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lndiono Architect is the officiol publicotion of the lndionoSociety of Architects

Volume 24, No. 4 Third Quorter,l9Sl

From the PresidentEnergylA Roundtoble

Construction FinoncingDesign-bid-build:

o controversy revived?The Code BoordTrocingsCorrections

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PublisherEditorArt Direclor

Ted RowlondKotherine Stuort Ewing

Bruce Neckora

AdverlisingTed RowlondP.O. Box 69Noblesville, lN 460603171773-1829

ISA Edttoriol Boord: Lynn Molzon. FAIA, choirmon; Stonley Dziocko, Al,\ Edmund L. Hofer, AIA; Williom C. Moe, AIA Deon L. Upshow. AIA

The moteriol in this publicotion does not necessorily reflect the opinions or beliefs of the lndiono Society of Architects or of lmoge Builders/Rowtond printing Co., lnc,lndiono Architect (ISSN 04458605) is owned by the lMiono Society of Architects ond is published quorterly eoch yeor with o speciol issue in June by lmogeBuilders/Rowlond Printing Co,. |rrc.. 199 North Ninth Street. PO. Box 69. Noblesville. Indiono 46060. Subscdptions ore Sl2.5O per yeor. Second-Ctoss postoge poid ot In-dionopolis, lndiono. POSTMASTER: send oddress chonges to PO. Box 69. Noblesville, lN 46060. Copyright l98l by lmoge Buitders/Rowtond priniing Co,,-tnc. Ail rightsreserved.

From thePresident

1. t seems os though we hove just finished o veryI lengthy legislotive session ond now we find our-I selves moking plons for the next one, You moyrecoll thot omong the numerous bills offecting or-chitects which were introduced in the lost session, thenumber one issue wos Construction Monogement.There is o strong possibility thot the number one issueduring the l9B2 legisloture will olso involve construc-tion. This issue of lndiono Architect focuses on o verytimely problem - construction finoncing, Although thissubject con be very brood ond include oll phoses ofconstruction, one oreo of importonce is the methodof finoncing schools in the stote of lndiono.

There hos been o Legislotive Council directiveissued which mondotes thot, "A committee is

estoblished to study funding olternotives for the con-struction of public schools, ln porticulor, the commit-tee sholl exomine the use of cumulotive building funds,the use of public ond privote school building holdingcorporotions, ond the use of bonding. The committeewill olso exomine the impoct of using uniform con-struction stondords for oll school buildings in lndiono,"

This study committee hod heorings on July 15,

August 6, ond August 11, during which school od-ministrotors, educotors ond exponents of voriousschool construction methods testified. Of specificconcern to the ISA were discussions on stock schoolplons ond design-bid-build, A review of our legislotiveconcerns in the lost 10 yeors indicotes thot the ISA hostoken o very strong stond ogoinst both of thesemethods. Severol ISA members hove spoken in op-position to these methods on numerous occosions toheoring committees, At this time we do not knowwhot the study committee will recommend, However,we mointoin o very octive surveillonce of thelegisloture ond will keep you informed of whot is

toking ploce,

ln the current issue of "Sketches," the ISA newsletter,I reported on the long-ronge plonning report, 1981,

which wos sent to me by the notionol AlA, I think theconcluding stotement of thot report is very opropos tothe chollenge thot foces our profession ond specif-icolly the lSA, "The generol public's perception of theproctice of orchitecture ond, indeed, the norrow viewheld even by some proctitioners tend to limit the op-portunity for leodership ond diversificotion in the fieldof orchitecture. While mony orchitects seem to becontent to be designer/technicions rother thoncreotors of the totol environment ond monogers ofthe creotive process, our free enterprise society is cry-ing out for imoginotive, creotive ond strong leodershipin these oreos so criticol to the present ond futurewell-being of humonity. Thot is why orchitects need oprofessionol orgonizotion focused both inword otmembers' immediote concerns ond outword of thesociety the professionols must serve. This requiresfostering understonding of the colloborotion ondleodership of the design profession ond the buildingindustry. lt meons cooperotion with other leoders ofevery mojor sociol institution. Finolly, it necessitotescleorly communicoting to members of the professionond to the public thot orchitecture is more thondesign. lt is the monogement of the totol building pro-cess, the odoptotion of the built environment to theneeds of the people who live in ond use it."

Williom C, MoePresident

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ENEBGY:by Lieutenont Governor John M. Mutz, Director

lndiono Deportment of Commerce

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With construction ond finoncing costs os high osthey ore, ond with the need to conserve energybecoming more cruciol ollthe time, Governor Orr ondI wonted to brooden the scope of tox breoks ovoil-oble to builders ond homeowners who use olternoteenergy sources. Three of the bills in our lg-billeconomic development pockoge which possed thisyeor's Generol Assembly ore good storts in the rightdirection.

. House Enrolled Act 1786 provides on income toxcredit for geothermol ond hydroelectric energysystems.

o House Enrolled Act 1886 creotes o property toxdeduction for geothermol ond hydroelectricenergy systems.

o House Enrolled Acl1714 mokes oil shole conversionsystems eligible for the property ond income toxdeductions olreody ovoiloble for cool conversionsystems.

Homeowners con benefit from switching of leostport of the lood for their energy requirements to oneof these olternote systems, Builders ond owners ofhousing developments ond commerciol buildings conprofit from the tox breoks by using on olternotiveenergy system, even though the first costs of the con-struction project moy be higher becouse of theenergy soving devices,

Technology ond opplied reseorch hos brought oilshole, hydroelectric ond geothermol systems out ofthe Rube Goldberg stoge. Mony good systems oreovoiloble, olthough they obviously con't be used inevery building situotion. Solor collectors on businessbuildings ore just now becoming common enough notto rote o second glonce from possing motorists, Thesetox progroms ond the existing tox credit for solorenergy opplicotions should help moke soving energyoffordoble ond ottroctive.

_ ln" ldlono Deportment of Commerce EnergyPolicy Division will determine if on energy systemquolifies for the income tox credit ond property toxdeduction ollowed for geothermol ond hydroelectric

The tar benelits oIalternalive energy sources

17 othing hos- fueled godgetry like the energy

N il"Jl%T,it3?& :?T?v:?''. "?t8{%9s?Hfispewing out doo-dods supposedly designed to sove

energy by the oil borrel-full. With so mony godgetsoround, solesmen with disploy coses full of the stuffhove probobly been to your office touting their lotestmorvels of energy efficiency,

_ Telling the winners from the clinkers is chollenging.Equolly importont is figuring how to design ond 6uildenergy efficient buildings while keeping costs down.There is nothing to be goined, ond much to be lost,from on energy wosteful building. The key is to build onefficient building ond bring it home of or underbudget.

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power, The income tox deduction for oilshole conver-sion systems will be ollowed on stote returns if ofederol income tox depreciotion deduction is ollowedfor the some system.

The new lows hove different beginning ond endingdotes, The income tox credit for geothermol ondhydroelectric con be cloimed on your l9B2 returns ondexpires Jonuory l, 1985. The property tox deduction

Energy:

erw semlnorsdnd Audits

opplies to property tox stotements filed ofterDecember 3.l, l98l, The property ond income toxdeduction for oil shole conversion systems opplies totoxoble yeors ofter December 3.l, l98l ond expiresJonuory l,l99O.

For more detoils, contoct the Deportment of Com-merce Energy Policy Division, 44O North MeridionStreet, lndionopolis, lndiono 46204, 317 /232-8940.

En

Within the lndiono Deportment of Commerce,Division of Energy Policy, fhe five energy specio/lsts tnfhe Field Asslsfonce Bronch help to serve fhe energymonogemenl needs in lndiono's commercioL in'dusfriol, institutionol, governmentol ond non'profifsectors.

Their voried servlces include on-site oudtts ondsemlnors deslgned fo promofe energy conservofionthrough befter monogement of energy-relofedsysfems, Audifs involve fhe use of o comprehensiveenergy oudit form, o detoiled on-site evoluotion ondpersonolized recommendotlons toilored fo idenfifythe best, mosf oppropriole conservofion rneosures.To dofe, fhe mojority of lndiono's cities, fowns ondcountles hove token odvontoge of fhis free service,

The one-doy seminors, ovoiloble upon requesf tothe profit ond non-profif seclors olike, con be eitheroreo-specific, or industry/butTdrng specific. Seminorshove been given fo Boy's C/ubs, fire stofions, fhehofellmofel industry. the sfone/cloy/gloss indusfry,the chemicol indusfry ond the primory metols in'dustry. /n September ond Ocfober o serles ofseminors will be held for boiler operofors ond for

religious buildings personnel. Boiler seminor emphosrswill be on providing fechniques ond methods fo in-creose boiler efficiency, while fhe religious buildingsinsfrucfionol fheme will torget unique orchifecfurolconsiderofions, usoge pofferns ond ln-housemonogemenf . Future indusfriolsemlnors willfocus onfhe fobricoted metols indusfry ond fhe p/osflcs ondrubber indusfry,

The Division of Energy Policy, lndionopolis,317/232-8940, offers on indusfriol energy monoge-menf monuol fo oll interesfed Hoosler industries.Lieufenonf Governor John lVlutz, os Director of theDeportment of Commerce, which includes the Divi-slon of Energy Policy, is convinced, ond fhe Division'stosk rs fo communicofe, fhot fhe fofol lifestyle en-joyed by Hoosiers is directly linked to fhe reodyovoilobilify of foss/ derived fuels. By fhe iudicious useof these energy resources, their ovoilobility con beinsured for info fhe fufure, preserving the "good life"for fufure generotions of productive Hoosiers,

- Morlys Pedtke, Speclo/ Projects CoordinatorDivision of Energy Policylndiono Deportmenl ot Commerce

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IA NOUNDTABLE:GONSTNUGTION TINANGING

741 onstruction finoncing does not exist in oI ' vocuum. lt is not, os John Donne would phrose\./ it, on islond. lnextricobly linked to the myriod ofcomplex interrelotionships found within the economy,it both influences ond is influenced by interest rotes,lending institution policy, mortgoge rotes, industriolrevenue bonds ond ony number of other ossortedfinonciol foctors ond feotures,

