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Strategic Management of Human Capital

Eric Rodriguez - noemail@interface-consulting.com — Thu, 29 Mar 2012 19:00:00 GMT

The Workforce Problem

The retirement of the Baby Boom Generation (those born between 1946 and 1963) has prompted much thought and discussion about a potential gap in the American workforce. That discussion has definitely occurred within the engineering profession. However, the situation may not be as dire as some believe it to be. A quick look at birth statistics and the number of science and engineering (S&E) degrees awarded annually paint a more positive picture. Figure 1 shows the relationship between the two statistics.

Figure 1

S&E DEGREES AWARDED HAVE STEADILY TRENDED UPWARD DESPITE DRASTIC DECLINES/INCLINES IN THE BIRTH RATE

Sources: Centers for Disease Control and Prevention. National Center for Health Statistics. VitalStats. http://www.cdc.gov.nchs/vitalstats.htm. December 2011 and National Science Foundation, Division of Science Resource Statistics. 2008. Science and Engineering Degrees: 1996-2006. Detailed Statistical Tables NSF 08-321. Arlington, VA. Available at http://www.nsf.gov/statistics/nsf08321/.

With the exception of a short spike in the birth rate in 1969 and 1970, the period from 1961 to 1973 saw a drastic decline in the number of births annually. It is this drastic decline in the number of births that is most likely the root of the fears associated with the mass retirement of the Baby Boomers. However, if you look at the period from 1983 to 1995, when most of those born between 1961 and 1973 earned their degrees, you will see that the number of S&E degrees awarded still increased modestly. At least for S&E professions, this trend contradicts the thinking that there simply aren’t enough people to replace the Baby Boomers once they are gone from the workforce. To further support the argument that the S&E workforce isn’t top heavy with aging Baby Boomers, Figure 2 shows a fairly even age distribution among workers with S&E degrees.

Figure 2

AGES OF S&E WORKFORCE ARE EVENLY DISTRIBUTED AT ALL DEGREE LEVELS (AS OF 2003)

Source: National Science Board. 2010. Science and Engineering Indicators 2010. Arlington, VA: National Science Foundation (NSB 10-01)

Of course, the S&E workforce is comprised of several professions and each of those professions will be impacted to varying degrees by an aging workforce. For the civil engineering profession, 34% of the workforce was age 50 or older in 2006[1]. This suggests that by 2021, approximately one third of the 2006 civil engineering workforce will be gone. That is not the problem, though. The problem is twofold: first, companies must develop the younger engineers so that they are prepared to assume the responsibilities left behind by those who have retired and, second, they must recruit the next generation of engineers into the profession.

Accomplishing those two tasks may be easier said than done, however. Firms can’t just assume there will always be an abundant pool of engineering graduates to choose from. Going back to Figure 1, you can see another drop in the birth rate in the early 1990s. This drop in the birth rate, along with the growing popularity of non-S&E degrees, could signal a slower increase (or even worse, a decrease) in the number of new engineering graduates. And, engineering firms just aren’t competing with each other for top talent; they are also competing with outside industries who value the skills that engineers possess. Adding to the challenge, the other industries competing with engineering firms for talent are often able to offer higher compensation, more glamorous roles, quicker advancement, or a number of other perks, all of which might be just enough reason for one to leave the engineering industry or skip it altogether.

Developing today’s professionals and recruiting tomorrow’s is nothing new. But, the ways industries and companies must go about addressing these tasks are new. Those professions and companies that insist on using the tried and true methods of the past will find themselves struggling to hold on to their most valuable individuals and to attract the most promising young talent.

To overcome these challenges, companies must effectively manage their human capital. For many companies, this responsibility falls on the human resources (HR) department; and, often times, it becomes a part of the basic day-to-day activities that are performed on an as-needed basis. Human capital management must be more than this, though. It must become a strategic initiative of the firm. And, firm managers, along with HR professionals, must be responsible for developing and implementing a strategic human capital plan.

Human Capital Strategy

While there is no one-size-fits-all strategic human capital plan, Figure 3 shows a typical process a firm might follow in establishing and executing such a plan.

Figure 3

TYPICAL PROCESS FOR DESIGNING AND IMPLEMENTING A STRATEGIC HUMAN CAPITAL PLAN

Identify Challenges

The first step in developing a strategic human capital plan is to identify the challenges facing the firm. Though this may seem blatantly obvious, it bears mentioning because of its importance. This is where the firm must take a critical look at itself and identify its own shortcomings. Common HR issues that most firms will face at one point will most likely come to mind, such as difficulties in hiring highly qualified individuals, retaining top performers, or developing specific skill sets in workers. Then there are issues like a non-diverse workforce, generational gaps, and succession planning that may not be as common or obvious; however, issues such as these could leave large gaps or shortcomings in a firm’s human capital.

The previous examples are all challenges that are directly related to human capital issues. But, there may be other challenges facing a firm that are indirectly related to human capital issues. For example, a firm that is experiencing increased revenues along with stagnant or decreased profits might have a staff that is top-heavy with senior leadership positions. Another example would be a firm that is struggling to meet tighter schedules and budgets might have a workforce that is not receiving the proper training to take advantage of new technologies.

Align Strategies

Before the firm can move on to addressing the challenges it identified previously, firm must first address the second step in the strategic development process, which is ensuring that the human capital strategy is aligned with the overall business strategy. Again, what may seem like common sense becomes a very important component of developing a strategic human capital plan. This strategic plan must improve the management of human capital, as well as help meet the objectives of the overall business strategy. If the two strategies are not aligned with each other, they will eventually work against each other. In this case, one will eventually lose priority and fail; the other may be derailed to the point that it too will eventually fail.

Clearly State Goals

At this point in the process, after identifying the major challenges facing the firm and considering the overall strategic direction of the firm, the goals for the strategic human capital plan should start to become apparent. The goals should be clearly stated and measurable. It is not enough to have a stated goal to “Develop a highly skilled and trained workforce.” Such a goal is entirely subjective and does not allow the firm to determine whether it is being successful in its execution. If developing a highly skilled and trained workforce is a goal, then “highly skilled and trained” must be defined and a timeframe for meeting the goal must be established. A better way to state the same goal would be: “At the end of Year 1, all professional staff will be participating in a professional development/continuing education program that requires ten hours of learning that is directly related to his/her everyday duties and five hours of learning that promotes professional growth.” The two goals state essentially the same concept. By providing clear measures and a deadline, however, the latter removes all subjectiveness from determining whether or not the firm has been successful in meeting the goal. This is crucial in allowing the firm to perform the final step in the process.

Define and Implement Action Plan

Now that the firm has a solid understanding of the direction it wants to head, it is time to set forth an action plan. At a minimum, the action plan should provide the following information:

Strategy Leader: The person responsible for the Human Capital Strategic Plan as a whole

Goal Leaders: The persons who will take ownership of specific goals

The tasks required to accomplish each stated goal

The resources available to designated goal leaders

It is important that someone in the organization take ownership of the Human Capital Strategic Plan and be its champion. Otherwise, the strategic plan will likely be forgotten as others in the organization focus their efforts on shortsighted goals. The strategy leader will need to manage a team of goal leaders (from various groups/departments of the company) that will each be responsible for meeting a specific goal stated in the strategic plan. Individual goal leaders should work with the human capital strategy leader in developing a process to meet each goal. And, the strategy and goal leaders (human capital strategy team) should be given the proper resources needed to attain each goal.

After the human capital strategy team is in place, implementation of the strategic plan can begin. Naturally, this will be the most difficult stage of the entire process. The primary reason implementation can be difficult is because it involves a diverse group of individuals. As noted earlier, the responsibility of executing this strategic initiative cannot fall on just the HR department; rather, firm managers must also play a key role in ensuring the strategic plan is executed successfully. This is where the difficulty lies. The person managing the strategic plan must guard against individuals sacrificing their human capital strategy obligations in favor of their day-to-day obligations.

Evaluate Progress

Once the strategic plan is in motion, progress will need to be evaluated periodically. By doing this, the strategy leader can hold the goal leaders accountable. And, through these progress evaluations, the team will be able to identify which action plans are on track for success and which are in danger of failure. For those goals that are in danger of failure, the team should analyze why. Reasons for the potential failure could be anything from poor team execution to unrealistic expectations. Just because a specific goal is off to an unsuccessful start, though, the goal shouldn’t be scratched. Rather, the team should address the reasons the progress isn’t where it should be and make the necessary modifications. This allows the entire process, from identifying challenges to evaluating progress, to be dynamic.

This dynamic approach to the process will be key in the successful design and implementation of the human capital strategic plan. The team will learn what works well within the organization and what doesn’t. They should also look for new challenges facing the firm. And, when these new challenges are identified, they can be worked into the current strategic plan or into an entirely new plan.

The personalities of workers are rapidly changing. The issues that matter most to the Baby Boomers often don’t matter to those workers from Generation Y. The way people from different generations learn, work, and communicate are different. Just as there is no one-size-fits-all human capital strategic plan, there is no one-size-fits-all way of managing people. Understanding your workforce and understanding the challenges to building and maintaining a strong workforce are crucial factors to your company’s success.

[1] National Science Board. 2010. Science and Engineering Indicators 2010. Arlington, VA: National Science Foundation (NSB 10-01).

29-Mar-12 2:00 PM

Every Step Counts in Successful Project Management

Philip Barnard - noemail@interface-consulting.com — Mon, 04 Apr 2011 19:00:00 GMT

Introduction

The goal of any contractor is to build a project on time and within budget. To be an effective and productive contractor, one must have a complete understanding of the construction process, which includes not only building the project, but, more importantly, effective scheduling and management of the project. The contractor is ultimately responsible for managing its activities as well as the activities of the construction parties under its supervision.

Successfully managing a construction project is a four-step process. It requires that the parties establish a project plan, develop a project schedule, monitor the project schedule, and manage change events. Each step requires dedication and commitment from each team member, and each step in the process is essential to a successful project outcome.

Step 1: Establishing a Project Plan

The first step in successfully managing a construction project is establishing a game plan for executing the work. Planning should be thought of as completing a puzzle. All of the pieces must be identified, as they are all necessary to complete the puzzle. Furthermore, this process involves establishing the time and cost for each piece, ultimately leading to the total time and cost of the project.

The owner, architect or engineer, and contractor (if involved) will develop the plans and specifications for the project, as well as the overall sequence of construction activities. Each construction activity is then identified and assigned to a construction party, who identifies what is included in its scope of work and what related activities are not included. This identification process is critical for the contractor to know what activities have not been assigned and could “slip through the cracks.”

During the project planning phase, the project price is established using several methodologies, such as competitively bidding, utilizing a not-to-exceed value, or paying for the cost of the work plus a fixed fee. Once the project price is established, the contract documents are reviewed, approved, and executed. During project pricing, product suppliers and manufacturers are also assigned.

Also during this phase, the construction parties must educate themselves regarding the procedures, problems, and pitfalls of obtaining labor in the project location. They must assess availability of equipment, and of suppliers and manufacturers of construction components. Finally, all construction projects must meet the requirements of a regulatory governmental body, and the contractor is generally charged with obtaining all necessary permits.

Though every piece of the puzzle may not be known at the time of planning, an effort must be made to establish the full scope of work including the construction tasks. Once all of the “puzzle pieces” have been identified, assigned durations, sequenced, assigned to parties, and priced by parties, the project schedule can be developed.

Step 2: Developing a Project Schedule

Following planning,the second step in successfully managing a construction project is developing the schedule. Proper scheduling of the work tasks is the most critical aspect of the construction management process. The project schedule not only divides the work by activities, but it allows other parties to know what activities need to be performed and when. All construction parties need to be involved in planning the schedule and “buy into” the project sequence before construction begins.

A schedule can be as simple as a bar chart or as sophisticated as a computer model, but it must be developed and utilized. In a bar chart, each bar represents an activity and the length of the bar represents the activity duration. The bars can be stacked and placed so that as one activity is completed, the next activity in the sequence begins. The following is a sample bar chart schedule:

Typically, construction schedules are computerized. There are multiple software programs that produce reliable schedules, with most utilizing the critical path methodology (CPM) technique. Of all techniques available, CPM has proven to be the most useful and effective means of developing and displaying project progress.

Utilizing the CPM technique, each work activity is assigned a duration, start date, and end date, and is sequenced to follow and precede another activity. This sequence of events becomes a construction path. Generally, there are multiple paths created and many can occur simultaneously with and independently of one another. But there is only one continuous path that occurs from the beginning of the project to the end; that path is considered the “critical path.” Delays in non-critical work activity paths will generally not delay the overall project; however, delays to the critical path will. Planning and scheduling project activities with CPM software creates a logic diagram or network that can be displayed graphically.

In a successful construction project, the schedule becomes the project roadmap that all parties can review to determine when their respective work is sequenced. This allows parties to plan accordingly and ensure that they have the required materials, labor, and equipment available to perform their respective work. The schedule also informs construction parties what work precedes, follows, and occurs simultaneously with their work. This will allow each party to plan its work at the project site so that it will not interfere with other parties’ work. Further, the schedule allows the owner, architect, engineer, and contractor to plan decisions or approvals on certain project items or deliverables.

