Referral programs

In Zweig Group’s 2019 Recruitment & Retention Survey of AEC Firms, firms were asked about how employees were involved with their hiring process. Seventy-seven percent of firms had an employee referral program in place. When broken down by staff size, firms with fewer than 50 employees were less likely to have that program in place compared to larger firms. With almost half of firms ranking referrals as their greatest source of new hires, firms would be wise to institute a formal policy for their bonus program’s success.

Participate in a survey and save $320 on any Zweig Group research publication. Visit bit.ly/TZLsp to learn more.

T R E N D L I N E S

F I R M I N D E X

W W W . T H E Z W E I G L E T T E R . C O M

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

Arup .....................................................12

Burns & McDonnell Engineering ......10, 12

HNTB Corporation ................................12

HP Engineering, Inc. ...............................4

PDC Engineers .......................................6

Rincon Consultants ................................8

Walter P Moore .......................................4

Ware Malcomb .......................................2

Page 6

J u n e 2 4 , 2 0 1 9 , I s s u e 1 3 0 2

Built for generations: Matt Emerson

See MARK ZWEIG, page 2

“We need to collect our

money sooner. With dragged out collection periods, most

companies don’t have

the working capital they

need without borrowing.”

I think most people who own AEC firms KNOW how to collect their money if

they really want to. They simply have to aggressively call their clients once the bill goes out and make a pest of themselves. To the extent they are willing to do that determines how quickly they’ll get paid.

Some people in our business will do that. But most won’t. These people are more protective of their client relationships. Plus, they are too introverted. So, large accounts receivable balances for firms in this industry are the norm.

But the fact is, we need to collect our money sooner. With dragged out collection periods, most companies don’t have the working capital they need without borrowing on a bank line of credit secured by their receivables. That increases the overall risk of the enterprise. I know of companies that were shut down – even though conventional wisdom says that never happens – by their lenders for having too much AR and not following all the covenants on their lines of credit.

So, what can you do to get your money sooner without feeling like a jerk come collection time? Here are some proven tactics:

1) Write your contracts in such a way that you can bill sooner. Nothing says the old traditional milestones in terms of percentage-complete billing are cast in concrete. Come up

Getting your money faster without being a jerk

MORE COLUMNSxz JOAN MCQUAID: Basic marketing, busy AEC Page 3

xz WILLIAM QUATMAN: Supermen and exact sciences Page 9

xz KYLE CHEERANGIE: Managing your career Page 11

Mark Zweig

© Copyright 2019. Zweig Group.

All rights reserved. THE ZWEIG LETTER June 24, 2019, ISSUE 1302

2

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with new ones that allow you to bill sooner. Or bill every week instead of monthly.

2) And speaking of early billing, how about a retainer or advance payment to get started? Just like you can’t win the lottery without buying a ticket, you won’t get a re-tainer without asking. Just remember, you are very busy and having a hard time meet-ing your commitments as it is. If a client really wants you, they too should show some commitment.

3) Speed up your internal processes. If it takes you a week or longer to get a bill out, there’s something wrong with your internal process. Change it. You should be able to get bills out quickly any time you want to.

4) Once the bill does go out, don’t act like you can’t do anything if you don’t want to pick up the phone to check on payment status. Be sure to do things such as show all previously billed but unpaid invoices in your “total due and payable” on all subsequent bills. And send that bill a second or third time if you have to in order to keep reminding your client it is unpaid. Don’t use “statements” either. No one pays a statement. They pay invoices.

5) Accept electronic wire payments. ACH transfers. Even take credit cards if you are willing to eat a couple points on each payment to get paid faster.

So remember, if you are short on working capital and need your money sooner, don’t despair. As I like to say, “There’s always something you can do!”

MARK ZWEIG is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

MARK ZWEIG, from page 1

BUSINESS NEWSOPENING OF SECOND WARE MALCOMB OFFICE IN TEXAS BRINGS TOTAL OFFICES ACROSS NORTH AMERICA TO 23 Ware Malcomb, an award-winning international design firm, today announced the opening of a new office in Dallas, Texas, bringing the total number of Ware Malcomb offices across the U.S., Canada, Mexico, and Panama to 23. Founded in 1972, Ware Malcomb provides planning, architectural design, interior design, branding and civil engineering services for commercial real estate and corporate clients.The newest Ware Malcomb office is located at 1919 McKinney Avenue, Suite 100 in the arts district of Dallas. Ware Malcomb has been active in the Texas market since 2013 and currently maintains an office in Houston.Ware Malcomb also announced it has hired Chris Mavros as regional director to lead the new Dallas office. In this role, Mavros will be responsible for the overall growth and management of the firm’s operations in Dallas, in addition to working regularly with Ware Malcomb’s Houston office to collaborate on projects across the state.“We are excited to continue to expand our growing presence in the Texas market with the opening of a new office in Dallas,” said Jay Todisco, executive vice president of Ware Malcomb. “We are also pleased to welcome Chris to the Ware Malcomb team as he leads our new operations in Dallas. His knowledge and expertise will help us to serve our clients across the state, and we look forward to his contributions in the years ahead.”

