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TRENDLINES INSIDE FIRM INDEX January 30, 2012, Issue 944 www.thezweigletter.com What firms should do to manage risk Page 5 xz TOP PLAYER: Not resting easy on success. Page 3 xz HR: Social media: friend or foe? Page 9 xz FINANCE: AIA Stalled Projects Database blossoms. Page 11 TIC up The 2012 Valuation Survey finds that the median TIC value per employee of all firms participating in the survey reached a 10-year high. Moreover, this number has been on a slow but gradual climb. This year, TIC value per employee increased to $55,000 from $54,458 in 2011, and $53,686 in 2010. Margot Suydam, Survey Manager THE VOICE OF REASON FOR A/E/P & ENVIRONMENTAL CONSULTING FIRMS HR | FINANCE SUPPLEMENTS Pages 9 - 12 Clinton Brown Company Architecture................. 11 CO Architects ...................................................... 12 Dade Moeller ........................................................ 9 FXFOWLE ............................................................. 12 Lindbergh & Associates ...................................... 12 O’Brien & Gere .................................................... 12 SAM, Inc. .............................................................. 3 See MARK ZWEIG, page 2 Mark Zweig EDITORIAL Difficult times make it difficult to live life to the fullest, but you need to keep the positive attitude, Mark Zweig writes. I was emailing back and forth late the other night with a good friend of mine. He’s a famous engineer – CEO of his firm – and he travels constantly all over the globe. We were comparing notes on where we’d been recently and where we had to go. I think I was grumbling (or at least I wanted to grumble) about being gone so much. It’s hard to be gone a lot when you have so many jobs/businesses/kids, like me – but he loves it. When I told him, “Yeah, but you love travelling so much,” he replied, “Live each day like it could be your last.” is is something I told him some years ago. He practices this philosophy, both personally and in his work (who – who is really engaged in their profession – can honestly separate the two?) It’s a good philosophy; for sure, but how many of us REALLY practice it? We get so mired down in the details and hassles of daily life that we easily forget that maxim. I sure don’t feel I am living each day as if it was my last right now (other than that if I keep living like this, any day MIGHT be my last). It’s been a tough year and a half-trying to get ZweigWhite back on track after years of disconnected, financially driven ownership. Live each day as if it were your last $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2008 2009 2010 2011 2012 So if “things” are getting you down right now and you aren’t enjoying each day as fully as you know you should, it may help to remind yourself that things could always be worse. Things could be worse – much worse! What does it take to be one of the Best Firms to Work For? Find out by entering the 2012 Best Firms To Work For rankings! Details on page 12
12

Live each day as if it TRENDLINES - The Zweig Letter · challenges our communities face – lost jobs, outdated and unsafe infrastructure, abandoned buildings and neighborhoods, rising

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Page 1: Live each day as if it TRENDLINES - The Zweig Letter · challenges our communities face – lost jobs, outdated and unsafe infrastructure, abandoned buildings and neighborhoods, rising

T R E N D L I N E S

I N S I D E

F I R M I N D E X

J a n u a r y 3 0 , 2 01 2 , I s s u e 9 4 4

w w w . t h e z w e i g l e t t e r . c o m

What firms should do to manage risk

Page 5

xz Top pLayER: Not resting easy on success. page 3xz hR: Social media: friend or foe? page 9xz FINaNcE: aIa Stalled projects Database blossoms. page 11

TIC up

The 2012 Valuation Survey finds that the median TIc value per employee of all firms participating in the survey reached a 10-year high. Moreover, this number has been on a slow but gradual climb. This year, TIc value per employee increased to $55,000 from $54,458 in 2011, and $53,686 in 2010. – Margot Suydam, Survey Manager

T H E V O I C E O F R E A S O N F O R A / E / P & E N V I R O N M E N T A L C O N S U L T I N G F I R M S

HR | FINANCES U p p L E M E N T S

Pages 9 - 12

Clinton Brown Company Architecture................. 11CO Architects ...................................................... 12Dade Moeller ........................................................ 9FXFOWLE ............................................................. 12Lindbergh & Associates ...................................... 12O’Brien & Gere .................................................... 12SAM, Inc. .............................................................. 3

See MaRk ZwEIg, page 2

Mark Zweig

ED

ITo

RIa

L

Difficult times make it difficult to live life to the fullest, but you need to keep the positive attitude, Mark Zweig writes.

I was emailing back and forth late the other night with a good friend of mine. He’s a famous engineer – CEO of his firm – and he travels

constantly all over the globe.

We were comparing notes on where we’d been recently and where we had to go. I think I was grumbling (or at least I wanted to grumble) about being gone so much. It’s hard to be gone a lot when you have so many jobs/businesses/kids, like me – but he loves it. When I told him, “Yeah, but you love travelling so much,” he replied, “Live each day like it could be your last.” This is something I told him some years ago. He practices this philosophy, both personally and in his work (who – who is really engaged in their profession – can honestly separate the two?)

It’s a good philosophy; for sure, but how many of us REALLY practice it?

We get so mired down in the details and hassles of daily life that we easily forget that maxim. I sure don’t feel I am living each day as if it was my last right now (other than that if I keep living like this, any day MIGHT be my last). It’s been a tough year and a half-trying to get ZweigWhite back on track after years of disconnected, financially driven ownership.

Live each day as if it were your last

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

2008 2009 2010 2011 2012

So if “things” are getting you down right now and you aren’t enjoying each day as fully as you know you should, it may help to remind yourself that things could always be worse. Things could be worse – much worse!

what does it take to be one of the Best Firms to Work For?Find out by entering the 2012 Best Firms To work For rankings!

Details on page 12

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2 © copyright 2012. Zweigwhite. all rights reserved.

a/E BUSINESS NEwSAIA unveIls AgendA: The american Institute of architects unveiled an ambitious 2012 legislative agenda that has creating jobs in the hard-hit design and construction industry as its top priority.

“architects are by and large small businesspeople: ninety-five percent of architecture firms in the United States employ 50 or fewer people,” said aIa president Jeff potter, himself a small business owner. “Meeting the challenges our communities face – lost jobs, outdated and unsafe infrastructure, abandoned buildings and neighborhoods, rising energy costs, and distressed main streets – demands a strong design and construction industry that is ready and able to get back to work.

“If enacted, this agenda would go a long way towards putting our sector back on its feet to do just that,” potter said.