Becouse of this diversity, lA chose to invite to theRoundtoble on Construction Finoncing o voriety ofpeople representing o spectrum of finonciol institu-tions, ogencies ond professions. Roundtoble memberswere: Dovid E. Corley, odministrotor, Division ofEconomic ond Housing Development, Deportment ofMetropoliton Development (lndionopolis); JohnCorter, economist ond monoging director, ReseorchAssociotes, lnc. ond o member of the foculty of BollStote University; Bruce Croig, vice president, ReolEstote Loon Division, Americon Fleicher Notionol BonkDovid B. Hill & Associotes (Seymour) Vern Holzholl,senior vice president, Mercontile Notionol Bonk of ln-diono (Hommond); Richord L. lMooke, AlA, tt/ooke,Sheldon, Krotzot & Associotes (Fort Woyne) Lynn H.

lVolzon, FAIA, Woollen Associotes, lnc. (lndionopolis)ond lA editoriol odvisory boord choirmoni D.V Poce,president, M.J. Schuetz Agency (lndionopolis) Morie-Christine Pence, policy onolyst, Business ond FinonciolOffice, lndiono Deportment of Commerce; ondMichoel Petersen, CPA, controller, Geupel DeMors,lnc.(lndionopolis),

lA: Mr. Corley, pleose describe the Division ofEconomic ond Housing Development's functions osthey reloted to commerciol ond industriol construc-tion finoncing,

neighborhood, commerc

CARLEY: We oct os o "hord-wore" ogency for the cityof lndionopolis. Thot is,we're the ones who buyreol estote, negotiote thesole or leose of reolestote,ultimotely to put up somekind of building, We're theones responsible for ollthedowntown city projects,Three yeors ogo westorted in the develop-ment of industriol porks in10 city locotions, ond hovemore recently gotten into

iol revitolizotion projects,

Most cities ond municipolities ore rother limited inthe woy they con porticipote in finoncing projects.Most often cities porticipote by writing down the costof the ground. More recently some legislotivechonges hove indicoted thot we con get involved inthe finoncing of construction with certoin legol ondpoliticol limitotions. ln the UDAG opplicotions on WestWoshington Street we hove become somewhot in-volved in, through monipulotion of federol ond locolfunds, the field of construction finoncing os well ossome of the permonent finoncing, Thot's reolly our firsttime involved in this porticulor subject.

lA: ls this something most cities ore getting into?

CARLEY: I think most cities ore into one form ofossistonce or onother. Governments ore going tohove to become more ond more involved in the con-struction of downtown ond in-city projects, eitherthrough the regulotory process or the funding process.

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IA Boundlable: Gonstruclion financing

lA: Whot obout Seymour, Mr. Hill?

HILL: The city tries to do o little. Primorily, most of the ef-forts ore through the locol Chomber of Commerce,The Chomber is the primory foctor trying to get orevitolizotion of the downtown oreo, but not much hosbeen occomplished in the 17 yeors l've been there,

lA: The lndiono Deportment of Commerce hos beenmore involved recently in construction finoncing. Howdid this involvement come obout?

PENCE: Before the lost ses-sion of the Generol As-sembly we hod o progromcolled the lndustriolDevelopment Fund. lt pro-vided o loon to municipol-ities up to'lO yeors of fivepercent interest rotes.Those loons were for con-struction, putting in sewerlines or highwoys - thosetype of infrostructurol-typeprojects, ln the post theideo wos to help the com-munity be ottrocted to

development, Now, becouse we're limited in fundsond reolly trying to go ofter the projects thot willcreote jobs, we're tying it to industry-specific deci-sions, For exomple, if on industry wonts to locote or ex-pond in o community ond the community needsossistonce, we'll evoluote whether there's o specificcommitment on the port of the industry - how monyjobs this project will creote. I think the thrust of theOrr/Mulz pockoge wos to creote jobs, A lot of ournew progroms foll in with thot pre-existing plon. We'vegot o highwoy set-oside fund. We hove o sewer set-oside fund. We hove o rurol development plon whichis specificolly geored for communities under lO thou-sond, We don't odminister the tox obotement lows,but we're involved in the new tox obotements on newmochinery ond equipment, os well os the existing toxobotement on reol estote development. Historicolly,we've hod involvement with finoncing but not os og-gressively os now. I think it's o port of the Orr /Mutzthrust.

lA: Mr, Croig, would you pleose exploin the two dif-ferent phoses involved in construction finoncing?

CRAIG: As for os direct lending of funds is concerned,normolly bonks ond mortgoge componies ore in-volved in the construction phose;they get the buildingbuilt. Once the building is completed to specificotions,o long-term lender poys out thot construction tender,

The key to reosonoble volume in the construction in-dustry depends upon projects thot con be finoncedby long-term funding thot is economicolly feosible,

For yeors in this country, we've been used to o fixed-rote. long-term mortgoge loon. But high inflotionresults in high interest rotes ond investors hove found itnecessory to re-evoluote their position. The result isthot long-term loons ore generolly only ovoiloble withsome type of o kicker, or it might be o joint venture oron outright purchose depending on whot they're look-ing for. Whot they've found themselves required to dois to moke their investment os inflotion-proof os theypossibly con,

lA: Mr. Holzholl, would you like to odd onything?

HOLZHALL: l've noticed onenew thing this yeor. Rotherthon hoving o life in-suronce compony come intwo yeors ofter we'vestorted construction, wenow hove on insuroncecompony out of Dollosthot soys, "ln two yeors,we'll buy this project forblonk number of dollorssubject to blonk occupon-cy ond review of leoses,etc." This hos been my first

experience with this type of tokeout. l'm very hoppywith it, though o lot of poperwork is involved.

l've noticed in Loke County thot o lot of the com-merciol lending we're doing now is moving from long-term residentiol mortgoge loons to economicdevelopment revenue bonds where the bonks whoore the purchosers of these bonds ore going in of orote of 65 percent of prime. They're going in of o fixedrote of 12 percent ond they're moking tox-free loons.It's bosicolly o bockhonded mortgoge but it's o tox-free yield to the bonk. The one problem we're oll hov-ing is thot we're reoching our limit. We don't hoveonymore room for tox-frees.

Bonks our size - we're obout 27O million dollors - orenot in o position to commit to o lot of long-term mort-goge loons. We're poying 15 percent, 18 percent forour rnoney todoy. So the bonks hove just token on en-tirely different ottitude. They're hoppy to provide in-terim finoncing but they're not going to do long-termfinoncing,

MOLZAN: Thot's been'our experience on o projectwe're involved in here in lndionopolis. We hove in-dustriol revenue bonding outhority ond we hove o

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IA Roundtable: Gonsbnrction financing

construction loon from o locol bonk of 70 percent ofprime, Supporting thot is o stondby commitment fromo life insuronce compony in Dollos with option to pur-chose. We're in the process, olso, of trying to sell in-dustriol revenue bonds ond ore woiting for somethingto hoppen to the prime to moke it o better picture forus, So for thot hosn't hoppened, Wosn't there o bill inthe legisloture to chonge the industriol revenuebonds?

CARLEY: Yes. lt would hove provided thot the Lieu-tenont Governor hod to sign every non-industriol reve-nue bond thot come through the stote. lt wos killed inthe house. We've orgued thot those shouldn't bestrictly industriol revenue bonds. There should be someother kind of torgeting so o ploce like Noshville, ln-diono, thot is dependent upon recreotion, isn'teliminoted from thot method of finoncing, Eoch com-munity's onswer to disposoble income vories so therehos to be some flexibility in thot low.

CRAIG: I think the economic development bond ond,olso, the open-ended construction loon which justrecently opened up omong bonks, hove been o vitolport of whot construction we've hod, of leost in thegreoter lndionopolis oreo.

HILL: lt's difficult to show o pretty good morgin of profitin bonking now, isn't it?

HOLZHALL: For the smollcommunity bonks it's becomemore difficult, yes. The cost of funds is so high.

CRAIG: High rotes hurt the bonks os weli os industry.

MOAKE: How do finonciol institutions go obout deter-mining which projects will be successful?

HOITHALL: I look of the question of ottroctiveness tothe lender o little differently. We're concerned oboutwhot the risks ore ond whether we'll get our moneybock in on interim loon, When we tolk obout long-termloons, we look of the benefits to the community ondwho the developer is. Bonks ore profit oriented institu-tions, We're in it to moke o dollor. We're looking for ogood depository relotionship,

MOAKE: Cosh flow.

HOIZHALL: Obviously, cosh flow is very importonttodoy.

CARLEY: Some businesses toke the opprooch thot oslong os they con cosh-flow it, go oheod. lnterest rotesmeon nothing to, soy, o mojor lndionopolis-bosedshopping center developer os long os the cosh flow isthere, But you've got other segments of the economyond clients who look of it entirely differently. When youget into morkets thot ore used to olmost o preferredlending rote there's o tremendous resistonce to poy-ing higher rotes even if they con cosh-flow it, They'rejust willing to bide their time ond woit for rotes tocome down. lt seems to vory occording to the type ofbusiness.

CRAIG: Toke the conventionoloportment for instonce.Most of your oportment projects todoy hove beenunder the government progrom where there wos olower interest rote. None of the current projects oreeconomicolly feosible with the rote they hove to poy,of leost in this oreo, The rent rotes ore not high enoughto justify .16,17,18 percent long-term loons, I think officebuildings ore probobly more populor becouse theycon re-write their leoses more frequently ond buildcost increoses info the rent.

lA: Mr. Corter, it's been soid thot the ingredients orethere for interest rotes to come down, yet they stoyhigh or come down very little. Whot ore the ingre-dients which indicote the rotes should come downond do you hove ony ideos on why the rotes ore re-moining high?

CARTER: ln terms of ingre-dients for moking interestrotes come down - first.you've got o very weokeconomy. l'm not reody tocoll it o recession but it is overy weok economic en-vironment. Thot meonsthot the demond for creditought to be weok. We'vejust heord thot it isn't veryweok in some of the bonk-ing community. Yet, insome of the commerciol-

CRAIG: Well, thot generollyends up with the long-termlender. They do very so-phisticoted morket studies.For instonce, if it's retoil,they'll check the trofficcounts ond oll the foctorsthot moke o good retoiloreo. Office ond industriolworehouses seem to bethe hotter items ot thistime for long-term in-vestors, So, if it's on office,they'll onolyze the need

ond the rent rules ond oll those foctors thot go into overy vioble project, They look ot the totol community,Reolly, those morket studies ore quite sophisticoted.