Mavros brings more than 17 years of industry experience to his new role at Ware Malcomb. A LEED Accredited Professional, he has worked on a variety of project types throughout his career, including office, industrial, retail, medical office, higher education, mixed use, and public/institutional projects. He also has extensive experience in the areas of business development, marketing, and project management. Mavros holds a bachelor’s degree in architecture from the University of Oklahoma, and a master’s degree in business administration from Southern Methodist University.Recent Ware Malcomb projects in Texas include the Southport Logistics Park in Dallas, the Biagi Bros. distribution center in Hutchins, Dril-Quip in Houston, the Sunridge Business Park in Wilmer, and Medline in Katy. The firm has designed more than 1 billion square feet of industrial space in North America.Established in 1972, Ware Malcomb is an international design firm providing planning, architecture, interior design, branding and civil engineering services to commercial real estate and corporate clients. With 23 office locations throughout the United States, Canada, Mexico and Panama, Ware Malcomb specializes in the design of commercial office, corporate, industrial, science and technology, healthcare, retail, auto, public/educational facilities and renovation projects. Ware Malcomb is recognized as an Inc. 5000 fastest-growing private company and a Hot Firm and Best Firm To Work For by Zweig Group.

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3

THE ZWEIG LETTER June 24, 2019, ISSUE 1302

Did you know that putting a little time and energy toward some basic marketing communication efforts could shine a professional spotlight on you? Expand the

awareness of your organization to a wider audience? Further your career? Ideally, bring dollars to your business?

A small investment of your time, energy, and creativity can yield a large return with your clients. Start gently and build your confidence.

O P I N I O N

It’s true.

The good news is that anyone – architects, engineers, contractors, manufacturer’s reps – can create some fundamental marketing communication pieces and garner positive results. Whether a seasoned professional or new to the AEC industry, you can write, give a presentation, or post on social media with topics that are informative for your clients to spur connections that could ultimately benefit your bottom line.

If you’re new to marketing, choose an approach that is manageable for you, and at least somewhat close to your comfort zone – so you can begin marketing without becoming overwhelmed while doing it.

z Focus – it’s all about them. An easy, but often overlooked place to begin, is to put yourself in your

clients’ shoes. Take the time to consider the things that your clients think about. Where is their focus? What keeps them awake at night? What trends are happening in your clients’ worlds that could impact how they do their work?

If you’re new to the AEC industry or aren’t familiar enough with the topics that interest your clients, how could you find out what those topics are? It’s not hard. Place yourself in your clients’ universe. Read the publications and view the websites that they read. Have conversations with them and ask about their concerns. For more in-depth under-standing, go to the local events where they gather. Attend a conference that your clients attend. You could even volunteer for a cause where your clients are also volunteering. Get to know them; simultane-ously you’ll learn what matters to them.

Basic marketing, busy AEC

Joan McQuaid

See JOAN MCQUAID, page 4

© Copyright 2019. Zweig Group.

All rights reserved. THE ZWEIG LETTER June 24, 2019, ISSUE 1302

4

Once you’ve narrowed down to some relevant topics, then prepare to communicate information that is in line with your clients’ focus. By doing this you’ll not only capture their at-tention with the pertinent information you provide, but also position yourself as a credible resource for them. And who doesn’t want to be helpful to a client?

z Write. There are several options for getting your words in front of your audience. Start simply with a small goal, like one written piece.

Write a brief three to five paragraph blog post for your com-pany’s website. If your organization has an e-newsletter or e-magazine for clients, write an article for an upcoming issue. If these channels are not available to you, submit a more sub-stantial article to the editors of client industry publications and/or online resources for the editors’ consideration to pub-lish.

Regardless of the channel, be sure the piece you’re writing will be a valuable read for your clients. Offer content that is timely, educational, or newsworthy. For example, focus on real-world scenarios, give solutions to their problems, expand on ways to avoid pitfalls, or write about upcoming changes that could impact your clients’ work. When composing your piece, avoid using AEC industry jargon. Instead, use your cli-ents’ vocabulary.

z Present. If you prefer being live and in-person before your client audience, then make an informative presentation to your clients. Better still, invite a client or colleague to co-pres-ent with you. Two presenters can split the work of creating and giving the presentation. Having a client presenter along-side you adds to your credibility as an expert. It also provides great exposure for both presenters.