The aIa’s “plan for Economic growth” concentrates its efforts on solving the four key economic challenges facing the profession:

z Removing barriers to private sector lending – Thousands of needed construction projects that would employ millions of americans are on hold because credit is still frozen. congress needs to pass legislation such as the capital access for Main Street act, which would help prevent large numbers of commercial foreclosures and free up credit to help small business get back to work.

z Saving energy, creating jobs – across the country, building owners, state and local governments and school districts want to lower energy bills by retrofitting their buildings. congress can spur tens of thousands of more jobs by increasing the value of the Federal Energy Efficient commercial Building Tax Deduction congress by increasing it from the current $1.80 square feet to $3.00 square feet and by making changes that make the deduction easier to use.

z Helping small firms grow – Small architecture firms and sole practitioners work in every community in the country to help homeowners and businesses design better buildings. But high taxes and burdensome paperwork hold them back. as congress looks to reform the tax code and reduce the budget deficit, it needs to ensure that tax rates on small entrepreneurs are cut while preventing efforts to penalize smaller design firms.

RESoURcESHot fIrm report: The economy has not been gentle to the industry and that makes leading a hot Firm all the more challenging.

although growth numbers may look impressive, leaders still faced tough decisions none of us would envy having to make.

In The Zweig Letter 2011 hot Firm Report, we present the results of the first-ever 2011 Statistics of the hot Firm Survey conducted as a supplement to the 2011 hot Firm List.

The Zweig Letter 2011 hot Firm Report highlights the business practices, thoughts, and leadership actions taken and exhibited by the best performing firms in the industry.

z hot Firms are forward-looking firms. Despite market uncertainty and the temptation to lay low and hope for the best, these firms pursued multiple strategies to grow the business.

z hot Firms are vision-oriented and employee-committed firms, and their strategies include investing in, motivating, and caring for their teams above profits.

z hot Firms are mostly organic firms and they grew their revenue by securing more work out of their existing roster of clients rather than from new ones.

z hot Firms are marketing-minded firms. gaining a larger share of a client’s work, entering new geographies, and selling to a whole new batch of customers requires more than one’s average everyday marketing.

z hot Firms are positive firms and see more growth for 2012.

For more information or to buy a copy, call 800-466-6275, or log on to www.zweigwhite.com/zw-1140.aspx.

MaRk ZwEIg, from page 1

38 West Trenton Blvd., Suite 101 Fayetteville, AR 72701

Mark Zweig | publisher [email protected]

João Ferreira | Managing Editor [email protected]

Christina Zweig | Staff writer [email protected]

Tel: 800-466-6275 Fax: 508-653-6522 E-mail: [email protected] online: www.thezweigletter.com Twitter: twitter.com/zweigwhite Blog: zweigwhite.blogspot.com

published continuously since 1992 by Zweigwhite, Fayetteville, arkansas, USa. ISSN 1068-1310.

Issued weekly (48 issues/yr.). $475 for one-year membership, $775 for two-year membership.

article reprints: For high-quality reprints, including Eprints and NXTprints, please contact The ygS group at 717-399-1900, ext. 139, or e-mail [email protected].

© copyright 2012, Zweigwhite. all rights reserved.

z Revitalizing America’s neighborhoods – crumbling infrastructure, high unemployment and rising traffic congestion have hurt our nation’s communities, reducing safety and increasing pollution. congress needs to pass transportation reform legislation this year that gives people the ability to create and sustain prosperous communities with real choices in transportation options. The aIa also urges the administration to ensure that lending standards account for the kinds of mixed-use developments that communities need in order to bring back economic vitality and jobs.

But sometimes one has to go through these struggles to appreciate the good times. If it is all easy, then who appreciates it? This is analogous to the current economic situation. There are those who lament how hard things are now, but how would we know good times when we’re in them if we hadn’t experienced the bad.

So if “things” are getting you down right now and you aren’t enjoying each day as fully as you know you should, it may help to remind yourself that things could always be worse. Hopefully you have your health – as do your family members. There’s a roof over your heads and your bellies don’t ache from hunger. You probably aren’t in prison. Things could be worse – much worse! Get out and live each day as if it could be your last. And, you know what, you’ll be a lot happier AND accomplish more to boot!

MaRk ZwEIg is the chairman and cEo of Zweigwhite. contact him with questions or comments at [email protected].

get out and live each day as if it could be your last.

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3

Samir hanna doesn’t let grass grow under his feet and is always thinking ahead to the next challenge.

SAM, Inc.’s top placing The ZweIg LeTTer 2011 Hot Firm List is a re-

sult of restlessness.

Samir (Sam) Hanna, the founder and president of the Austin, Texas-based geospatial data solutions firm, doesn’t rest on his laurels.

Success is always relative. How can a job be done better? What’s the next big challenge? That’s what really drives Hanna and might help explain the 350-person firm’s No. 20 placing in the Hot Firm List.

Founded in 1994, SAM, Inc. has be-come one of the fastest growing geo-spatial companies in North America. The firm provides complete geospatial data solutions through advanced sur-veying and mapping technologies.

In this interview, Hanna talks about the challenge of immigrating to a new country, about what he admires in peo-ple and gives newcomers to the profes-sion some sound advice.

The ZweIg LeTTer: what is it in your DNA that drives you to suc-cess? Is it audacity and risk-taking; a can-do attitude and a relentless pursuit of perfection; something else more abstract?

Samir hanna: For me, it is the contin-uous and relentless pursuit of perfec-tion. I make a point to take a moment to enjoy success, but that doesn’t hold my interest for long. More often than not, I am working the problem through

in my head to see how we could have done it better, or anticipating the next big challenge. It’s not a restful place to be, but I wouldn’t do it any other way.

TZL: In today’s dif-ficult business cli-mate, what does it take to succeed? Is the spectrum of fail-ure a motivator?

Sh: Success means adapting. Markets cy-cle and change; tech-nology advances fast-er and faster; the busi-ness environment you

are accustomed to can leave you behind unless you make it a priority to chase new opportunities and work to capital-ize on them. That also means keeping new and current clients satisfied. We strive each and every day to exceed our client’s expectations, and are proud to have a high rate of repeat clients and referrals.

TZL: where do you see this indus-try in 10 or 20 years? what trends are influencing it? what about your company?

Sh: A major trend influencing and driving our industry is advancing tech-nology. In the surveying business, ad-vances in LiDAR (light detecting and ranging) platforms offer tremendous opportunities, with the ability to col-lect a large amount of information very quickly, and at a higher level of accura-cy than ever before. New tools and soft-ware change the way we do business and we must stay on the leading edge of these advancements, and success-fully incorporate new technology to in-crease productivity and deliver value to our clients.

TZL: Do hold someone as a special mentor? how did this person influ-ence who you are?

Sh: I’m fortunate to have learned from many talented and business savvy peo-

ple throughout my career, and am hon-ored to say that they continue to teach and influence me to this day.

TZL: what’s the one trait you most admire in people and why?

Sh: Call me old-fashioned, but the most admirable trait is professional in-tegrity. When someone makes a com-mitment and then works hard to fol-low through, that is what I respect the most.