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If, Roundtable: Gonstruction financing

industriol lending thot's occurring, I think it is weok.There's not o greot deol of strength in some of thelorger city bonks for commerciol-industriol loons.

Another, probobly most importont, ingredient is thefoct thot the inflotion environment is consideroblylower thon it wos in December of lost yeor.

We've got the widest spreod between the inflotionrote ond interest rotes we've ever hod, Bock in

.1956

ond '57, the spreod wos wider thon overoge;overogebeing somewhere between two ond three percent,something like the reol interest rote. We've never hodo seven ond eight percent reol interest rote. We'vejust heord on instonce here where the morgins in bonkoperotions ore very norrow which would suggest thotthe reol interest rotes ought to be good. They're not.The cost of money to these bonking institutions hosoctuolly been higher thon the return they con get. Themortgoge rotes ore the ones thot ore domoging to olot of the finonciol institutions, We've heord o greotdeol obout sovings ond loons being underwoter inferms of the return on their loons ond whot they hoveto poy for their money. They're buying short-termmoney to finonce long-term needs ond it just doesn'twork.

One of the ingredients contributing to the high in-terest rote is the Federol treosury's tremendousfinoncing. They've been in the morket olmost everymonth. We were soying, in our economic forecost,thot the interest rotes would begin to decline ofter thefirst of the yeor in

.l98.l. The new odministrotion come in

ond found they'd inherited the corry-over finoncing ofthe Corter odministrotion. Some of thot lost-minutefinoncing wos just phenomenol, ln terms of the two-to-three-yeor-ond-beyond finoncing - which would be incompetition with the kind of finoncing you've beentolking obout for building needs - the treosury wos hit-ting the morket very heovily. They were not only get-ting new moniesj they were rolling over some of theolder issues,

Another ingredient is thot the Federol Reserve is

now trying to give o greot deol more credibility to thenotion thot they're going to keep o tight rein on, torestroin the inflotion environment. ln their monetoryoctions they hove restroined the growth of moneyvery successfully ond it's hod its dompening effects. I

think those less-thon-double-digit rotes of inflotion orevery likely to continue for some time longer. Yet, themorkets ore not reody to identify thot it's reol. Now,they hove o tox pockoge ond, in the public's mind, thecut in toxes meons higher finoncing ond higherdeficits, Despite the record thot we've hod in thel95Os ond the l96Os - the biggest one wos the Ken-nedy tox cut which hod tremendous benefits in termsof tox revenues over time - the public isn't reody to

occept the ideo thot tox cuts hove the opposite ef-fect, sometimes, of creoting more toxes rother thonless,

lA: Whot ore your predictions?

CARTER: I guess if you forecost often enough ond longenough, you'll be right. We've been soying for o long,long time thot interest rotes would be lower. The firstof this yeor is when we thought interest rotes wouldbegin to trock downword. The Federol Reserve comebock in ogoin ond kept pressure on the federol fundsrote - which is the morket rote of which bonks trodefunds between one onother - by forcing bonks toodopt thot morket to discouroge discounting. Everytime there wos ony evidence thot the federol fundsrote wos dropping just the leost bit, the morket roteswould begin to plummet ond prices of bonds ondsecurities would rise. So there wos oll the evidencethot the morket wos ripe for the decline but theFederol Reserve kept the pressure on the bonking in-stitutions by moking their funds costly ond difficult toget. The Federol Reserve is not going to let the plum-meting of rotes thot occurred ot this time lost yeor berepeoted. But lthink the rotes ore coming down.lthinkby the end of this yeor you'll see considerobly lowerrotes. Giving you on index to compore ogoinst, l'd soythe prime rote is going to be woy off the mork of 20by the end of the yeor. Seventeen to 16 percent is opossibility. l've soid before thot the prime rote will bebelow 10 percent in 1982. I still contend thot thot's opossibility.

CRAIG: You've been speoking mostly on short-term,Do you see ony impoct, like the sovings incentives inthis new tox bill, to help long-term rotes come downvery soon?

CARTER: Yes, I do, I think thot the 12 percent triple Autilities ore likely to come down below double-digitronge next yeor. Eight to nine percent is the rongethot I think, in time, is going to occur.

CRAIG: And mortgoge rotes will follow occordingly?

CARTER: I think we've got o new bollgome in mort-goges. Mortgoge rotes ore going to look more like theprime rote os time goes on, becouse the differencesbetween finonciol institutions ore so very norrow youhove to drow the line os to whot finonciol institutionyou're tolking obout, The sovings ond loons ore look-ing more like bonks ond probobly some of the bonksore going to be encouroged to toke on the troubledsovings ond loons. You moy find thot bonks ore goingto be ollowed to go into those kinds of sovings ondloon institutions os investment olternotives, So themortgoge rote could look more like o prime rote

B

IA Boundtable: Gonstnrction Financing

structure ond not be os slow in its movement os it wosin prior yeors. Thot's just o speculotion, l'd be interestedin your reoction.

HOIZHALL: lthink you're right, I con't foresee our bonk,ond some of the other bonks, going bock to o fixed-rote mortgoge loon. We're going to go with o vorioblerqte; we're going to go with o bolloon note; we'regoing to tie it to some index.

MOIZAN: Whot obout the money-morket funds?Where does thot money go? Does it go bock intolocol construction projects?

CARTER: No. The mojority of it goes into lorge CDs otmoney center bonks - bonker's occeptonce ondcommerciol poper. The mojority of it is not intreosuries, lt's oll tied up to the lorge money centerbonks,

PACE: Whot you're sug-gesting is thot this money isbeing used to meet short-term needs. I hove severolcontroctor customers thotore moking enoughmoney off CDs to covertheir overheod, Whot fewprojects they pick upthrough the yeor just meonprofit to them. I think if I

wos o developer right nowond lhod o good source ofcosh flow ond someone

soid the interest rotes ore going to go down in twoyeors, I would soy to the bonk, "Let me tolk to yourtrust deportment. How much money ore you going topoy me for the next two yeors? Then l'll come downtwo yeors from now ond tolk to you obout potentiolprojects thot we'd like to do. lcon moke more moneyby looning my money to you." One of my customersmode o reol hit with his bonker when he went in ondosked his bonker for the bonk's finonciol stotement,

HOIZHALL: lt's true. your money morkets ore close to 17

percent right now ond lthink the bonks eorn obout 18

percent.

CARTER: But it's only recently thot those some in-vestments ore keeping oheod of the inflotion environ-ment, ln the first quorter of this yeor they were behind.You'd lose money by investing in some money morketmutuol funds.

PACE: Even of thot I sow my customers honging ontotheir cosh.

lA: Does Geupel-DeMors get involved in puttingtogether finoncing pockoges for some of its clients?

PETERSON: We're just nowstorting to get into thewhole development pock-oge, so to speok, includingthe finoncing. One of themorkets thot hos remoined

' f oirly vioble, I think,throughout this high in-terest rote period hosbeen the condominiummorket ond olso retire-ment homes, You're get-ting o lot of up-frontmoney from the people

| :41d* &.%thot ore going into these projects so you con reducethe debt thot you're incurring on the front end, Five to10 yeors down the rood you con refinonce it, hope-fully of o lower rote. Even if you don't refinonce,operotions on the project ot thot time con fund debtreduction.

Another type of project thot we've been working inis in the joint-venture oreo where the finoncing institu-tion, the orchitects, the construction compony ondpossibly o monogement group would get togetherond form o portnership, or joint-venture, to go in ondbuild o project ond to hove on equity interest in theproject. They're going to toke more core in mokingsure everything goes right ond in wotching costs ifthey hove on equity interest in it, Also, os o result of theequity interest our fees os well os the orchitect's feesore going to be reduced to some extent. At somepoint down the rood we'll get it bock in the form ofcosh flow, Those two types of projects hove been suc-cessful for us.

MOIZAN: I ossume some of the insuronce componyprojects you hove ore finonced by the componiesthemselves.

PETERSON: Yes, Right now thot's obout the only thingthot is vioble in terms of commerciol construction, of-fice spoce, lt's only economicolly feosible when thecomponies con finonce it themselves.

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I

IA Roundtable: Gonslruction financing

CARLEY: I guess l'd toke exception to thot, porticulorlyin the field of rehobilitotion of the store structure, Thereore some tox incentives there. You hove to toke opockoging opprooch - tox obotement, industriolrevenue bonds - to moke o successful project, lf wehod o few more orchitecturol firms in joint venturedowntown, we'd probobly rehobilitote every old,decrepit building they hove, Architects hove tokenthe leod in restoring downtown.

MOAKE: ls there ony ploce in the selection of o projectwhere the physicol quolity of the project, either interms of the moteriols or the design, is considered bypotentiol finonciers for thot project?

HOIZHALL: Well, l'd stort out by soying thot good or-chitects odd on owful lot of credence to o lender'sviews with respect to finoncing, One, we wont the or-chitect involved in the construction process oll thewoy through, Two, good design, without o doubt,mokes o lot of good sense to us. Three, when we hoveon orchitect thot con build on ottroctive-lookingbuilding, we're going to hove o greoter occeptonceby the leosing public. Four, good orchitects helposcertoin the true cost of the project.

CARTER: I think thot we leon very heovily on the or-chitect during construction becouse we hove to knowthot the building thot is completed is the building westorted out to build. Thot's o key point becouse thepermonent mortgoge lender hos ogreed to moke oloon on o certoin building. The orchitect ond the con-troctor ore the key ports in moking sure the buiding is

occomplished,

CARLEY: With the government being more involvedwith finoncing projects you've got to hove on or-chitect thot's not only morket-oriented but quolity-oriented, This is porticulorly true in historic preservotionwhere you hove to pleose the historic preservotionforces.

HOLZHALL: We've olso found thot on orchitect whocomes in with o building developer con help onswer olot of questions os o teom member.

lA: Ms, Pence, there wos o time when lndiono wos in-volved in o lot of construction projects such os mentolhospitols, prisons, stote porks, Recently. there's been ovoid in thot oreo, Do you see the stote getting out ofdirect funding of construction work?

PENCE: The stote hos hod to cut down on constructionprojects due to decreosing funds ond the need forthese funds in other, more pressing oreos.

MOAKE: An insuronce compony in Dollos hos beenmentioned here, Why do those componies finonceprojects in lndiono? Are they less conservotive? Dothey hove more money? Why do we hove to go twothousond miles to finonce o project in lndiono?