Step 3: Monitoring the Project Schedule

The third step in successfully managing a construction project is monitoring progress. Before construction begins, the schedule is a plan, also known (later on in the project) as the “baseline” schedule. However, once construction begins, the schedule becomes a dynamic tool that can, and often will, change depending on progress. The contractor is responsible for ensuring the schedule is actively updated, which includes recording activity dates and durations once they have occurred. This is known as an “updated” schedule.

Once the frequency of schedule updates is determined, the contractor will instruct the construction parties relative to updating their own work tasks. Normally, a schedule is updated monthly in order to keep pace with monthly payment applications. This should be a minimum frequency for all project schedule updates, no matter what the project.

Based on the new information, all schedule activities that should have started during the updated period are identified. All activities that were underway during the updated period are tracked and assigned progress. Finally, all activities that should have been completed during the updated period are identified. By performing these updates, any activity that is not on schedule will be recognized and can then be evaluated.

There could be a number of reasons why an activity is not on schedule, including a design change or work that was added or subtracted. Whatever the reason, the schedule must be updated and re-issued to the involved parties. Additionally, it is important to analyze all of the scheduled and executed activities to determine whether the updates will affect the project completion date. If a delayed activity was not on the critical path, it may not affect the timely completion of the project. However, if a delayed activity was on the critical path, the entire project will be delayed. If this occurs, the contractor’s obligation is to investigate the involved work activities and mitigate any delay.

Step 4: Managing Change Events

The fourth step in successfully managing a construction project is managing change events, as changes will inevitably occur. Managing the schedule to account for changes is different than monitoring progress and reflecting that progress in an updated schedule.

Whereas an “updated” schedule reflects progress of the ongoing work and the data date changes as appropriate, a “revised” schedule includes modifications to future baseline schedule work components or activities. These modifications could include work activities broken down into more refined tasks to more precisely describe the sequence of events. An example of such a refinement could be breaking the foundation work into several activities such as surveying for footing locations, drilling the footings, assembling reinforcement steel cages, casting concrete for the footings, and setting foundation anchor bolts. A change to a specific activity such as this describes future work in more detail and is considered a revision to the schedule.

Once the construction has begun, it may be necessary to re-sequence certain activities to more accurately reflect project construction. In doing this, the activities that were originally scheduled to commence before and after the re-sequenced activity must be re-sequenced and re-scheduled as well.

Other changes to planned activities could include modifying durations. After a project begins, it may be determined that a certain activity planned to take two weeks to complete should actually take three. For this change not to affect the final project completion date, the schedule has to be adjusted to absorb the additional week duration. Or, if no other activity timeline can be compressed, the change must remain and additional manpower or manhours must be scheduled to compensate.

Other changes that occur on a construction project involve uncommon and common events. Uncommon events can include unusual weather, labor disturbances, and/or outside events that neither the owner nor contractor can control. Of these uncommon events, unusual weather is the most often occurring with the greatest impact on the schedule. Contractors include expected weather delays into their initial scheduling, but unusual weather, such as a hurricane, can affect overall project progress. Common change events include design changes, owner-added change orders, incomplete designs that have since become complete, or different conditions that occur on a project that were not anticipated.

Any changes that affect the future project schedule must be documented. Furthermore, these changes must be evaluated to determine the most appropriate revision to the planned schedule. All parties involved in the project must “buy into” the change or, if not, the revised construction activity must be modified to accommodate the involved parties.

If a contractor or its subcontractors delay their own work based on their own actions or inactions, the schedule should reflect the extended duration, and the cause of that extension should be documented. The contractor must assess the cause of the delay and pursue a solution. If there is insufficient labor, materials, or equipment to properly execute the work, the contractor must determine if additional resources can be utilized. If a contractor’s subcontractor is delayed, the contractor must assist in resolving the reasons for the delay. Furthermore, if the subcontractor is under contract with the contractor, the contractor is ultimately responsible, and it is its duty to rectify the delay and provide the necessary resources to put the project back on track.

Any revisions or routine updates to the construction schedule must be republished, distributed, and communicated to all parties involved in the construction process. It should be noted that the planned completion date should not be affected by publishing a revised schedule. If the planned completion date has been changed, the contractor must evaluate the project sequencing and determine how to avoid a different completion date than originally planned, unless a schedule extension is granted.

Conclusion

In conclusion, scheduling and managing a construction project is composed of four steps, including planning, scheduling work activities, monitoring construction progress, and finally, managing changes to the project plan. Without a proper and complete construction schedule including adequate updates and revisions, construction parties cannot be informed of and ultimately held accountable for the timing and duration of their planned activities. Further, it will keep parties informed of the status of others’ activities that may precede or follow their work. Finally, it is the contractor’s duty and the owner’s right to be continuously informed of construction progress. Adhering to these best practices will ensure a successful relationship between the owner, contractor, and subcontractors and thus, a successful completed project.

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Philip D. Barnard, PE, CCE, is Senior Vice President and a Principal Consultant with Houston-based Interface Consulting International, Inc. As an expert witness and claims consultant, Mr. Barnard draws from 30-plus years of experience in the construction industry to provide consulting and comprehensive analysis on a variety of complex construction issues. As a former contractor and Assistant Director of Public Works, his background includes designing and engineering multimillion-dollar civil and bridge projects, as well as project management and oversight for municipal facilities and buildings. For more information, please call Interface Consulting at 713-626-2525 or visit www.interface-consulting.com.

4-Apr-11 2:00 PM

Fire Rebuilds Stoke Flames of Claims if Not Handled Appropriately

Chris Sullivan - noemail@interface-consulting.com — Wed, 28 Apr 2010 18:00:00 GMT

Today’s refining, chemical, petrochemical, and heavy industrial facilities process and utilize hazardous chemicals, and despite the best laid plans and procedures, accidents do happen. Accidents could range from fires to explosions, resulting in chemical releases and damage to equipment and the facility, hopefully with minimal or no injury to personnel.

Insurance is often called upon to reimburse the owner for property damage and business interruption expenses following the fire, all of which could result in claims and disputes if not handled appropriately. Heeding some lessons learned during the rebuild process can help minimize the opportunities for claims and disputes following a fire or explosion.

Extinguishing the Fire and Preserving Surrounding Assets

There are many critical items that should be considered following a fire or explosion. First and foremost, safety of all personnel should drive all responses. It is important to account for all personnel and rescue and treat those injured.

Additionally, the plant’s fire response procedures should include controlling and extinguishing the fire to minimize further damage. Dousing the fire with sufficient water may also help control vapor emissions and reduce air pollution.

Oftentimes, due to the sudden nature of the fire or explosion, the plant is unable to follow its normal shutdown and decommissioning procedures. It is important that unaffected systems be preserved or “safed” as soon as possible. Preserving a system typically includes a nitrogen purge to keep the air and moisture out of the system. Safing, on the other hand, includes removing hazardous chemicals or flammable hydrocarbons and a nitrogen purge to keep out moisture during the fire rebuild period. The fire damaged area should be isolated using blinds and/or by crimping pipes to facilitate safing non-affected systems and to prevent feeding additional flammable liquids and gases to the fire zone.

Incident Investigation

Shortly after the fire, various governmental and industry agencies require that an incident investigation begin. 29 C.F.R §1910.119 (m) Process Safety Management under OSHA, 40 C.F.R. Part 68 §68.81 Risk Management Program under the EPA, and the US Chemical Safety and Hazardous Investigation Board (also known as the US Chemical Safety Board) all require an incident investigation following a fire or explosion. An incident investigation is performed to investigate the likely cause of the fire or explosion and to make recommendations to limit the potential for a recurrence and/or mitigate the consequences of such an event.

A typical incident investigation includes conducting interviews, gathering and reviewing data and documents, reviewing the plant’s safety procedures, reviewing maintenance records with particular emphasis on mechanical integrity programs, and possibly conducting forensic analysis. It is important to recognize that an incident investigation could take several months and delay any effective rebuild efforts, as the fire area must be preserved until the investigation is complete. Therefore, owners and their insurers are advised to include sufficient time in the rebuild schedule and recognize that access to the fire area may be limited until the investigation is complete.

Damage Assessment

A thorough damage assessment is important, as it will be the starting point for any rebuild efforts. Various industry guidelines exist which provide methodologies for evaluating whether various plant systems, equipment, and piping systems are fit-for-service or require repair or replacement. API RP-579 contains guidelines for conducting damage assessments and testing, from visual inspections to hardness testing and, in some cases, finite-element-analysis.

It is important to recognize that damage may result in areas not directly in the fire zone, as heat may conduct itself along pipes and wires. This is especially important for instrument and electrical systems. It is often difficult to identify damaged wiring systems with visual inspections, and thus damaged instrument and electrical systems will likely be identified during the commissioning and start-up phases when those systems are tested. Furthermore, instrument and electrical systems may be damaged and corroded due to prolonged exposure to firewater, and thus it is advisable to check, as a minimum, critical systems for functionality prior to introducing hazardous feedstock into the unit.

A thorough insulation inspection is also recommended, as insulation can be damaged due to both fire and the deluge of firewater. Wet insulation generally must be replaced.

Coordination with the Plant’s Insurance Carrier

It is important to include any insurance carriers in the rebuild discussions and keep them informed of critical decisions, as this will help ensure a quick and full recovery of available insurance proceeds. Agree with the insurance company, if possible, on the extent of repairs, recognizing that there will always be additional damage, called discovery work, that is identified during the rebuild and/or commissioning phases.

The construction means and methods should also be agreed upon with the insurance carriers, as construction means and methods can have a direct impact on repair costs, as well as schedule duration, which directly impacts the business interruption claim. For example, depending on the extent of damage, it may be less expensive to “clear cut” the fire damaged area as opposed to surgically demolishing/repairing the damage. Clear cutting involves removing all pipe and steel from a given area and reinstalling new items. A clear cut approach typically leads to higher labor productivity, and hence, lower repair costs, as trying to surgically remove and reinstall items in a congested area can be more time consuming.

Sudden fires and explosions often do not allow the owner to follow its normal planned shutdown procedures, and as such, damage to systems and equipment may result. For example, improperly decommissioned furnaces can result in furnace tubes cracking or becoming fouled with coke deposits. The sudden shutdown following a fire and inability to properly decommission and drain the unit of flammable/hazardous chemicals may result in a more complex commissioning following the fire rebuild. Furthermore, extended shutdowns during repairs may require systems outside the fire zone to be commissioned, as it is not uncommon for systems to rust or deteriorate while sitting idle for extended periods of time.

Agree with the insurance carriers on any required code upgrades that may be necessary given the age of the existing facility. Oftentimes, owners are required to upgrade older facilities if industry codes have changed since the facility was originally built.

Lastly, there is typically a balance between repair costs (property damage) and business interruption costs. Not all repair options require the same construction duration, and as such, one must carefully balance schedule-driven costs with capital costs. It is advisable to agree with the insurance carriers on the appropriate use of incentives, premiums, overtime, and other acceleration measures, as there is typically a cost-benefit analysis associated with such acceleration measures.

Repairing the Facility

The next step is to retain qualified contractors and conduct the repairs. Resist the temptation to “upgrade,” recognizing that insurance companies will only pay for repairing “like-with-like” where possible. If upgrades are desirable, segregate those costs such that the insurance company can easily track and understand them, which will ensure they are not included in any insurance claim.

Likewise, should any maintenance work be performed during the shutdown, it is important to segregate those costs, as the insurance company typically will not pay for normal maintenance work outside of the fire damaged area. It may be advisable to utilize different contractors for upgrade/maintenance work, as opposed to the repair work, to facilitate cost segregation. In addition, with respect to business interruptions claims, owners are advised that any maintenance/upgrade work should be performed as non-critical path work. As an alternative, owners should clearly demonstrate that any critical path schedule delay associated with upgrades and maintenance work is not included in the business interruption claim.

Lastly, owners are advised to utilize an engineering and construction contract that puts some cost containment pressure on the contractor. Typically, a lump sum contract is not advisable due to the uncertainty and difficulty of the required repairs. There are various contracting strategies to consider, such as a target price with a fixed fee, a target price with a sharing of any under runs/overruns, or a unit price contract which places the productivity risk with the contractor. All of these strategies put cost containment pressure on the contractor.

Commissioning the Facility

Commissioning a facility occurs after mechanical completion and involves checking that the plant or system is safe and has been built according to the design. It also involves activities to ensure the plant is ready for start-up.

Commissioning a plant after a fire may be more complex than a typical commissioning following a planned shutdown. This is because, during a normal turnaround, piping and equipment systems are maintained in a controlled environment and protected from debris, moisture, and harmful chemicals. However, in a fire rebuild, typically there are multiple breaches in equipment and piping systems, resulting in water, air, hydrocarbons, and other chemicals sitting in these systems for an extended period of time.

A sudden and uncontrolled shutdown may result in the need to commission systems both inside and outside the fire zone. This is especially true if the unit sat idle for an extended period of time pending repairs. Discovery of additional fire-related damage to instruments and electrical systems should also be expected during commissioning, as this is typically when the systems are functionally tested and made ready for start-up. Therefore, it is advisable for all parties to recognize that commissioning a unit after a fire rebuild may take longer and cost more than commissioning following a planned shutdown.