TZL: Describe the most challenging thing you have ever done/the big-gest challenge you have taken on outside of work.

Sh: I immigrated to the United States in 1970 from Egypt. Moving to my new country meant I had the challenge of learning and adapting to a new cul-ture where everything seemed differ-ent. I not only had to adapt, but figure out how to succeed. My experience has been that this truly is the land of op-portunity, and that the challenge is to make the most of those opportunities to the benefit of myself and my busi-ness.

TZL: what lesson learned would you pass along to a recent college graduate embarking on a career in the A/e/P and environmental con-sulting fields?

Sh: First, build a strong foundation. The early years of your career, and the technical skills and practical knowledge you gain, are the foundation on which you will build your professional life. Fo-cus on the real-world applications as the basis for future success.

Second, set goals – big and small. The best advice I got as a child was from my mother. She told me not to get dis-couraged by how far away the top of the mountain seemed, and that it was small steps that would lead me there. So, set your ‘mountain top’ goal and also the small-step goals, and approach challenges one at a time. Make the step; take a moment to pat yourself on the back, and then go on to the next one. It will lead you where you want to go.

T o p p L ay E R

Samir Hanna, Founder and President, SAM, Inc.

“More often than not, I am working the problem through in my head to see how we could have done it better, or anticipating the next big challenge.”

Not resting easy on success

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o U T L o o k

See oUTLook, page 6

Zweigwhite’s newest Industry outlook points the way by identifying key trends.

By chRISTINa ZwEIgStaff writer

How are A/E/P and environmental firms strategizing to make 2012 a

better year than 2011?

Some of the answers may come in ZweigWhite’s latest Industry Outlook series book. In the 2012 A/E/P and En-vironmental Consulting Industry Out-look, ZweigWhite management con-sultants and design firm leaders iden-tify some overarching trends for 2012. Here’s a sneak peak at some of the trends detailed in the 2012 Outlook.

Public-private partnerships. Tight lending practices, lack of credit, and lack of government funding has stalled many projects. In 2011, firms found a way to complete projects de-spite financing challenges. This will continue into 2012. With that, public-private partnerships continue to gain acceptance.

A public-private partnership (P3, PPP, or P3) is a contractual agreement formed between a public agency and a private-sector entity that allows for greater private sector participation in the delivery and financing of a project. Often, a P3 involves a contract between a public sector and a private party in which the private party provides a pub-lic service or project and often assumes financial, technical, and operational re-sponsibility for the project. In projects that are aimed at creating public goods, such as infrastructure, the government may provide a one-time grant to attract private investors. In some other cases, the government may support the proj-ect by providing revenue subsidies, in-

cluding tax breaks, or by providing guaranteed annual revenues for a fixed period.

The Federal Highway Administration encourages the consideration of P3s in the development of transportation im-provements. Early involvement of the private sector can bring creativity, effi-ciency, and capital to address complex transportation problems facing state and local governments.

The Associated General Contractors of America 2011 Construction Hiring and Business Outlook states, “With 70 per-cent of construction firms reporting they expect an increase over the aver-age of 5.2 PPP projects they worked on this year, it seems clear that PPPs will be increasingly popular. While any number of reasons could be driving this perception, the most obvious is that the public sector will need to rely increasingly on PPPs as their budgets remain constrained for the foreseeable future.”

IPD and BIM. Integrated project de-livery, partly enabled by technologies such as building information model-ing, is expected to continue to make in-roads. IPD fosters a collaborative effort between the project owner, architects, engineers, contractors, and subcon-tractors. All parties assume equal risk and reward in the project.

Ed Friedrichs, consultant, ZweigWhite says, “These shifts in project informa-tion assembly and process are leading to more collaboration between the par-ties to construction (which are also be-coming, if not yet global, certainly na-tional).”

Traditional delivery and contracting approaches create separate silos of re-sponsibility that yield inefficiencies whenever there is a hand-off from one silo to another, according to Integrated Project Delivery: A Guide, a publication

of The American Institute of Architects. Traditionally delivered projects can suffer because participant success and project success are not directly related. One or more project participants can succeed at their task while the overall project fails. IPD represents a change in the industry, requiring close cooper-ation among all participants. With IPD, participant success is directly correlat-ed to project success.

Sustainability: Less waste and less cost… Green design has emerged as a major trend in the design industry in the last few years. The trend is here to stay. Economic difficulties have put an increased emphasis on this trend, especially as it is now being seen as a method to save money instead of a more expensive alternative to tradi-tional construction.

Businesses that don’t embrace con-cepts of efficiency, conservation, recy-cling, etc., will struggle to survive in the future.

Research by IMRE in conjunction with the AIA and the American Society of Interior Designers shows that sustain-able projects performed by architects and interior designers are projected to increase in number in the next year.

Renovations and retrofits. A focus on renovations and retrofits is a trend developing from a variety of overwhelming factors. Lack of funding in both the public and private realms means that tearing down structures and infrastructure elements nearing the end of their useful life, simply isn’t an option. Additionally, the focus (and in some cases, necessity) on sustain-ability and energy efficiency is creat-ing an impetus for older structures to be renovated with these principles in mind.

The USGBC recently announced that for the first time in its history, the cu-mulative square footage of buildings certified under its LEED for Existing Buildings: Operations & Maintenance program is greater than LEED-certi-fied new construction. The USGBC said

In the 2012 a/E/p and Environmental consulting Industry outlook, Zweigwhite management consultants and design firm leaders identify some overarching trends for 2012.

Where is industry heading in 2012?

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5

Two experts offer a roll of suggestions; plus, risk manager stresses importance of pre-claims advice.

By LIISa SULLIVaNcorrespondent

Risk mitigation is defined as a sys-tematic reduction in the extent of

exposure to a risk and or likelihood of its occurrence. It’s also referred to as risk reduction. So, it’s important to know exactly what firms are doing (or should do) to manage risk.

Top mitigation strategies from two pros. Proper staffing. “Maintain a proper percentage bal-ance of principals/partners, technical management, and technical and sup-port staff. An imbalanced staff impacts a firm’s project performance, service quality and client satisfaction – all lead-ing to increased risk and liability expo-sure,” says Timothy Corbett, founder and president of SmartRisk LLC, a firm that provides design and building pro-fessionals with industry and firm-spe-cific analysis along with guidance for achieving successful results for their firm and projects.

Project and client selection. “Firms should establish a process for select-ing and evaluating projects and clients. Even if a firm has a large percentage of repeat clients, this practice is impor-tant because economic conditions have changed the profile of many clients,” Corbett says.

