March/April - CMAA

Chairman’s ReportChairman of the BoardWilliam Van Wagenen, Jr, Esq., CCMCH2MHILLPresident and Chief Executive OfficerBruce D’Agostino, CAEEditorJohn McKeonContributing WritersMaggie BeckwithMeghan JohnsonJudith Kunoff, AIA, CCMMartha MontagueCMAA is a 25-year-old constructionindustry association of more than4,800 firms and professionals whoprovide management services toowners who are planning, designingand constructing capital facilities andinfrastructure projects.Our Mission is to Promote andEnhance Leadership, Professionalismand Excellence in Managing theDevelopment and Constructionof Projects and Programs.CM Advisor, published bi -monthlyby the Construction ManagementAssociation of America, reports on andfollows the industry as a service toits members. Submission of articles,ideas and suggestions is appreciatedand encouraged.7926 Jones Branch Drive, Suite 800McLean, Virginia 22102-3303 USAPhone: 703.356.2622Fax: 703.356.6388Email: info@cmaanet.orgWeb: www.cmaanet.orgCMAA ©Copyright 2008,ISSN 1084-75327Reproduction or redistribution in anyform is forbidden without writtenpermission of the publisher.CMAA members receive this newsletteras a member benefit. Others are invitedto subscribe and receive six bi-monthlyissues for $49.95 (domestic) or $59.95(international). Advertising opportunitiesare available for each issue. Forsubscription or advertising information,please contact John McKeon atjmckeon@cmaanet.org.The Real Scope of the “Workforce Crisis”William Van Wagenen, Jr., Esq., CCM,CH2MHILLMuch attention is being paid, in almostevery industry, to the challenge ofattracting high quality young peopleto fill entry level jobs. But this is onlya small part of the “workforce crisis”we hear so much about.For all the publicity surroundingentry level recruitment and retention,many organizations face an equallyvexing situation at the top of theiremployment ladder.Potential “C” level executives areno easier to find than new collegegrads. Many of today’s CEOs are justas concerned about preparing theirown successors as they are aboutfilling their lower-echelon jobs.Many surveys have reported thatopportunities to learn and grow (orthe lack of such opportunities) are thebiggest factor leading employees tochange jobs. Even higher in the “orgchart,” valued employees are moreapt to jump ship when they feel theiradvancement route has closed.CMAA is working to build a ProfessionalDevelopment program that addressesevery step along the typical “careerpath.” At the Leadership Forum inBaltimore, the PD program for the firsttime will include sessions identifiedas suitable for particular career levels,from newcomers to senior managers.These PD programs should serve threepurposes. First, they should assurethat young newcomers to the businesshave the information and capabilitiestheir jobs will require, and that theirknowledge is accurate and up to date.Second, ongoing PD is a vital part of anystrategy to retain effective personnel.This includes providing opportunitiesfor established professionals not onlyto learn new things, but also to sharetheir knowledge with others throughteaching, mentoring and networking.Finally, a strongPD programshould helpcompanies identifyand groomcandidates fortheir top managementranks.What is theproper role of a national association inpromoting a robust workforce strategyamong its members?We can keep members abreast ofthe latest social and workplace trends.A good example was Chris Lee’spopular presentation at the NationalConference last October, describingthe diverse ways that different generationalgroups view their careers. Wecan provide information about nationalbest practices in areas like compensation,and deliver focused educationalprogramming in as flexible an array offorms as possible.The Association can also providepractical tools like our online CareerHeadquarters, where members canpost jobs and review resumes. We canspeak for the whole industry in promotingCM careers to students, a task wewill be approaching this year with avariety of new video and online tools.Perhaps most valuably, CMAA iscreating and promoting such newresources as the Construction ManagerIn Training (CMIT) program, which notonly conveys a basic body of knowledgeto early-career professionals, but givesseasoned pros a means of “giving back”by serving as mentors.This approach to workforce developmentrequires a long term view, andits vital first step is to recognize that itreaches well beyond career promotion.In fact, we’ll be tackling these issues, atevery level, for many years to come.2 CMAdvisor

CMAA NewsJapanese VisitCMAA HeadquartersA delegation of nearly 20 Japanese CM’smet with CMAA staff members recentlyto learn more about the CM market.The meeting took place in lateFebruary at CMAA headquarterswith the help of a translator. Thedelegates – representing the Ministryof Land, Infrastructure, Transport andTourism of the Japanese Government –were particularly interested in learningabout the process of introducing aCM system to their country.Several topics were discussed duringthe meeting including the differencesin delivery methods and comparingAgency CM to CM at-Risk. The enthusiasmgrew as CMAA staff explained theopportunities for training and educationoffered by the Association.“This is the third time we’ve hosted adelegation with a group from Japan,”said Bruce D’Agostino, CMAA CEO andpresident. “It’s exciting to branch outacross the world. Other countries arelooking to the US because we have themost advanced state of the CM system.”After the Japanese delegates visit toCMAA headquarters, they took part ina tour organized by the InternationalTrade Administration, Department ofCommerce to see some of the pastProject Achievement Award winnersincluding: the Alexandria SanitationAuthority Advanced Wastewater TreatmentFacility in Alexandria, Va., severaltreatment facilities in Lake Meade, Nev.and the Solano County GovernmentCenter in Fairfield, Calif.