Conclusion

Fire rebuilds can be complex and may not be as straightforward as a typical construction project. However, as with any construction project, claims and disputes can arise if various issues are not handled properly. Thankfully, fires or explosions rarely occur, but if they do, these lessons learned will provide some guidance for consideration prior to rebuilding the facility.

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The author: Chris Sullivan is a Vice President and Principal Consultant with Interface Consulting International, Inc., based in Houston, Texas. Mr. Sullivan specializes in preparing engineering- and construction-related claims and providing litigation support, including consulting expertise and expert testimony, and has testified in various courts and arbitration forums. Mr. Sullivan has over 22 years of engineering and construction experience in the refining, petrochemical, chemical, and oil and gas industries and has worked on projects in Europe, the Middle East, Africa, Asia, and South America. For more information call 713-626-2525 (toll-free at 800-626-0054), e-mail cjsullivan@interface-consulting.com, or visit www.interface-consulting.com.

28-Apr-10 1:00 PM

In Construction Claims, A Picture is Worth More Than a Thousand Words

Danielle Sims - noemail@interface-consulting.com — Mon, 15 Feb 2010 21:00:00 GMT

“A picture is worth a thousand words” is an old proverb that suggests complex stories can be described by just a single picture. The same is true with respect to proving construction claims, where one visual or graphic can be more persuasive and influential than a thousand words.

Construction is a complex and risky process requiring extensive planning, engineering, procurement, and construction management. When all of these activities operate in concert with each other, the result is a successful project. However, when any one of these activities fails, the result can be a troubled project, often resulting in construction claims.

The claimant typically has the burden of proof in preparing and proving its damages in construction claims. However, oftentimes the decision makers are company executives who may not be intimately familiar with the project details. Therefore, it is essential to boil down and capture the essence of the claim without losing critical details, such as the root causes and resulting damages. Company executives are unlikely to read a 100-page claim, but they will read and study a one-page summary of the dispute. Therefore, it is critical to illustrate in graphical form the nature of the claim.

Some of the more persuasive construction claims graphics are illustrated below along with a brief explanation of why these graphics are effective.

A stacked graph can illustrate the interrelationship between various items over time. In Figure 1, change orders, requests for information (RFIs), the project schedule, and the labor histogram are plotted over time to illustrate that late project changes and RFIs can have a detrimental impact on labor productivity. As shown in Figure 1, excessive RFIs or late changes decrease labor productivity and result in increased labor hours.

Figure 1

Another effective illustration is the so-called “measles” diagram. A measles diagram illustrates the approximate location of various project problems, such as engineering errors, RFIs, or changes. As shown in Figure 2, a measles diagram can be effective on heavily disrupted projects to illustrate that virtually every aspect of the project was impacted.

Figure 2

Loss of labor productivity claims can sometimes be difficult to prove if project data are not available. However, 3D models can be used to illustrate the technical challenges associated with a work activity. For example, Figure 3 illustrates an engineering or fabrication error with a pipe that was fabricated three inches too long. While this may seem like a relatively simple fix, this section of pipe was approximately 120 feet in the air on top of a distillation tower platform. When viewed using the 3D model in Figure 4, the inherent difficultly and resultant decrease in labor productivity of working almost 120 feet above grade becomes obvious.

Figure 3

Figure 4

Construction claims are successful when the claimant artfully and persuasively explains why it is entitled to additional compensation, or in many instances, an extension of the schedule. Graphics can greatly enhance your chances of success with construction claims if they capture the essence of your claim and provide a linkage between the act or omission and the resultant damages. A well-designed graphic may well be worth more than a thousand words, and on large construction disputes, perhaps worth thousands (or millions) of dollars.

ABOUT THE AUTHOR

Chris Sullivan is a Vice President and Principal Consultant with Interface Consulting International, Inc. Mr. Sullivan specializes in preparing engineering- and construction-related claims and providing litigation support, including consulting expertise and expert testimony, and has testified in various courts and arbitration forums. Mr. Sullivan has over 22 years of engineering and construction experience in the refining, petrochemical, chemical, and oil and gas industries and has worked on projects in Europe, the Middle East, Africa, Asia, and South America. He has lived and worked overseas in various capacities including Director of Lump Sum Turnkey Proposals and Business Manager on a $200 million lump sum EPC project. He was most recently Project Manager for Foster Wheeler prior to joining Interface Consulting.

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15-Feb-10 3:00 PM

The Greening of the Building Codes

Philip Barnard - noemail@interface-consulting.com — Tue, 26 May 2009 16:00:00 GMT

I. Introduction

Building codes are the “minimum requirements” to safeguard public health, safety, and general welfare through structural strength, means of egress facilities (emergency exits), stability, sanitation, adequate light and ventilation, energy conservation, and safety to life and property. These codes protect the public from fire and other hazards attributed to the built environment and provide safety to fire fighters and emergency responders during emergency operations.

As stated, building codes and related regulations exist to safeguard the public from fire and other health and safety hazards attributed to the building environment. Prior to 2000, at least three standard building codes were utilized throughout the United States. The International Council of Building Officials (ICBO) first published the Uniform Building Code in 1927. The Building Officials Conference of America (BOCA) was founded in 1915 and published the BOAC/Basic Building Code. The Southern Building Code was published in 1940 by the Southern Building Code Congress International (SBCCI).

In 2000, the International Code Council (ICC) was created by the merger of the three previously mentioned organizations. In that same year, the ICC published the International Building Code (IBC) that replaced the three existing building codes. Most of the cities and/or counties in all of the fifty states, as well as the District of Columbia, now utilize the IBC as a reference code and publish supplements to the code for their own communities. Federal agencies including the Architect for the Capital, General Services Administration, National Parks Services, Department of State, U.S Forest Services, Veterans Administration, as well as the Department of Defense, all reference the International Building Code as the building regulatory system.

These building regulatory systems have provided standards that minimize risks commonly associated with buildings such as fire, structural integrity, and means of escape in an emergency; however, these building regulations are widely acknowledged to inhibit innovation due to their complexity and preponderance of prescriptive-based rather than performance-based provisions. Yet almost all codes have provisions for alternative designs, materials, and methods of construction that allow for alternative or innovative approaches to building.

II. Houston Building Code

After the introduction of the ICC building code, the City of Houston formally adopted it as its standard with local amendments. In fact, the city adopted the ICC 2003 building code but made amendments to reflect the ICC 2006 updates as well as including its own local amendments. Generally, the local amendments for the City of Houston affect areas within the building envelope that either relax or enhance certain standards.

For example, the ICC standard code specifies that all high-rise buildings must be fully fire-sprinkled as well as require the duct dampers to be automatically closed. The Houston code, on the other hand, requires that all high-rise buildings must be fully fire-sprinkled, but does not require the duct dampers to be automatically closed. Other amendments follow local building customs and traditions such as requiring that all finished floor elevations on new buildings be at least 12" above the nearest sewer manhole or if there is no manhole, 4" above the crown of the street. Another example is the Houston building code that establishes a minimum regulation governing the design and construction of driveways, sidewalks, parking lots, and alleys.

The City of Houston usually updates its building code every three years, and it is understood that the 2009 update will adopt the ICC 2006 standard even though ICC will issue a 2009 update to its standard code.

III. Houston Building Code regarding Extreme Weather and Natural DisasterS

The only modification to the City of Houston Building Code resulting from a natural disaster occurred after Hurricane Alicia in 1983. When Hurricane Alicia blew through downtown Houston, the gravel and rock ballast on the downtown building roofs was dislodged, shattering windows throughout downtown and causing millions of dollars in damages. As a result, the city amended its building code to eliminate gravel and rock ballast for roofs within the downtown district. Additionally, the design standard for wind resistance was modified to increase the maximum design wind speed from a 90-mile-per-hour wind speed to a 90-mile-per-hour sustained wind speed and a 110-mile-per-hour wind gust for a three (3) second period of time. This last amendment seems meaningless if one considers the likelihood of experiencing a wind gust of 110 miles per hour for only three (3) seconds.

No other amendments have been proposed to the Houston building code as a result of the recent hurricanes Rita and Ike that also caused millions of dollars in damage to Houston.

IV. The Development of Green Standards

In recent years, there has been much discussion about “green” building codes. So, what are “green codes?” Technically, there is no such thing. There are building codes, fire codes, energy codes, mechanical (HVAC) codes, gas codes, electrical codes, accessibility codes, plumbing codes. There are no green codes.

What has prevented most municipalities from adopting “green” standards is the fact that building codes generally specify minimum standards to protect public health, safety, and general welfare from fire and other hazards attributed to the building environment. Changing these minimum standards to provide for “green” alternatives is difficult to do.

What has been occurring for almost 30 years is an uncoordinated and localized process of introducing innovative and alternative approaches to build more sustainable or “green” building and development projects. As early as 1990, the International Council for Local Environmental Initiatives (ICLEI) was founded as an international association of local governments and national and regional local government organizations that made a commitment to sustainable development. The ICLEI’s Cities for Climate Protection™ (CCP) Campaign was initiated in 1993 to assist cities in adopting policies and quantifiable measures implemented to reduce local greenhouse gas emissions, improve air quality, enhance urban living, and promote sustainability in buildings.

Fortunately, the process of changing local building codes for alternative designs, materials, and methods of construction to make buildings more sustainable and “green” is becoming easier. Historically, green building efforts never achieved broad market acceptance or critical mass until the advent of the United States Green Building Council (USGBC). The USGBC developed a third-party building certification program for the design, construction, and operation of high performing buildings. This program is known as Leadership in Energy and Environmental Design, or LEED® (LEED). The LEED Green Building Rating System (GBRS) is a voluntary, consensus-based national rating system for developing high-performance, sustainable buildings. LEED applies to all building types and emphasizes state-of-the-art strategies in five areas: sustainable site development, water savings, energy efficiency, materials and resources selection, and indoor environmental quality. According to the Environmental Information Administration, as of 2008, U.S. buildings consume 40% of primary energy usage, 72% of electricity consumption, and 13% of potable water consumption and contribute 39% of CO2 emissions.

According to the USGBC, there are LEED-certified projects in all 50 states and in 91 countries. As of December 2008, there were 283.3 million square feet of commercial LEED-certified projects. As of January 2009, there were 2,122 certified projects and another 17,450 registered projects. The USGBC reports that every business day, $464 million worth of construction is registered with LEED.

Early evidence of a fundamental shift in green building influenced by the LEED GBRS came in late 2003. At this time, a trend was developing with large cities and the federal government requiring that certain types of public buildings attain some level of LEED ratings. The following year, additional support came from larger cities to the point that LEED had become the de facto rating system for green buildings.

Since December 2007, several major U.S. cities have adopted LEED standards for city-owned buildings, including Austin, Boston, Kansas City, New York City, Portland, Salt Lake City, Seattle, and San Diego. Additionally, several states have passed LEED and/or Sustainability Design Laws.

V. The City of Houston’s Efforts to go Green

V.A. Green Building Resolution

The City of Houston has not adopted LEED or any “green” building standards within its building code. However, one of Houston’s efforts to “go green” occurred on June 23, 2004, when the Houston City Council adopted the Green Building Resolution, which set a target of Silver level LEED certification for new construction, replacement facilities, and major renovations of City of Houston-owned buildings and facilities with more than 10,000 square feet of occupied space. The Building Services Department is implementing this policy in the management of its projects in the City's Capital Improvement Plan.

Utilizing sustainable design practices is intended to significantly reduce operations and maintenance costs of buildings as well as decrease any negative impacts on the occupants of City of Houston-owned and occupied buildings.

The planning, design, construction, and operation of the City of Houston's LEED certified buildings, facilities, and leaseholds should have a significant positive effect on Houston's air quality, water quality, and quality of life, while contributing to the environmental and economic sustainability of the city.

V.B. The City of Houston’s “Quick Start” Program

The City of Houston’s standard commercial building plan review time for projects within the city’s jurisdiction has been significantly impacted. In fact, for 90% of all commercial plan reviews, the city’s turnaround time has been reduced to 11 days. This was a result of an initiative conducted by the Mayor’s Taskforce on Permit Reform. This plan-review process improvement puts Houston at the forefront of reduced permit processing times for large cities in the U.S.

In addition, in an effort to encourage LEED Certification, the Code Enforcement division of the City of Houston offers a Quick Start service for any project that has registered for LEED certification, regardless of construction cost and/or size. This Quick Start service involves one meeting with the various code enforcement officials, as opposed to separate meetings, to review and approve the final set of design drawings for the proposed structure. The Quick Start process used to be limited to projects that exceeded $1 million in value, but it is now open to any size project. Instead of resubmitting plans for subsequent reviews, LEED projects go directly to the meeting process.

The city charges a Quick Start fee for this service based on the value of the project; however, the City of Houston offers financial incentives for LEED certified buildings. On LEED certificate-seeking projects, the developer or contractor can qualify for a graduated rebate of the Quick Start fees. The rebate is based on the level of achievement as follows:

• Platinum Level – 100%

• Gold Level – 75%

• Silver Level – 50%

• Certificate Level – 25%

The Quick Service process begins when the developer or contractor declares its intent to gain LEED certification in the first plan review. The review is done through the normal submittal process. Then, as long as the developer or contractor sends in a complete set of construction plans and has its “outside” department approvals, it qualifies for the Quick Start meeting process. By opting to pay an additional fee of 65% of the permit cost, the final plan review is completed in a face-to-face conference-like meeting with the reviewers, designers, and owners. The Quick Start program is intended to eliminate at least one plan resubmittal, thus saving the builders valuable time and money. After the project is constructed and occupied and when LEED certification is achieved, the applicant must present the certificate from the USGBC to the city’s Code Review Department to confirm the level of achievement and the refund will be made based on the level of certification. The application for the Quick Start rebate must be made within 90 days of the date of certification.