Michael Welbel, president of M.G. Wel-bel & Associates, Inc. in Northbrook, Ill., one of the largest liability insurance

specialty brokers in the Chicago-area, servicing lawyers, architects, en-gineers, surveyors and other design profes-sionals, adds that, “It can be difficult to know a good client from a bad one. Some warning signs are: the potential new client fired their previous A/E; or they are a single-purpose developer (e.g., a con-

do development that wants the lowest-cost project and is not willing to pay a reasonable design fee). As to project type, firms should caution against tak-ing on projects that require a high de-gree of expertise outside of theirs (e.g., healthcare, multi-family housing, gam-ing; and prisons/detention facilities.)”

Contracts. Corbett explains that there are two times a contract is viewed: when it’s developed; and when there’s a problem. Contracts should offer a clear project scope and include at least the following: services offered, fee, pay-ment schedule, outline of responsibili-ties for all parties, and dispute resolu-tion tactics. Contracts should also be updated if changes occur. PMs should be involved in the contract develop-ment and reference it often to ensure compliance.

Welbel adds that, “When faced with an owner-drafted agreement or a modi-fied standard agreement, great care must be taken to ensure that the A/E is not agreeing to assume risks it’s not prepared to accept, or that imposes lia-bility beyond the scope of its insurance coverage.”

Training. “Many A/E firms recognize the need to continue training beyond

professional qualifica-tions,” says Corbett. “Aside from profes-sional development topics, firms should in-clude training on busi-ness practices and risk management.”

Quality control. “More and more own-ers, developers and governmental agencies are contractually re-

quiring that design professionals have a quality control manual/procedures in place,” Corbett says. “These bring a measured uniformity to a firm’s prac-tice.”

Communication/documentation. “A proper approach to communica-tion prepares the client for unexpect-ed bumps,” Welbel says. “For example, clients should be counseled to expect the unexpected and to plan for same. A reasonable contingency fund should be established to handle change orders, time and budget issues. Return all calls and answer client queries promptly and completely. Document all communica-tion.”

Don’t deviate. It’s easy to take on un-intended liability during the construc-tion phase. Don’t get sucked into a bad situation. Welbel presents the follow-ing: “The Kansas City Hyatt collapse. I had experience with a field change agreed to by a young architect who was somewhat pressured to agree to a con-tractor-requested change while on the job site. This short conversation result-ed in the failure of 1,000 linear feet of exterior wall,” he says.

Insurance. This needs to be a part of any risk-management plan. The A/E needs to be certain that it has suffi-cient coverage and that it does not un-dertake activities that impair the cov-erage it has paid for.

Risk mitigation pays off. Sce-nario No. 1: An architectural firm ob-tained a non-renewal notice from their insurance carrier based on claims histo-

p o L I c y

Timothy Corbett, Founder and President, SmartRisk LLC.

Michael Welbel, President, M.G. Welbel & Associates, Inc.

See RISk, page 6

“a proper approach to communication prepares the client for unexpected bumps. For example, clients should be counseled to expect the unexpected and to plan for same. a reasonable contingency fund should be established to handle change orders, time and budget issues.”

What firms should do to manage risk

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6 © copyright 2012. Zweigwhite. all rights reserved.

ry. It contacted SmartRisk, which con-ducted a firm assessment and designed a risk management action plan with clear timelines and objectives. This in-formation was presented to insurance providers through the firm’s insurance agent. For its risk-mitigating efforts, the firm obtained premium quotes 25 percent lower than its expiring premi-um prior to being non-renewed. “If it had not taken this proactive approach, it would have had a difficult time ob-taining insurance, and the premium cost would likely have been in the range of 40- to 50 percent higher than the ex-piring rate,” Corbett says.

Scenario No. 2: Welbel shares the fol-lowing: An engineer took issue with a change recommended by a contractor in connection with the exterior enve-lope of a 15-story tower. The engineer’s advice was ignored and the project was

completed with the contractor-recom-mended change. The engineer advised that the building would likely leak and documented his concerns in writing. The building leaked; damages were sig-nificant. The engineer was sued, but shortly thereafter the letter document-ing his concerns was presented and the engineer was not only dismissed from the lawsuit, but was hired to act as a consultant to assist the owner with its claim against the contractor.

Get pre-claims advice; it’s free! “A/E firms all face potential claims issues during construction,” says Peter Smith, corporate risk man-ager at weston & Sampson (Peabody, MA), a 393-person engineering and architecture, contract operations and construction firm. “Often, this starts out with some adverse situation that occurs on the jobsite that costs the con-tractor more money than anticipated, and, regardless of the contract terms,

will want to seek relief from the proj-ect owner.”

As such a situation progresses, the en-gineer’s PM often learns from his field representative, contractor or owner that something is brewing. This is when the PM can mitigate the company’s risk by alerting his supervisor, or corporate risk manager (if applicable). The risk manager should then contact its insur-ance agent and professional liability in-surer and ask for pre-claims assistance. The insurer will assign an attorney to work with the engineer and they can develop a strategy to defuse the situa-tion. Pre-claims assistance is typically granted to avoid a claim and it’s free.

“Weston & Sampson has made great strides in this area. Our project teams now alert me when potential issues arise and we have successfully used our attorney to mitigate claims risk,” Smith says.

LEED-EBOM certification has risen rapidly in the past three years.

During the recession, many U.S. busi-nesses downsized and consolidated, creating a market with a glut of exist-ing office space. With fewer new proj-ects being implemented, firms that specialize in the redesign of existing spaces have continued to prosper dur-ing this tough economic time.

Focus on Infrastructure. With the public paying more attention than ever to infrastructure, something eventful is bound to occur in 2012.

According to the Congressional Bud-get Office, the nation’s network of highways plays a vital role in the U.S. economy and private commercial ac-tivity. People’s daily lives depend the transportation infrastructure. In 2007, the public sector spent $146 billion to build, operate, and maintain highways in the United States.

About three-quarters of the total amount was provided by state and lo-cal governments, and one-quarter was provided by the federal government, primarily through the Safe, Account-able, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFE-TEA-LU). The initial authorization for

that law has expired. Congress is still debating how to structure decision-making about highway projects, how much money to spend on highways, and how to pay for that spending.

Much of the infrastructure in the Unit-ed States is nearing the end of its useful life or badly in need of repair. Lack of fi-nancing/funding for public works proj-ects and the uncertainty of the election outcome will make infrastructure a hot topic and source of uncertainty in the A/E/P and environmental consulting industry. As infrastructure gains pub-lic attention and concern, it’s also be-ing seen as a big opportunity to put the unemployed back to work.

Global vision. The design industry is becoming more globalized than ever. Factors such as technology, the econo-my and labor costs are making it easier than ever to work abroad.