“I would like to thank CMAA for theelaborate explanation on the actualcondition of Construction Managementin the US and CMAA’s continuedeffort to spread an understanding of CMaround the world,” said Fumitaka Miura,the head Japanese delegate. “The Association’sinsight and creative approachto solving several issues regarding CMwas very instructive for us. Our delegationwas successful in achieving muchmore than expected.”2008 Trade Show Booths Now Available“We have found that being an exhibitoris the most effective technique to obtainthe quality one-on-one time we want,”says Frank Otero, president and CEO,PACO Group, Inc.“It is an excellent venue to meet otherprofessionals in the industry and gettop visibility with teaming partners,competitors and clients alike,” is theview of Rod Holtman, Sr. ProjectManager at Stantec.They’re describing the CMAA TradeShow, which will return in a new andimproved edition this fall as part of theNational Conference in San Franciscoon October 12-14. For 2008, CMAA hasadded a reception in the exhibit hall,eliminated other activities going onsimultaneously with exhibit hours andcrafted a new, more open floor plan.Exhibiting in the CMAA Trade Showputs a company in direct touch withone of the strongest professional audiencesin the construction industry. In2007, 80 percent of all attendees at theCMAA National Conference reportedthey had 10 or more years’ experience,and half of these attendees spent atleast two hours in the show hall.McDONOUGHBOLYARDPECKConstruction Engineering Services:Construction Management CommissioningProgram Management Construction InspectionRisk ManagementContract Admin/CloseoutConstructibility Review Dispute ResolutionCPM Scheduling/Analysis TrainingCost EstimatingMcDonough Bolyard Peck. Inc. (MBP) is a multidisciplinedconsulting engineering firm experienced in assisting clients inmanaging the construction process from initial budget, throughdesign & construction, to successful project closeout.Engineering News Record ranks MBP one of the top 100construction management firms in the country.www.mbpce.com | 8008989088Booth spaces in the hall range in pricefrom $2,000 to $2,300. Exhibitors willhave the use of pre-show and postshowmailing lists of attendees. Morethan 700 people are expected to turnout for the event.Returning exhibitors from 2007, givenan “early bird” opportunity to booktheir space, reserved about one-quarterof the spaces almost immediatelyduring February. As of March 1, the hallopened up to all potential exhibitors.CMAA hopes to exceed the 2007total of 41 exhibitors. For completeinformation including availablebooth locations, contact MarthaMontague at 336-492-6028 ormmontague@cmaanet.org.8 CMAdvisor

CertificationCongratulations, New CCMs!Congratulations to these CM professionals who have receivedearned their Certified Construction Manager distinction:Sudhir AgrawalTBI & Associates,Los Angeles, CAJeffrey AtkinsBarton Malow Company,Southfield, MIBlaine BarthInfrastructureEngineeringCorporation, CAAnthony BrownCalifornia Dept. OfParks and Recreation,San Diego, CALewis Buckingham IIIJacobs, Inc.,Arlington, VAThomas CalhounDMJM Management,Los Angeles, CAAntoine ChemaliConolly-Pacific Co.,Long Beach, CAClaudio DallavalleBolingbrook, ILSteve DowHarris & Associates,San Diego, CADan Dowell, PECH2M Hill,Portland, ORWilliam E. Dunning, Sr.Douglas E. Barnhart, Inc.,San Diego, CALawrence Peter EckersleyFreese & Nichols, Inc.,Fort Worth, TXKenneth R. Fulmer, PEUrban Engineers,Philadelphia, PATeresa Irby-ButlerMalcolm Pirnie, Inc.,Birmingham, ALChristopher JonesFreese & Nichols, Inc.,Fort Worth, TXMichael JonesMcKissack and McKissackMidwest, Chicago, ILZohreh KabiriLA County Dept. of PublicWorks, Alhambra, CAKiwesa King-YaraHill International,New York, NYPraduman MarajJMT Engineering,Sparks, MDColleen McDonoughLoudoun County,Clearbrook, VARichard MoeweBoise, IDFrederick MohrmannHDR, Inc.,New York, NYEric MudgeAllied BuildingCorporation,Center Valley, PAChristian PelusoDMJM H&N, Inc.,Arlington, VAShadrokh Abd SalehURS Corporation,Torrance, CALarry SmithUS Army Corpsof Engineers,Sacramento, CADavid WeheLEED AP,Hill International,Washington, DCWilliam W. WesselLEED AP,Jacobs Engineering,Oak Ridge, TNCCM ® ExamGoes OnlineThe CCM examinations administeredin February were a big step forward forthe Construction Manager CertificationInstitute (CMCI), representing the firsttime the exam has been administeredthrough an online vehicle, at numeroussecure sites all over the country, ratherthan in person at just one location.This wave of testing, which embraced10 sites nationwide, produced enoughsuccessful candidates to push the totalCCM roster even closer to 1,000.In all, 18 out of 24 candidates achievedthe required 75 percent passing gradeon the exam, which brought thetotal number of Certified ConstructionManagers to 991.Jan paul Miller, CMAA’s Vice President,Certification, points out that the moveto online testing provides severaltangible benefits, including:• More convenient locationsfor candidates• Enhanced security and oversight• Improved ability to measurecandidate responses, time spent,question sequence and othervariables, enabling CMCI toevaluate question effectiveness• Faster notification of examresults – as soon as 20 minutesafter completing the exam“Computer-delivered testing now offersbetter administrative control, conveniencefor test-takers, and better securitythan ever before,” Miller said. “CMCInow has options to deliver the test in avariety of models to address the needsof candidates.”CMCI has also added new content to itswebsite recently to improve the userfriendlinessof the application process.A new, updated FAQ (Frequently AskedQuestions) feature addresses areas ofgreatest interest to CCM candidates,and an article by CMCI Chair Rick Rye,CCM, outlines Common Mistakes onCCM Applications.March/April 9