HOLZHALL: Historicolly, the mojority of insuronce com-ponies thot invest in long-term finoncing ore notlocoted in lndiono. Mony of the lndiono insuroncecomponies still buy loons but they buy much smollerloons.

MOAKE: Another thing l'venoticed with some of ourclients - bonks don't seemtoo interested in o l5O to25O thousond dollor loon,They seem to wont to tolkseriously only obout loonsin the holf-million or milliondollor ronge. l'm tolkingobout o construction mort-goge. Are there breok-offpoints for finonciol institu-tions thot just oren'tottroctive?

CRAIG: Thot insuronce compony in Dollos is proboblynot interested in onything less thon o million dollors ifthot smoll. There ore smoller insuronce componiesthot ore interested in the 25O thousond to 5OO thou-sond pockoge. Your sovings ond loons were o goodsource of finoncing for thot ronge when they hoddollors to work with.

MOAKE: Where do these people turn?

CRAIG: Well, lthink the finonciol community os o wholeis in o period of tronsition, We're going to hove tocome up with pockoges thot ore vioble for both theborrower ond the lender.

HOLZHALL: We've hod some success in plocing theIOO to 5OO thousond dollor loons. Loke County, ln-diono is heovily union-oriented, We hove ond oreworking with o number of union pension funds wherethe pension fund will buy the long-term mortgoge pro-vided thot the building is built with union help.

CRAIG: You know, thot's on untopped morket,

CARLEY: Thot size issue, of IOO to 5OO thousond, hos,in our experience, not been ottroctive in industriolrevenue bonds becouse you've got fixed costs of issu-ing the bonds. lt ends up on improcticol rote of themorket.

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IA Roundlable: Gonstrrrction financing

HILL: I find thot both finonc-ing ond construction oc-tivities vory greofly frommetropoliton oreos tosmoll community oreos. Forinstonce, in southern ln-diono o lot of people hoveo very conservotive "woit-ond-see" ottitude. somony things hove beenobsolutely frozen ond verylittle construction octivity istoking ploce,

lA: Whot obout in Fort Woyne?

MOAKE: It's omozing. ln the lost month there hovebeen more projects bid thon probobly in thepreceeding four or five months,

MOLZAN: There's o newconstruction newspoperout now ond l'm omozedwhen I leof through it otthe number of mojor pro-jects going on oll over thecountry. Whot's keeping ln-diono from being o boomstote like we see hoppen-ing oll over the rest of thecountry?

bosis is just not economicolly feosible. I don,t know ofonyone thot con do it.

CARLEY: Whot's interesting obout this whole discussionis thot it's supposed to be centered on constructionloons ond we've found ourselves wondering in thewhole oreo of finonce in generol,

MOAKE: lt sounds like fewer ond fewer componies orelooning more ond more funds.

CARLEY: And whot we're doing is investing reodyossets ond sending them to New york.

HOLZHALL: But the money isn't coming bock from NewYork.lt's leoving the community. Whei money morketsgot over o hundred ond ten, their ossets were greoterthon the ossets of lO thousond of 14 thousond binks inthe United Stotes. How ore the community bonks go_ing to moke long-term mortgoges?

CARTER: I think we're kind of winding down in opessimistic tone. l'd like to leove lt on o more optimisticnote. ln terms of both the finonciol ond the construc-tion focets, the opportunities in the lggOs look formore promising. We hove hod o mondote given bythe generol public lost November of gettingL bettergrip on this inflotion condition. Rnd inflotion Is o foctorthot hos structurolly shifted oll these things thot youroise os problems. lt's going to toke o long Time to turnoround, but I think the policies of the new odministro_tion offer o greot deol more promise in terrrrs of theconstruction industry. Competition is going tobecome keener in the finonciol institution m6rlef. Vet,it is going to be o more vioble morket in terms of pro_viding funds. The institutions thot ore going to providethe size loons thot you were osked obbut is one of thereosons why there will continue to be bonking institu_tions of the size thot will provide the IOO thou-sond toholf-o-million volume of loons. Decontrolof sovings. in_terest rote ceilings, ore going to be o foctor-con_tributing to the copocity of finonciot institutions tomeet the kind of requirements you hove in thot regordfor funds. And, with the government being wdunddown with respect to its requirements ond demondsfor new funds, there is o promising prospect thotprivote industry, once ogoin. is going io Ob put intocontrol of the funds, where they're going to be found,ond whot use is mode of them.

It's not ollos bod os it might seem,lthink we ore reol_ly going to gropple effectively this time with the inflo_tion problem thot hos contributed to ollthis imbolonceond distortion you ore finding.

CARLEY: Well, you know, you've got obout oneVolkswogen plont o yeor somewhere in the country.Now, how much is it worth to o locol community to goout ond fund those plonts? Some stotes ore cosh-ri6hond con do thot. Others ore so poor they,redesperote. Thot's just the woy it is.

MOIZAN: ls lndiono's inobllity tolow, preventing it from growing

go into debt, by stote?

CARLEY: Absolutely not. tt reoily is o selting point. This iso stote thot's not going to get cought in Oeficit flnonc_ing ond, therefore, hove to go out ond double toxes tomoke up. lt hos to be viewed on o long-term bosis

CRAIG: When you roised the question obout 25Othousond dollor loons, I don't know if I come ocrossnegotively ond I wont to cleor the record. Our bonkhos mode o lot of these types of loons but the prob_lem is thot our bonk is not moking fixed-rote loons forits own portfolio, And to moke thot loon on o flooting

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DESIGN.BID.A GOITTNOUENSY NEVIVED?

by Kotherine Stuort Ewing

11 esign-bid-build is one of four delivery systemsI I em"ptoyed in construction. lt is not, oi piesent,Ll o tegoity occeptoble delivery system for theconstruction of schoolbuildings in the stote of lndiono.Of the remoining three systems (troditionol, construc-tion monogement ond fost trock), it is the troditionolmethod which hos been successfully used to con-struct the vost mojority of lndiono school focilities,

An explonotion of both the troditionol ond thedesign-bid-build systems follow.

Troditionoll. The schoolcorporotion selects on orchitect ofter

interviewing severol condidotes,2, The orchitect reviews client's needs ond

prepores preliminory plons colled "schemotics,"olong with o cost estimote for the corporotion'sreview,

3, When the schemotics ore opproved, the or-chitect procedes with design developmentwhich includes drowings ond other documentswhich fix ond describe the exoct noture of theproject including orchitecturol, structurol, ondmechonicol-electricol systems ond equipment.An updoted cost estimote is furnished to the cor-porotion os port of the design developmentdocuments.

4. Affer the opprovol of design developmentdocuments, f inol plons or conslructiondocuments ore prepored for bidding ond stoteogency opProvol.

5, The project is then odvertised for bid by the cor-porotion. bid on by o number of controctors,oworded to o controctor by the corporotion,ond finol costs determined.

6. During construction the orchitect inspects thework, ensuring thot the project meets stondordsond specificotions detoiled in the constructiondocuments,

Design-bid-buildl, The school corporotion prepores o document

outlining the needed educotionol ond physicolrequirements of the school to be constructed.

2, Controctor/orchitect teoms use the documentto develop o set of preliminory plons ond oguoronteed price ond time of completion. Thismoteriol is submitted to the school corporotion.

3. Since severol orchitect/controctor teoms moybe involved in developing preliminory plons, theschool corporotion evoluotes eoch set of plonsond decides which of those submitted best suitsthe school's needs,

4, Bosed on its evoluotion, ond with the possibleossistonce of o professionol evoluotor, the schoolcorporotion selects the best proposol,

5. The selected teom then develops finol plons ondconstructs the focility.

For o voriety of reosons, some of which will bediscussed in the ensuing orticle, lndiono orchitects ondthe lndiono Society of Architects, AlA, ore opposed tothe design-bid-build system's use in construction ofschool focilities. During on unsuccessful compoign tolegolize design-bid-build for public constructionseverol yeors ogo, ISA declored thot design-bid-buildwould not be in the public's best interest insofor ospublic construction is concerned (see sidebor). A newdevelopment - the formotion of "The lnterim StudyCommittee on Funding Alternotives for Constructionof Public Schools" - is cousing lndiono orchitects, oswell os controctors, to restote the objections todesign-bid-build.

" ... it is not inbuildings to bebosis."

the public interest for publicbuilt on the design-bid-build

- Jesse Jones, presidentGlenroy Construction ComponyIndionopolis, on August 11, 1981

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12

Desigm-Bid-Build

The committee is composed of lndiono represen-totors ond senotors, os well os loy members (seesidebor for listing of committee members), As definedby Legislotive Council directive, the committee's func-tion is: " ,.. to study funding olternotives for the con-struction of public schools. ln porticulor, the commit-tee shollexomine the use of cumulotive building funds,the use of public ond privote school building holdingcorporotions, ond the use of bonding. The committeewill olso exomine the impoct of using uniform con-struction stondords for oll school buildings in lndiono,"

lndiono Architect editoriol stoff personnel ottendedthe committee's meetings on August 6 ond August'11,.1981.

Tronscripts from those meetings hove been usedin the preporotion of the following summories.

At its meeting of August 6, the committee heordtestimony from o representotive of the ConcernedCitizen's Group, Northeostern Woyne School Corporo-tion;from the superintendent of Vincennes Communi-ty School Corporotion ond from the ottorney of ocitizen's group in Vincennes. Bill Styring of the lndionoStote Chomber of Commerce testified on olternotivesto cumulotive building funds.

ln Northeostern Woyne School Corporotion's cose,the Concerned Citizen's Group reodily odmitted thotschoolfocilities were needed; the group questions thecost.

still less. lt is opproximotely 50 dollors o squore footond I defy onybody designing o school building in thestote of lndiono (to show me one)thot hos been builtfor 50 dollors o squore foot in recent times."

"lt's eosy to soy thot buildings should becheoper ond probobly ony orchitect goingcon design buildings cheoper. But thepublic would not be well-served ond, in thelong run, our school corporotions would befoced with enormous oddilionol operotingcosts to try to deol with these mointenonceconcgrns."- Roymond S. Thompson, AIA

Jomes Associoteslndionopolis, on August 6, 1981

Testimony from Vincennes wos complicoted ondreveoled thot Vincennes residents question the needfor o school building in their city. A remonstronce hosbeen filed ond wos pending ot the time of this studycommittee meeting.