The economic recovery has proven to be long and uncertain. Most developed countries are still suffering from gov-ernment and private debt and finan-cial troubles. Right now, the U.S. econ-omy has put a strain on the A/E/P and environmental consulting industry. Construction jobs have plummeted, fi-nancing is hard to come by, and there has been a delay or shutdown of many major government projects involv-ing infrastructure and transportation.

Many developing countries simply do not have these problems. These coun-tries are projected to enjoy double-digit growth over the next few years, result-ing in infrastructure investments and excellent private sector strength. All these factors point to great opportuni-ties for design firms.

Interestingly enough, according to ZweigWhite’s International A/E Indus-try Survey and Outlook, 52 percent of firms with offices abroad have been do-ing business in those locations for less than two years. That means that more firms have sought out international projects as a way to soften the blow of the recession.

“There are countries and regions around the globe that are experiencing explosive growth of their populations, along with rapidly rising middle classes with rising per capita GDP and spend-ing power. These are fundamental driv-ers of economic expansion, and are con-ditions that are not present in the U.S. market,” said Gregory DiFrank, presi-dent of river Consulting LLC (Co-lumbus, OH), in the International A/E Industry Survey and Outlook. “There is work to be found in these markets for competent U.S. consultants who have the fortitude to navigate the complexi-ties of international contracts and proj-ect execution.”

RISk, from page 5

oUTLook, from page 4

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Learning to let go

grooming the next set of leaders includes allowing them to make mistakes and learn along the way.

There is a time in everyone’s life when you are holding onto something too tightly. I was

reminded of this fact by my son on Christmas Day. Santa had brought him a new bike and, unlike his old bike, it did not have training wheels or even a place to put training wheels – this was his first “big boy” bike. While I knew it was time for him to get out there and fall down, brush himself off and get back up; I had a hard time letting go – literally. I wanted to hang onto the seat and steady the bike, so my son would not fall. I am sure that part of it was that I did not want to see my son get hurt, but the other part was about control. If I was holding onto the seat, I still had some control over where my son was going and his speed. We worked on riding his bike the next day, but it did not feel like

my son was making much progress.

Fortunately for my son, we had some mild December weather that allowed me a round of golf. Upon my return home, my son was doing laps in our driveway all by himself. It turns out that left to his own devices, he figured it out. Yes, he fell, but he learned from his falls. Did he need my encouragement? Absolutely! He also needed space to succeed.

Reflecting on my son’s achievement, I realized that this is the perfect metaphor for the situation that many A/E owners find themselves during an ownership transition. They must learn when to let go and allow the next generation the latitude to make decisions, to try new things and even fail. I think that all owners understand that they need to develop future leaders within their firms. However, many have trouble ceding the power to manage and ultimately lead. This can be very difficult, especially for leaders who helped build successful practices and firms. To some, letting others make decisions is admitting that they may not be as crucial to the success of the firm as they believe. This is a trap that can destroy value and lead a firm to the long road of decline.

I recently attended the seminar Ed Friedrichs’ did for ZweigWhite on leadership. Ed believes strongly in codifying a succession plan that allows up-and-comers in your firm the opportunity to grow as leaders. This is a

process and one that cannot be completed overnight. The process must start out small and build up over time. Your next generation must learn to walk before they can run. However, they need to be in a situation where they can succeed or fail. It is only when the outcome is in doubt that you can truly determine who has the ability to succeed you in the future. The role of the senior principals in this case becomes that of counselor, mentor and cheerleader. It is counterproductive to second-guess every decision that is made, especially if the only fault you can find is that you would have done things differently. To be truly committed to the process, you must approach leadership development with a positive attitude – support the next generation as they learn to lead.

No business leader is perfect. Even Warren Buffett has made some lousy investments. There may come a time when a handpicked successor is not working out and you have to make a change. This comes with the territory. However, the possibility that someone may not pan out should not be used as an excuse to not begin a program that will build the future leaders of your firm. When an ownership transition plan is properly constructed, the cost of making the wrong decision on a future leader is likely to be much less than the cost of not developing leaders

in the first place. I cannot guarantee that every person with leadership potential will pan out. However, I can guarantee that firms that do not develop a new generation of leadership are less valuable than firms with a deep bench of leadership.

The moral of the story – you have to let go, a little at a time. Be there when they fall or need words of encouragement. The next generation will not be ready to take over the firm tomorrow or the day after, just as my son will not race in the next Tour de France. However, with the right guidance and support, they will be ready when the time comes.

w. hoBSoN hogaN is a Zweigwhite principal specializing in mergers and acquisitions, finance and strategic planning. contact him at [email protected].

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a/E owners must learn when to let go and allow the next generation the latitude to make decisions, to try new things and even fail. I think that all owners understand that they need to develop future leaders within their firms. however, many have trouble ceding the power to manage and ultimately lead.

successful fIrm survey: Even during the recent economic downturn, there are firms in the a/E industry that still report continued growth and increasing profits. how do the most successful architecture, engineering, and environmental consulting firms do business? what are they doing that you’re not? Find out with the 2011-2012 Successful Firm Survey of architecture, Engineering, planning & Environmental consulting Firms.

For more information or to buy a copy, call 800-466-6275, or log on to www.zweigwhite.com/zw-1114.aspx.

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8 © copyright 2012. Zweigwhite. all rights reserved.

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Push the limits, at what cost?Downsizing has taken a toll on those employees that have remained, so be careful not to bring them to the brim.

We are rightly worried about the economy, especially when it’s resulted in downsizing.

The remaining workforce has rallied admirably. That is why those retaining their positions deserve a lot of attention and gratitude. None of this “Just be lucky you still have a job” business. Tell them – over and over – how much you appreciate their efforts.

This is not simply a matter of politeness. In addition to dealing with survivors’ guilt, they have lost their colleagues and friends and are now required to work twice as hard, often out of their areas of expertise. And they do it mostly without complaint because they know it’s needed.

But what happens when it is no longer necessary and those at the top say, “Our numbers are up and we are doing better but, hey, they’ve been functioning despite the layoffs, so let’s not add back more people.” There is, of late, a propensity to push the limits – see how far resources can be stretched – under the guise of “lean management.”

FYI, “lean” philosophy was never meant to eliminate people. It is focused on efficiency.

Whatever the motivation for streamlining, there is often too little concern about employee stress, pending burnout, and the fact that folks rightly feel taken advantage of when they know business has again increased and there is little movement to bring on the required staff.

Stress is not caused by hard work or busy lives. It is a result of working hard and not accomplishing what needs to be done. It is also connected to whether the expectations of others are met. Over and over, employees say that although staff was diminished, expectations were not.

People sometimes make the argument that stress can be motivating and exhilarating. I’m not certain that if that’s true, it’s sustainable. But, even if it is an effective motivational tool, the differences between so-called good stress and bad stress include:

1) One’s sense of choice. If the demand is self-chosen, there’s a

chance that it might be perceived as stimulation, not stress.