Professional Practice CornerFour Key Project DecisionsChuck Thomsen, FAIA, FCMAAThis article is excerpted from Program Management: Concepts and Strategies forManaging Capital Building Programs, to be published by CMAA in April.Many years ago I worked on a mega-project in a country withlittle construction infrastructure. Our job was to devise theproject delivery strategy. We talked to everyone we could andheard deep convictions for an endless variety of approaches.Amid the confusion, we asked ourselves if there were somebasic principles we could understand that would encompassall the choices. And if so, how should they guide us? Thechallenge started a life-long pursuit to understand theprinciples of making a deal for design and construction.Begin with the owner’s natural desire to know what a projectwill cost and how long it will take. Add the fact that a designand construction operation involves hundreds, sometimesthousands of organizations and millions of parts. Considerthat many of the people will be working together for the firsttime, and most of the systems will be assembled in ways theyhaven’t been assembled before. Then think about the benefitof having subcontractors and manufacturers collaborate inthe design process and the contractual barriers to makingthat happen. Add in an unreasonably long delivery time,weather uncertainty, price fluctuations, political pressures,changing regulations and diverse contracting procedures.Then stir in the archaic traditions of the construction industry.Finding the best project delivery strategy becomes atleast as challenging as the technical demands of designand construction.Conflicting motivations shape the process. We want toprovide our clients with a contractually supportable definitionso the sheets of drawings and specifications grow, butat the same time, we look for ways to save time and startconstruction before the drawings are complete. We wantto choose specific products, but we want competition. Wewant to be professionals at our clients’ side, representingtheir interests, but our clients understandably wantresponsibility and accountability.Our clients staff their own organizations with architects andengineers to manage the AEs, CMs and GCs they hire. Theywisely define the process and cherry-pick companies andpeople to work with. Meanwhile they want to minimize thenumber of contracts.There are nearly infinite ways we assemble the nearlyinfinite number of interlocking parts required for a buildingprogram. All the processes exist because they satisfy differentmotivations to varying degrees. With good people, anyof the common processes can work.Many volumes written by project delivery pundits treat thesubject as an exercise in assigning risk. The basic concept isWith infinite choices, how does one go aboutchoosing? We worked out the following parametersfor decision making—and have been polishing andthinking about it ever since.that there is a fixed amount of risk in a project and it shouldbe doled out to the organization best equipped to managethat risk. That’s only partially true. A better thought is tobundle up a team, pick talent, build a collaborative cultureand create a process that minimizes risk for everyone.And there is another compelling school of thought that anowner can never fully shed risk. There are countless ways tocontest any agreement in the world of design and construction.So the trick is to design the project delivery process thatNationwide ConstructionSite Monitoring866-701-2020March/April 11

CM when the agency approach to a CM contract is used; orperhaps hundreds in the case of direct purchase of buildingmaterials, equipment and labor.Multiple contracts facilitate fast-track. Unbundling designand construction eliminates overhead markups and allowsselection of specialists, specific manufacturers and tradecontractors. The opportunity to save time and moneyand improve quality increases as the number of contractsincreases. So do risk and the burden of management. Clientswho work with multiple contracts must manage them wellor take responsibility for management failures. Consequently,most clients without strong CM staffs look for ways to packagecontracts under a contractor or a CM to manage the risk.QualificationsBrooks BillSelection criteriapriced proposalPriceIf the product or service is commonly available, easily defined andstraightforward to evaluate, selection can be based on price. Otherwise,qualifications must be considered.The selection criteria should be governed by what is to bebought. If it’s a common product, easily defined and easilyevaluated, there’s little reason not to choose based on price.But if it’s a proprietary product, or if value received is hardto measure (such as intellectual qualities of creativity,wisdom, judgment or experience) the selection will bebased on qualifications.bidTraditionally, AEs were selected with an emphasis on qualifications,and construction contractors were selected basedon a price for their product—the building. For the first 70years of the 20th century, the AIA had a code of ethics thatprevented members from quoting a price prior to selection.There was a fee schedule that the members agreed to. But inthe late 1960s, the Justice Department decided that professionalethics can’t intrude on anti-competitive prohibitions.About the same time, Congress passed the Brooks Billthat stipulated our government would select AEs basedon qualifications and negotiate a fee after selection.Meanwhile, specialization was marching on with more andmore subcontractors for a single project. Smart ownersrecognized that the management skills of a constructioncontractor were crucial to project success, and qualificationbasedselection of contractors became more common.Although the U.S. Government is still required to selectarchitects and engineers based on qualifications, mostprivate sector organizations consider price too. Selectionof architects, engineers and contractors typically includesboth price and qualification.Often, a sophisticated client requires a management plan aswell. A large developer with an in-house team of architectsand engineers may well have more experience with thedesign and construction of the kind of buildings they buildthan the AEs and GCs who work for them. So they will likelyshort-list good organizations and ask for fixed prices. Theyknow what they want and can tell whether they are gettingit. They may also be pressured to demonstrate competitionto their investment partners.Chuck Thomsen is Chancellor of the CMAA College of Fellows.He can be reached at charlesthomsen@charlesthomsen.com.Launch of Association’s SSA a successWith the ease of CMAA’s new Self Service Application,members have been able to access their profiles andinvoices, renew their membership online, print receiptsand browse the membership directory since thebeginning of February.As part of the Association’s new AMS, the SSA is online,meaning members can use it at their own convenience,any time of the day or night. Members can also shopin the CMAA bookstore or register for conferences andevents online with the AMS.All members were sent a detailed e-mail with their newpassword and login information, along with instructionsfor accessing the AMS.The SSA was the second phase of the AMS. The thirdand final phase will allow candidates sitting for theCCM exam to access their information and register foran exam site online.March/April 13