The City of Houston is allowing broader access to the plan review for LEED projects and offering to rebate the additional charge. In doing so, the city believes it is providing a significant benefit to those who undertake the worthy goal of LEED construction and operation. The costs savings to builders are an attractive incentive to encourage Houston business and industry leaders to build LEED-certified buildings.

The following are City of Houston Projects currently pursuing LEED Certification and their estimated construction costs:

HPD Service Animal Facility – $6.5 million
Looscan Neighborhood Library - $5.9 million
HPD Property Room - $10.5 million
Fire Station 8 – $7.2 million
South Post Oak MultiService Center/Vinson Library – $9.2 million
Parks Department Headquarters – $6.9 million
Bracewell Branch Library – $4.4 million
Kendall Branch Library – $6.4million
South Right of Way Fleet Maintenance Facility - $10.7 million
Clayton House Library Complex – $5.5 million
African American Library at the Gregory School – $5.0 million
Fire Station 37 – $3.8 million
Frank Branch Library – $2.3 million
Westside Command Station – $8.3 million
Northeast MultiService Center – $6.2 million
Southwest Environmental Center - $2.9 million
Oak Forest Branch Library Renovation – $3.0 million
Kashmere MultiService Center Renovation – $3.0 million

V.C. Adoption of the IECC 2001 Energy Code

Houston’s other effort to “go green” occurred in August 2008 when the city adopted the International Energy Conservation Code (IECC) 2001 version. This code was developed and maintained by the IECC to set a comprehensive and coordinated national model construction code that is intended to save energy over the useful life of a building and contains energy specifications for residences and commercial buildings. Standard specifications address construction guidelines and material recommendations for roofs, insulation, lighting, heat, ventilation, air conditioning, windows, and doors. These standards will allow architects to develop energy efficient projects.

VI. 81^st Legislative Regular Session – State of Texas 2009

On February 17, 2009, Representative Harold Dutton of Houston introduced House Bill 303 that would exempt from sales tax the labor to install certain tangible personal property (equipment and material) in buildings that obtain LEED certification. If the tangible personal property is installed in a building that is designed, constructed, and operated so that it obtains certification under the LEED GBRS, the taxpayer would be entitled to a credit or refund. The bill would take effect October 1, 2009, and provisions of the bill would apply only to construction or renovation of a building for which design services are entered into on or after October 1, 2009. Currently this bill is awaiting action in the Ways and Means Committee with no prediction of its passage.

On March 16, 2009, Representative Eddie Lucio III of San Benito introduced House Bill 431 that would establish standards for new state building construction or renovations whose construction costs are more than 50% of the value of the state building. This bill would apply to buildings larger than 10,000 square feet. The bill exempts institutions of higher education, the Texas Department of Transportation, the Parks and Wildlife Department, and other agencies per Section 2166.003, Government Code. The bill would take effect September 1, 2009, and provisions of the bill would apply only to construction or renovation of a building for which design services are entered into on or after September 1, 2009. Currently the bill is progressing though the House State Affairs Committee with no prediction of its passage.

VII. LEED Rating System

The following discussion describes what is involved the USGBC LEED certification process. The LEED certification process is composed of a rating system that classifies projects within various groups or “tracks” that have been developed to cluster similar buildings or projects. Within each track there are a number of categories describing the various green building elements that are evaluated in the certification process.

VII.A. LEED Tracks

LEED is not a single rating system, but rather groups or tracks of rating systems depending on the type of building. As of this writing, there are six LEED tracks for certification with four tracks in the pilot stage.

VII.A.1. U. S. Green Building Council in Use

The USGBC has six LEED rating system tracks that are currently in use at this time.

VII.A.1.a. LEED for New Construction (and Major Renovations)

This track is developed to guide the design and construction of high-performance commercial and institutional projects, including office buildings, high-rise residential buildings, government buildings, recreational facilities, manufacturing plants, and laboratories.

VII.A.1.b. LEED for Existing Buildings: Operations & Maintenance

This track measures operations, improvements, and maintenance of buildings on a constant scale, with the goal of maximizing the operational efficiency of the building while minimizing environmental impacts of the building. LEED for Existing Buildings addresses whole-building cleaning and maintenance issues (including the use of chemicals), recycling programs, exterior maintenance programs, and systems upgrades.

VII.A.1.c. LEED for Commercial Interiors

This track is a measure for the tenant improvement market relative to green products. It is the recognized system for certifying high-performance green interiors that are less costly to operate and maintain and have a reduced environmental footprint.

VII.A.1.d. LEED for Core & Shell

This track measures base building elements such as structure, envelope, and the HVAC system. LEED for Core & Shell is developed to complement the LEED for Commercial Interiors rating system, as both rating systems establish green building criteria for developers, owners, and tenants.

VII.A.1.e. LEED for Schools

This track measures the unique nature of the design and construction of K-12 schools. Based on LEED for New Construction, it addresses issues such as classroom acoustics, master planning, mold prevention, and environmental site assessment.

VII.A.1.f. LEED for Homes

This is the only track that measures the design and construction of high-performance green homes.

VII.A.2. U. S. Green Building Council in Pilot Phase

The USGBC currently has four LEED rating system tracks in pilot phases that should be launched later this year.

VII.A.2.a. LEED for Neighborhood Development

This development track is intended to bring together the principles of smart growth, urbanization, and green building into the first national system for neighborhood design. LEED for Neighborhood Development is a partnership among the USGBC, the Congress for the New Urbanism, and the Natural Resources Defense Council. The pilot program, which began in the summer of 2007 and was tested on nearly 240 projects, is now closed and awaiting implementation.

VII.A.2.b. LEED for Healthcare

This development track is developed to meet the unique needs of the healthcare system infrastructure, including inpatient care facilities, licensed outpatient care facilities, and licensed long-term care facilities. LEED for Healthcare may also be used for medical offices, assisted living facilities, and medical education and research centers. The first public comment period for LEED for Healthcare is now closed awaiting implementation.

VII.A.2.c. LEED for Portfolio Program

This development program enables companies and building owners to integrate LEED into their new and existing building projects on a volume scale with a cost-effective, streamlined certification process. The LEED for Portfolio Program pilot was launched in November 2006 and the comment section is closed awaiting implementation.

VII.A.2.d. LEED for Retail New Construction and Commercial Interiors

This development program recognizes the unique nature of the retail environment and addresses the different types of spaces that retailers need for their distinctive product lines. The pilot program for LEED for Retail New Construction and Commercial Interiors is no longer accepting expressions of interest for participation.

VII.B. LEED Categories

LEED is a point-based certification system in which projects earn points for satisfying specific green building criteria. There are a total of six categories that are evaluated and rated. Within each of the six LEED credit categories, projects must follow particular prerequisites and earn points.

· Sustainable Sites (SS): This category involves the location of the building, preservation of the site, restoration practices for the site, and limiting the environmental impact of buildings on local ecosystems.

· Water Efficiency (WE): This category focuses on water efficiency and water use reduction.

· Energy & Atmosphere (EA): This category addresses the reduction in energy use and the use of renewable energy resources.

· Materials & Resources (MR): This category involves the reuse of materials and the use of local renewable resources to minimize natural resource consumption.

· Indoor Environmental Quality (EQ): This category involves minimizing the off-gassing of harmful chemical compounds, as found in adhesives, paints, carpets, wood products, and furniture in the indoor environment.

· Innovation in Design (ID): This category provides design teams the opportunity to be awarded points for exceptional performance of the building above the LEED requirements and/or awards points for innovative performance.

As of April 27, 2009, the meaning of “green building,” at least in a technical sense, changed depending on where you live. USGBC launched the third version of its LEED rating system for green buildings that includes a few key updates. Among them is a new regional bonus point system that is intended to address some of the criticism of earlier versions, which claimed it used a one-size-fits-all metric for buildings in very different settings.

Environmental concerns differ among various regions of the country. The regionally-specific credits give LEED a way to directly respond to diverse, regionally grounded issues. The inclusion of these regional LEED credits is the Council’s first step toward addressing regional environmental issues.

In the new rating system, projects that incorporate at least one of six green building strategies identified as regional priorities (based on a project’s zip code) can receive up to four “bonus points” toward LEED certification — one point per regional element.

In parts of Los Angeles, California, for example, new construction projects can receive an extra point for reducing water use, while in Amherst, New Hampshire, there’s a bonus for brownfield redevelopment. In rural Michigan, the USGBC has set up extra credit for elements meant to further the local priorities of preserving prime agricultural land, reducing light pollution in neighboring natural habitats and minimizing the amount (and improving the quality) of storm water gushing into the Great Lakes. In urban Florida, on the other hand, it’s largely about solar power, with bonus points designed to encourage use of abundant solar resources and decreased reliance on fossil fuels.

VII.C. LEED Point Allocation

Each LEED track allocates points to each of the six categories depending on the unique aspects of each track. The bonus is then applied to the Regional Priority track. Additionally, several categories include prerequisites. Failure to meet a single prerequisite in any category will preclude building certification. The following example shows point allocation for LEED New Construction 2009:

Point Category	Prerequisites	Possible Points
Sustainable Sites	1	26
Water Efficiency	1	10
Energy & Atmosphere	3	35
Materials & Resources	1	14
Indoor Environmental Quality	2	15
Innovation in Design		6
Regional Priority Credits		4
Total Possible Points		110

VII.D. LEED Certification Levels

The number of points a project earns determines the level of LEED certification it obtains. LEED certification is available in four levels: Certified, Silver, Gold, and Platinum:

Certification Level	Point Threshold
Certified	40
Silver	50
Gold	60
Platinum	80

At this time, the significance of the level of certification is more pride of ownership than anything else. The USBGC hopes that eventually federal and state governments and municipalities will reward attainment of higher certification levels with greater incentives based on the level achieved.

VII.E. Benefits of LEED

In addition to the environmental benefits of protecting ecosystems, improving air and water quality, and conserving natural resources, LEED also has several economic benefits. Though the overall economic impact of LEED development is unknown, several cost benefits have been established.

VII.E.1. Tax Incentives

A variety of federal, state, and municipal incentives are available for green buildings.

· Federal: At the federal level, the Energy Efficient Commercial Buildings Tax Deduction, which is a corporate deduction up to $1.80 per square foot, is available to the owner. Previously, there was also an accelerated depreciation deduction allowed utilizing the Modified Accelerated Cost-Recovery System (MACRS) methodology; however, this bonus depreciation expired December 31, 2008, but the five-year accelerated depreciation remains in effect.ⁱ

· State: Currently, the only state incentive is through the Oregon Business Energy Tax Credit (BETC). This credit is available to those who invest in energy conservation, recycling, renewable energy resources, and cleaner transportation fuels in their trade or business. The traditional BETC is equal to 35% of the eligible project costs, or the incremental cost of the system or equipment that is beyond standard practice. The credit can be used to offset Oregon individual or corporate income or excise tax. The credit is taken over five years: 10% in the first and second years and 5% each year thereafter.ⁱⁱ

· Municipal: In 2008, New York passed legislation that provided a one-time property tax credit up to $100,000 for building owners in New York City who install green roofs on at least 50% of available rooftop space.ⁱⁱⁱ

VII.E.2. Lower Operating Costs

A recent New Buildings Institute study concluded that new LEED-certified buildings were consuming, on average, 25-30% less energy than non-LEED-certified buildings.^iv For Gold and Platinum LEED certified buildings, the average energy savings was approaching 50%.^v The 2008 Green Building Impact Report by Greener World Media indicates that, since the inception of LEED, more than half of projects categorized as New Construction or Core & Shell projects have delivered at least a 30% reduction water usage, with 20% of the savings from those projects categorized as Existing Buildings Operations & Maintenance.

Almost 90% of projects categorized as New Construction and those categorized as Core & Shell projects have achieved 50% reduction in water use for landscaping.^vi

VII.E.3. Marketability

A recent study by the CoStar Group determined that sustainable green buildings outperform non-green buildings in specific areas such as occupancy, sale price, and rental rates.^vii According to the CoStar study, LEED buildings command rent premiums of $11.33 per square foot over their non-LEED buildings and have 4.1% higher occupancy.^viii Additionally, rental rates in Energy Star buildings represent a $2.40 per-square-foot premium over comparable non-Energy Star buildings and have 3.6% higher occupancy. As mentioned in Turner Construction Company’s 2008 “Green Building Market Barometer,” more than 80 % of real estate executives said they would be “extremely” or “very likely” to seek LEED certification for new projects in the next three years.^ix

VII.E.4. Tenant Comfort and Health

Greener World Media reports that, in 2008, companies operating in LEED-certified buildings achieved annual employee productivity gains of over $170 million as a result of improved indoor environmental quality — a cause and effect that has been difficult to quantify.^x That figure is predicted to jump well into the billions by 2015 as the number of employees in LEED buildings grows more than 10-fold.^xi

VII.F. Criticisms of LEED

While LEED is praised for its many benefits, there are others that criticize the reliance on LEED within municipalities building codes. The International Council of Shopping Centers has identified several problems with municipalities adopting LEED certification as a building code requirement.