2) The degree of control – real or perceived.

3) The ability to anticipate consequences.

How often are any of the above the choice of employees? Not only are people at higher levels usually calling the shots but, because downsizing has already occurred, those affected are reluctant to complain or report problems. The amount of vulnerability and fear in the workplace has reached unprecedented levels.

In addition, burnout is exacerbated by change, the fear of the unknown, and anxiety about the future. Employees need to know – to the best of anyone’s knowledge – if the worst is over or if they’ll be going through another round of downsizing – what is euphemistically called “restructuring” or “reorganizing.”

One compelling argument for not re-staffing is not wanting to let people go again if the business faces another downward turn. It’s a viable argument in favor of caution. One way to handle that is to rehire with the contingency that it might not be permanent. As unnerving as that is, at least additional employees will help in the short run and everyone can hope for a more permanent arrangement in the long run.

It is not OK to continue creating a stressful workplace environment. It’s not ethically right to take advantage of loyal employees who stepped up to the plate in a time of need. It’s unkind to turn a blind eye to tired, sometimes exhausted, staff that are afraid to say anything lest they be considered disloyal. It’s not ok to hurt those who enthusiastically helped.

When confronted, it’s often surprising to the decision-makers that anyone has noticed. “But, we’ve been operating this way for some time,” they say. At what cost?

gERRI kINg, ph.D., is a social psychologist and organizational consultant, trainer, and facilitator. She is president of human Dynamics associates, Inc. in concord Nh and has trained and keynoted for Zweigwhite.

whatever the motivation for streamlining, there is often too little concern about employee stress, pending burnout, and the fact that folks rightly feel taken advantage of when they know business has again increased and there is little movement to bring on the required staff.

successful project mAnAgement: Successful project Management in the a/E/p and Environmental consulting Firm integrates both the skill and science of managing projects and identifies the professions’ best practices through numerous examples, checklists and case studies. Many of these unique features of the book are presented from the client’s viewpoint, adding valuable perspective not often found in management books.

For more information or to buy a copy, call 800-466-6275, or log on to www.zweigwhite.com/zw-1099.aspx.

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p o L I c y

keeping your company’s polices in line with social media is a necessity in today’s global world.

By BRyaN SULLIVaNcorrespondent

Social media is here it stay. So, prop-erly utilizing this viable communi-

cation tool is key to any company’s suc-cess. But, how do you manage it? How do you control the message? Facebook, YouTube, LinkedIn, Twitter, Google + and more can all work to create a pow-erful online presence, but must be han-dled with care.

As a result, many companies are start-ing to designate a staff position, if not a department, to oversee social media efforts.

Such is the case of Acumen Building Enterprise in Oakland, Calif., a profes-sional consulting services provider.

“Our primary emphasis regarding so-cial media is to make sure the website is kept up-to-date as much possible with new blogs, career opportunities, press releases, client lists and new project in-formation,” says Michelle Margetts, so-cial media coordinator.

While Acumen does not yet have a so-cial media policy, Margetts explains the company emphasizes respecting its confidentiality agreements and privacy requirements with national and inter-national clients.

“This will remain key for our internal and external social media efforts,” she says. “Ease of use, consistency of brand message, new business development needs and a publishing frequency that works with our staff load will also affect the next stage approach/initial formu-lation of such a policy.”

Margetts anticipates Acumen will be-gin to formulate a policy sometime in the second or third quarter of 2012.

“Policies and approach must be de-signed to be as nimble as the technolo-gies they address and be in sync with a company’s mission and existing polic-es,” she says.

A performance-based ap-proach. Dade Moeller (Richland, WA), a full-service environmental, safety, health, and quality assurance services firm, announced the launch of its online presence through YouTube, Facebook, and Twitter, as well as a new blog, last August. This effort supports the company’s growth by increasing its reach, accessibility, transparency and brand recognition.

“We are excited to join the online com-munity through social media,” says Dave McCormack, president. “We look forward to cultivating an expanded lev-el of communication with our employ-ees, partners, clients and supporters.”

McCormack says the firm is embrac-ing social media as a business tool they use to better connect with employees, partners, clients and the public. “At the same time, we’re cognizant of the fact that, individually, social media can be-come a detrimental distraction in the workplace,” he says. “We’ve expressed an intent regarding the first aspect, and we have evolving policies regard-ing the second. The policies are not spe-cific to social media per se, but address how time is spent/or misspent while at work. I feel like we’re pretty flexible and have a performance-based approach.”

Tori Tuncan, communications special-ist at Dade Moeller, says that the firms’ policies are evolving, or a work in prog-ress.

Policies that address social media usage are twofold: 1) how to monitor the em-ployee’s use of this new medium while still allowing them to participate both in-house and on their own time; and 2) how to utilize this viable, high-tech tool to expand the reach of the compa-ny’s online presence.

A social media policy may be folded into other policies, Tuncan says.

“Our social media policy will have a strong link to our ‘Conflict of Inter-est and Code of Ethics’ standards,” she says. “For example, we have a standard of professional excellence that does not condone abusive language, commercial endorsements or congressional lob-bying while at work with company re-sources or while representing our com-pany. Those standards will apply in the online space as well when an employee is representing the company in an offi-cial capacity.”

When employees are publishing online content outside of an official presence, and the content has something to do with subjects associated with our line of business, the firm is asking them consider adding a disclaimer of some sort to ensure their audience knows they are personal opinions and do not represent official company position or strategy.

“When engaging in personal online dis-course, if the individual identifies him/herself as a Dade Moeller employee, we ask that employees post content that is consistent with how they would want to be presented as a Dade Moeller pro-fessional. Our policy is based on the concept that ‘nothing posted online is private’,” Tuncan says.

Social media: friend or foe?How Is dAde moeller usIng socIAl medIA?

z Through all social media channels, they pay attention to what people are saying online about their company as well as what they’re saying about areas of interest to them and their lines of business.

z Through LinkedIn, they are generating interest from passive job seekers interested in working for them, as well as interest from other companies looking to partner with them.

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10 © copyright 2012. Zweigwhite. all rights reserved.

oN ThE MoVEG&O NAmES PRESIDENT AND CEO: The Board of Directors of engineering consulting firm Greenhorne & O’mara (Laurel, MD), has named Joseph Skinner, president and cEo. Skinner succeeds Brandon Smith, who plans to retire in 2012, after a 40-year career with g&o.

Skinner has worked at g&o for a total of 17 years, most recently as the regional vice president, Southeast general civil Services market and the Raleigh office’s branch manager. In his new role, Skinner will be responsible for the direct oversight of the company’s corporate headquarters in Laurel, as well as its offices in seven states. he will continue to implement the strategic plan and growth initiatives adopted by the executive council.