Legal CornerThe New AIA A201-2007 General Conditions FormThe American Institute of Architects’ new general conditionsform raises a number of important new issues for CMsand contractors. As was true for its 10-year-old predecessor(the A201-1997), the new A201-2007 form will serve as thegeneral conditions for a multitude of AIA form constructionagreements. In addition, the new A107-2007, although itdoes not cross-reference the A201-2007, contains a numberof general conditions provisions that mirror some of the newprovisions of the A201-2007.Although there are many provisions in the new A201 thatwill be of interest to CMs and GCs, this article focusesexclusively on some of the new rights and obligations ofthe parties and the new dispute resolution procedures.New Rights and Obligations of the PartiesNew requirements imposed on the CM/GC:• Review of contract documents and field conditions.Previously, the CM/GC could only be held liable to theowner for failure to notify the owner or architect of anonconformance of the contract documents if the Contractor“knowingly failed to report [such nonconformance]to the Architect” (emphasis added). Under the new A201,mere failure to report may give rise to liability.• Differing site conditions. A new provision requires the CM/GC to notify the architect if it recognizes “burial markers,archeological sites or wetlands not indicated on theContract Documents.” Given that even experts disagreeas to whether certain conditions can be so characterized,this provision may prove burdensome to the CM/GC.• Project superintendent. New provisions have been addedrequiring the CM/GC to promptly notify the owner of thename and qualifications of the proposed project superintendentand not change superintendents without theowner’s consent.• Submittals. Under the new form, if the CM/GC fails tosubmit a submittal schedule, it will lose the right to claimany monetary increase or time extension required forreview of submittals. In addition, the CM/GC’s submissionof shop drawings and the like now constitutes a representationthat the CM/GC has reviewed and approved them.Increased rights afforded the owner:• Owner’s financing. The CM/GC can no longer requestinformation about the owner’s ability to finance theproject at any time. Instead, while the CM/GC may sorequest prior to commencement of the project, it may onlydo so thereafter if (1) the owner fails to make a paymentrequired under the Contract Documents, (2) a change inthe Work materially changes the Contract Sum, or (3) theCM/GC “identifies in writing a reasonable concern regardingthe owner’s ability to pay. Clearly this is an area whereproblems are likely to arise.• Owner ability to issue joint checks or contact subcontractorsdirectly. A new provision permits the owner to issue jointchecks to the CM/GC and its subcontractor if the architecthas withheld a payment certification due to a failure ofthe CM/GC to pay its subcontractor(s). In addition, theowner now has the right to request that the CM/GCprovide written evidence of proper payment to its subcontractorsand suppliers and, if the CM/GC fails to providesuch evidence within seven days, the owner may contactthem directly.Reduced obligations of the architect:• Architect’s reporting duties. The architect’s site visits areno longer “as a representative of the Owner” and he/shewill no longer “keep the Owner informed” and “endeavorto guard the Owner against defects and deficiencies in theWork.” Instead, the architect will merely visit the site “todetermine in general if the Work observed … when fullycomplete … will be in accordance with the ContractDocuments” (emphasis added). In addition, the architectis only required to report “(1) known deviations formthe Contract Documents and (2) defects and deficienciesobserved in the Work” (emphasis added).Dispute Resolution ProceduresThe new A201’s dispute resolution procedures are far morecomplex than the prior version, but also more flexible.First, the aggrieved party presents its claim to the “InitialDecision Maker.” In the past, that person was always thearchitect, but now the parties can designate someone elsein the Contract Documents.If one party is not satisfied with the Initial Decision Maker’sdecision, that party may then request mediation, but theprocedure is a strange one – the disgruntled party mustdemand that the other file for mediation and if not done,then that other party waives its rights to mediate or arbitrate/litigatethe “initial decision,” which allows the winnerto avoid mediation.After mediation, the parties may then pursue either arbitrationor litigation, depending on what they had agreed uponin the Agreement. If arbitration is selected, the parties’ arbitrationmay be consolidated with other arbitrations providedthree specific criteria are met. These provisions are all new tothe A201, as are many others related to dispute resolution.Given the complexities and changes set forth in the newA201-2007, construction managers and contractors wouldbe advised to be sure their attorneys are fully familiarwith its terms.14 CMAdvisor

