Last Word


________________________________________________________________________________________

American Consulting
    Engineers Council

Volume XXII, Number 5 March 19, 2001

1015 15th Street, NW
Washington, DC 20005
202-347-7474
Fax 202-898-0068
www.acec.org

E-mail acec@acec.org

Francis George, Editor
___________________
    
 
ACEC Means
Business

Design Build ... What Makes Owners Sophisticated
Consumers?

Like design professionals and contractors, owners develop through experience an appreciation and understanding of the unique culture of the design-build process.

Design-build delivery comes with a significant learning curve for both owners and design-builders. Therefore, owners with meaningful design-build experience under their belts are more likely to be better prepared. Many federal agencies are generally recognized to be experienced owners and are more likely to be better prepared than smaller local agencies implementing one of their first design-build projects. Frequently, less sophisticated owners underestimate the up-front work necessary to define their project and process. As a result, less sophisticated owners are often disappointed that they "got what they paid for."

Owners look to design-build project delivery to minimize the administrative burden on their staff. While this can be true during the construction process, lack of active owner involvement can be detrimental during the development of the proposal documents and during the design process.

Proposal development is the key to project success and owners must work with their consultants to properly define the scope and design criteria. Design decisions can occur rapidly with design-build project delivery. Owners must be prepared to commit substantial resources – either their own or those of an advisor – to justifying construction documents to their initial request for proposal, and the design-builder’s technical and price proposals.

Excerpted from Multiple Delivery Systems Handbook on Design-Build Project Delivery, by the ACEC Professional Procurement Committee and Ben Perez, Editor. Design-Build Project Delivery is available for sale through the ACEC Bookshop (as item #LW-371), $29 members, $39 nonmembers, $4 s/h. Orders should be sent to ACEC (fax 202-789-7220, or e-mail publications@acec.org). Include your Mastercard, Visa, or American Express number with the expiration date, contact name, firm name, street address, phone number, and e-mail address.

ACEC-supported Tax Cut Passes House – All Eyes Turn to Senate

The House of Representatives recently passed H.R. 3, the Economic Growth and Tax Relief Act of 2001. The legislation includes broad-based individual income tax rate cuts that are the centerpiece of President Bush’s $1.6-trillion tax relief plan that will help small businesses and individuals. The estate tax, as well as other tax measures important to engineers, will soon follow in later phases of the tax package.

ACEC has taken a leading position in the President’s TRC (Tax Relief Coalition). As a steering committee member, ACEC has worked closely with the White House and other industry associations to lobby for this important bill. ACEC Executive VP Dave Raymond hosted eight members of the White House staff, along with other industry executives, to advise the White House on industry views.

ACEC’s president, Arnie Spiess applauded the work that has been done to bring about this key tax priority. Spiess said, "Businesses like partnerships and S corporations, which pay income taxes at individual rates, will benefit greatly from the rate cuts."

"Consulting Congress Day will help keep the momentum going as H.R. 3 moves on to the Senate. Here is where the real battle lies; ACEC will gear up its grassroots efforts for a full court press on key Senators," said Spiess.

ACEC Small Firm Council members recently participated in events with the House of Representatives leadership to express their support for President Bush’s proposals.

More than two-thirds of the private engineering firms in the United States are small companies, most structured as sole proprietorships, partnerships, or S corporations. ACEC member Cathy Ritter, President of Constellation Design Group, said during an NBC Nightly News interview that "tax relief would allow me to increase salaries, continue education and training, provide additional health or life insurance, equip our computers with the latest software, or investigate employee benefits that are currently out of reach. In short, I would be able to invest in my company’s future by spending present dollars."

ACEC Names New Treasurer

Jeff Daggett

The Board of Directors of ACEC has officially named Jeff M. Daggett as Treasurer, effective March 1, 2001, through May 2002. Daggett is completing the term of Robert E. Hickman, who has taken an assignment with his firm (Earth TECH) in Australia. Daggett is CEO of W&H Pacific in Botell, Washington.

State Finality and Liability Issues Are
Discussed at Brownfields Hearing

The House Energy and Commerce Committee held an informational hearing this week to determine the scope of any future brownfields bill. One of the key witnesses was EPA Administrator Christine Todd Whitman. Whitman stressed the importance of developing bipartisan legislation to remove existing barriers to brownfields cleanup and development. In her testimony before the Subcommittee on Environment and Hazardous Materials Committee, she emphasized the need for flexibility when working with states.

Whitman stated that legislation should ensure that states have their own authority to run their own programs, that the EPA work with states to ensure they employ high but flexible standards, and that EPA should be allowed to step in to enforce those standards when necessary. She stressed there should be limited circumstances where the EPA should step in if a state approves protective cleanup, such as when there is compelling evidence that cleanup is no longer protecting human health and the environment. She highlighted that legislation should clarify Superfund liability for contiguous property owners, prospective purchasers, and innocent landowners. More information: Emily Baker (ebaker@acec.org) at ACEC.

Penn Student Wins ACEC’s Top Scholar Award

President Arnie Spiess
presents $5,000-scholarship
check to Shannon Appleby.

ACEC presented its Scholar of the Year Award to Shannon Appleby of Penn State University during National Engineers Week. ACEC President Arnie Spiess awarded Appleby the $5,000 scholarship award during the Future Cities Competition in Washington, DC. A fifth year student, Appleby is majoring in Architectural Engineering and will graduate in 2002.

Graduate Enrollment in Science /Engineering Increases

Graduate student enrollment in science and engineering (S&E) in the United States increased in 1999 after five consecutive annual decreases, according to the National Science Foundation/Division of Science Resources Studies’ Survey of Graduate Students and Post-doctorates in Science & Engineering.

In fall 1999, 411,308 students were enrolled in graduate S&E programs, a two-percent increase from 1998’s 404,903. The number of full-time students enrolled for the first time in graduate science and engineering programs increased for the third consecutive year, signaling possible continued increases in total enrollment.

Engineering enrollment rose one percent in 1999. A number of engineering fields accounted for the increase, including aerospace, electrical, mechanical, biomedical, and petroleum. But, enrollment in several larger engineering fields (chemical, civil, and industrial) continued to decline. To view a complete chart of the survey results, visit www.nsf.gov/sbe/srs/databrf/nsf01312/sdb01312.htm.

Cyber Practice Conference

Vienna, Virginia, is the setting for ACEC’s 2001 Cyber Practice Conference, the focus of which is the current and projected use of electronic technology to design and deliver engineering and construction services. The April 26-27 conference is sponsored in part by Victor O. Schinnerer & Co.

Industry leaders, consultants and technical representatives from state-of-the-art vendors will discuss the impact of internet-based project management and related tools on business operations, risk management, and profitability. The conference will be at the Sheraton Premiere Hotel, 8661 Leesburg Pike, Vienna, VA. More information: ACEC Education Department (202-347-7474, www.acec.org).

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