· If local building codes adopt LEED certification standards by reference only, the public codes will be subject to change by every decision the U.S. Green Building Council develops. Representatives of the USGBC itself have argued against imposing LEED certification through building codes.

· LEED was intended to be a “cutting edge” standard. It was never intended as a base-line requirement or as a prerequisite for a building permit. LEED was intended to “push the envelope” and describe the most environmentally conscience use of materials. Building codes are properly intended to establish a minimum standard for safety and other purposes. Therefore, there appears to be a conflict in the compatibility of these two goals.

· LEED requirements can be in conflict with building codes in critical building code categories. Municipalities that mandate sustainability requirements may not understand the unintended consequences and impacts to the design and construction process as well as the resulting increases in time for approval and overall project costs.

· Final LEED Certification is only granted after a building has been completed or even after a building’s mechanical systems have been operational for a certain period of time. It is not clear what the effect would be on a building permit if a building is not ultimately certified at the mandated level. Some agencies require up to a $2 million bond as a Certification Compliance Guarantee. There is no clear appeal process for disputes regarding final certification approval except through the USGBC itself.

· Even though the USGBC does not charge for its certification standards (beyond a registration fee), the lengthy process can be an expensive one for developers. The USGBC trains and licenses third-party certification experts who charge for their services. Although costs can vary greatly, achieving LEED certification can add approximately $50,000 to the development of a small retail project. This additional expense does not cover all increases including those associated with design, material, or equipment changes driven by the LEED guidelines. In addition, adopting LEED certification as part of a municipal building code effectively gives a monopoly to LEED Accredited Professional Certified examiners.

· In recent years, the USGBC has intensely advertised building and site certification programs despite having only a limited capacity to handle the resulting demand. More than 17,400 projects have been registered, yet only about 2,100 have been processed (certified) to date. The certification process is now seriously overloaded, and the USGBC is having difficulty handling the demand even as it continues to change the rules for new projects. Because the USGBC has insufficient staff resources for the influx of new certification requests, most requests are handled by other third-party consulting firms – and their individual decisions to accept or reject various sustainable designs are effectively final. As demand increases, the USGBC process could collapse under the weight of its own success with no foreseeable agency to replace it or maintain the process.

· LEED standards do not apply directly to all types of construction. For example, the LEED certification standards for retail buildings are only now moving beyond the pilot phase (2008). And multiple site “portfolio” certifications, which can greatly reduce the per-unit cost of certification for national chains, have yet to be approved.

· The entire LEED certification process is undergoing significant changes for 2009. This is partially in response to the one-size-fits-all metric for buildings in very different settings. It also demonstrates that LEED certification is a moving target that can greatly complicate compliance efforts.

VIII. Alternative to LEED

We have discussed the LEED green building certification program, but there is another well-established green building certification program in the market and it is known as Green Globes, a product of the Oregon-based Green Building Initiative (GBI). Like LEED, Green Globes features an on-line interface and an escalating system of rewards based on achieving an increasing number of points under its system. Green Globes offers a self-assessment option that does not offer certification but allows the building owner to grade its facility. This self-assessment is an on-line questionnaire regarding the green components of a building and transmitted to Green Globes for evaluation with return comments on how to upgrade the building. However, under Green Globes, a building can only receive recognition after a site visit and inspection by a certified verifier. LEED does not currently require on-site verification. Once an assessment is verified, properties receive a Green Globes rating based on the percentage of total points (up to 1,000) achieved. The reward system provides an increasing number of “globes” based on the verifier’s analysis, as follows:

· Four (4) Globes are awarded to projects obtaining 85-100% of available Green Globes points. The “4 Globes” level of certification is reserved for select building designs that serve as national or world leaders in energy and environmental performance. The project also introduces design practices that can be adopted and implemented by others.

· Three (3) Globes are awarded to projects obtaining 70-84% of available Green Globes points. The “3 Globes” level of certification demonstrates leadership in energy and environmental design practices and a commitment to continuous improvement and industry leadership.

· Two (2) Globes are awarded to projects obtaining 55-69% of available Green Globes points. The “2 Globes” level of certification demonstrates excellent progress in achieving eco-efficiency results through current best practices in energy and environmental design.

· One (1) Globe is awarded to projects obtaining 35-54% of available Green Globes points. The single “Globe” level of certification demonstrates movement beyond awareness and commitment to sound energy and environmental design practices by demonstrating good progress in reducing environmental impacts.

IX. Comparison Between LEED and Green Globes

IX.A. Cost

Green Globes requires an initial $500.00 fee for each self-assessment. If an applicant wishes to obtain formal certification, it must obtain third-party verification, which runs an average additional total cost of $4,000 to $5,000. This includes a conditional verification—at the construction documents stage—and final verification after a site inspection is conducted. In contrast, the initial LEED registration fee for a project is $450 for USGBC members and $600 for non-members. LEED certification fees vary by project size, but the average certification cost is $2,000. Total LEED or GBI costs vary from project to project but can range from 1 to 8+% of total construction costs, depending on the level of certification and/or points pursued.^xii

IX.B. Program Fundamentals

Green Globes can be used as a guide without committing to verification, but LEED cannot. To receive Green Globes certification, the applicant must obtain third party, on-site verification. LEED certification requires only a paper review by the USGBC. In addition, LEED requires certifications (potential warranties) from designers, but Green Globes has no similar requirement. Unlike LEED (in its current version), Green Globes does not hold projects accountable for inapplicable strategies (e.g., for a project with no exterior lighting, the applicant can select “N/A,” which removes those points from the total number available).

In addition, the Green Globes appeals process is not articulated, whereas LEED has a fully developed point appeals process that includes an on-line database of prior rulings. Unlike LEED, Green Globes does not favor Forest Stewardship Council (FSC) over Sustainable Forest Initiative (SFI) forest certification. Finally, Green Globes has no prerequisite points, whereas LEED has numerous prerequisite points in a number of categories.

X. Conclusion

As discussed in this paper, building codes are the “minimum requirements” to safeguard public health and safety to life and property from fire and other hazards attributed to the built environment and to provide safety to fire fighters and emergency responders during emergency operations. Building codes include standards to address fire safety, energy usage, mechanical (HVAC), gas, plumbing, and electrical requirements and accessibility standards. Building codes do not contain green building standards; however, the federal and state governments and municipalities are recognizing the need to address green standards.

As the environmental impact of buildings becomes more apparent, green, or sustainable, building will be recognized as the practice of creating and using environmentally friendly and more resource-efficient models of construction, renovation, operation, maintenance, and demolition.

The process of changing local building codes for alternative designs, materials, and methods of construction to make buildings more sustainable and “green” is becoming easier. Due to the broad acceptance of the USGBC LEED Green Building Rating System, the building market is more readily embracing the movement to become green. Though LEED is voluntary and not totally exclusive, it has supported efforts by federal and state governments and municipalities to formulate their own green standards by which to develop buildings in which we live, work, and play – standards that will protect us from nature's extremes and protect our health and environment.

XI. Notes

i See Database of State Incentives for Renewables & Efficiency: http://www.dsireusa.org/library/includes/genericfederal.cfm?CurrentPageID=1&state=us&ee=1&re=1

iⁱ “Business Energy Tax Credits Technical Requirements,” Oregon Department of Energy, June 20, 2008.

iⁱⁱ Green Roof Property Tax Abatement (A.11226).

iⁱⁱⁱ Mark Frankel and Cathy Turner, “Energy Performance of LEED for New Construction,” New Buildings Institute (March 4, 2008).

v Ibid.

vⁱ “State of Green Business,” Greener World Media (January 2008).

vⁱⁱ Andrew C. Burr, “CoStar Study Finds Energy Star, LEED Bldgs. Outperform Peers,” (March 26, 2008).

vⁱⁱⁱ Ibid.

^ix “Green Building Market Barometer” Turner Construction Co. (2008).

^x “State of Green Business” Greener World Media (January 2008).

^xi Ibid.

^xii See Green Building Initiative website at http://www.greenglobes.com/about-faq.asp#cost and Peter Morris, “What Does Green Really Cost?,” PREA Quarterly (Summer 2007): 55-60.

XII. Bio: Philip D. Barnard, PE, CCE

Philip D. Barnard, PE, CCE, is Senior Vice President with Interface Consulting. With more than 30 years of industry experience, he is a veteran in engineering and construction management. As a former engineer, contractor, and Assistant Director of Public Works for the City of Houston, Mr. Barnard’s experience includes multimillion-dollar capital improvement projects, heavy civil and bridge construction, and project management for facilities and other public works projects. In his role with Interface Consulting, he focuses on commercial and public building construction as well as heavy civil construction by analyzing damages and claims, providing proactive project support, and performing productivity and schedule analyses as well as entitlement and damage assessments for owners and contractors. He has a Bachelor of Science in Civil Engineering from Southern Methodist University and is a registered professional engineer in the state of Texas and a Certified Cost Engineer (CCE). His professional affiliations include the Association for the Advancement of Cost Engineering International (AACEI), the American Society of Civil Engineers (ASCE), the Project Management Institute (PMI), the American Institute of Steel Construction, Inc., (AISC), the American Concrete Institute (ACI), and the American Water Works Association (AWWA).

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26-May-09 11:00 AM

Keeping Proposal Promises from Becoming Contractual Obligations

Chris Sullivan - noemail@interface-consulting.com — Tue, 07 Oct 2008 18:00:00 GMT

Contractor’s proposals are often the first step in a courtship between owners and contractors. Initially, everyone is optimistic for a successful outcome. The honeymoon period may last the entire project and culminate in a project that is delivered on-time and on-schedule. However, in today’s overheated construction environment, costs may rise, labor may become scarce, engineering may be late or defective, and equipment and material may arrive at site late or defective, all of which may strain relationships between owners and contractors and often can lead to litigation.

A recent trend in construction litigation involves a rather novel approach of owners claiming a breach of contract against contractors for failing to fulfill the “promises” contained in their technical and commercial proposals that are often referenced in or attached to the contract as an exhibit. Contractor’s proposals often contain optimistic statements, sometimes with a salesmanship twist, that attempt to present the contractor in the best possible light when vying for a project. So what happens when the project deteriorates and a dispute arises, do so-called “proposal promises” become contractual obligations of the contractor? Let’s take a closer look.

Contractors’ proposals typically include an execution plan and similar write-ups describing how the contractor plans on executing the project to achieve the owner’s desired result of an on-schedule and under-budget project. These write-ups often contain general, sales-focused statements, similar to the following:

“Our scheduling programs will eliminate schedule coordination problems.”
“We will dedicate the best team to the project containing all the right skills.”
“We will optimize cost and schedule.”
“Our execution approach will minimize overall program costs.”
“We are familiar with labor in the area and will properly manage and source skilled labor.”
“We will utilize our tried- and-true cost tracking and forecasting programs to ensure project success.”

Potential problems arise when the contractor’s proposal is considered part of the contract, either by reference or as an attachment/exhibit. Typical proposal statements, such as those listed above, contain ambiguous terms such as “optimize,” “minimize,” “ensure,” and “properly.” Such statements, in the hands of skilled trial attorneys, can take on different meanings in the eyes of a jury. Ambiguous terms have no place in a construction contract.

Construction is a risky business and even the best laid plans can be disrupted by unforeseen events. For example, many parts of the country are experiencing an overheated construction economy resulting in rising costs, a shortage of skilled labor, and tighter project schedules, all of which could increase the overall cost of construction. If project costs rise higher than reasonably anticipated, does this mean the contractor was negligent, somehow failed to perform, failed to fulfill its “proposal promises” to minimize cost or schedule, or failed to “ensure success?”

As stated above, ambiguous terms have no place in a construction contract. The following suggestions may help to ensure that owners and contractors are in better alignment regarding contractual rights and obligations. This in turn, may help to avoid misunderstandings and potential disputes.