Member NewsSGI Appoints Terhune asPresidentSGI Construction Management promotedCharles H. “Chuck” Terhune III, PE,to president.Terhune brings nearly 35 years of experiencein Engineering, Procurement,Construction and Business Operationsto his new role.“We are very excited to have Chuck leadour team. Chuck not only brings a greatwealth of knowledge and experience,but also the reputation we need to helpcontinue to expand and grow our business,”said Rene J. Flores, Sr., SGI’s CEO.Larson to ReceiveDistinguished ConstructionManagement AwardCMAA DirectorRandy L. Larson, PE,CCM, GC, has beenselected by theConstructionInstitute (CI) ofthe AmericanSociety of CivilEngineers (ASCE)to receive its 2008 ConstructionManagement Award.“Randy was chosen for this award forhis outstanding leadership and innovativemanagement of the constructionof major infrastructure projects andhis tireless commitment to the profession,”said Patrick Natale, PE, ASCEExecutive Director. “In selecting himfor this award, the committee particularlynoted his management skills thatallowed major infrastructure projectsto be completed ahead of scheduleand under budget.”With more than 30 years experiencein construction, Larson currently servesas the executive vice president ofThe PBSJ Corporation. He has beenwith PBS&J for 21 years.Pepper Construction andMangieri Companies ToBuild New Hospital FacilityPepper Construction of Chicago andMangieri Companies of Peoria, Ill.were selected for the construction of anew $90 million facility for St. Margaret’sHealth.The 200,000-square-foot 65-bed hospitalwill include a medical office building.“It’s rewarding to team up with acompany I used to work for nearly14-years ago,” said Pete Mangieri, ownerof Mangieri Companies, Inc. and aformer Pepper Construction employee.“I truly feel both companies place ethics,trust, and relationship retention aheadof profits.”Hill International, Inc.Celebrates Transfer to NYSE,Other AccomplishmentsHill International began trading onthe New York Stock Exchange on Feb.22 under the ticker symbol “HIL” aftertransferring its listing to the NYSE fromNasdaq.“(This) was a tremendous milestonefor our company and for me personally,having started Hill as a one-man consultingfirm 32 years ago,” said Irwin E.Richter, Hill Chairman and CEO. “Joiningthe NYSE more than three decadeslater is a great accomplishment forour company and our employees.”In other news, Hill Internationalacquired 60 percent of the outstandingcapital stock of Gerens ManagementGroup, S.A., a Spanish-headquarteredfirm that provides project managementservices on major construction projectsthroughout Spain as well as in WesternEurope and Latin America.Also, Hill International won a contract toperform CM services for the modernizationand preservation of the Museumof the City of New York. The two-anda-half-yearcontract has an estimatedvalue to Hill of about $1.6 million.WESTON to ProvideCM Services for Port ofLong Beach, CAWeston Solutions, Inc. received anaward of a $12.4 million contract forProfessional Construction ManagementServices for the Interim/SourceRemoval Action at Pier A West/Area 2,Port of Long Beach (POLB), CA.“This award is evidence of our continuingsuccessful relationship with the Portof Long Beach,” said Patrick G. McCann,WESTON president and chief executiveofficer. “We are particularly pleased thatour integrated business teams haveworked together to provide additionalconstruction services to a valued client,while at the same time supporting theirenvironmental programs.”WESTON will be responsible forperforming and overseeing all dutiesnecessary for successful delivery of theproject, including, but not limited to:Construction Management and constructioncontract administration; fieldinspection; surveying; geotechnical,environmental and material testingservices; and coordinating constructioncontractors and subcontractors.GREYHAWK Promotes FourGREYHAWK elevated four of its employeesto the title of Principal: AnthonyCaletka, Charles Boland, CharlesCaramanna and Edward Johnston.Caletka serves as managing directorof GREYHAWK Global Ltd. and specializesin project management, disputeresolution and due diligence audits onlarge capital expenditure projects. Heworks from the firm’s Binghamton,N.Y. location.Boland is regional operations manager,Construction Consulting, basedin Moorestown, N.J. He is responsiblefor the preparation and evaluationof contract claims on a variety of constructionand manufacturing projects.Caramanna serves as regional operationsmanager, Construction Managementand is recognized for his expertise inMarch/April 15

Member Newsprogram management and his abilityto successfully complete complex constructionprojects. He currently servesas project manager for a large publicschools capital program in New Jersey.He is based in Manasquan, N.J.Johnston is chief financial officer inthe company’s Woodbury, N.Y. office,assisting construction claims consultantsby identifying contradictions orinconsistencies related to the financialhistory of a construction project.James Peck, PE, CCMPromoted to Vice PresidentMcDonough Bolyard Peck, Inc. (MBP)announced the promotion of JamesPeck, PE, CCM to Vice President.As Branch Manager of the firm’s Columbia,Md. office, Peck oversees analyticaland field operations throughoutMaryland and Pennsylvania and hasbeen responsible for significant growthin the firm’s federal sector services overthe last several years. In his role as VicePresident, he joins the Executive Teamto build on MBP’s strategic outlook.Prior to joining MBP, Peck served morethan 20 years in the US Navy Civil EngineeringCommand that concluded withhis management of the $400 milliondesign and construction program atthe Naval Academy in Annapolis, Md.Livengood Joins PinnacleOnein Washington D.CPinnacleOne announced that JohnLivengood has joined the firm as AVPof Construction Claims Services. In thisrole, Livengood will lead PinnacleOne’sWant to share yourfirm’s or organization’snews with otherCMAA members?Send your member newsupdates to Maggie Beckwith,Communications Associate,at mbeckwith@cmaanet.org.Please keep your submissionsno longer than 200 words.16 CMAdvisorconstruction claims services to thegreater Washington, D.C. metro area.