Just as with a written piece, presentations should offer use-ful, timely, and helpful information.

If you have the resources, consider going a couple of steps further – offer your presentation as an online webinar and/or invite local clients to your office for your live presentation.

z Post. Social media posts are quick and easy ways to com-municate with your client audience. Select the social media

channel(s) that are most used by your clients. If possible, have several short posts ready so that you can post on a regular basis. Repetition and a consistent presence on social media help increase awareness of you and the communications you’re posting Whenever possible, post work you’ve written. Additionally, offer links to any other of your online article(s). Share announcements about upcoming events – especially if you’ll be a participant in those events.

Bonus: most social media channels have analytics available that track traffic and responses to your posts. Seeing a swirl of activity and positive comments on your posts are good moti-vation to do more of whatever you find is resonating well with your clients.

z Refresh, recycle. Once you’ve created a piece, look for ways to expand its reach. Condense full-length articles for a blog post. Your article can be inserted in a newsletter, submitted for publication in traditional print or e-magazines, turned into a presentation, used as the basis for a webinar, and placed across social media.

z Start now. A small investment of your time, energy, and cre-ativity can yield a larger return. Start gently. Build your confi-dence. Ask for assistance if you need it. Persist in your efforts and then try to expand coverage of every piece you create. Your clients will notice and appreciate what you’re providing to them. Ideally, they’ll reward you by doing more business with you.

JOAN MCQUAID is the chief marketing officer at HP Engineering, Inc. in Rogers, Arkansas. She has more than 20 years of strategic marketing communications and planning experience in the AEC industry. She can be reached at jmcquaid@hpengineeringinc.com.

JOAN MCQUAID, from page 3

“Whether a seasoned professional or new to the AEC industry, you can write, give a presentation, or post on social media with topics that are informative for your clients to spur connections that could ultimately benefit your bottom line.”

ON THE MOVEWALTER P MOORE ANNOUNCES KEY LEADERSHIP TRANSITIONS IN FIRM’S STRUCTURES GROUP International engineering firm Walter P Moore announced several key changes within the firm’s structures group, which encompasses structural engineering, enclosure engineering, construction engineering, secure design, and parking consulting. Blair Hanuschak, P.E., senior principal, has been promoted to executive director of structures, which spans 19 U.S. offices, five international locations, and comprises roughly 54 percent of the firm’s employees. Hanuschak will captain an executive suite of structural leaders.A 27-year veteran at Walter P Moore and member of the Board of Directors, Hanuschak has served as a regional and managing director for structures and as global aviation practice leader. He has been instrumental

in establishing the firm as a leader in airport design, and in 2008 he founded Walter P Moore’s Washington, D.C. office, now the firm’s second largest U.S. location. He will continue to be located in the Washington, D.C. office.“Blair is a proven leader, and I am confident that his charismatic and collaborative style, vast experience, and client savvy will make him a very effective executive director,” stated CEO Dilip Choudhuri, P.E. in making the announcement.Hanuschak succeeds Lee Slade, P.E., senior principal, who has led the structures group since 2001. Slade continues to serve the firm as the chairman of the board and will be transitioning to a new role that leverages his engineering passion and 42 years of experience. Throughout his prolific career, Slade has served as a visionary leader, both

for the structures group and for the firm as a whole. Under his direction, Structures grew by $30 million in revenue, added three new practice areas, opened eight offices, and added 60 new principals.Walter P Moore is an international company of engineers, innovators, and creative people who solve some of the world’s most complex structural and infrastructure challenges. Providing structural, diagnostics, civil, traffic, parking, transportation, enclosure, and construction engineering services, they design solutions that are cost- and resource-efficient, forward-thinking, and help support and shape communities worldwide. Founded in 1931 and headquartered in Houston, Texas, Walter P Moore’s more than 600 professionals work across 19 U.S. offices and five international locations.

THE ZWEIG LETTER June 24, 2019, ISSUE 1302

5

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THE ZWEIG LETTER June 24, 2019, ISSUE 1302

6

P R O F I L E

Built for generations: Matt EmersonPresident of PDC Engineers (Best Firm Multidiscipline #45 for 2018), a 100-person firm headquartered in Fairbanks, Alaska.

“I do a lot of ‘walk arounds,’” Emerson says. “I sometimes ask staff, ‘Why do you work here?’ The majority of an-

swers have to do with challenging work and diversity of work and clients.”

A CONVERSATION WITH MATT EMERSON.

The Zweig Letter: What are the three to four key business performance indicators that you watch most carefully? Do you share that information with your staff?

