York City office. COO Bill Rizzo, Acton, Mass.-based Geo- president. He is based in the firm’s Chicago comp Corporation formed a three-person office. Formerly, he served as executive vice Ed Wiegele was appointed senior vice executive committee that will manage firm president of AECOM’s Americas water president & pipeline services sector director operations: Gary T. Torosian, director of business. of Lowell, Mass.-based TRC Companies testing services; Cynthia Carleo, manager following its acquisition of the Professional of consulting services in Boston and Chi- Gary LaPaille was promoted to senior vice Services business segment of Willbros cago; and Jack Salerno, manager of con- president of government affairs of Broom- Group. Willbros Professional Services sulting services in New York and Atlanta. field, Colo.-based MWH Global. He for- becomes the fourth operating segment in All three were promoted from vice president merly served as vice president and is based the TRC portfolio and will be called “Pipe- to executive vice president and will report to in the firm’s Washington, D.C., office. line Services.” Wiegele will be based in founder and CEO W. Allen Marr. TRC’s Tulsa, Okla., office. New York City-based AKRF appointed Paul VanDuyne was appointed CEO and Jeffrey Vladyka senior vice president. He Amanda Schumacher joined Philadel- Zareh Astourian was named chairman of a will lead the firm’s construction manage- phia-based Urban Engineers as vice presi- new holding company, IMEG Corporation, ment/resident engineering and inspec- dent and director of corporate development. that will manage Rock Island, Ill.-based tion practice. He previously served as vice She previously served as associate vice presi- KJWW Engineering and Pasadena, Calif.- president and deputy director of construc- dent and marketing and business develop- based TTG Engineers following the merger tion management services at URS Corp. ment manager at T.Y. Lin International.

Stephen Lucy From left to right: Jack Salerno, Gary Torosian, W. Allen Marr, Bill Rizzo and Paul VanDuyne Zareh Astouian Cynthia Carleo

Anthony B. Bouchard Gary LaPaille Jeffrey VladykaGill Mosseri Ed Wiegele Amanda Schumacher