“John is a recognized leader andauthority in construction claims,” saidJoseph Seibold, Executive Vice Presidentof PinnacleOne. “He continuesthe legacy and success of PinnacleOnein this region. In conjunction with theexpertise and resources of ARCADIS,I am excited for the opportunitiesand services that we will provide toour clients.”Livengood brings more than 30 yearsof experience in claims analysis andresolution, architecture, law andproject management. An architect andan attorney, he brings perspective andexperience in construction litigation,government contracts, claims analysis,international contracts and arbitration.Harrington to SucceedMcNulty as Parsons CEOAs part of a planned succession,James F. McNulty, chairman and chiefexecutive officer of Parsons Corporation,will relinquish his role as CEOeffective May 20, 2008.The 65-year-old McNulty will remain aschairman, while Charles L. Harrington,the current executive vice president,chief financial officer and treasurer, willtake over as CEO. With over 25 yearsexperience with Parson, Harrington, 49,started as an engineer and progressedthrough project management of largeprograms for federal governmentand private industrial clients tobusiness development, operationsand division management.“Our Board and I have great confidencethat Chuck’s experience and leadershipabilities make him uniquely qualifiedto lead Parsons and to drive continuedprofitable growth,” McNulty said.Ozanne, Kwame andMWH Selected forNew Orleans ProjectThe Orleans Parish Justice Facilitiesannounced that Ozanne ConstructionCompany, Kwame Building Group andMWH will provide Program ManagementServices for the its redevelopmentplan. The plan includes building a newjail facilities and a police headquartersand consolidating the municipal, traffic,civil and criminal courts.25-Million Contract Awardedto DMJM AviationDMJM Aviation, Inc. received a $25-millioncontract from the Los Angeles Boardof Airport Commissioners in Marchfor program management services tosupport the Los Angeles InternationalAirport (LAX) Development Program.As part of the one-year contract, DMJMAviation will organize a delivery teamto advance projects on the MidfieldSatellite Concourse, Tom BradleyInternational Terminal (TBIT) expansionand related developments such astaxiways, tunnels, aircraft ramp areasand utility improvements. The contractalso includes repair and replacementprojects which need to be performedto enable construction of these majorprojects to begin.DMJM Aviation partnered with ParsonsBrinckerhoff on this contract.CMAA Member PromotesBill to Protect Children fromSexual PredatorsSandy Loy, president of ConstructionPlus, Inc., was one of the prime moversbehind a new Tennessee law requiringbackground checks on constructionemployees working on school grounds.For years, Loy said, he has voluntarilyconducted background checks on hiscompany’s employees working onschool projects. “When I went to (State)Sen. Jamie Woodson to suggest thatbackground checks were a good ideato protect children, she saw the valueimmediately,” Loy said. “Predatorsshould not have authorized access tochildren in their places of learning.”Vanir Wins CA CorrectionsPM ContractVanir Construction Management,Inc. has been selected by the State ofCalifornia Department of Corrections

CMAA Foundationand Rehabilitation (CDCR) to provideprogram management services forthe Secure Reentry Program Facilities.Funding for this program is $2.7 billion.This contract includes assisting theCDCR in the planning, design andconstruction of 32 Reentry Facilities.The Secure Reentry Facility is a modelin which smaller facilities and strongerrehabilitation programs prepareFoundation’s Capital Campaign in Full SwingChristine Keville,FCMAA, FoundationChairman, KevilleEnterprises, Inc.The CMAA Foundationis delightedto report that ourCapital Campaign,“Construction Managers Building ForThe Future,” has exceeded 50 percent ofour $500,000 goal. This is truly amazingsince we just launched this campaignlast year. I want to thank all of our generouscontributors who are listed at theappropriate donor levels in the box.A number of our members have trulygone “above and beyond” in theirsupport of the campaign. PBS&J, forinstance, has not only made a five-yearpledge but has paid it in full, well beforeit was required to do so.Randy Larson explains his company’saction this way: “We just wanted tomake a difference. We feel we haveenjoyed tremendous success from ourcorporate commitment to CMAA interms of Professional Developmentand other benefits, and supporting theFoundation is a way for us to step up, to‘put our money where our mouth is.’”Funds raised by this campaign willhelp us:• Continue our annual nationalscholarship program;• Provide meaningful research anddevelopment; andoffenders for life outside prison, duringtheir last 12 months of incarceration. Itwill be mandatory that all new constructionachieve LEED Silver certification.The total program will cover 10 yearsand include up to 16,000 new beds.Vanir’s team includes DMJM H&N, TheLouis Berger Group, Inc., Carter GobleLee, Criminal Justice Institute, Inc., andJ.R. Conkey & Associates, Inc.• Produce a number of CM recruitmenttools tailored to students, describingthe importance of CM/PM and therewarding career paths offered byour industry.The recruitment tools would include aCM recruitment video and a collectionof web-based multimedia resources. Therecruitment video would enable CMAAchapters to present to students anddiscuss the profession, answer questionsand make personal connections withthese individuals. The students wouldbe able to connect with real practitionersin their local area and be able to pointto real projects of interest.The Web-based recruitment tool wouldbe brief video/audio clips of youngprofessionals working in our industryspeaking about why they joined ourindustry, challenges, opportunities,career goals, and why they love their job,etc. Elements of this video campaigncould be posted on Facebook and similarsocial network sites, along with CMAA’sown website and others in the industry.The Foundation Board is very excitedto embark on these projects and weare hoping that the majority of CMAAmembership will get involved. Ourultimate goal is for 100 percent ofCMAA membership to proudly wearthe Foundation pledge pin.Donors will be recognized on theAssociation’s website, in newslettersand at conferences. Donor gifts willbe distributed at various levels. Todonate, please contact Laura Odomat lodom@cmaanet.org or visit theFoundation website at cmaanet.org.Capital Campaign Pledge DonorsVisionary – $5k/yearArcadis/PinnacleOneCH2M HillKeville EnterprisesParsons BrinckerhoffPBS&JChampion – $2k/yearHNTBMcDonoughBolyard PeckSummit AssociatesVanir ConstructionManagementLeader – $1k/yearAnalyticalPlanning