Matt Emerson: We look at the overhead rates, utilization, and accounts receivables. We then share this information with staff. Since I’ve been president, I hold roundtable dis-cussions with staff at least three times a year to discuss how the firm is doing overall. We’re a 100 percent ESOP so finan-cial information is often shared with all owners.

TZL: What actions do you take to address a geographic office or specific discipline in the event of non-perfor-mance?

ME: We ask the office, or more typically the market sector, to develop a plan of action on how they are going to turn things around. They will then report to the Board on their plans to mitigate. We’ll ask them to track business more of-ten than normal and take a closer look at monthly revenue and profits. It’s also important they get a strong handle on backlog. They need to be realistic about what’s strong and what’s not. “If” and “hope” are danger words. We also ask them to develop worst, moderate and best-case scenarios.

TZL: How many years of experience – or large enough book of business – is enough to become a principal in your firm? Are you naming principals in their 20s or 30s?

ME: We just named a new principal – the youngest ever.

By LIISA ANDREASSENCorrespondent

“We just named a new principal – the youngest ever. She’s 39. We based this promotion on her relationship with clients and her ability to run successful projects.”

Photo credit: Kevin Smith Photography

© Copyright 2019. Zweig Group.

All rights reserved. THE ZWEIG LETTER June 24, 2019, ISSUE 1302

7

YEAR FOUNDED: 1953 (operated

under the name PDC Engineers

since 1998)

NO. OF EMPLOYEES: 100

NO. OF OFFICE LOCATIONS: 5 in

Alaska (3 primary and 2 satellite):

z Anchorage

z Fairbanks

z Juneau

z Palmer

z Soldotna

HEADQUARTERS: Fairbanks, Alaska

DISCIPLINES:

z Planning

z Survey

z Geotechnical engineering

z Environmental engineering

z Civil engineering

z Structural engineering

z Mechanical engineering

z Electrical engineering

z Fire protection

TAGLINE: Transforming challenges

into solutions.

COMMUNITY INVOLVEMENT: PDC

believes in supporting the

community in which it works.

Some of the organizations it

supports are Food Bank Alaska,

Society of Women Engineers, and

University of Alaska, the Institute of

Transportation Engineers (Alaska),

Boys and Girls Club, American

Cancer Society, American

Diabetes Association and more.

She’s 39. We based this promotion on her relationship with clients and her ability to run successful projects. We had such posi-tive feedback from clients and she generat-ed a good deal of revenue. In fact, a client, after working with her, asked why she was not a principal. She’s been with the firm for more than 10 years and she fits into the company culture well. A good culture fit is so important. You can be a brilliant person, but if no one wants to work with you, it just doesn’t work. There are no hard and fast rules when it comes to age. People just sort of evolve with the company and it happens.

TZL: Describe the challenges you en-countered in building your management team over the lifetime of your leader-ship? Have you ever terminated or de-moted long-time leaders as the firm grew? How did you handle it?

ME: The greatest challenge is to make sure that I’m constantly communicating with the company – good and bad information. I’ve been lucky so far in that I have not had to let anyone go or demote them.

TZL: In one word or phrase, what do you describe as your number one job respon-sibility as CEO?

ME: To serve the employees and to build the company to continue for generations. It’s also important to be accessible.

TZL: With technology reducing the time it takes to complete design work, how do you get the AEC industry to start pricing on value instead of hours?

ME: There’s no silver bullet for this one. Some clients are locked into hourly. It re-ally starts with client education. It’s a pro-cess that takes time. Some of our work with technology enhances their experience and they see value in that (i.e., virtual reality) – it’s unique for the client to come in dur-ing the design phase and to walk through their project. We try to leverage technol-ogy to give value to their experience. Once the client understands how it all works

together, it’s easier to sell value as opposed to hourly.

TZL: If the worker shortage continues, do you see wages increasing to encour-age more talent to enter the AEC space, or will technology be used to counter the reduced work force?

ME: Finding mid-level management peo-ple is the most difficult. We do try to hire from within when we can. Wages have in-creased more than using technology, even though the Alaskan recession has hit the AEC community here pretty hard.

TZL: Engineers love being engineers, but what are you doing to instill a business culture in your firm?

ME: This question makes me think of my-self. In high school, I started out in the business working in construction. I then became a journeyman plumber, but later decided to attend college in my late 20s/early 30s (you know, plumbing is tough on the knees). I got a civil engineering de-gree and then a masters. In 2001, I was of-fered to start a structural department and I had a very limited business background. Since I was given this opportunity, I nat-urally wanted to learn the business side of things. I relied on mentors and osmo-sis. When I was asked to take on the role of president a year ago, I asked for specif-ic training. I also worked closely with the outgoing president who is currently stay-ing on as CFO for another year. I attended a training program with the ACEC – it was the Senior Executive Institute program. It provided a lot of value and also prepped me emotionally. Currently, we have a strong project management training program in-house and every other week, there’s a pre-sentation on topics having to do with ev-erything from accounts receivable to con-tracts. We also have a leadership retreat each year that often has an economic fo-cus.