Do not attach or incorporate the contractor’s proposals into the construction contract – Often, the proposal is rendered obsolete by post proposal clarifications and bid addenda and, as such, the proposal may not be consistent with the final agreement of the parties. Should the parties wish to preserve parts of the proposal, such as bid clarifications or exclusions, these should be separately listed in the contract as opposed to attaching the entire proposal to the contract. This may also avoid vague or sales-type wording from being incorporated into the contract.
Clarify vague language prior to incorporating it into the contract – The main body of the contract contains many legal terms that may be hotly negotiated, including warranties, insurance requirements, or commercial terms. Technical exhibits typically do not get the same level of scrutiny; therefore, it is more likely that vague or unclear terminology may be incorporated into the contract. It is prudent to review all contract attachments/exhibits to ensure all terms are properly defined and that any potential “proposal promises” are defined.
State the basis for proposal execution plans – The execution plans in a typical contractor’s proposal should, at best, be considered preliminary as they are often based on preliminary engineering and incomplete information. Execution plans are “ever green” documents in that they evolve over time as more information is made available. It is important to state the basis for critical sections of the proposal, so that when things change or evolve, the parties have an established starting point. For example, a contractor’s execution plan may state that it intends to utilize certain cost or schedule control programs, but during the project, a lack of data from the owner’s other contractors may render the programs useless without the needed data to populate the model. In addition, it is prudent for each party to list the data it needs to perform its work, along with the date needed, to ensure both parties understand the expectations.
Document changes from the original plan – Good project management requires thorough documentation of changes, not just regarding the scope of work, but also regarding the manner of performance. A contractor may have planned to execute the project in a certain manner but, due to unforeseeable events, may be required to modify the plan accordingly. Should the project be completed on-time and under-budget, few questions are likely to be raised. However, in today’s litigious environment, the Monday morning quarterbacks (and litigators) will be out in full force criticizing the contractor if the project turns sour due to, as some may argue, the contractor breaking its “proposal promises” and not following its original plans. The owner may claim these “promises” were part of the reason why it selected that contractor in the first place. Contractors are advised to document critical changes in their execution plans to help the parties understand that even the most carefully planned and executed project may require adjustments to their execution plan due to unforeseeable events.

Construction is risky, and it is not a perfect science. More often than not, project circumstances change, resulting in changes to the project execution. An over budget or late project leads to disappointment and increases the chances that the Monday morning quarterbacks will be second guessing project decisions. Therefore, by being aware of potential “proposal promises,” contractors can hopefully ensure that only critical information is included in the contract, while at the same time preventing sales-type information from becoming an ambiguous contract obligation.

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7-Oct-08 1:00 PM

A New Day Dawning for East End Students, part 2

Steve Parker - noemail@interface-consulting.com — Thu, 19 Jun 2008 15:00:00 GMT

This article is the second in a two-part series about how Project Lead the Way (PLTW) and the Houston Independent School District’s (HISD) Chavez High School are making a difference in students’ lives and the engineering profession.

According to PLTW’s director of research and evaluation, Gary Edelson, Ed.D., the mission of the program “is to provide the engineers this country needs for the next 50 years.” Successes in other parts of the country include Wheaton High School in Montgomery County, Maryland. Education Week reports that “members of the academy’s (Wheaton) 26-student class of 2007—its first graduating class—went on to study in mechanical, electrical, nuclear, and other engineering fields…claiming more than $1.6 million in scholarships.” At Albany High School in New York, Technology Director Richard Kissane attributes program successes to the curriculum because it is “hands-on, out-of-their-seat, building something, designing something, seeing the actual product at the end.”

Mr. Dan DeLeon, principal at Chavez High School says the program “gives his students something special, beyond the regular high school curriculum.” In Introduction to Engineering Design, students use Autodesk® Inventor to develop 3D drawings. Two major projects completed by PLTW students at Chavez were the Puzzle Cube and Wheel Rim. VAM Drilling, an oil services company in Houston, was so impressed with the Wheel Rim design of one student that they offered him a summer job, which became an after-school job the following year.

The East End Chamber of Commerce and its members have been very active in supporting the PLTW program at Chavez. The program filled every seat before the 2006 school year started, and the Chamber and its partners made sure there were computers, software, and all necessary school supplies before classes began. At the November 2007 awards dinner, Education-The Horsepower of Success, sponsored by the Chamber, PLTW students exhibited their work. That evening, Valero Energy CEO, Mr. Bill Greehey, committed $75,000 for implementation of the program at three East End high schools.

Area universities are also getting involved. Chavez students have visited the University of Houston (UH) to conduct experiments and have been mentored by UH engineering students. Additionally, UH provides PLTW training for teachers. The Texas Education Agency has provided over $1.5 million to address the critical need for science, technology, engineering, and mathematic (STEM) career fields. Rice University is also offering a summer enrichment program for 25 PLTW incoming ninth graders and 25 PLTW rising tenth graders. Four area chemical plants, Valero Refinery, Texas Petrochemicals, Rhodia, and Lyondell Basell are funding the entire cost of the program.

In addition to individual mentoring, the East End Chamber has also implemented a mentoring program between business families and PLTW student families. This program encourages greater parental support of students and the curriculum and offers tutoring or higher educational planning according to specific student needs. Recently, fifteen chamber member families hosted a hamburger and ice cream social for fifteen “adopted” PLTW student families. One of the PLTW students had been in a gang and wanted to break free. Although it wasn’t planned, one of the parents in the family that “adopted” this student is a police officer who had all the right connections to help.

In late April 2008, Chavez High School’s PLTW was accepted into the National Engineering Academy Network, making this HISD school one of only 21 in the country designated as a “National Engineering Academy.”

These efforts have given students hope and most have improved their grades in other courses. While some people envision Scott Adams’s comic strip character Dilbert when they think of engineering, that isn’t the case at Chavez. Peers of PLTW students see the program as “cool” and “a way out” of their current environment.

The program is proving to be as exciting for the adults partnering with the program as it is for the students. “Our youth are our future and our responsibility,” remarked Ms. Diane Lipton, East End Chamber president, “providing this curriculum is one step towards graduating a qualified workforce for our community.”

To find out how you can become a part of this dynamic program, encourage students, and help provide enthusiastic new professionals to stem the engineering shortage, visit PLTW’s website at www.pltw.org. You can also contact Diane Lipton of the East End Chamber at diane@eecoc.org.

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BIO
Steve Parker is a senior consultant and Graphics Director for Interface Consulting International, Inc., a leading construction consulting firm. An award-winning graphics designer with over 20 years experience, he is a specialist in analyzing complex data and determining the most effective way to illustrate a message for persuasive and resolution purposes. He holds a BBA in Marketing from the University of Houston. Mr. Parker also serves as President of the Greater Eastwood, Lawndale, and Wayside Super Neighborhood in Houston’s East End. He is also on the City of Houston Planning Commission’s Neighborhood Preservation Committee and a steering committee member for the East End Strategic Vision Project. He can be reached at (713) 626-2525 or at separker@interface-consulting.com

19-Jun-08 10:00 AM

The Cost of Doing Business – Is Your Company Suffering from Increasing Material Prices?

Peter van der Schans - noemail@interface-consulting.com — Wed, 28 May 2008 17:00:00 GMT

Introduction

This year, exceptionally high price increases of construction materials have caused serious problems for the construction industry. A major factor is the current economic and construction boom occurring in China. China is experiencing rapid growth and, with it, tremendous construction activity which is creating shortages in the US and throughout the world.

Background

Basic economics tell us that, in an open marketplace, prices will rise when demand increases or when supply decreases. Demand is increasing exponentially in China due in part to a construction boom resulting from the country’s economic revolution, preparations for the 2008 Olympic Games, construction of the Three Gorges Dam, and the construction of thousands of highways throughout the country. Demand is also significantly higher in the US due to a rise in construction activity, related in part to new home construction. Some of the highest price increases have occurred with steel, lumber and plywood, while cement has been in short supply. The following graph shows the extent of construction material price inflation over the past twelve months:

Steel

The construction industry has seen the demand for steel increase and the supply decrease simultaneously. All types of steel have increased in price over the past twelve months. Reinforcing bar has risen by 45.2%, while structural steel has risen by 25.7%.

China is currently consuming about 25% of the world’s steel supply. Since China is a major player in the steel production market, it can redirect previously exported steel to fill its own domestic demand for the material, reducing the material’s availability on the open market. A similar situation is occurring in India, where some suppliers have halted exports in order to meet domestic material demands.

While demand for steel has risen greatly, the shortage of coke, used in steel manufacturing, has reduced US steel production. Other factors such as high energy costs, high transportation costs resulting from increased fuel costs, the weak value of the US dollar, and the consolidation of steel manufacturers are all contributing to the increased steel prices. Delivery delays have resulted from international shipping lanes being stretched to capacity.

Lumber and Plywood

The prices for lumber and plywood have also risen dramatically over the past twelve months, mainly due to increased residential construction activity in the US. Low interest rates have spurred much of this new residential construction. Lumber has risen an average of 25.8% while plywood has risen an average of 21.5%. Since the start of this year’s hurricane season, repair and reconstruction work necessitated by hurricane and flood damage has further driven up lumber prices. These high prices will likely be sustained over the short term while the massive reconstruction efforts are progressing.

Cement

While cement prices have not risen as significantly as other materials’ prices, the shortage of cement has been a problem, particularly this past summer. Concrete mixing companies could not produce concrete fast enough to keep up with demand. The shortage led to countless project delays and disruptions.

In 2003, 20% of the US demand for cement was fulfilled by imports. The US has anti-dumping laws and very high tariffs against Mexico, making imports from that country cost prohibitive. The length of time to import materials from overseas, as opposed to receiving materials from Mexico, is much greater, as it takes weeks rather than days to receive a shipment. The resulting delays can be hard on contractors who need to adhere to a tight schedule. In addition, because of high activity in Asian markets, particularly in China, freightliners are making the majority of shipments to that part of the world rather than to the US.

China is currently consuming approximately 40% of the world’s cement supply. The country’s exceptionally high demand for concrete has allowed it to outbid US buyers on the world market, further reducing availability to the US.

Challenging Times for Contractors

Many of today’s construction contracts are lump sum or unit price contracts, which can take a year or more to complete. Because these contracts are typically based on material prices estimated at the beginning of the project, the contractor can be adversely affected when material prices surge unexpectedly.

The contractor must often absorb the increased cost of construction materials. Considering the increased cost of materials and the fact that numerous projects today have slim profit margins, many contractors either make no profit or stand to lose money on a given project.

While steel prices have leveled out recently, albeit at a high level, there is always the possibility they could increase again. Even though China’s government has instituted measures to slow the dangerously rapid growth of their economy, the overall demand for construction materials is still very high.

In addition to rising prices, another major problem is the delayed delivery of materials to contractors due to material shortages. Material delivery delays are generally beyond the control of the contractors, and they can delay the entire project. Such delays can put contractors at risk of liquidated damages due to missed project deadlines.

Possible Solutions

The following list highlights possible solutions to the increased material prices and material shortages dilemma:

Incorporate price protection clauses into contracts (apply bid qualifications).
Lock in on material prices.
Buy materials early in the project to ensure availability.
Delay the project until prices decrease.
Work together with other builders and contractors to obtain group discounts on material purchases.
Employ value engineering to help reduce costs.
Renegotiate contracts to accommodate price increases and/or industry shortages.
Purchase materials in bulk to receive discounts.
Consider renovating an existing building as opposed to building a new structure.
Maintain a good relationship with material suppliers.

Looking to the Near Future

Increased material costs may eventually cause a decrease in residential construction and are already increasing the price of new homes. This, in turn, could negatively impact new home sales, as home buyers are priced out of the market.

The market may, however, experience some relief in the near future. The following factors may alleviate the current situation:

Rising interest rates may slow construction enough for cement and steel production to catch up, thus stabilizing prices and supplies.
Construction rates will decrease as winter approaches.
The measures being taken by the Chinese government may slow down its economic growth and in turn reduce some of the material price increases being experienced throughout the world.

Conclusion

Contractors must be careful to protect their own interests in a market that is shifting an increased amount of risk onto contractors. Protection from material price increases is just one of the considerations contractors must keep in mind. Owners must also be aware that current material shortages can delay projects and increase their costs.

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28-May-08 12:00 PM

A New Day Dawning for East End Students

Steve Parker - noemail@interface-consulting.com — Tue, 13 May 2008 22:15:00 GMT

This article is the first in a two-part series about how Project Lead the Way, HISD’s Chavez High School, and the East End Chamber of Commerce are making a difference in students’ lives and the engineering profession.

In the United States, the number of college graduates earning engineering degrees each year is rising slowly after a major decrease a decade ago. While this is good news, the number of US engineering professionals retiring in the next ten years is out-pacing the number of new graduates. How did this happen and what can we do to remedy the situation?

Early engineers were not degreed, they apprenticed with skilled craftsmen instead. In the early 1800s, West Point Military Academy offered the only US engineering degrees, taught in French. At that time, most engineering degrees were earned either in France or Germany. A knowledge revolution occurred in the mid-1800s due to the second industrial revolution, and by the start of the 1900s, engineering continued to grow and become more of a scientific field. After World War II, the U.S. began to face a shortage of engineers and college curriculums did not emphasize science, math, and engineering.

Educators and professionals alike sounded an alarm about our country falling behind others. It wasn’t until 1957 and the Soviet’s launch of Sputnik that a change occurred. In response to this event, the government opened research agencies, colleges updated curriculums, and students poured into engineering programs. That large group of engineers is currently retiring. Now, at a time when there is a heavy emphasis on new technology, there is a decreasing number of engineering professionals and an increasing need. We are once again facing a shortage.

One response to the shortage is to offer pre-engineering classes in high school so that students are more interested and prepared for college engineering courses. Project Lead the Way (PLTW) was started in 1997 in upstate New York to achieve that goal. Mr. Richard Blais, chairman of that school district’s technology department, hoped to expand it to twenty schools. Today, PLTW is in over 2,200 schools across the nation, with over 200,000 students enrolled in PLTW classes and 7,000 teachers and 5,000 counselors trained in the program.