ServicesBrookwood ProgramManagementHazen & SawyerHill InternationalHoar ProgramManagementJoe McAtee, FCMAAMansour Aliabadi,FCMAA, CCMParsonsPSOMASSTVUrban EngineersMentor – $500/yearBond Bros.DeMatteisInternational GroupDick CorporationD.J. Mason, PEGREYHAWKJacobs EngineeringGroupQuintessential LLCRockmoreContractingCorporationCapital CampaignOne-time DonorsChristopher Reseigh,FCMAA – $5,000URS Corporation –$5,000Charles Kluenker,FCMAA – $2,000Ken Rice – $1,500Donald Russell,FCMAA, CCM – $1,000Fred Kreitzburg, PE –$1,000Michael Baker, Jr.,Inc. – $1,000ProjectMediation, Inc. – $500Rummel Klepper &Kahl – $500SwinertonManagement &Consulting – $500General Fund DonorsAnn DonahueCotter ConsultingCrosslandConstruction Co.DurrantEdwin S. FieldGallagher ConstructionServicesGlen GandyH. Donald LafordHNTBJLR ConstructionManagementJohn IlasinJohn MudnichKevin L. English, CCMKlauder & AssociatesMichael Baker, Jr.Michael KuenyMWH Americas, Inc.PSOMASRichard L. RyeRobert A. Sachse, CCMRoger MitchellThomas A. Donnelly, Jr.Trogon ConstructionManagementTwining LaboratoriesUnited PropertiesMarch/April 17

Chapter NewsChicago ChapterThe Chicago Chapter announced at its February luncheonthe creation of a new scholarship program for high schoolstudents at the ACE Tech Charter School located in Chicago,Illinois. ACE Tech is the only charter high school in Illinoisthat focuses its curriculum towards architecture, constructionand engineering. It was formed by a group of Chicago’sconstruction industry leaders whose goal was to preparehighly qualified inner-city youths to fill the future growingemployment needs in the construction industry.ACE Tech serves as a model for the next generation of qualityvocational education programs. Students will participate in arigorous curriculum while also being exposed to the technical,managerial, and professional aspects of the constructionindustry. This exposure prepares students to make informeddecisions about their future careers and provides them thelife skills necessary for sustained professional and personalsuccess. More information is available on the School’swebsite at www.acetechnical.org.This new scholarship coincides with the first graduating classfrom the school. In attendance at the meeting were six studentsand two faculty members from ACE Tech High School.Houston ChapterThe CMAA Executive Committee chose Houston as the locationfor its February meeting in order to provide leadershipand guidance in promoting the Houston Chapter, discussviable ways to build membership and meet with potentialchapter members. Jacobs Carter Burgess was honored toserve as the host for this meeting. While in town, membersof the CMAA Executive Committee met with the City ofHouston’s Public Works and Engineering Construction andEngineering Division, Harris County Infrastructure’s ConstructionDivision and the City of Pearland’s Capitol ProjectsDivision as potential owner members.The CMAA Houston Chapter and the City of Pearland’s CapitolProjects Department co-hosted the Webinar presentedby CMAA Chairman of the Board Bill Van Wagenen, CCM, onProgram Management in February.Bruce D’Agostino, CMAA president & CEO, Hugh Brightwell,chapter president, and Mark Johnson, chapter vice president,met with Joe Myers, president of the Houston Post, todiscuss opportunities to collaborate on programs, education,and mutual support in the Houston and southeast Texasarea. Plans are being made for the CMAA Houston Chapterand the SAME Houston Post to co-host the Chapter’s annualClay Shoot-Out in May/June and also to co-host a presentationon Alternate Delivery Methods in June at the monthlySAME Post meeting.Minnesota ChapterOn Feb. 21, the Minnesota Chapter sponsored a seminartitled “Project Management Information Systems in18 CMAdvisor(Left-to-Right) Kevin McCourt (UMN), Mike Perkins (UMN) andBill Breyfogle (MnSCU).Minnesota Higher Education – The Unifier.” One hundred andforty attendees from CM firms, design firms, contractors, andowner organizations gathered in the St. Paul College auditoriumfor continental breakfast, networking, and the program.Two of the speakers represented the University of Minnesota:Mike Perkins, associate vice president, Capital Planning/ProjectManagement, and Kevin McCourt, businessmanager, Design & Construction Services. The third speaker,a member of the chapter’s Board, was Bill Breyfogle, director,Design and Construction for Minnesota State Colleges andUniversities (MnSCU).Together, UMN and MnSCU control two-thirds of all statefacilities in Minnesota. Choices these institutions make inproject delivery have significant impact on the design andconstruction industry for higher education within Minnesota.The UMN and MnSCU have each acquired a license touse a program/project management information softwarefrom the Skire Corporation known as “Unifier” to assist inmanaging their design and construction capital improvementsprogram. Unifier addresses the planning and executionof capital projects and easily adapts to optimize avariety of business processes. Unifier provides software tohelp manage information through every phase of a programor project, from planning and design, through procurement,project execution and into operations and maintenance.The presentation, followed by a question and answer period,was well received and the audience stayed well beyond thescheduled seminar end time.Southern California ChapterThe Southern California Chapter looks forward to its 16thAnnual Awards Banquet on April 2. This event has enjoyedcontinued growth and success over the years – the chapterhad to change venues to accommodate this ever-growingattendance. It is expected this year’s event will be attended byover 500 owners, CM practitioners and others who support theConstruction Management Industry in Southern California.The Awards Banquet includes recognition of Project Achievementby the members in a variety of sectors and projectsize. In addition, the chapter honors representatives of localowner agencies who participate in CMAA and promote theContinued on page 20