There wos generol ogreement thot the time fromefor filing remonstronces should be chonged, DovidDeon, ottorney for the Vincennes citizen's group, soid," ... the existing low on remonstroting is woefully out ofstep, The remonstronce period in the leose context .. .

just. fronkly, comes too lote in the gome," WoyneAder, superintendent of schools, hod previously stotedhis conclusion regording the remonstronce period,Roymond S, Thompson, AlA, of Jomes Associotes, or-chitect for the project which wos designed using thetroditionol delivery system, ogreed with both Aderond Deon, " ... I would offer thot the commission (sic)

might consider the possibility of plocing theremonstronce time frome ond the review by the ToxReview Boord of onother point in the plonning pro-cess, ,., I would suggest thot thot review come of theend of whot orchitects coll the'design developmentphose' - ofter the plonning process hos gone olongfor enough thot costs con be pinned down to osubstontiol degree but, yet, we hoven't gone throughthe lotter 50 percent of the plonning process wheremore dollors ore spent,"

"! con point you to school buildings oll overthis country thot ore literolly folling oport,where orchitects hove gone cheop, wherethe funding ond the plonning process in thestotes hove not been os good os lndiono's."- Roymond S. Thompson, AIA

Jomes Associoteslndionopolis on August 6, 1981

" . . . orchitects ond engineers ore profes-sionols ond . . . ore hired moinly through theinterview process. .. . Now, whot mokes uscompetitive? ... it's ethicol proctice (to) dothe best you con for your client's needs. . . . lfwe build schools thot cost I OO dollors osquore foot, you con't otford them so thenw6 wouldn't be employed os orchitects ondengineers."- Joseph S. Brown, AIA

Everett l, Brown, Co.lndionopolis on August 6, 1981

Since the schoolboord wos served with o subpoenoon August 5, the Northeostern Woyne County SchoolCorporotion, on odvice of its ottorney, declined totestify. However, Representotive Merle O. Brown, choir-mon of the study committee, endeovored to describethe school boord's view of the cost controversy,Joseph S. Brown, AlA, Everett l, Brown Co., orchitect forthe project which wos designed using the troditionoldelivery system, noted, "We've been doing o lot ofschool buildings in this stote for mony yeors ond thisbuilding probobly hos come in less [costs less)thon onyelementory school building thot I know of in the lostthree yeors. We hove deolt with inflotion ond, yet, it is

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Desigm.Bid-Build

On August ll, testimony from numerous sources wosheord: Dr, Williom Wilkerson, lndiono University Schoolof Educotioni Jon Regnier, Deportment of Public ln-struction; John Hort, lndiono Homebuilders Associotioruond Jock Peterson,lndiono School Boords Associotion.Of porticulor relevonce to the question of design-bid-build wos the testimony of Dr. Williom Doy, lndionoUniversity School of Educotion, Dr. Doy is o long-timeodvocote for the design-bid-build system's use inschool construction.

ln the eorly portion of his testimony, Doy reveoled hisogreement thot the opprovol process needs oltero-tions, " .., there's too much time between the time westort ond the time we get to the point of trying to sellbonds, lsimply suggest.,, we reolign the ployers.,.. westop of the end of schemotics, Some people wouldorgue we go to design development, but the point iso little bit immoteriol ot this point, ,.. but toke thotschemotic ond hove o cost estimote put to it ondstop, Now we involve the public; now we involve ollthe stote ogencies ond we find out do we hove ovioble need to confinue or not. lf we do, o budget isestoblished with o little bit of leewoy ond we go. But, ifthere isn't o need, we stop there, We sove o lot of tox-poyers'dollors plus we sove o lot of time on the port ofschool officiols ond potrons ond other stote ogenciesthot con be spent on other kinds of things."

The eorly section of Doy's testimony wos the bosisfor controversy. He soid, " ., , the lost construction in-dex thot I looked ot indicoted thot the only threestotes thot were more expensive to build educotionfocilities in (thon) lndiono wos (sic) New York. NewJersey ond Pennsylvonio," A bit loter, he odded, "Yousee, the moin reoson there (for excessive costs in ln-diono) is there isn't ony incentive on the port of thepeople involved in plonning, designing ond construc-ting focilities to try to control costs." He eloboroted, "lthink we over-design buildings in this stote. ... we getinto whot I refer to os the non-instructionol oreos, thenon-educotionol spoce - thot's over-designed ond .,,mony orchitects ore nof very responsive ... porticulor-ly when their fee moy be bosed on o percentoge oftotol cost."

"l just don't believe thot orchitecls pur-posefully increose the cost of constructionto increose their fee. Our firm (ond ! think olot of firms do this), to try to prove thot point,. .. will fix our fee ofter the design develop-ment phose so whotever the finol cost (is)our fees do not get chonged . . ."- Roymond S. Thompson. AIA

Jomes Associoteslndionopolis on August ll, 19Bl

Discussion concerning this testimony focused on thebosis for the figures which indicote thot lndiono is

fourth in the notion in the cost of school construction.Joseph S. Brown, AlA, Everett l. Brown Co, pointed outthot figures used by Doy were os much os 15 percentobove cost per squore foot. Doy responded thot thefigures represented totol cost ond stoted, " ... I thinkwhen we tolk obout whot squore foot cost is ond totolcost we've got to tolk obout whot is the cost of get-ting the building reody to be utilized. You connot pickout , . . just whot it costs to construct." Mr, Brown soid, "lhove to ogree with Dr. Doy thot we must look of thetotol cost, But, for comporison purposes .,, you mustlook of the cost per squore foot .. . not the totoldevelopment cost, One project moy hove o sewogetreotment plonf one moy be connected to thesewers. One moy need .., on outdoor trock, the otherone olreody hove the outdoor trock. The ultimotedeterminotion of whot kind of equipment goes into obuilding is mode by the owner. .,. so when you moke otrue comporison I think you've got to look of the rowsquore foot construction cost." The disogreement woson importont one, becouse Doy boses much of hissupport for design-bid-build on supposedly lowercosts, " .. . in 1976, there were 13 elementory schoolscompleted. Considering oll costs, the second ondthird leost expensive buildings on o squore foot bosiswere two design-build schools."

" ... I would soy thot it (design-bid-build) isnot more economicol."- Jesse Jones, president

Glenroy Construction ComponyIndionopolis, on August ll, 19Bl

Even ofter others hod testified, the subject ofdesign-bid-build wos re-introduced, Roymond S.

Thompson, AlA, of Jomes Associotes commented thotthere ore mony successful school building projects inthe stote of lndiono ond thot these ore not discussedoften enough. He odded, "lwont to moke o couple ofcomments on the design-bid-build process thot Dr.Doy tolked obout, And I guess I would hove to soy thotin my judgment ond in the judgment of our firm, it's notthe best process, ,.. We don't believe thot the design-bid-build process reolly con identify the moteriols ondthe systems thot the building should hove with enoughoccurocy to ollow the toxpoyers to get good com-petitive bids." Thompson further expressed concernobout conflicts of interest which con develop duringthe construction phose of the design-bid-builddelivery system, Robert N, Kennedy, FAIA. of ArchonicsCorporotion, speoking to the some issue, soid, "Design

14

Desigm.Bid-Build

professionols - orchitects ond engineers - ore in ounique position in thot we hove two clients olwoys:first, the client thot poys us, ond (secondly)the publicof lorge. Most other professions ore not involved inthot doily conflict,.,, The best woy to keep us os cleonos possible is to get us to the point where we're oc-tuolly serving the some guy, the public in both senses.The minute I stort working for someone else o conflictorises becouse he's the mon who is poying the billondlconnot do something thot he doesn't wont me to do... . lt's not uncommon in this stote for design profes-sionols to do o big shopping center... (ond)os soon oshe's designed the shopping center ond the ... (client)storts construction, you get fired becouse he doesn'twont you out there looking of his work. He hired someother person to come ond do thot, .,, These ore someof the things thot you hove to understond becouse, oso design professionol- orchitect or engineer - to be oprotector of the public, l've got to get my client closerto being ,,. (the public). .,, There ore thousonds ofploces thot you con reduce quolity ond no one willever know the difference until they stort mointoiningit."

public work of ony kind (is) becouse when you hovelocol politicions ond locol bureoucrots ond whoeverhoppens to be in chorge moking the selections ofmillions of dollors (worth of construction) it will leod tomischief."

Jones referred to the duplicotion of plons in supportof his contention thot design-bid-build is not moreeconomicol thon other delivery systems, "Whenthere's one set of plons on the streets oll the subcon-troctors will bid oll the generol controctors, becouseoll he hos to do is toke off once, lf he's o pointer hecon figure the pointing on the Ploinfield School ondbid on it. Now, if there's five sets of plons ... the pointermoy get o little tired of going from office to office tofigure the pointing on eoch of these, And he moy notfigure the job ot oll, or he moy just figure it with hisfovorite generol controctor. So it's been our ex-perience with this procedure thot the guy hos got tofigure five different jobs to bid one (ond thot) c-ouseson odverse effect on his mork-up becouse when hedoes get one he's got to cover oll those costs in thebid. . , , There's no free lunch ond, if you've got five guysout there do!ng designs, sooner or loter, they're goingto get poid for it, in terms of their fees, or they,re no1going to porticipote.""l think whot we could do is moke o side

resolution in our report ... thot the peoplewho ore building deserve on option onO burevoluotion os to whether or riot it (design-bid-build) does sove money. lt sovbs tiile.

we could moke o reaommendotionbecouse there is the possibility thot thelegisloture will foce o biil of this rioture."- Representotive Merle O. Brown

Chotrmon, lnterim Study Committee on Funding Alternotivesfor Construction of Public Schoolson August 11. 1981

Jesse Jones. president of Glenroy ConstructionCompony testified ogoinst design-bid-buitd on behotfof the Associoted Generol Controctors Associotion oflndiono Jones cited severol reosons for the Associo-tion's opposition to design-bid-build os o deliverysystem for public buildings: " .,. one. you ploce theschool boord .,. in the position of moking decisions onmoteriols ond equipment which they ore not quolifiedto moke..., [twoJonce you've decided on whot you'regoing to build, then (the problem is) knowing whetheror not whot you've bought hos reolly been delivered.becouse the design ond the build ... (ore)in the somehouse, the some ownership, the some profit motive,(ond) might tend to not inspect os closely os if therewere the troditionol orchitect/controctor orronge-ment. ... Probobly, the most importont ond overridingreoson why design-bid-build is nof recommended foi

"l con't see ony difference in the time ele-ment becouse you con't toke o sub-controctor's bono fide bids on o design-bid-build until the plons ore done."- Jesse Jones, president

Glenroy Construction Componylndionopolis on August 11. 1981

Concerning experts the school corporotions couldhire to oversee o design-bid-build project, Jonescommented, "The expert odvice .., is on odvise ondconsent situotion ond the owner still would mokethose determinotions himself. He might not toke theodvice. The odvice doesn't come tree. tt odds onotherloyer of fees onto the project."