The program offers courses such as Introduction to Engineering Design, Principles of Engineering, and Digital Electronics at the first level. Different high schools then choose specialization courses from Aerospace Engineering, Biotechnical Engineering, Civil Engineering and Architecture, or Computer Integrated Manufacturing. The program concludes with the capstone course, Engineering Design and Development.

In 2006, the East End Chamber of Commerce in Houston studied education challenges in the community. They discovered Project Lead the Way and began to investigate its success in other schools.

Statistics told them that Chavez High School, located in an inner city, low income, largely Hispanic area had a 50% dropout rate and limited parental involvement. The dinners held to introduce students and parents to the program had a good turnout. After the first year, 96 of 100 students continued to the second year and parent involvement had been phenomenal. Not only were the students excited about the program, but their grades improved in other coursework. The University of Houston notes that “studies of PLTW’s curriculum prove that participating students become the kind of prepared, competent, high-tech employees U.S. industry needs to stay competitive in the global market.”

The East End Chamber is working with the business community to provide supplies, mentors, and other opportunities for the students. In Part II of this article, we’ll look at what the Chamber and other partners are doing to continue the program’s success and how you can help this and other PLTW programs in your area.

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13-May-08 5:15 PM

Pre-engineering Program Launches Star Students

Steve Parker - noemail@interface-consulting.com — Tue, 13 May 2008 22:00:00 GMT

An article in Time reported “the U.S., the world’s greatest technological civilization, is running short of engineers.” It stated that the shortage also meant that “most engineering graduates have a least a half dozen offers, with an average starting salary of $350 a month.” Not a bad salary for April 21, 1952, when the article was published.

It was a time when “the basics” were not emphasized in school and fewer students were entering science, engineering, and math careers. Scientists and educators alike tried to emphasize that this trend would result in a loss of the dominant technological status we had maintained since the industrial age. The government was also underfunding science and technology. The debate ended on the evening of October 4, 1957, when the Soviets launched Sputnik, the first artificial satellite, into orbit. Students began to pour into engineering and science programs. In response to Sputnik, President Eisenhower formed the Science Advisory Committee, the Science Advisor position, and the Advanced Research Projects Agency (ARPA). Soon after, President Kennedy announced the goal of sending men to the moon. These and other programs led to significant investments in technology research and development.

Today, we are once again experiencing a decrease in the number of students graduating with math, science, and engineering degrees, yet technology is far more important in our daily lives than it was fifty years ago. The US graduates 84,000 engineers a year, far behind other countries, including China which has over 300,000 engineering graduates per year. Those who entered engineering fields because of the effects of Sputnik are now nearing retirement. The US Department of Labor - Bureau of Labor Statistics calculated that fewer engineering graduates, coupled with increased retirement and greater demand, have led to almost 1.3 million jobs recently becoming vacant. Now, as technology applications are growing, there are fewer engineering degrees being awarded and a rapidly decreasing workforce. How do we reignite interest in the discipline?

In the 1990s, a program was developed to increase the quantity and quality of students in engineering fields. It started as a small program in an upstate New York school district and, in 1997, it became known as Project Lead the Way (PLTW). At the time, Mr. Richard Blais, chairman of the school district’s technology department, hoped to expand it to twenty schools. The initial goal was to generate student interest in college engineering and technology programs by offering pre-engineering classes combined with math and science coursework while students were still in high school and even middle school. The director of research and evaluation for PLTW, Gary Adelson, Ed.D., explained in an interview with the Central New York Business Journal that the mission of the program “is to provide the engineers this country needs for the next 50 years.”

Today, Project Lead the Way has become a phenomenon, with high school students around the country striving for placement in the program. Currently, PLTW is active in over 2,200 schools, with over 200,000 students enrolled in PLTW classes and 7,000 teachers and 5,000 counselors trained in the program. As a not-for-profit organization, PLTW forms partnerships with public schools, higher education institutions, and the private sector to help achieve its goals. In a video for PLTW, Mr. Richard Kissane, Technology Director for Albany High School in New York, attributes the program’s success to its curriculum because it is “hands-on, out-of-their-seat, building something, designing something, seeing the actual product working at the end.…it’s real important for high school students to see the end product.”

Education Week reported that at Wheaton High School in Montgomery County, Maryland, “members of the academy’s 26-student class of 2007—its first graduating class—went on to study in mechanical, electrical, nuclear, and other engineering fields at such selective universities as the Massachusetts Institute of Technology and Cornell University, claiming more than $1.6 million in scholarships.” Of Wheaton’s 1,325 students, 89% are members of racial or ethnic minorities. As statistics show, minorities are underrepresented in engineering professions. The Commission on Professionals in Science and Technology reports that the total US labor force is 82.7% white, 10.9% Asian, and 6.4% underrepresented minorities. In comparison, the population is 69.1% white, 3.6% Asian, and 25.4% underrepresented minority. Historically, PLTW has closely mirrored the US population, with slightly higher Hispanic and slightly lower African American levels. Successes in recruiting and retaining minority students, like Wheaton’s, are being repeated across the country.

In 2006, the East End Chamber of Commerce in Houston, Texas, studied education challenges in the East End through its Education Task Force. In the inner city, low income, largely Hispanic area around the newly opened Chavez High School, the task force found a greater than 50% dropout rate and limited parental involvement. In March of that year, they discovered Project Lead the Way and began to investigate its success in other Houston-area schools.

Faculty and administration at Chavez High School, already familiar with PLTW, enthusiastically partnered with the Chamber to notify incoming ninth graders and their parents about the program at informational dinners. Ms. Diane Lipton, president of the East End Chamber of Commerce, recalls that “through the enrollment period, we had a good turn out of students, but we were surprised by the even greater turnout of parents and siblings. There was a lot of enthusiasm for the promise that the program held. Younger siblings saw the support and commitment that the school district and the community was giving and wanted to know how they could get into it, too.”

Chavez principal, Mr. Dan DeLeon, tells his students that the only prerequisite to getting into the program is “you have to come with the desire, not necessarily a particular previous knowledge, experience, or expertise.” They had 100 seats open for the first year’s course, Introduction to Engineering Design, which were filled long before the school year started. The Chamber and its members worked closely with the high school to make sure they had enough computers, software, and supplies in place before the school year started.

After completion of the first year in 2006, 96 of the 100 students returned for the second year (four moved outside the district). At a meeting with business leaders, student work from 2006 was exhibited. One company president was impressed by the project completed by student Jason Cherry, remarking that he “had engineers who can’t do that.” He hired Cherry for the summer, and then for two hours a day after school this year.

Ms. Deborah Jaques, the PLTW Academy Director for Chavez, describes the parent involvement as astronomical. She said that “the parent/student dinner for the second year not only ran out of food, but every student returned the application, filling the program immediately. We also have had a lot of students who didn’t sign up for the program last year asking how they can get in. We are looking to see if we can make some accommodations.” She added that “their peers don’t see engineering as nerdy, as some people have labeled it. Through PLTW, they see it as cool and creative.”

Project Lead the Way is exciting students not only about engineering, but education overall. In fact, most students improve their grades in other classes. The University of Houston notes that “studies of PLTW’s curriculum prove that participating students become the kind of prepared, competent, high-tech employees U.S. industry needs to stay competitive in the global market.” Project Lead the Way not only encourages students to reach for the stars, but provides the tools that may actually get them there.

Article PDF

To find out more about Project Lead the Way and how you or your company can help students in your area, visit their website www.pltw.org. To contact one of the business or education partners about the successful program at Chavez High School, contact Ms. Diane Lipton at diane@eecoc.org.

13-May-08 5:00 PM

Interface Consulting Attends Record-Breaking 43rd Annual Offshore Technology Conference

noemail@interface-consulting.com — Wed, 09 May 2012 18:00:00 GMT

With attendance reaching its highest level in 30 years, OTC 2012 drew marine and offshore industry players from across the globe and locally, including Houston-based Interface Consulting International, Inc. Interface Consulting helped once again break attendance records during Houston's 43rd annual Offshore Technology Conference, April 30-May 3, 2012. The annual conference, held at Reliant Park, drew the third-largest crowd in event history with 89,400 attendees. The sold-out exhibition reached a 30-year high in attendance, up 14% from last year, by bringing together offshore energy industry leaders from around the world. Consultants of Interface Consulting had the opportunity to attend a special technical program panel Tuesday, May 1, entitled, Year 2030-Visions of Worldwide Offshore Oil and Gas. Moderators Gregory Carter of Nautilus Offshore Companyand Neil Kavanagh of Woodside Energy led the way as panelists from ExxonMobil, Total, Woodside Energy, and...

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noemail@interface-consulting.com — Thu, 16 Feb 2012 19:00:00 GMT

The American Bar Association's Forum on the Construction Industry got a taste of Houston hospitality at the 2012 Midwinter Meeting, February 2-3, 2012. The program, Innovative Legal Strategies Developed from Challenging Projects, was held at the InterContinental Houston near the Galleria. Interface Consulting's senior staff members, including Frank G. Adams, PE; Philip D. Barnard, PE, CCE; Christopher J. Sullivan; and Lisa Sumner Heard were on hand during workshops, plenaries, Division events, and as an exhibitor. The program explored the advanced project management and legal tactics developed from large, challenging projects that are necessary to practicing construction attorneys and consultants. Thursday's plenary sessions focused on many big issues that face the construction arena, including design control and delegation, the role of technology and its evolution in the industry, construction project funding, and complex schedule analysis. The Forum's Divisions, many of...

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noemail@interface-consulting.com — Mon, 09 Jan 2012 19:00:00 GMT

Interface Consulting International, Inc., is proud to announce the promotion of Jennifer M. Hatten, CCC, PSP, LEED AP, to a senior consultant in its team of construction and engineering specialists. Before joining Interface Consulting in 2009, Ms. Hatten worked for Harrah's Entertainment in its Design and Construction group in Las Vegas, Nevada. During her time at Harrah's, she was able to participate in multiple restaurant and hotel renovation projects on the Las Vegas strip, including a $1 billion renovation project at Caesars Palace. Since joining Interface Consulting, she has demonstrated excellence and leadership in numerous areas including client service, strategic marketing initiatives, and professional development. Jennifer has shown an extreme amount of knowledge and dedication in her almost three years with Interface, said Frank G. Adams, PE, president and a principal consultant at Interface Consulting. We know that as she strives to become an...

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noemail@interface-consulting.com — Mon, 19 Dec 2011 19:00:00 GMT

Interface Consulting attended Virginia CLE's 32nd Annual Construction and Public Contracts Law Seminar from November 4-5, 2011, for the third year in a row as both a sponsor and exhibitor. This two-day seminar took place at the historic Boar's Head Inn in Charlottesville, Virginia. This year's focus, Mitigating Losses and Impacts on a Troubled Project - A View from Multiple Perspectives, was a highly relevant topic for the attorneys, construction industry representatives, and Interface consultants in attendance. Although the course offers attorneys a full year's worth of Virginia CLE credits, it also offers excellent networking and education resources to those not in the legal profession. As dispute experts, Interface Consulting found the courses on Troubled Projects to be in line with the types of issues they assist construction industry client with every day. The Troubled Project, was discussed from the subcontractor, general contractor, owner, surety, insurer, and...

Interface Consultants Journey' to 43rd Annual ECC Conference

noemail@interface-consulting.com — Tue, 20 Sep 2011 18:00:00 GMT

The 43rd Annual Engineering & Construction Contracting Association (ECC) Conference returned to Phoenix, Arizona, this year with a record-breaking registered attendee list. Attendees, including Interface Consulting engineers, took in insights from the conference theme, Journey Into Uncharted Territories: Repositioning the Projects Business in a World with Changing Boundaries. The conference was held at the JW Marriott Desert Ridge Resort & Spa September 7-10, 2011. With over 600 registered attendees, including executives and decision makers from across the United States and around the globe, this year's conference focused on how owners, contractors, and suppliers adapt in order to successfully execute projects and reposition their businesses in the evolving project environment. Presenters of note included keynote speaker Alan L. Boeckmann of Fluor Corporation and 2011 Lifetime Achievement Award winner Khalid Farid of AMEC on September 8,2011. A special luncheon...

Interface Consulting Celebrates 25 Years of Getting Into Trouble'

noemail@interface-consulting.com — Tue, 13 Sep 2011 20:45:00 GMT

An industry leader in construction claims and dispute resolution approaches its quarter-century anniversary of providing distinguished consulting services to clients. HOUSTON, Sept. 13, 2011 /PRNewswire/ -- In August, Houston-based Interface Consulting International, Inc., celebrated 25 years of getting into trouble on behalf of its construction and engineering industry clients involved with claims, disputes, and litigation. Since its formative years providing consulting services to owners and contractors, Interface Consulting has expanded its client base to include attorneys, engineers, suppliers and insurers, among others, and now offers six service areas in major construction industries involved in contractual and legal disputes. Interface Consulting Founder and President Frank G. Adams, PE, attributes the firm's continued growth to its recruitment of top engineers, many with MBAs and extensive construction backgrounds, and other consulting professionals with...

Two New Project Consultants join Interface Consulting

noemail@interface-consulting.com — Fri, 06 May 2011 18:00:00 GMT

Interface Consulting International, Inc., is proud to announce the addition of project consultants Gray T. Slocum and Eric K. Rodriguez, PE, to its team of construction and engineering specialists.