46 ENGINEERING INC. JANUARY / FEBRUARY 2016 Members in the News

Welcome New Member Firms Calendar of Events JANUARY 2016 19 Managing Project Risks: ACEC/Alabama North Arrow, Washington, D.C. Pyramid Environmental & Quantifying and Pricing Delays Geo Solutions, LLC, Huntsville Engineering, P.C., Greensboro ACEC/Minnesota and Inefficiencies (webinar) ACEC/California TEKTON Engineers, ACEC/Ohio BuroHappold Consulting Northfield DHDC Engineering Consulting 20 Condos—Why Do They Continue Engineers, P.C., Los Angeles ACEC/Mississippi Services, Inc., Columbus to Be the Most Litigious Project ACEC/Colorado Trilogy Engineering ACEC/Oregon Type? (webinar) Ambient Energy, Denver Services, LLC, Jackson Parkin Engineering, 21 World Bank Procurement Goff Engineering and ACEC/New Jersey Vancouver, Wash. Surveying, Inc., Durango M-Tec Construction ACEC/South Carolina Reforms Benefit Engineers Klok Group, LLC, Golden Services, LLC, Phillipsburg The Sheridan Corporation, (webinar) Russell Planning & RAD Engineers and Charleston Engineering, Inc., Durango 26 Do This: It Works. Your Step- Consultants PC, North Bergen ACEC/Texas ACEC/Greater Pittsburgh by-Step Guide to Authentic and ACEC/New York Century Engineering, Inc., Effective Presentation Skills T3 Global Strategies, Cuono Engineering, PLLC, Houston (webinar) Bridgeville Port Chester DECON, LLC, Houston ACEC/Hawaii Goldman Copeland Kuo & Associates, Inc., 27 Recent Developments in Design Hollingsworth Engineering, LLC, Associates, New York, N.Y. Houston and Construction Case Law Jade Stone Engineering, PLLC, M. Vassigh & Associates, Inc., Aiea (webinar) ACEC/Massachusetts Watertown Dallas FS Engineers, Inc., Maynard JHK Engineering, P.C., MDP Technical Services, Inc., 28 Get Noticed and Get Promoted New York, N.Y. Anahuac (webinar) ACEC/Metro Washington Precision Flow Engineering, CV, Inc., Rockville, Md. ACEC/North Carolina Duncklee & Dunham, P.C., Mansfield FEBRUARY Dulles Geotechnical and Rio Engineering, Inc., Austin Materials Testing Services, Inc. Cary 2 How to Win a Pitch: The , Stewart Consulting Services, Chantilly, Va. Energy Vision, Inc., Fundamentals That Will Indian Trail Humble Funkhouser Associates, Ward, Getz & Associates, LLP, Distinguish You From Your North Potomac, Md. Falcon Engineering, Inc., Raleigh Houston Competition on the Short-List JDos Internationalé, Inc., WGAnderson, LLC, Richmond (webinar) Washington, D.C. Kennerly Engineering & Design, Inc., Lexington 4 Successful Teams: Analyzing Your Organization Structure for Hatch Mott MacDonald to Split Strategic Success (webinar) 11 Grid Stability, Reliability and Hatch Mott MacDonald (HMM), which Nick DeNichilo, who is CEO of Hatch Resiliency: Technical, Economic has operated as a joint venture for Mott MacDonald, will continue to and Political Reality (webinar) 20 years—Canadian-based Hatch and lead the joint venture until the British-based Mott MacDonald—will company separation is finalized 12–13 2016 Small Firm Council Winter formally resume operating as two in early 2016. He will then Seminar—Next Stage Financials: distinct businesses. HMM’s Canadian become president and CEO of Valuation and Exit Strategy business will become part of Hatch, Mott MacDonald in North America, Essentials for Small Firms, Phoenix while HMM’s U.S. business will become while John Bianchini remains part of Mott MacDonald. CEO of Hatch. 16 Are You Playing Your Competitor’s Game? (webinar) New Member Spotlight: Ambient Energy, Colo. mbient Energy, headquartered Energy’s projects include Denver 24 Mergers & Acquisitions 2.0 (webinar) in Denver, provides innovative, Union Station; Cesar Chavez Memorial Acost-effective strategies that Building; Denver Museum of Nature MARCH improve the social and environmental & Science; San Francisco Air Traffic 23–26 Business of Design Consulting, impact of buildings. As third-party con- Control Tower; Aspen Valley Regional Denver sultants, the firm provides sustainable Hospital; and 1800 Larimer, Xcel Energy design, building performance engi- Consolidation. To sign up for ACEC webinars, go to neering, commissioning and occupant For more information about Ambient www.acec.org/education/webinars. engagement. Energy, visit the firm’s website at Additional information on ACEC activities Established in 2004, Ambient www.ambient-e.com. is available at www.acec.org.