“g&o has been my home for many years, and I feel honored to be selected for this leadership role. I am privileged to work with the talented and dedicated staff, and I know together we will continue to be a trusted firm that delivers impeccable service to all our clients while providing sustainable services that enhance the communities where we live and work,” Skinner said.

Skinner has more than 37 years of national and international experience in all areas of engineering services, including planning studies, design, quality assurance, and construction review of numerous large and complex public, municipal, residential, commercial, and industrial projects. he understands the importance of efficiency, excellent design, and teamwork for a project’s success and has developed long-term client relationships that feature partnering; especially for completion of projects on the fast track.

Skinner is a registered professional engineer in seven states. he earned a bachelor of science degree in civil Engineering at west Virginia University and is an active member of the Society of american Military Engineers, the Raleigh chamber of commerce, and the american council of Engineering companies – North carolina.

WJE APPOINTS: Wiss, Janney, Elstner Associates, Inc. (Los angeles, ca) announced the appointment of Jeffrey Caldwell, senior associate, to lead its interdisciplinary team of engineers, architects, and materials scientists in Los angeles. caldwell specializes in the evaluation and repair of concrete and masonry structures.

caldwell, who has been with wJE for 13 years, has worked in the firm’s offices in princeton and Boston. his project experience has focused on the assessment, design, and implementation of restoration programs for a variety of buildings and structures.

caldwell recently served on a wJE team for the investigation and renovation design for iconic Fenway park in Boston. current work includes the investigation of the Los angeles county hall of Justice and the Beverly wilshire hotel.

RmF HIRES: RmF Engineering (Baltimore, MD), announced the appointment of Stephen Devon, as principal, and Ronald maylor, as project manager. Both Devon and Maylor, formerly with Schlenger/pitz associates, are electrical engineering experts with more than 50 years of combined experience. with the addition of Devon and Maylor, as well as several support staff over the past six months, RMF now employs more than 215 team members across eight U.S. offices.

Devon has more than 30 years of experience as an electrical engineer, with an emphasis in government and institutional markets, areas of great strength for RMF. as principal, Devon is responsible for supporting the firm’s market sector penetration and presence in the Mid-atlantic with a special focus in Delaware, Maryland and pennsylvania. Devon was previously chief electrical engineer at Schlenger/pitz.

In addition to supporting business development efforts in several areas for RMF, Devon develops marketing strategies for select clients aimed at boosting awareness of RMF’s full service offerings,

including arc flash studies, energy design services, commissioning and condition assessment surveys. Devon actively contributes to the development of key client relationships and supports technical production activities for highly complex and demanding projects.

Maylor comes to RMF with 27 years of experience as an electrical engineer. as a project manager in RMF’s building group, Maylor works with clients across the mid-atlantic region across multiple markets.

his responsibilities include: electrical design and engineering, overseeing electrical design teams, project coordination, and ensuring the technical needs of clients are met and communication is maintained throughout the design and construction process. Maylor was previously an associate with Schlenger/pitz.

SCHNABEl HIRES: Schnabel Engineering, Inc. (glen allen, Va), a 300-person geotechnical engineering firm, has welcomed Nigel miller as an associate of the firm. Miller brings to more than 15 years of experience in transportation, energy, and infrastructure, including work on the western wake Freeway, I-15, Legacy highway, and other design/build pursuits. he will lead Schnabel’s transportation pursuits in the carolinas.

Miller has experience on highway bridges, roadway pavements and embankments, airport runways, bridges, retaining structures, high-rise buildings, earth dams, energy transmission lines and large-diameter pipelines.

he has managed, reviewed, and performed design and construction phase engineering duties for projects with technical challenges such as soft soils, deep excavations, high seismic loads, landslides, dewatering, corrosion, and rock excavations.

RETTEW PROmOTES: RETTEW (Lancaster, pa), an engineering, transportation, environmental consulting, planning and surveying services, recently promoted Charles myers to director of energy services. Myers previously served as assistant director of environmental engineering.

“charley has done an excellent job providing leadership and vision to the environmental engineering service area,” said Mark Lauriello, president, RETTEw. “I congratulate him on his deserved promotion to director of energy services.”

as director of energy services, Myers manages the department’s day-to-day operations and provides budget oversight and planning. he is also responsible for strategic planning, business development and performance standards.

additionally, he is tasked with creating a vision for and expanding services RETTEw provides to the energy market sector. The firm’s energy services group presently provides natural gas clients with engineering, consulting and construction related services for projects including water pipeline, gas pipeline and water handling facilities.

RETTEw welcomed Myers in 2004 as a project manager in the environmental engineering group. The firm later promoted him to group manager and most recently to assistant director of environmental engineering. RETTEw named Myers a shareholder of the firm in 2011.

Myers is a registered professional engineer with more than 17 years of civil engineering experience. he has designed, coordinated and administered projects for the energy industry and municipal, and private-sector clients.

he holds a bachelor’s degree in both civil engineering and engineering management from the University of Missouri. he is a member of the Eastern pennsylvania water pollution control operators association, american Society of civil Engineers, american water Resources association, National Society of professional Engineers and Engineers without Borders. Myers resides in MacUngie, Lehigh county, pa.

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More than 30 projects registered, as well as more than 25 investor profiles.

The American Institute of Architect’s efforts to get stalled projects rolling

again is gaining steam as more than 30 projects are listed in the AIA’s Stalled Projects Database.

The database connects architects and project leaders with interested inves-tors with billions in capital to spend.

The postings come primarily from ar-chitects but also include develop-ers, owners and other business lead-ers. More than 25 investors have pub-lic profiles on the site. Combined they have more than $7.1 billion in capital to invest. There are also more than 25 non-public investors who have created private accounts for the site.

“I am grateful for the AIA’s pioneer-ing initiative, based on feedback from its members, to stimulate our profes-sion’s businesses and our nation’s econ-omy by creating a specialized market-place for potential projects and inves-tors,’’ said Clinton Brown, president and principal at Clinton Brown Com-pany Architecture (Buffalo, NY), in a statement.

Brown’s The Cooperage is among the stalled projects listed on the AIA’s web-site. It’s a rehabilitation of the former E & B Holmes Machinery Co complex in Buffalo. It is where machines to auto-mate barrel-making were invented. It’s now planned as a mixed-use facility in a 21st Century waterfront community in

Buffalo’s downtown.

‘’We receive an inquiry a week for a loft,’’ Brown said. ‘’The missing piece is the last piece of financing.’’

A comprehensive report released by the AIA in early November concludes that the major obstacle holding back job cre-ation in the United States is the persis-tent lack of construction financing. De-

spite record low interest rates, the report compiled by McGraw-Hill Construction and Reed Construc-tion Data states that the inability to procure financ-ing is responsible for 20 percent of

stalled projects nationwide.