TZL: The seller-doer model is very suc-cessful, but with growth you need to adapt to new models. What is your pro-gram?

See BUILT FOR GENERATIONS, page 8

“To help promote learning, we offer tuition reimbursement, engineering seminars, professional society memberships and professional development support.”

“We also have a culture that incorporates the old adage, ‘Work hard, play hard.’ There’s a great deal of camaraderie here and we encourage that. We want people to bring their families in for special events.”

© Copyright 2019. Zweig Group.

All rights reserved. THE ZWEIG LETTER June 24, 2019, ISSUE 1302

8

ME: We promote the seller-doer model. Each market sec-tor has its own sales team (but they are engineers.) If we see a project we want to pursue, we develop a capture plan, go after the project, and develop relationships with key de-cision-makers. For certain, it’s not something you’re taught in school. You can’t be a wallflower in this business. To help promote learning, we offer tuition reimbursement, engi-neering seminars, professional society memberships, and professional development support.

TZL: Diversity and inclusion is lacking. What steps are you taking to address the issue?

ME: We’re not taking any formal steps aside from our Affir-mative Action Plan. We lean towards it naturally happening and continue to hire on people’s qualifications and commu-nication skills.

TZL: A firm’s longevity is valuable. What are you doing to encourage your staff to stick around?

ME: I do a lot of “walk arounds.” I sometimes ask staff, “Why do you work here?” The majority of answers have to do with challenging work and diversity of work and clients. We also have a culture that incorporates the old adage, “Work hard, play hard.” There’s a great deal of camaraderie here and we encourage that. We want people to bring their families in for special events. We’ve done everything from family Hal-loween parties to snow tubing. We also provide solid health benefits and retirement plans.

BUILT FOR GENERATIONS, from page 7 “If we see a project we want to pursue, we develop a capture plan, go after the project, and develop relationships with key decision-makers. For certain, it’s not something you’re taught in school. You can’t be a wallflower in this business.”

ON THE MOVERINCON CONSULTANTS WELCOMES DEANNA HANSEN AS PRINCIPAL AND LOS ANGELES REGIONAL MANAGER Rincon Consultants announced the hiring of Deanna Hansen, principal and regional manager for the Los Angeles region. Hansen will lead and expand Rincon’s presence in the region to include obtaining new business, deepening and expanding existing client relationships, managing projects, and mentoring staff.Hansen brings more than 20 years of well-balanced expertise for development projects,

specializing in CEQA and NEPA compliance. She is known for her experience in environmental consulting and has contributed to a wide variety of residential, commercial and industrial projects. She has developed a level of understanding required to clearly explain technical concepts and issues for public comprehension, particularly for projects that include complex technical analyses and controversial public policy and planning issues.“I am thrilled that Deanna has joined the Rincon team to provide regional leadership

and senior technical expertise in Los Angeles and the greater Southern California region,” states Jennifer Haddow, principal of Rincon Consultants. “Deanna’s excellent professional reputation and extensive expertise will be an asset to our team and provide learning and mentorship opportunities for Rincon staff. Her contributions will positively impact both Rincon and our clients statewide.”Rincon Consultants, Inc. is an environmental science, planning, and engineering consulting firm with 13 offices throughout California.

PDC employees enjoy a family-friendly Halloween party.

9

THE ZWEIG LETTER June 24, 2019, ISSUE 1302

What is an “Exact Science?” Merriam-Webster’s dictionary defines “exact science” as “a science (such as physics, chemistry, or astronomy) whose laws are capable

of accurate quantitative expression.” Some say that the exact sciences (also known as “hard sciences”) are those that don’t require you to figure out human psychology, that is a scientific field which deals with things that can be observed and measured. One Georgia case stated that, “Science generally means possessed of knowledge as distinguished from ignorance and specifically points to truths or laws that may be experimentally demonstrable and empirically tested.”

Unless you put yourself out there as perfect, courts will typically hold you to the standard of reasonable care if you make a mistake.