_ ln eorly September the lnterim Study Committee onFunding Alternotives for Construction of public Schoolsvisited o design-bid-buitd school in Lebonon, lndionoArchitect hos been inforrned thot discussion of thotmeeting olso reveoled some dispority in committeemembers' definitions of the term, "uniform construc_tion stondords" (see sidebor), As this issue of lA goesto press, the committee plons to meet ogoii tofinolize its recommendotions to the lndiono GenerolAssembly

r5

Do uniform consfructlon sfondords for schoolbuildings necessorl/y leod directly to stock plons? No,declded fhe lnferim Study Committee on FundingAlternotives for Construction of Public Schoo/s ofterdeboting fhe lssue ot their September 9, 1981meeting. According fo on informed source, fhecommittee ogreed thot fheir mondofe from theLegislofive Council did nof stipulote thot they mokerecommendofions on sfock schoo/ p/ons. On theother hond, uniform construcflon sfondords hovemuch in common with sfock schoo/ plons. Anduniform stondords for schoo/s con be the firsf sfep rnestob/ishrng sfock schoo/ p/ons.

While the Americon lnstitute of Architects ond thelndiono Sociefy of Architects, AlA, objecf moststrongly fo stock schoo/ plons, the interrelotionshipbetween sfock p/ons ond uniform s/ondords moke oreview of fhe AIA's ond the /SA's opposifion perti-nent, The following is excerpted from o report by theISA executive director to fhe Speoker of the lndionoHouse of Represenfotives, ond from o reporfprepored by the AIA Committee on Schoo/8ulldlngs.

Stock p/ons of ony noture:. Deter experimentofion ond sfifle innovotion in

educofionol plonning,. Must be reused repeofedly fo effect even seern-

rng economics. Sfudies conducfed by fhe AIACommittee on Schoo/ Buildings severol yeorsogo reveolthot of 48 sfofes who once hodstockp/ons; "10 sfotes hod limited s/ock p/onsovoiloble of the time the sfudy wos conducfed;

Sidebar/Desigm-Bid-Build

When standords becomestock plons

Iffhot's wrong withdesisn-bid-build

23 did nof use fhem ond never hod;the remoin-inged

15 hod once used them ond hod obondonthem."

. Require expensive continuing revision to remoincurrent,

. "Lock ouf" mony potentiolly more economicolmoteriols ond equipment suppliers by using ston'dord specificotions.

. Are expensive to odopt locolly.

. Do nof occount for locolgeogrophic, geologic,demogrophic or moteriols conditions; (one conhordly imogine thot Bedford would wonf oschoo/ wifh on oluminum exterior).

. Would not ollow 'systems" concepfs to bedeveloped.

. Ploce on overemphosls on moteriols rofher fhonpeople ond funcfion.

. Are on instrument of service only ond ore usefulonly in fhe honds of o skilled orchitect.

. Do not toke odvontoge of privote orchitects'obilities fo con/rol costs.

. Tend to ignore the importont inifiol (ond highlylocolized) progromming ond plonning ocfivity,

. Would be creoted by orchifecfs who generollyhove no professlonol liobility rnsuronce ond whocould not certify furfher odoptotions of suchp/ons.

. Buy yesferdoy's building of todoy's prices,

. lnfringe on privofe enterprise.

The ISA Committee of Architecfure for Educotionhos sfudled. in-depth, the design'bid'build lssue rn /n-diono schoo/s. Their report ls conforned in o S4'pogebooklet. The concerns lhe commitfee expressed rnregord to employing design-bld-build in schoolfocili'ty consfruction ore reprinted below,

Concerns for the toxpoyer1. Design-bid-build purporfs fo foke competitive

blds on schoo/ building focilities wifh the bid

documenfs consrslrng of so-co//ed "perfor'monce specificofions," which in no woy set outequol ond/or explicit condifions for prospecfivebidders to bid upon,

2. Becouse of fhe gross generolizotion of perfor-monce documenfs, fhere is no bosis uponwhich the end product con be occurotelymeosured ond/or quolity sfondords enforced.

3. The process opens the door to sub-bid ondmoteriol bid 'shopping" by the successful low

t6

Sidebar/Desigm-Bid-Build

bidder, the end process of which resu/fs in hid-den shoddiness, obso/utely the cheopesf poss/-ble producfs ondlor sysfems for the numerous"behind fhe scenes" componenfs, Ihis "shop-ping process" pufs fhe successful bidder in fheposition of unlimited profit goin ot fhe socrificeof occeptoble quolity moferiols ond workmon-shp /o the socrifice of volue goined for toxdollor expended.

4. The process resfrlc/s the plonning process /othe obsolute minimum omount of fime spen/onjudgmenfs relofive to proper plonning relotion-ships, building oesfhefics ond volue engineering.

5, Toxpoyers will be denied fhe proper orchitec-turoljudgmenf relotive to protection of life ondproperly os well os building oeslhefics os on essen-tiol port of fhe overollcommunif environment.

Concerns for the educotor(ond the student)1. The design-bid-build process removes fhe or-

chifect from o compotible professlonol rolewith the educotor, in ottempting to develop,on on immediote ond long-term bosrs, creotiveond worthwhile educofionol focility plonningprinciples.

2, The educofor will no longer hove o role in shop-ing fhe design ond/or relofionship of pubticeducotion focilifies ond will no longer hove theopporfunity to hove diotogue wiin tne schoo/plonner during the criticol plonning sfoges, (Iosoy thot fhrs process con sfill hoppen within thecontext of deslgn-bid-build is foolhordy ondunreolisfic. The orchitect in this relotionship isploced in o definite odversory role, in order fosurvive economicolly,)

Concerns for the orchitect1, With the design-bid-build process fhe orchifect

is removed from o professionol role, Reolistic-olly, fhe opportunity for professionol judgementond professlono/ confrolof o// ospects of orchi-tecturol service is removed.

2. The process requrres the orchitecf to eitherminimize schemofic ond/or preliminory plon-ning to o meoningless diogrom, or gomblelorge omounts of desrgn cosfs on o purely spec-u/o/iye bosrs. The long-ferm effecfs of thisprocess ore such thot the professionol connofsurvive os on orch itecturol entity. Architects willbe forced fo ossume the combinotion orchi-tect-builder role, further eliminoting the oppor-funity for unbiosed judgmenfs. Ihe process rs soinequitoble fo the orchitecturol proctice thotsuccessfu/ orchitecturol firms wifh long-ferm ex-perience rn schoo/ plonning ore nof interesfed.Ihe resu//s of fhis situotion creote o climotewhere the potentiolly unscrupulous controctorcon foke oyer school construction projects,

Allthoughfful orchitecfs wifh experience in schoo/consfruction work ore well owore of the serlousresponsibilities fhof orchitects hove with todoy,seconomy to develop inexpensive schoo/ buildingswithin the copobilities of eoch community, The ln-dlono Socie/y of Architects feels strongiy thot odesign-bid-build process rs nof the onsw6r fo theproblems creoted by our esco/oflng economyond/or unreolistic opprooches to preiious scho6/focility projecfs. The society urges o// schoo/ od-ministrotors ond oll schoo/ booids throughouf ln-diono to give fhoughffulconsideroflo n to the broodin-depth romificofions of /he design-bid-build pro-cess, We urge thot oll school drstricfs interesfed in thisopprooch give time to orchitecturol representotivest9 ex.ploin o// ospec/s of this process, We urge thotthe Americon lnstitute of Architects' Design-diO-BuitdTosk Force Report be thoroughly undersfood ond fol-lowed if this process ls used.

Mony orchitecturol firms in lndiono ondthroughout the counfry hove spen/ yeors devetop-ing competent stoffs for schoottocitiiy plonning oidhove o srncere interest to serve the tox pbyingpubli.c in generot ond the educotionol syslenis iiporticulor in o professionol woy, ln mony insfoncesfhe opprooch to deslgn-bid-buitd rnsu//s fhis integrityond seriously fhworts this worthwhile efforf,

The Interim Study Committee on Funding Altemotives fq Construction of Public Scfioo/sMembersReprcsenlotive Meile O. Brown, Choi'monPO. Box 24Webster, lN 47392Senotor Lillion M. Porcnl, Vice ChoirmonP.O. Box 172Donville. lN 46122Reprcsenlolive Rolph D. AWesP.O. Box 869Cheslerlon, lN 4$ASenolor Cloy P. Bohd146 PotlersonClorksville. lN 47130

Representotive Mouilce DollP.O. Box 535Vincennes. lN 47591Senoror Kotie Holl1937 Modison StreetGory, lN 46407Senotor'Morils H. Mills7148 W. Thompson Roodlndionopolis, lN 46241Representotive Poul J. RobeilsonR,R. *1. Box 7lADepouw, lN 47115

1-7IT

Represenlotive Morityn F. Schullz800 N. WoshingtonEloomington. lN 47401Representolive Richord L. Worden3M Cotlonwood DriveNew Hoven. lN 46774

Loy MembersMr. WM. Bone, presidenlqoystone Construcfon ComponyP.O. Box 2568Muncie. lN 47302

Mr. Jomes P. Aorbnd1221 North Gront StreetWest Lofoyette, lN 47906Mr. Horold HiserP.O Box 119Donville, lN 46122Mr. Jomes A. Hummel867 Gory DrivePloinfield. lN 46168

The Code Boardby Courtney E, Robinson, ll, AIA

FINANCES ... the lifeblood of construction, Nor-molly, nothing gets built until o finonciol institu-tion mokes o commitment. When o finonciol in-

stitution builds, whot commitments do they moke?And, becouse this column concerns itself with codesond life sofety, whot stondords do they meet?