The share of projects stalled due to fi-nancing problems has almost doubled since 2008.

“Difficulties in securing financing are widespread across most building con-struction categories,’’ AIA Chief Econ-omist Kermit Baker wrote in a report. “Architecture firms report that residen-tial, commercial and institutional con-struction projects all are subject to se-rious financing problems. And it is not only large, complex projects that are at risk. To the contrary, architecture firms recently reported that projects with es-timated construction costs of under $5 million account for almost half of all

projects stalled due to lack of financ-ing.”

How it works. The AIA database aims to get some of those projects un-derway again. The AIA has invited po-tential investors and architects, archi-tecture firms, or other project owners/developers to submit their projects or investment profile into a database the AIA has named the Stalled Projects Da-tabase.

The database is intended to list build-ing projects nationwide that make eco-nomic sense but which lack the financ-ing to be completed. The commitment by the AIA involves soliciting informa-tion about stalled projects around the country from its members and allied professionals.

Individuals or organizations can regis-ter their projects in the database web-site at www.aia.org/stalledprojects/in-dex.htm. The site also includes a sec-tion where investors can register. Reg-istered users can then access a list of stalled projects or potential investors.

FINANCE a SUppLEMENT oF ThE ZwEIg LETTER JaNUaRy 30, 2012, ISSUE 944

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M a R k E T

The Cooperage, one of the stalled projects seeking funding featured in the AIA’s Stalled Projects Database.

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“I am grateful for the aIa’s pioneering initiative, based on feedback from its members, to stimulate our profession’s businesses and our nation’s economy by creating a specialized marketplace for potential projects and investors.”

AIA Stalled Projects Database blossoms

How to regIster If you have a project that needs the last bit, financing, to come to life, you can now register with aIa’s Stalled project Database. To do so, log on to www.aia.org/stalledprojects/index.htm. you can then register your projects under the “register your projects” tab. Investors can register under the “register as an investor” tab.

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F INaNcE NEwSABI gAIns strengtH: after showing struggling business conditions for most of 2011, the architecture Billings Index has now reached positive terrain in consecutive months. The american Institute of architects reported the December aBI score was 52, following the exact same mark in November.

This score reflects an overall increase in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 64, down just a point from a reading of 65 the previous month.

“we saw nearly identical conditions in November and December of 2010 only to see momentum sputter and billings fall into negative territory as we moved through 2011, so it’s too early to be sure that we are in a full recovery mode,” said aIa chief Economist, kermit Baker. “Nevertheless, this is very good news for the design and construction industry and it’s entirely possible conditions will slowly continue to improve as the year progresses.”

as a leading economic indicator of construction activity, the aBI reflects the approximate nine- to 12-month lag time between architecture billings and construction spending.

key December aBI highlights:

z Regional averages: South (54.2), Midwest (53.1), Northeast (52.6), west (45.1)

z Sector index breakdown: multi-family residential (54.3), commercial/industrial (54.1), institutional (51.3), mixed practice (44.5)

z project inquiries index: 64.0

constructIon spendIng up: construction spending totaled $807 billion in November 2011, the highest level since June 2010, as homebuilding, private nonresidential construction and public construction all increased compared to october, the associated general contractors of america reported in an analysis of new census Bureau data. association officials cautioned, however, that public spending will drop even further in 2012 because of delays in enacting needed infrastructure bills and planned cuts to many federal construction programs.

“Several segments of construction appear to be climbing out of a hole,” said ken Simonson, the association’s chief economist. “The new year should reinforce recent year-over-year gains in apartment, power, manufacturing and private transportation construction. But November’s upturns in single-family homebuilding and public construction may not be sustainable.”

Simonson noted that total construction spending rose 1.2 percent in November from october and 0.5 percent from the November 2010 level. private residential construction posted increases of 2 percent and 3.4 percent, with gains in single-family, multifamily and residential improvements. private nonresidential construction spending inched up a negligible amount from october but gained 4.5 percent compared to November 2010. public spending rose 1.7 percent last month but declined 5.3 percent from a year earlier.

The construction economist added that the uptick in private nonresidential construction from November 2010 was widespread, led by manufacturing, up 12.6 percent; commercial (retail, warehouse and farm), up 12 percent; private educational, up 10 percent; private transportation, up 9.2 percent; and power (including oil and gas), up 8.4 percent.

InterIor desIgn reBounds: a majority of interior designers saw their revenue increase in 2011, according to Design Success University’s “2012 Interior Design Fee & Salary Survey eBook.”

according to the survey, 62 percent of respondents said total revenue for 2011 increased or remained the same versus 2010.

other survey highlights:

z 46.7 percent said total revenue for 2011 was above $100,000

z 56.4 percent of firm owners earned less than $45,000

z 87.3 percent of survey participants are over 36

z 89.7 percent of survey participants are female

“Interior designers continue to show their determination to survive,” said gail Doby, co-founder of Design Success University. “projects are smaller and consumers are fickle. If consumers can purchase online and steal a designer’s ideas, they will. however, few consumers have the ability to create magical interiors that inspire. Designers need more business savvy to succeed in spite of the triple threat of the economy, consumer attitudes and the Internet.”

approximately 900 interior designers participated in the November 2011 survey. go to http://www.InteriorDesignFees.com to download a free copy of the survey.

TRaNSacTIoNSo’BrIen & gere Buys: O’Brien & Gere (Syracuse, Ny), an engineering firm, bought the remaining stake in lindbergh & Associates (North charleston, Sc), an architecture and engineering firm.

o’Brien & gere bought the remaining 55 percent of ownership in L&a. Terms of the deal were not disclosed.

The consolidation creates o’Brien & gere’s third-largest office in the United States.

fIrms joIn forces: CO Architects (Los angeles, ca), announced a joint venture with FXFOWlE (New york, Ny), an architecture and engineering firm, to extend the geographic reach and expertise of each company, according to the Los angeles Business Journal.

The firms will maintain individual identities and operations while pursuing new projects together under the name co/FXFowLE, including participating in a new competition to design a building for a prestigious educational institution in New york city.

FXFowLE’s strength in urban planning, infrastructure, commercial, cultural, and education projects complements co architects’ extensive experience in health care, science and technology and medical education.

what does it take to be one of the Best Firms to Work For?Find out by entering the 2012 Best Firms To work For rankings! The rankings are determined in the following firm categories.

z Best Environmental Services Firms To work For

z Best architecture Firms To work For

z Best Structural Engineering Firms To work For

z Best Multidiscipline a/E Service Firms To work For

click here to enter for 2012: www.zweigwhite.com/events/BestFirmsToworkFor/BestFirmsToworkFor RankingRegistration-2012.asp.