O P I N I O N

It may be easier to list those professions that courts have found not to be an exact science (i.e., an “inexact science”). In a 1985 case, the U.S. Supreme Court stated that, “Psychiatry is not, however, an exact science.” Other courts have held that medicine, law, psychology, geology, hydrology, real estate appraisal, and even taxation are not exact sciences. As one court put it: “A plaintiff must prove the defendant failed to give him, not the highest degree of care, but merely the reasonable care and skill usually possessed by physicians of the same school … A physician is not an insurer of the results of his diagnosis or procedures. He is obliged to conform to the accepted standard of reasonable care, but he is not liable for failing to exercise an extraordinary degree of care.”

That same court warned, however, that those who hold themselves to a higher standard of care might find themselves liable for breach of that higher standard. The court stated, “True, physicians too often have attempted to encourage the aurae of an infallibility they do not possess. Theirs is not an exact science, and even the very best of them can be wrong in diagnosis or procedure. … [But] members of the medical profession who have held themselves out to be supermen should not be surprised that laymen take them at their word and impose superdamages.” The court went on to explain, however, that the law “recognizes the medical profession for what it is, a class of fallible men, some of whom are unusually well-qualified

Supermen and exact sciences

William Quatman

See WILLIAM QUATMAN, page 10

© Copyright 2019. Zweig Group.

All rights reserved. THE ZWEIG LETTER June 24, 2019, ISSUE 1302

10

and expert and some of whom are not. The standard to which they must conform, however, is determined by the practices of neither the very best nor the worst of the class. Like automobile drivers, engineers, common laborers, and lawyers, they are obliged to conform to reasonable care in the circumstances.”

In short, most professionals are held to a standard of care that recognizes that mistakes can be made, and that in and of itself is not negligence. A physician, nurse, lawyer or real estate appraiser must act with that degree of care, knowledge, and skill ordinarily possessed and exercised in similar situations by the average member of the profession practicing in the field.

IS ARCHITECTURE OR ENGINEERING AN “EXACT SCIENCE”? While there are unique cases on both sides of this issue, the prevailing view is that architecture and engineering are not exact sci-ences. Two older 1933 cases from Alabama and Louisiana found that, “Engineering is for the most part an exact sci-ence,” but that is not the prevailing view today. The leading case on architects and engineers as “inexact sciences” is a 1978 Minnesota case, City of Mounds View v. Walijarvi. In that case, the Minnesota Supreme Court held that, “Ar-chitects, doctors, engineers, attorneys, and others deal in somewhat inexact sciences and are continually called upon to exercise their skilled judgment in order to anticipate and provide for random factors which are incapable of precise measurement. The indeterminate nature of these factors makes it impossible for professional service people to gauge them with complete accuracy in every instance.”

Comparing design professionals to doctors and lawyers, the court said, “Thus, doctors cannot promise that every operation will be successful; a lawyer can never be certain that a contract he drafts is without latent ambiguity; and an architect cannot be certain that a structural design will interact with natural forces as anticipated.” The court noted that because of “the inescapable possibility of error which inheres in these services,” the law has traditionally required, not perfect results, but rather the exercise of that skill and judgment which can be reasonably expected from similarly situated professionals.

Citing to the Mounds View case, a Massachusetts court held in 1982 that, “Moreover, unlike a mass producer of consumer goods, an architect has but a single chance to create a design for a client which will produce a defect-free structure. Accordingly, we do not think it just that architects should be forced to bear the same burden of liability ... as that which has been imposed on manufacturers generally.” In other words, no strict liability, no implied warranty and no guarantee of perfection. A 2001 Utah case also cited to Mounds View stating, “We hold that architects and design professionals do not impliedly warrant or guarantee a perfect plan or satisfactory result.”

In a 1984 New York case, an architect prepared a cost estimate for a building which was relied on by the project owner. Bids on the project were from 33 to 45 percent above the architect’s estimates and the owner sued. An expert witness testified for the owner that the variance of cost estimates from bids was normally within a range

of from 10 to 15 percent. However, the same witness also testified that “estimating is an inexact science at best,” that many factors have an influence on the compilation of bids, and that architects have no control over competitive bidding or the market and negotiating conditions. As a result, the court found the architect was not negligent, noting that “The fact of the unexplained, substantial discrepancy between defendant’s projection of cost and the actual bids neither was proof of negligence by defendants nor did it permit an inference of negligence.”

HOW ABOUT SURVEYORS? Don’t they deal in exact metes and bounds in measuring specific distances between points on the land? Not necessarily. As one 1915 case stated, “Al-though surveying is theoretically an exact science, it is well known that there is often a great difference in the work of surveyors when laid out on the ground; this because of inaccurate readings or the negligence or incompetence of many engineers.”

BUT, THERE CAN BE EXCEPTIONS. Such an exception can be found in an odd 1984 Kansas case in which an architect breached an oral contract to supervise the grading work and to check the grades on completion “to insure their accuracy.” The court noted that, “Though professionals are liable for mal-practice for breach of a legal duty, that does not preclude them from contracting to perform a duty higher than the one imposed by law.” In this case, that is what the architect did, by agreeing to insure the grading to be accurate.