lndiono hos more thon its shore of prudent or-chitects ond building owners who insist on their struc-tures hoving o moximum of life sofety, energy sovingond other life-cycle cost considerotions, These highstondords ore true even for Hoosier orchitects wholeove their notive soil to seek o living in the foreignlonds of Chicogo, or even Colifornio, Such on or-chitect is Not Owings, o founding portner of the firmresponsible for the design of whot will be lndiono'stollest, most energy efficient ond sofest high-risebuilding - the Americon United Life home office - nowunder construction in lndionopolis. The 38-story struc-ture of 1,24O,OOO squore feet will provide o mostcomfortoble ond sofe environment for 5,OOO for-tunote workers.

lndiono's Energy Code requirements will be ex-ceeded with the AUL building envelope wolls hoving oU volue of .lO ond roof of .06. Coupled with thesewolls will be o ground woter heot pump system forwinter heoting ond summer cooling. This combinotionof envelope ond efficient mechonicol system will pro-vide on energy soving over three times thot of on or-dinory system designed to current stote energy ston-dords , ,, ond ot less initiol cost. The operoting sovingscolculoted over o 2O-yeor cycle will exceed twomillion dollors. To insure these sovings, o computerizedoutomoted control system will monitor ond respondto weother ond to user requirements,

ln oddition, the control center will monitor thesprinkling systems ond fire detection systems (ion,photo ond smoke) used throughout the building. Thisprogrommed outomotic system will give the controlcenter the meons to:

1. bring elevotors to the ground floor for im-mediote use by the fire services

2, Activote pre-recorded moduloted voice com-monds to evocuote the fire floor plus selectedfloors obove ond below

3. notify the fire services with occurote detoils4. pressurize oll exit stoirwoys to keep smoke from

entering5. octivote smoke exhoust system6, octivote speciolelevotors for the hondicopped7. communicote with floor fire morshols for per-

sonnel controlB, octivote stondby power

Also, becouse orson is o mojor source of fire, the con-trol center will provide o meons to mointoin tightsecurity throughout the building,

The Americon United Life high-rise office building willhove greoter built-in life sofety feotures ond, occord-ing to orchltecturol studies, will be more energy effi-cient thon ony other in the United Stotes, thonks to theorchitects' striving diligence ond AUL monogement'sinsistence on the most odvonced. efficient ond sofeworking environment ovoiloble todoy, The orchitectswill turn over to the owner on outstonding building,with the lotest life sofety support systems, Allcodes willhove been met or exceeded.

But whot hoppens when o building is occupied? TheNotionol Sofety Council, in o recent report. stotes thotfires connot be totolly eliminoted, even though thebuilding is constructed of non-combustible moteriolsond hos every sofety system instolled, The hozords orethe furnishings, the office supplies ond other com-bustibles, combined with people. The greoter the con-centrotion of people ond combustibles, the greoterthe fire risk.

Other prudent owners con follow Americon UnitedLife's leod in working with their orchitects to formuloteemergency plons for use when the structure is oc-cupied. Considerotion must be given to: fire, severeweother (tornodos), bomb threots, moin ond secon-dory power outoges, ond personnel security.

ln oll buildings, especiolly high-rise structures, onorgonized, comprehensive progrom for emergencyconditions must be prepored, ploced in force ondperiodicolly procticed until oll building occuponts conreoct properly ond outomoticolly. The progrom,detoiled in on illustroted hondbook, must cover ominimum of:

l. evocuotion of select floors or entire building tosofe oreos

2. detection ond control of fire3, detection ond control of smoke4. communicotions (zoned, coded voice

commonds)5. elevotor control6. psychologicol feotures (onti-ponic)7. medicol responseB. intruder detection ond security9, stondby power

lO. overoll systems reliobility ond bockup

The emergency response progrom of AmericonUnited Life con be used os o guide for future buildings.The control center will hove instontoneous responseto fire, intruder, tornodo, bomb threot ond outoges.Thus, the building occuponts will be provided with theknowledge thot the owners ond their orchitects hoveonticipoted most foreseeoble emergencies with oprogrom providing o moximum of life sofety ond com-fort of mind.

Currently serving os chief orchitect, City of lndionopolis, CourtneyE, Robinson, AlA, wos, for ten yeors, Indiono's stote code director,stote orchitect ond public works director.

IQ

TracingsBoltimore, MD ... The Boltimore Museum of Art is con-ducting o seorch for pointed wire screens. Accordingto Eloine Eff of the Museum, woven wire cloth wosmochine loomed os eorly os 186l for mony uses, in-cluding window ond door screens for homes ondbusinesses, Fine londscope pictures ond odvertisinglogos were pointed or stomped on these screens toprovide eyecotching decorotion os well os privocyfrom the street. Figured screening wos olso sold by theyord for pie-sofes ond other domestic uses, lf youhove ever seen pointed or stomped woven wirescreens of nineteenth or twentieth-century vintoge; orreference to their existence, use, locotion, or pointersin Americo or obrood, pleose confoct: Eloine Eff. TheBoltimore Museum of Art, Art Museum Drive, Boltimore,Morylond 2'1218,

Bloomington ,,, After three yeors of construction, ond10 yeors of plonning ond fund-roising,lndiono Universi-ty's new Art Museum is reody for occuponcy, The'16,557-squore foot structure, designed by internotion-olly-honored orchitect l.M. Pei, will house 17,OOO ob-jects ond wos finonced entirely through bond issuesond privote contributions.

Elkhort ... Simpson Building Supply Compony on-nounces thot Tom Jonn ond Dove Kotoske hovejoined the firm os soles troinees. The two will hondletelephone soles solicitotion throughout northernlndiono.

lndionopolis .., Morcis Doigo hos been oppointedmonoger of Everett l. Brown Compony's new ProcessEngineering Division. The division will provide computergrophics design services notionolly for chemicol,petrochemicol ond industriol clients, Doigo hos tenyeors' experience os on engineer in the process in-dustries, including work os o project monoger or o pro-cess engineer in the refining, chemicol, petro-chemicol, gloss, outomotive, plostics, ond iron ondsteel industries.

lndionopolis The f ifth onnuol "ChristmosCondlelight Tour" of restored Victorion homes in-cluding privote residences in the historic Old North-side, the President Benjomin Horrison Home, ond theMorris-Butler House Museum will be held from 4-B p,m,on Sundoy, December

.l3, l98l. For ticket prices ond

more informotion. contoct the President Benjomin Hor-rison Home,123C- N, Delowore, lndionopolis 46202, orcoll 317l631-1898.

lndionopolis ,,. Roymond S. Thompson, AlA, choirmonof the boord, ond Philip L. Hodge, AlA, president, ofJomes Associotes Architects & Engineers hove on-nounced severol stoff promotions. Nomed senior vice

presidents ore Chorles E. Ponott, Al,\ H, RollMcloughlin, FAl,t Thomos C. Dorste, AIA; ond HowordL. White, AIA; oll offilioted with Jomes' lndionopolisoffice,Robert F. Gossert, Al,\'Forrest R. Complin, AIA; ond KentD. Pierce, PE,; with the lndionopolis office hove beenoppointed vice presidents. Newly-nomed vice presi-dents in the Fort Woyne office ore Jerry L. Firestone,AIA; ond Koy L. Meyer.

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lndionopolis.,, The Aluminum Finishing Corporotion oflndiono,lnc, hos been oworded o mojor moteriolcon-troct for the Pemex Tower, the tollest building in LotinAmerico ond locoted in the heort of Mexico City. Thecompony is bosed in lndionopolis ond will supplyoluminum Spondrel ponels thot hove been finishedwith the compony's exclusive "Anolite" process.Anolite is o speciol progrommed onodizing processwhich includes the new Tru-Color onodized finishes.The corporotion's controct colls for opproximotely ,5million pounds of these unique chompoign bronzeoluminum ponels, which will be mounted to the4OO,OOO squore feet of exterior surfoces on thePemex Tower,

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Notre Dome ... The Deportment of Architecture,University of Notre Dome, hos onnounced the sched-ule of l98l-82 University of Notre Dome Visitors inArchitecture:

Thursdoy, October 8: Williom Coudill, FAIAMondoy, November 9: Soroh Horkness, FAIAWednesdoy, April 7: Dr, Foxlur KohnMondoy, April 19: George Kossoboum, FAIALectures commence of 4:OO in the ArchitectureAuditorium.For the Progrom in Rome:

Mondoy, October 12: Gioncorlo de CorloFridoy, Februory 19: Christion Norberg-SchulzAdvonced Design Review Ponel of Notre DomeMondoy, December 14: Chorles Bruboker, FAIA

John Holobird, Jr., FAIACorter Monny, Jr., FAIAJock Troin, FAIA

For more informotion, pleose contoct AmbroseRichordson, FAIA, professor of orchitecture ond coor-dinotor, or Robert Amico, AlA, deportment choirmonond professor of orchitecture o1219/283-6137 or 6138,Deportment of Architecture University of Notre Dome,Notre Dome, lN 46556,

Chicogo, lL ,,. President Reogon, in on exclusive inter-view with Construction Equipment mogozine,predicted thot his odministrotion's EconomicRecovery Progrom will trigger "o mojor investmentboom" in construction in the next few yeors. PresidentReogon soid he expects business fixed investment torise to on overoge S45O billion in o yeor in the l98l-84period. This, he soid, is opproximotely S2OO billionmore thon the prior four yeors. "lt is quite cleor thotwhen the Economic Recovery Progrom is fully in ploce,the construction industry should be one of its mojorbeneficiories." Reogon soid. Reprints of the interviewore ovoiloble f rom Construction Equipmentmogozine, 5 South Wobosh Avenue, Chicogo, lL

60603,

Events

Chicogo, lL .., lnternotionol Energy Monogement &Focilities lmprovement Show will be held in Chicogofrom November lO to 12,l98l. Contoct: Expo Monoge-ment, 312/239-1191 or write Expo Monogement, lnc.,The Apporel Center, Suite 52-.132 Arcode, Chicogo, lL6C,6s4,

Detroit, Ml ,., Americon Concrete lnstitute (ACl) hosonnounced some of its onnuol ond foll conventionsites through 1985: l9B2 Annuol Convention - Jonuory19-23, Atlonto, GA; 1982 Foll Convention - September19-24, Detroit, Ml; l9B3 Annuol Convention - LosAngeles, CA l9B3 FollConvention - September 25-30,Konsos City, MO; l9B4 Annuol Convention - PhoenixArizono;.1984 Foll Convention - September 914, NewYork, NY 1985 Foll Convention - Mexico City, Mexico.ACI Seminors on Concrete Porking Structures: Octo-ber 20, Atlonto, GA; November lO, Chicogo, lL;

November .l9,

Orlondo, FL; December l, Lowrence, KS;

Februory 17, 1982, Philodelphio, PA. Contoct: Educo-tionol Deportment, Americon Concrete lnstitute, PO.Box l9l5O, Detroit, Ml 48219, 313/532-2600,

New York, NY , , , The Society of the Plostics lndustry, lnc.Reinforced Plostics/Composites lnstitute hos on-nounced Product Showcose '82, Jonuory 11-15, 1982,Sheroton Woshington, Woshington, DC, Contoct: SPI

RP/C Conference lnformotion, 355 Lexington Avenue,New York, NY lOOl7.