Mr. Slocum joins the firm with a bachelor’s degree from the University of Texas at Austin in Architectural Engineering with an emphasis in structural engineering, and previous experience with Bechtel Corporation and The Shaw Group, Inc.

“I am excited to join the team at Interface Consulting. I look forward to learning more about the construction claims industry and collaborating with our clients,” said Mr. Slocum.

Mr. Rodriguez is new to the Houston area after receiving his Master of Business Administration in Corporate Finance from The University of Texas at Austin. Prior to that, he received his bachelor’s degree from New Mexico State University in Civil Engineering and was licensed by the Texas Board of Professional Engineers in 2004. Mr. Rodriguez’s previous experience includes seven years as a structural engineer for Huitt-Zollars, Inc., and a project manager for ColdWatt, Inc.

“I enjoy having the opportunity to use my background in engineering and business,” he said. “I look forward to helping our clients solve their construction challenges.”

Since joining Interface Consulting, Mr. Slocum has retained his membership in the Architectural Engineering Institute and Mr. Rodriguez has become a member of the Engineering & Construction Contracting Future Leader Program. They have both also joined the American Society of Civil Engineers.

Since 1986, Interface Consulting International, Inc., has provided a wide range of consulting and expert services to the construction- and energy-related industries in a variety of challenging settings – from the boardroom to the courtroom. Interface Consulting is an authority on construction claims and construction management consulting with experience on more than 800 projects worldwide.

Florida Bar 4th Annual Construction Law Institute Attracts Industry Chiefs and Players

noemail@interface-consulting.com — Mon, 18 Apr 2011 18:00:00 GMT

The Florida Bar’s 4^th Annual Construction Law Institute was hosted at the Omni Orlando Resort at ChampionsGate in Orlando, Florida, from March 31 to April 2, 2011. Interface Consulting was among the industry sponsors and exhibitors, with over 350 attendees present. The scheduled annual golf tournament was cancelled due to rain.

In addition to advanced level seminars, the event included evening receptions on March 31 and April 1. The conference also featured many workshops and luncheons in concurrence with Advanced Construction Law Certification Review courses taking place on site. Speakers of note included The Honorable Chief Justice Charles T. Canady, of the Florida Supreme Court, at the Friday luncheon, and the “Economic Forecast for Construction Industry” breakfast on Saturday led by Kenneth D. Simonson, chief economist of The Associated General Contractors of America.

For information on future events, please go to www.floridabar.org.

Interface Consultants Think It's Alright' at the 2011 ABA Midwinter Meeting

noemail@interface-consulting.com — Wed, 16 Feb 2011 19:00:00 GMT

The 2011 Midwinter Joint Meeting, hosted by the American Bar Association Forum on the Construction Industry and the TIPS Fidelity and Surety Law Committee, returned to Manhattan this year.

Held at the historic Waldorf=Astoria from January 19-21, 2011, the conference, titled, “Do you Think It’s Alright? Pushing the ADR Envelope,” was well attended by construction law firms, surety and insurance representatives, and consultants from Interface Consulting. Seminars and plenaries focused on settling disputes through mediation, arbitration and other mitigation techniques; and introduced recent case law that addresses the business aspect of dispute resolution. Other conference highlights included a Women in Construction breakfast and a cocktail reception co-sponsored by Interface Consulting, both also hosted at the Waldorf=Astoria. This was the second year in a row for participation by Interface Consulting in this event, which is hosted in conjunction with several prominent construction-law firms from around the country.

The American Bar Association is the largest voluntary professional association in the world. With more than 400,000 members, the ABA provides law school accreditation, continuing legal education, information about the law, programs to assist lawyers and judges in their work, and initiatives to improve the legal system for the public. For more information on upcoming ABA events, please visit http://www.abanet.org/.

Marketing Manager Earns Coveted CPSM Credentials

noemail@interface-consulting.com — Thu, 06 Jan 2011 19:00:00 GMT

Danielle A. Sims, marketing manager for Interface Consulting International, Inc., earned the designation of Certified Professional Services Marketer (CPSM) in November 2010 from the Society for Marketing Professional Services (SMPS).

“This certification has broadened my general marketing knowledge, as well as informed me of the most recent practices and procedures for marketing professional services in the A/E/C industries,” Ms. Sims said. “This translates to more tailored communication strategies to convey our capabilities in a competitive market and a positive return on investment for the client.”

To achieve these credentials, Ms. Sims had to meet educational and experience requirements, pass a lengthy written exam, and pledge to abide by the CPSM Code of Ethics. This certification validates her ability to apply critical business development knowledge in the architectural, engineering, and construction industries in order to produce cost-effective business marketing solutions.

Today, SMPS supports over 6,000 members as they tackle the day-to-day complexities of marketing and developing business for architectural, engineering, construction, and related specialty services firms in an increasingly competitive marketplace. Please visit www.smps.org for more information.

Management Consulting

Mon, 09 Nov 2009 23:52:38 GMT

Our management consulting teams provide the quality consulting services today's companies demand including due diligence, feasibility studies, and turnaround management.

Litigation & Arbitration

Mon, 09 Nov 2009 23:50:47 GMT

Legal teams depend on our well-qualified construction consultants to provide expert witness testimony and to assist attorneys with the preparation and presentation of cases.

CPM Schedule Analysis

Mon, 09 Nov 2009 23:48:31 GMT

From the planning and implementation of critical path method (CPM) scheduling to forensic schedule delay analysis and damage quantification, our construction experts have the experience and knowledge to respond to your needs.

Construction Management

Mon, 09 Nov 2009 23:46:25 GMT

Our construction management group enhances your project management with highly trained specialists to help you successfully master the most difficult projects.

Construction Defects

Mon, 09 Nov 2009 23:44:44 GMT

Our experienced experts, with knowledge of all phases of construction, assist clients worldwide with issues including construction defects and lack of quality workmanship.

Construction Claims & Disputes

Mon, 09 Nov 2009 23:43:53 GMT

From construction delays or acceleration claims to construction defects, labor productivity, or change claims, Interface Consulting has the experienced consultants to provide you persuasive position statements for favorable settlements.

Construction Consultants & Experts

Mon, 09 Nov 2009 23:40:19 GMT

We have established a global reputation for excellence, providing a portfolio of professional services to a wide range of clients including owners, contractors, attorneys, engineers, insurers, and suppliers.

Wed, 09 May 2012 17:35:25 GMT

Interface Consulting Attends Record-Breaking 43rd Annual Offshore Technology Conference With attendance reaching its highest level in 30 years, OTC 2012 drew marine and offshore industry players from across the globe and locally, including Houston-based Interface Consulting International, Inc. Interface Consulting helped once again break attendance records during Houston's 43rd annual Offshore Technology Conference, April 30-May 3, 2012. The annual conference, held at Reliant Park, drew the third-largest ... [Full Press Release] Interface Consulting Represents Hometown at ABA 2012 Midwinter Meeting The American Bar Association's Forum on the Construction Industry got a taste of Houston hospitality at the 2012 Midwinter Meeting, February 2-3, 2012. The program, Innovative Legal Strategies Developed from Challenging Projects, was held at the InterContinental Houston near the Galleria. Interface...

Frank G. Adams, PE

Thu, 19 Apr 2012 16:10:14 GMT

Principal Consultant President Phone: 713.626.2525 Email Frank Download VCard Frank Adams, founder, president, and principal consultant has over 35 years of construction experience working on behalf of contractors, owners, and their attorneys. His international experience spans 45 countries and involves more than 300 projects. Mr. Adams has testified as an expert in numerous litigation and arbitration matters both domestic and international. He has served as an arbitrator for the American Arbitration Association (AAA) and independent forums since 1988. Primary Service Areas - Construction Management - Liability...

Fri, 13 Apr 2012 20:29:16 GMT

Project Management • Construction Claims • Litigation & Arbitration Buildings & Commercial Facilities Coastal Townlofts Condominiums Devon Tower Glenda Dawson High School Lake Oswego High School Lee County Courthouse Queen Anne High School Condominiums The Ranch - Larimer County Fairgrounds Wynn Las Vegas Civil & Infrastructure AHTD I-440 Arkansas River Bridge Southeast Corridor Public Utilities...

Fri, 13 Apr 2012 20:28:18 GMT

Project Consultant Gray Slocum enhances the Interface Consulting team with his educational background in architectural engineering attained from the University of Texas at Austin, as well as his hands-on structural/civil engineering experience at two major global engineering, procurement, and construction (EPC) firms. Mr. Slocum specializes in performing analyses and assessing liability and damages for troubled construction projects experiencing delays, cost overruns, defective workmanship, and a myriad of other issues leading to claims and disputes. In the professional community, Mr. Slocum is a member of the Architectural Engineering Institute (AEI) and an associate member of the American Society of Civil Engineers (ASCE). Resume PDF | Industry Experience PDF View my profile Back to the full Interface Consultant list

Fri, 13 Apr 2012 20:20:33 GMT

Project Consultant Samon Kashani contributes to Interface Consulting’s portfolio of expertise through his background in mechanical engineering and business. Mr. Kashani graduated with a Bachelor of Science in mechanical engineering from the University of Texas at Austin and is currently pursuing a Master of Business Administration (MBA). As an Engineer-in-Training (EIT), Mr. Kashani specializes in detailed data and technical analyses of complex construction issues, such as those involving schedule delays, cost overruns, and labor productivity. In addition, he provides document management, discovery assistance, demonstrative evidence development, and electronic database retrieval system services for construction claims, litigation, and arbitration.

Resume PDF | Industry Experience PDF

Back to the full Interface Consultant list

Fri, 13 Apr 2012 20:18:37 GMT

Fri, 13 Apr 2012 20:14:46 GMT

Project Management • Construction Claims • Litigation & Arbitration Frank Adams has provided consulting and expert services to clients on construction projects worldwide. The following is a list of the representative projects Mr. Adams has worked on during his construction career at Interface. Civil & Infrastructure Abbasiya/Durassa Reservoirs & Pump Station Acosta Bridge Replacement Aramco Ju'aymah Trestle Bayport Terminal Complex Buffalo Bayou Relief Facilities City of Austin Sewer Microtunneling Project City of San Antonio Storm Wheatley Drainage System ...

Military Buildings

Thu, 12 Apr 2012 21:53:46 GMT

Andersen AFB Military Family Housing
Barksdale AFB Phase I Conduit Installation
Cannon Air Force Base Family Housing
Fort Bliss Army Base Housing
Fort Leonard Wood Army Base Family Housing
Fort Lewis Army Base Housing
Fort Sill Army Base Housing
Fort Stewart Propane Air Mixing Plant
Hanscom AFB Family Housing
Little Rock AFB Family Housing
Naval Station Ingleside Fleet and Mine Warfare Training Center
NAVFAC P191 2nd MAW Command Operations Facility Cherry Point
Pacific Northwest Navy Housing
Patrick AFB Family Housing
US Army Corps of Engineers Colorado River Locks
US Army Helicopter Depot & Painting Facility
US Naval Air Station Alvin Callender Field
USAF Homestead/Gulfport Ocean Towers

Hotels & Convention Centers

Thu, 12 Apr 2012 21:30:32 GMT

Blackstone Ranch - Taos, New Mexico
Centerpointe Hotel Deer Park
Comfort Suites Sulphur Hotel
Crown Park Resort Gatlinburg
Daytona Beach Hotels Disaster Recovery
Eagle Pointe Recreation Complex
Fairway Pines II Hotel & Recreational Facility
George R. Brown Convention Center Expansion
Hotel ZaZa Reconstruction
Humble Hotel
Jalousie Plantation Resort
Labadee Port of Call Improvements
Loews Miami Beach Hotel
Marina Inn at Grande Dunes
Palisade Palms Condominiums
Port Arthur Convention Center
Sheraton North Houston Hotel
The Marriott Hotel
The Point at Walden Condominiums
The Villas at Stablewood Springs Resort
Wynn Las Vegas

Healthcare

Thu, 12 Apr 2012 21:27:41 GMT

Ben Taub Hospital
Brighton Gardens Assisted Living Facility
Bristol-Myers Biomedical Facility
CHRISTUS Spohn Hospital Parking Garage
Concierge Care Nursing Centers
Greenville Hospital System Diagnosis & Treatment Expansion
Harris County Psychiatric Center
HealthPlus Doctors Hospital
Hermann Memorial City Medical Center Tower
Mariner Health Care Facilities
MD Anderson Bertner Complex
MD Anderson Cancer Center
Medical Center of Southeast Texas
Memorial Hermann Memorial City Medical Center Tower
Renaissance Hospital Grand Prairie Reconstruction
Sisters of Mercy Hospital of Laredo
The Barshop Institute for Longevity & Aging Studies
The Methodist Hospital
The Methodist Hospital - Dallas, TX
Tulane University Medical School
USDA Children’s Nutrition Research Center
VA Hospital - Lenwood Center

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noemail@interface-consulting.com — Wed, 20 Jun 2007 16:35:46 GMT

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Release Date: 20-Jun-07 11:35 AM
Expiration Date: 20-Sep-07 11:35 AM

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SAM_0047

Fri, 18 May 2012 02:13:23 GMT