In recent years, we've witnessed a fundamental shift in how architecture, engineering and construction (AEC) firms implement growth strategies. As once-explosive organic growth has generally ground to a halt, companies have shifted away from using acquisitions to add resources and size to keep up with the market. They now have become highly strategic formarket access and expansion of capabilities. This follows the well-established trend of project owners seeking single-contract solutions with AEC firms that "can do it all." SIEGELThese strategic acquisitions often have involved smaller specialty firms that can expand the purchaser's capabilities and increase the potential for work. But
Leading construction-industry companies have successfully withstood the adverse effects of the global economic downturn by growing company revenue in spite of it. But the real challenge for engineering and contracting firm managers has been the ability to turn that growth into increased value for shareholders. ROCAIn a 2011 analysis of 37 major global construction-industry companies, management consultant Accenture found that the firms reported a 6.4% compound annual growth rate in revenue between 2007 and 2010. But they also had relatively low profitability over the five-year and three-year periods ending in 2010.Firms' average total return to shareholders was -4.8% annually for
Photo by AP Wideworld The Chicago hospital's design pioneered complex curvilinear structure. Related Links: Prentice Women's Hospital on the Betrand Goldberg Official Website Paul Goldberger on the Fight to Save Chicago's Prentice Hospital In the early 1970s, Bertrand Goldberg Associates, my father's architectural and engineering practice in downtown Chicago, was a whirlwind of activity that created many memorable structures. Now, one of his practice's most important creations is threatened by the wrecking ball and Northwestern University. The city of Chicago, where architecture is revered, should preserve it.During those years, Bertrand Goldberg Associates designed projects at Harvard, Stanford and Northwestern. After
Courtesy CII-Godrej GBC The CII-Sohrabji Godrej Green Business Centre in Hyderabad was one of the first commercial buildings in India to have a green roof. There are strong incentives against litigating disputes that may arise in the future from similar projects. Related Links: Industry Participants Outline Added Green-Building Risks Where are the green lawsuits? If you are wondering why you haven't read or heard about more litigation related to green projects, we have some ideas about why. If you think you can drop your guard and forget about the risks involved, please don't. The first reason we haven't seen more
Related Links: Judges Overturn Same-Sex Harass Verdict Against Boh Bros. Kerry S. Woods' wait for justice regarding his sexual harassment case will have to wait longer. Last month, a federal appeals court reversed a jury verdict and an award of $301,000 that Woods and the federal Equal Employment Opportunity Commission won last year from contractor Boh Brothers Construction Cos. In effect, the ruling said the case did not meet the legal threshold because the victim exhibited traditional masculine behavior.The case involves a Boh supervisor who tormented Woods by calling him "homo" and "faggot" while they worked in New Orleans on
Related Links: Also by Rakesh Tripathi: Casual Insults Sap Engineers' Prestige Toll roads—just those two words bring out extreme reactions. Either you hate them or you think they're the panacea for all that ails transportation. The conflict dates from the birth of the nation, and since then, the proper roles of government and private enterprise have been debated ad nauseam. Through prudent historical compromises,we have created a transportation system that is the envy of the world. In the new political world where compromise is a dirty word, I'm reminded of George Santayana's admonition that those who cannot remember the past
U.S. businesses are expanding their presence into China to take advantage of the country's growing consumer base, improving infrastructure, trading centers and special economic zones. However, understanding the country's cultural, legal and regulatory differences can be extremely daunting. It takes vision, commitment and—in many cases—a guide.By 2003 I had spent several years working for Mortenson Construction in the United States. As a Chinese national, I was struck by the differences between Mortenson and typical Chinese construction firms. The extraordinary capital spending in China resulted in an industry where many firms were driven by short-term gains without a long-term strategy for
Related Links: Float May Be Sinking the Project Website of PKR Consulting Inc. I was recently asked to participate in a debate on scheduling specifications at Stanford University. A representative from the contractor sponsoring the conference would take the position that most scheduling specifications were onerous or unnecessary. My role, if I agreed to partake, would be to defend them before an audience filled with contractors.This would not be an impromptu discussion—I was the owner's scheduling consultant on a project with the person I would be debating. "You won't be personally attacked," I was assured.After much deliberation, I reluctantly agreed.
Related Links: Engineering News Record Architectural Record Now that the new highway-and-transit funding bill is finally signed into law, prime contractors that hate disadvantaged-business-enterprise, or DBE, goal programs shouldn't waste time hoping a potential President Romney will wipe them away in the same way he has pledged to nullify the 2010 health-care act just blessed by the Supreme Court. Not even the Tea Party has expressed interest in transportation DBEs. But it's a mistaketo believe that nothing needs to be fixed in DBE requirements, which have existed since 1983. This would be a good time to adjust the rules and
Related Links: News story on Kids-for-Cash scandal Juvenile Law Center and Kids for Cash Is it your liability insurer’s job to defend you in a civil lawsuit over an admitted felony? To Pennsylvania contractor and felon Robert K. Mericle, it is.Thankfully, a federal appeals court last month ruled against Mericle, saying that his crimes didn’t constitute an occurrence under his commercial general liability policy with Travelers Property Casualty Co. of America. Occurrences under liability policies are a controversial matter in other states where insurers have declined to provide coverage to honest contractors, sometimes based on legal hairsplitting. But if ever
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