President’s ReportThe Payoff From Changing BehaviorBruce D’Agostino, CAEMark Twain once noted that if a cat sits down on a hot stovelid, he’ll never sit down on a hot lid again. The problem, Twainadded, was that the cat would never sit on a cold one, either.What have stoves and cats got to do with Construction Management?These days, a “once-burned” mindset dominatesthe interactions among participants in a construction project.A typical contract is a thick sheaf of papers nearly all dedicatedto how the parties are going to assign blame and calculatedamages when the project goes awry…which everyoneassumes it will.This orientation was very visible to me when I participated inthe recent Ohio Construction Conference in Columbus, Ohio.To my surprise, one general session turned into an extendeddiscussion of the various model contract documents availabletoday, including ours.With my turn at the microphone, I suggested that rather thancodifying behaviors that assume failure, we should all beworking toward more effective collaboration for the benefitof the project and the owner.This is, of course, easier said than done. We work in an environmentof accelerated scheduled, tight budgets, limited staffresources and higher risk for everyone involved in a projector program. The long-standing relationships that formed thebasis of “agreements” has been replaced by one-time contractsin which risk and reward are evaluated, and expected,on each and every project.A construction job requires the owner, CM, architect/engineer,general contractor, specialty subs and suppliers to work closelytogether. Each, though, has his or her own interests and oftenfeels there’s very little margin for error. It’s easy for a laudablebusiness prudence to evolve into suspicion and opportunism.On the other hand, CMAA sees scores of highly successfulprojects every year in our Project Achievement Awardsprogram, and we’re struck by how many of them havecertain key behavioral features in common.“We just worked well together,” team members may say.Or, “When there were disagreements, we resolved themand moved on.”Consultant and author Steven M. R. Covey has described theconcrete business benefits of high trust, and the correspondingcosts borne by low-trust organizations and alliances.When trust goes down, he notes, speed goes down with it.That’s because every decision must be committed to writing,circulated, revised, reinterpreted and re-circulated beforeanyone is ready to take an actual step.Conversely, when trust goes up, speedgoes up and costs go down. This is adividend, a high-trust dividend.In today’s global economy, the abilityto establish trust is key to every organization.In a cluttered world, trust helps you cut through theclutter. It is a performance multiplier.When people trust you, everything else you do is enhanced.More critically, trust is an acquired characteristic. It is somethingwe can create, practice and improve.It all starts with personal and organizational credibility. Do wekeep our commitments? Do we only make promises we knowwe can keep? Or is some portion of our business plan based ontaking advantage of other participants’ errors?Rather than codifying behaviors that assumefailure, we should all be working toward moreeffective collaboration for the benefit of theproject and the owner.It’s common enough to find a contractor in today’s marketplaceoverlooking a gap or mistake in project plans becausehe hopes it will create a profit opportunity through a changeorder later on. Or another project participant opting not tosuggest an improvement because he/she knows others on the“team” will dismiss the idea or react with hostility.The professional CM/PM is in the best position to promotean atmosphere of collaboration, transparency and trust.Moving in this positive direction requires changing longestablishedbehaviors, which is much harder than modifyingcontract language. But if all the energy our industry putinto self-protection and risk shifting were devoted insteadto optimistic, trusting and trustworthy collaboration, we’dsee an extraordinary payoff in speed and productivity.March/April 19

Professional Development CalendarCMs TalkLive! Online Webinar:April 24: CM at Risk: Identifying and Minimizingthe Potential for Conflict of Interest,Presenter: Chuck Kluenker, PE, FCMAA,Executive Vice President, ParsonsWebinars take place 12:00 noon to 1:00 pm, Eastern time.Leadership ForumMay 18-20:Marriott Baltimore Inner Harbor at Camden YardsBaltimore, MarylandRegister online today!Transportation SummitJuly 20-21:Gateway SheratonLos Angeles, CaliforniaCMAA NationalConference & Trade ShowOctober 12-14:Hyatt Regency Embarcadero HotelSan Francisco, CaliforniaContinued from page 18utilization of Construction Managers for the successfuldelivery of their projects. This year, Will Kempton, directorof the California Department of Transportation, is confirmedas the keynote speaker.With the recent approval of a number of ballot initiatives thatauthorized the funding of roadway improvements throughoutthe state, Kempton’s attendance will surely draw interestfrom the Southern California Chapter membership as well asothers. The Awards Banquet also recognizes with scholarshipsthe achievement of university students studying ConstructionManagement. It is expected the scholarships awarded in2008 will surpass by at least 15 percent the 12 scholarshipsawarded in 2007 with a total of almost $30,000.In January, the Chapter hosted its best attended Owners’Night ever. This annual marquee event, which brings ownersand industry professionals together in an exhibit hall styleset-up, was attended by 475 people. The event provides awonderful opportunity for owners to share information aboutupcoming programs and projects and have one-on-one interactionwith interested consulting and construction firms.Owners came prepared with hand-outs and informationabout current and upcoming opportunities for ConstructionManagement, Program Management, architectural, designbuild,general contracting, and small and disadvantagedbusinesses, to name a few. Projects ranged from the multimillionto the multi-billion dollar range. The CMAA SouthernCalifornia Chapter is proud to have been the catalyst for thisincredible fusion of opportunity and talent.Construction ManagementAssociation of America7926 Jones Branch Drive, Suite 800McLean, Virginia 22102-3303 USA