Philodelphio, PA ... ASTM hos onnounced the l98lSymposium on Thermol lnsulotions, Moteriols, ondSystems for Energy Conservotion in the 'BOs,December B-ll, The conference is sponsored by ASTMCommittee C-16 on Thermol lnsulotion in cooperotionwith the U.S. Deportment of Energy ond the Ook RidgeNotionol Loborotory. Contoct: Jomes A. Thomos,ASTM Stondords Development Division, 1916 RoceStreet, Philodelphio, PA l9lo3, 215 / 299-5498.

St. Louis, MO ,., The Americon Society of lnteriorDesigners herolded its SOth yeor during its notionolconference ond exposition held July 23-27,1981.

St. Louis, MO ,.. Americon Society of Civil Engineersore holding their onnuol convention, October 26-30,St, Louis. Contoct:Americon Society of Civil Engineers,345 E. 47th St., New York, NY lOOl7, 212/644-7496.

Z\)

GO I

Time is on enemy of oll who would prepore lndexlistings. The listings must be prepored very occurotely,yet quickly so os to "beot" oddress ond firm chonges,And then there is o necessory lopse of time whilelistings ore typeset ond printed. Within such deodlinesthere ore bound to be corrections which occur offerthe lndex is in its finol stoges, With compliments to thestoff of the lndiono Society of Architects, AlA, ond theircontinuing effort to moke lndex 'Bl even more oc-curote thon its predecessor issues, lA furnishes thefollowing chonges to lndex 'Bl,

All Associote members should be listed os Assoc.AIA.

Poge 6: Bruce R. Allum, AIAc/o Architect Lee Scorfone

Assoc. (ALSA)P.O. Box 886, Alkhoborl3th Street & Prince Solmon Blvd.Alkhobor, Kingdom of Soudi ArobioRobert L. Amico, AIA233 South Howthorne DriveSouth Bend, lN 46617

Poge 7: Dole E. Ankrom, Assoc. AIA741C- E. to6th Sr.Noblesville, lN 46060George A Bornhort, AIA4525 Potricio St.lndionopolis,lN 46222Williom L. Beomon, AIAWilliom L. Beomon & Assoc.3412 N. Acodemy Btvd.Colorodo Springs, CO BO9O7

Poge 11: Somuel R. Colvin, AIA3lll Coliseum Boulevord EostFort Woyne, lN 46805

Poge 12: Morion L. Collins, Jr., AIA5Ol John St.Anderson, lN 460]6Rupert D. Condict, AIA3to s.E. 8th st.Evonsville, tN 47713

Orus O. Eosh, AIA75]7 Ook LoneFort Woyne. lN 46804

Melvin "Bud" Erny, AIA25O Willow AvenueCorlton GrovesMerritt lslond, FL 329523O5/452-r59

Thomos Keene, AIAChonge firm to P:ACE DesignRoymond J. Konger, AIA4656 West Jefferson StreetSulte 260Fort Woyne, lN 46804

Michoel N. McCorroll, AIAChonge firm to P:ACE Design

Henry McKinley, AIAChonge membership designotion toemeritus

Collix E. Miller, AIA16174 Boywood LoneGronger, lN 46530Jomes H. Miller, AIA3230 Mople ln,, c/o B.E. HorkerFort Woyne, lN 46804Kenneth R. Montgomery, AIA72O Ftsl Sovings TowerAnderson, lN 46016

PoulL Pierson, AIA2B2B E.45rh St.PO. Box 55126lndionopolis, lN 46205317 /547-9441Williom G. Rommet, AIADeceosed

Donold C. Rennord, AtAR.R. -], Box SW 245New Polestine, tN 46163John F. Reynolds, AtAMoved - no forwording oddress

Poge 15:

Poge 16:

Poge 23:

Poge 26:

Poge 27:

Poge 28:

Poge 31:

Poge 32:

r\1/-I

Gorections

Poge 35:

Poge 36:

Poge 37:

Poge 45:

Poge 46:

Terronce Short, AIAChonge firm to P:ACE DesignClyde Shropshire, AIA8887 Broeside South Dr.lndionopolis, lN 46260

John L. Sosenheimer, AIA4656 West Jefferson St.Suite 260Fort Woyne, lN 46804219/432-0655

Potricio M. Stough, Assoc. AIA2lO Bunker Hill Ln,Dunedin, FL 33528

Northern lndiono ChopterCollins, Fredric W., AIA

Kinkel & Kinkel, ArchitectsChonge to Jock R. Kinkel & Son

Architects

Poge 47:

Poge 51:

Poge 52:

Architecturol FirmsJomes Associotes -Fort Woyne, lnc.3lll Coliseum Blvd. EostFort Woyne, lN 46805

Emeritus Members of the lndionoSociety of tuchitectsAdd - McKinley, Henry, AIA

Fellows of the Americon lnstitute ofArchitectsAdd - Chorles M. Soppenfield, FAIA

lndiono Construction lndustry CouncilDovid R. Epperson, Executive DirectorSheet Metol Controctors Associotion39Ol W. B6th St,, Suite IOOlndionopolis, lN 46268317 /872-5015

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So here's a suggestion. Take asystematic survey of your elechicaloperations-whether they're lines on aconstruction drawing, or procedures inan existing plant. Make sure the electricalequipment planned or installed ismaking the most of the energy it uses.Finally, install a program of plannedinspection and elechical preventivemaintenance that will keep yourequipment at peak performance.

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If you are a registered ar-chitect with strong designability, experience andambition-.and would like tostep into a special profes'sional opportunity with adynamic, growing A/E firm,please send resume, salaryhistory and examples ofwork to Philip L. Hodge,

A.I.A., President,JAMES ASSOCIATES.

Replies will be held in con-

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.n JAMES ASSOCIATESARCHITECTS & ENGINEERS, INC.

P.O. Box 55L26Indianapolis, IN 46205

ADDRESS CHANGESHove o chonge of nome ond/or oddress? Be sureto include the moiling lobel on this copy of ln-diono Architect, ond send this form to:

lmoge Builders/Rowlond Printing Co., lnc,P.O. Box 69Noblesville, lN 46060

your moiling lobel

Nome Chonge

Address Chonge

City

17LI

Stote zip

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Officers Presidents'Moe, Williom C., AIA

President

'Allen, John S., AIAVice President/President Elect

. Eberhort, Robert C., AIASecretory

'Jelliffe, John H., AIATreosurer

Directors* Adoms, Fronk M., Jr., AIA

(President, Centrol Southernlndiono Chopter)

'Contrell, Horoce, Jr., AIA(President, Northern lndionoChopter)

Corpenter, Kenneth A., AIA(Vice President/President Elect,Centrol Southern lndiono Chopter)

Clinton, George M.1., AIA(Delegote. Centrol Southernlndiono Chopter)

Jones, Eric 1., AIA(Delegote. Northern lndionoChopter)

McGuire, Joseph J., AIA(Vice President/President Elect,lndionopolis Chopter)

Mooke, Richord 1., AIA(Vice President/President Elect,Northern Indioho Chopter)

Ogle, Roymond W., AIA(Delegote. lndionopolis Chopter)Pierce, Douglos J., AIA(Delegote, Northernlndiono Chopter)

Robinson, Courlney, AIA(Delegote, lndionopolis Chopter)

'Schultz, Roymond J., AIA(President, lndionopolis Chopter)Veozey, Scott C., AIA(Delegote, Centrol Southernlndiono Chopter)

Williomson, Volentino, AtA(Delegote, lndionopolis Chopter)Schmidt, Woyne S., AIA(Ex. Officio)

ISA Stoff. Englund, Kenneth A.

Executive Director

Regionol Director

Rolph O. YeogerMerritt HorrisonRoymond S. KostendieckRoymond S. KostendieckDonold E, ComptonLloyd V. MoserCorroll O. Beeson &l(orl SchworzC, Eugene HomiltonClorence T. MyersJomes M. TurnerFronk MontonoChorles J. EettsChorles J. BettsWoyne M. WeberWoyne M. WeberWolter Scholer, Jr.Alfred J. PorteousJomes M. TurnerAlfred J. PorteousCorl L, BrodleyRobert SchultzJohn C, FleckWolloce W. GivenJomes J. SchenkelArthur L. BurnsCorlton C, WilsonDonold SporlederHenry G. MeierChorles M. SoppenfieldDovid M. BowenAmbrose M. RichordsonDovid B. Hill

Woyne S, Schmidt

Advertisers lndexBeemer Enterprises, !nc. 27Belden Brick Compony,The lnside FrontContinentol WoodPreservers,lnc. 22

Engledow BockCoverlndiono Concrete MosonryAssn. 26lndiono Sheet MetolCouncil lnside Bock

Jomes AssociotesArchitects &Engineers, !nc. 27

Leslie Brothers 27Mechonicol Controctors

Progress Council 25Notionol

Electrico! ControctorsAssociotion . 23

Windjommer Cruises . 24

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r953-55r955-56r956-57r957-581958-59r959-601960-61r96t-621962-6319641965196619671968196919701971

197219731974197519761977197819791980

Webb, P Whilnqr, AIA

'E<eculive Cornmittee

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ADD THIS TO YOUR LIST!tr Pleose odd the following nome to the subscrip-

tion list for lndiono Architect mogozine (sub-scriptions ore Sl2.5O per yeor).

tr I would like-odditionol copies of theissue of lndiono Architect

mogozine (odditionolcopies qre S5.OO eoch).

A check for-is enclosed to cover thecost of _new subscription.

renewol subscription.

-odditionol

copies.Nome

Compony

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City

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zip

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