JANUARY / FEBRUARY 2016 ENGINEERING INC. 47 Guest Column BY GLEN R. MANGOLD AND CHARLES W. KOPPLIN

Making a List and Checking It Twice: Managing Risk Through Awareness

f you want to be a high-performing professional liability policy, so the firm has the opportunity to firm, you need to develop a risk mitigate its risks by negotiating appropriate contract changes. A client that is unwilling to make changes may have unrealistic management culture. Start by expectations. If so, the best risk management response may be to deploying tools the entire firm walk away from the project. can use. When developing checklists, there is no need to re-create A firm’s risks come from services the wheel. Numerous business and technical societies, includ- performed, projects worked on, clients and ing ACEC, have developed checklist samples. The professional I liability insurance industry also offers checklists. Using these third parties. By making everyone aware of samples, a firm can tailor checklists appropriate for their firm the various types of risks and where they and type of practice. come from, design firms can mitigate their At the beginning of a project, it is important to discuss the potential risks with the client, including using client-supplied exposure and improve their bottom line. information and data. The contract should state that the firm can rely on the accuracy of the information. If the client is not Any repetitive task that a design willing to let the firm rely on the information, then data verifica- professional performs is a candidate tion needs to be included in the scope of services and the fee. for a checklist. Some of these tasks A well-vetted strategic plan can help a firm manage its risks include the evaluation of prospective because it provides guidance on not pursuing clients, services or clients, the go/no-go decision for projects where the firm has limited or no experience and exper- pursuing a project and a list of the tise. If the firm is venturing into a new area, the strategic plan services that will be performed for should contain guidance on how to manage those risks. When an engagement. taking on riskier engagements, the firm should charge an appro- Checklists help ensure that con- priate risk premium. sistent criteria are used throughout the entire firm. Checklists also help Role of PLI identify potential risks. A detailed A firm can transfer some of its risk by purchasing insurance. checklist of services is an excellent Glen R. Mangold This will not protect the firm from the risk, but it will, after pay- tool to show services required and ing deductibles, cover the costs up to the policy limits. However, performed by the firm as well as it will not cover the cost of lost staff time spent defending a services required but declined by the claim. client. This detailed list helps pre- By developing a firm-wide risk awareness and management vent disputes over the services that culture, firms can greatly mitigate their risks. Every employee are provided. needs to be a risk manager. Utilizing tools like checklists makes it easier to engage all employees as well as provide consistency Limited Services across the firm. Firms that engage their entire staff in risk man- Be aware, however, of a client that agement are among the top performers in the A/E industry. wants to limit the firm’s services. The extent of required services Glen R. Mangold, CPCU, is managing director of the architects/ performed by the firm is inversely engineers program for Markel Corporation, a leading provider proportional to the amount of risk Charles W. Kopplin of professional liability insurance. He has more than 25 years’ a firm takes on for the project. A experience in the insurance industry. He can be reached at review of past professional liability claims shows a correlation [email protected]. between a low amount of required services provided and an increase in the number of claims. Charles W. Kopplin, P.E., FACEC, has more than 40 years’ Another valuable checklist covers contract reviews. This list experience as a consulting engineer, including 14 years as the risk will help identify missing or onerous clauses. It is especially manager for an ENR Top 500 Design Firm. He can be reached at helpful to identify clauses that may be uninsurable under your [email protected].

48 ENGINEERING INC. JANUARY / FEBRUARY 2016 With ACEC RT to handle your retirement planning, you can do what you do best... engineering.

With the Trust and our team of investment professionals, we’ll help you manage retirement options efficiently and responsibly, with your participants in mind. And you’ll know you’re taking full advantage of all the benefits, options and participation savings available with ACEC membership. Giving you the peace of mind to continue doing what you do best...engineering. Visit, www.acecrt.com

For more information, contact Bruce McFarland, Executive Director ACEC RT at [email protected]

AD-002-08-2015 Choose health care by the numbers

Access to 99% Coverage1

Renewal 93% Rate2

More options. Preferred pricing. You belong with [OLLUNPULLYPUNÄYTZ[OH[JVUZPZ[LU[S`JOVVZL[OL (*,*3PML/LHS[O;Y\Z[[VKLSP]LY]HS\LPUU\TILYZ

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

Insured and serviced by:

1Network statistic based on GeoAccess information and UnitedHealthcare standard network access mileage criteria, 2013. 2Renewal rate based on average year-over-year ACEC Life/Health Trust persistency metrics. The American Council of Engineering Companies (ACEC), the ACEC Life/Health Insurance Trust and UnitedHealthcare Insurance Company are three separate legal operating entities and, as such, the organizations are governed and function independently. UnitedHealthcare’s services are provided with the authorization of the ACEC Life/Health Trust. Questions related to health benefi ts offered through the Life/Health Trust should be directed to 1-800-573-0415. Must be UnitedHealthcare insurance license products; and HMO products do not apply. ACEC membership qualifi cation is determined by the association. Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affi liates. © 2015 United HealthCare Services, Inc. UHCEW733974-000