Here, the Kansas Supreme Court held that, “it can be said certain professionals, such as doctors and lawyers, are not subject to such an implied warranty. However, an architect and an engineer stand in much different posture as to insuring a given result than does a doctor or lawyer. The work performed by architects and engineers is an exact science; that performed by doctors and lawyers is not. A person who contracts with an architect or engineer for a building of a certain size and elevation has a right to expect an exact result.” It is often said by lawyers that “bad facts make bad law” and, fortunately, no other state has followed the Kansas case in the past 35 years, since it is “bad law” based on some very bad facts.

AM I INSURED? Professional liability insurance policies insure for professional negligence, not for perfection. In fact, most policies contain an exclusion for “express warranties or guarantees.” That means if you make a guarantee and contract for a higher standard or for perfection, as the one court noted, “supermen should not be surprised that lay-men take them at their word and impose superdamages.” And you may not be insured, either!

MORAL OF THE STORY? Architects and engineers deal in “inexact sciences,” and are not held to a standard of perfection. But, like the Kansas architect who gave an oral promise of an exact result, loose lips can sink ships or, in your case, sink your firm. Don’t be Superman, or Superwoman. Resist contracts that attempt to hold you to that higher standard.

WILLIAM QUATMAN, FAIA, Esq., is general counsel and senior vice president at Burns & McDonnell Engineering Co. He can be reached at bquatman@burnsmcd.com.

WILLIAM QUATMAN, from page 9

11

THE ZWEIG LETTER June 24, 2019, ISSUE 1302

The junior engineer’s most important goal should be to balance the three aspects of their career: technical ability, social skills, and stewardship of the profession. Each

aspect can be focused on like an individual skill. Neglecting one of these areas can result in a loss of opportunity.

Prepare and execute a plan for balance and growth in the three biggest areas of your engineering career: technical ability, social skills, and stewardship of the profession.

O P I N I O N

1) Technical ability. To increase your technical ability, review the standards, criteria, or design manuals of your discipline. Your knowledge base will quickly increase by doing this for one hour a day. Use your lunch break. Reviewing plans or reports that have already been completed by your managers is a great way of increasing your technical knowledge. This will give you insight into how design criteria are imple-mented into the final product.

2) Social skills. Out of college, many young profes-sionals have no real experience with interacting in a professional environment. It is essential to improve verbal communication. The best avenue for practic-ing this in a safe setting is a Toastmasters group. During a Toastmasters Table Topics session, you give an impromptu speech for up to two minutes. These short speeches teach you to slow down, clarify your thinking, enunciate your speech, and organize a line of reason. The effect bleeds over into daily conversa-tions. It’s more than removing “ums” and “ahs” from your language. Speaking with a clear line of thinking

greatly enhances the credibility of your argument. Once you’ve developed the ability to speak up, you need to learn when it’s best to stay quiet. This can only come from paying attention to your setting. Sometimes you’re just there to see how things are done, not to speak out of turn. Recognizing the

Managing your career

Kyle Cheerangie

See KYLE CHEERANGIE, page 12

“You should also develop a curiosity for the profession beyond these three areas. Learn about the built world outside of your area of expertise. You work in a fascinating and important field. You should feel privileged to tell people you’re an engineer. I do.”

© Copyright 2019. Zweig Group.

All rights reserved. THE ZWEIG LETTER June 24, 2019, ISSUE 1302

12

limits of your experience and when your input is not needed shows maturity. Written communication is next, but that will be covered in another article.

3) Stewardship of the profession. This may be the area that gets neglected the most. Engineers are trusted by society to build infrastructure and enhance quality of life. Previously I discussed “The Four Types of Problems all Engineers Must Solve.” The final problem discussed in that article was some-thing neither your company nor your industry have solved. These are the problems that can define a worthy career. Stew-ardship can also be fostered by joining a professional society such as ASCE and serving on the board. These board positions take you through the cycle of leadership within that organiza-tion, exposing you to a broader network. This broader net-work will lead to greater opportunities to grow the profession.

You should also develop a curiosity for the profession

beyond these three areas. Learn about the built world outside of your area of expertise. You work in a fascinating and important field. You should feel privileged to tell people you’re an engineer. I do.

KYLE CHEERANGIE is a project manager at HNTB Corporation, and is the founder and director of content for the blog Engineered Journals. He can be reached at kyle@engineeredjournals.com.

KYLE CHEERANGIE, from page 11 “The junior engineer’s most important goal should be to balance the three aspects of their career: technical ability, social skills, and stewardship of the profession. Each aspect can be focused on like an individual skill. Neglecting one of these areas can result in a loss of opportunity.”

ON THE MOVEINDUSTRY LEADER PATRICK CLIFFORD JOINS BURNS & MCDONNELL TO HEAD WATER SERVICES GROUP IN CHICAGO With more than two decades experience, Patrick Clifford joins Burns & McDonnell in Chicago, Illinois. Clifford will lead a growing team of multidiscipline professionals, while broadening the firm’s water and wastewater service offerings in the Upper Midwest.“Having served clients in more than 20 states across the U.S., Patrick has a deep understanding of how to deliver safe, reliable, and efficient water systems to meet the ever-changing needs of our communities,” says Scott Newland, senior vice president and general manager of Chicago and Detroit offices for Burns & McDonnell. “His extensive industry experience, proven leadership abilities, and strategic vision perfectly position him to spearhead the expansion of our water capabilities in the region.”Throughout his career, Clifford has successfully built and developed water and wastewater teams while managing more than $250 million per year in projects throughout the country. He most recently served as the regional water business line leader for a large international firm, growing a team of 100 professionals to nearly 1,000, across 30 offices. Clifford’s robust resume includes projects in municipal and private drinking water, wastewater, stormwater, water resources, energy management, and other general civil infrastructure.“I’m excited to grow our team and provide clients with comprehensive solutions that will reduce the stress that can accompany complex projects,” Clifford says. “I truly believe the Burns & McDonnell design-build and EPC approach is second to none and look forward to using it to improve life cycle costs, reduce construction time and lower overall project costs while solving the infrastructure challenges facing municipalities and communities today.”

Clifford currently serves on the board for the ACE Chicago Mentor Program and Groundhog Club of Chicago. Additionally, he is a member of the American Water Works Association, Water Environment Federation and Institute of Electrical and Electronics Engineers.Burns & McDonnell is a family of companies made up of 7,000 engineers, architects, construction professionals, scientists, consultants and entrepreneurs with offices across the country and throughout the world. We strive to create amazing success for our clients and amazing careers for our employee-owners. Burns & McDonnell is 100 percent employee-owned.MICHAEL LORIMER TO LEAD ARUP’S GROWING NORTHEAST HEALTHCARE BUSINESS Arup, a global leader in the built environment, announced that Michael Lorimer joined the Boston office to lead the Northeast’s expanding healthcare business. Lorimer’s experience in research facilities and healthcare projects will grow Arup’s presence in healthcare in Massachusetts and the greater northeastern U.S.With more than 2,500 healthcare projects around the world, Arup has for decades been a trusted expert in planning world class healthcare facilities and implementing operations that promote healing, efficiency, and resiliency.“With his relocation to Boston, Michael personifies our goal to deliver global best practices in healthcare design locally,” says Bill Scrantom, Arup’s Americas Region Healthcare Leader. “He has particularly strong expertise in delivering large-scale, complex, and patient-centered healthcare projects. We feel his leadership will significantly benefit the Boston healthcare marketplace and our growing Boston office.”Prior to joining the Boston office, Lorimer spent 17 years in Arup’s London office serving

as associate principal. He led a number of healthcare and research projects in Europe including award-winning buildings such as London’s UCH Macmillan Cancer Centre and Sainsbury Wellcome Centre, as well as Bispebjerg Hospital and Dublin Children’s Hospital. Lorimer has led and worked within multidisciplinary design teams, encompassing many aspects of a project, from feasibility studies to detailed design and site work.“Boston is well known for being home to world-renowned hospitals, medical schools, and research institutions. Our clients will immediately benefit from Michael’s deep healthcare and research facility experience as well as the holistic, multidisciplinary design he brings to every project,” said Tim McCaul, Principal and Arup’s Boston Group Leader.Lorimer will build on the work Arup has done with Yale University’s Health Services Center, develop ongoing work with Partners Healthcare on resilience and Massachusetts General Hospital, and seek opportunities for future projects. Arup’s healthcare portfolio includes Kaiser Permanente San Diego Central Hospital, Calgary Cancer Centre in Canada and Loma Linda University Medical Center.“I am honored by the opportunity to help local institutions develop and deliver the highest-quality healthcare offerings by designing world-class facilities,” says Lorimer. “A key challenge is to help institutes make the best of their existing facilities, but we are confident that with our core engineering skills and specialist knowledge, we will enable clients to deliver the best environment for patients and staff. I am looking forward to joining our talented team in Boston and working in a city that is a world-leading healthcare hub.”Arup provides consulting, planning, engineering, and design services for the most prominent projects and sites in the built environment.