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American Council of
Engineering Companies (formerly the American Consulting Engineers Council)
Volume XXII, Number 12
June 15,
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 ___________________
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GA Report
This week's edition: June 14,
2001
| ACEC
Means Business
Billing Rate for Senior Managers Outpace
Those for Technical Level Employees
Billing rates are increasing faster for senior personnel in design and
environmental consulting firms than they are for technical-level
employees. This is one of the many findings of the newly released 2001
Fee & Billing Survey of A/E/P & Environmental Consulting Firms,
published by ZweigWhite.
According to the survey, median billing rates for planners and
scientists with less than five years of experience have each increased
less than 10% since 1998, while rates for senior associates and principals
of all disciplines have each increased more than 15% in the same
period.
In 1998, the median hourly rate for a planner’s time was $65 and has
since only increased to $70. Similarly, the rate for a scientist’s time
has increased from $60 per hour in 1998 to $65 per hour in 2001. At the
other end of the scale, hourly billing rates for senior associates
increased from a median of $100 in 1998 to $120 this year, and principals
from $115 in 1998 to $135 in 2001.
Ray Kogan, a principal at ZweigWhite, says one reason for the uneven
increases in billing rates is that there is greater demand for senior
managers’ time. "Because clients, no matter whether private or public
sector, have so much on the line when they develop projects (lots of their
money, lots of other people’s money, reputations, careers, etc.), they
seek out the best talent they can find to give them the comfort that their
projects won’t have major problems," says Kogan. Ultimately, senior
personnel are more likely to give clients that warm and fuzzy
feeling, and clients are willing to pay for it.
ZweigWhite’s 2001 Fee & Billing Survey of A/E/P &
Environmental Consulting Firms is the most comprehensive survey
devoted entirely to fee structures and billing rates in the design
industry. The survey has data for 10 of the largest markets in the A/E/P
and environmental consulting industry and reports fees both as a
percentage of discipline construction costs and as a percentage of total
construction costs so firms can compare between markets. It also breaks
down billing rates for 29 different levels of employees in the design and
environmental consulting industry.
The 2001 Fee & Billing Survey of A/E/P & Environmental
Consulting Firms is available for sale through ACEC Publications,
#LW-3675-1-01, $279 members, $6 s/h. Orders should be sent to ACEC, FAX
(202) 789-7220, or e-mail, publications@acec.org. Please include your
Mastercard, Visa, or American Express number with the expiration date,
contact name, firm name, street address, phone number, and e-mail
address.
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Corps Laboratories Open for Tours by ACEC
Members
The U.S. Army Corps of Engineers operates an extensive
engineering and scientific research laboratory system that supports
the Army and the nation. The U.S. Army Engineer Research and
Development Center (ERDC) includes seven unique laboratories at four
geographic locations: Coastal and Hydraulics Laboratory, Vicksburg,
Miss.; Cold Regions Research and Engineering Laboratory, Hanover,
N.H.; Construction Engineering Research Laboratory, Champaign, Ill.;
Environmental Laboratory, Vicksburg, Miss.; Geotechnical and
Structures Laboratory, Vicksburg, Miss.; Information Technology
Laboratory, Vicksburg, Miss.; and Topographic Engineering Center,
Alexandria, Va. More information on ERDC is available through its
website: http://www.erdc.usace.army.mil/erdc.html.
The laboratories welcome professional visitors. Groups of ACEC
members wishing to tour one of the ERDC facilities should contact
Billy Bridges, ERDC Public Affairs Director, at
601-634-2504.
Quality and Peer Review: What
a Combination!
One of many changes made by ACEC Chairman Stephen Goddard was to
combine ACEC committees that have similar goals and objectives. For
example, Quality Management and Peer Review have joined forces to
become the Quality Management and Peer Review Committee (QMPR).
"Both Committees have been very successful in bringing value to
ACEC members and together, I’d like to see all the goals of the
previous committee(s) at a minimum be met and ideally exceeded in
the upcoming year," said Gary Loesch, Chair, QMPR Committee.
"Quality management has a lot to offer the Peer Review Program and
vice versa: Peer Review is all about quality."
The agenda for this new committee includes promoting the Peer
Review Program, introducing the new Quality Management Guidelines,
and further investigating the proposed Quality Certification
Program. For more information, contact Anna Johnson
(ajohnson@acec.org) at ACEC.
Business Development
Opportunities
International Engineering Conference.Network with potential
partners from over 60 countries at the annual convention of FIDIC,
the International Federation of Consulting Engineers. September 3-5
in Montreux, Switzerland. Visit www.fidic.org/conference/2001 for
details and registration.
Emerging Business Opportunities in the European Union.
Eastward enlargement of the EU creates many project
opportunities for engineers. Take advantage of a "how to" manual on
doing business with the EU, courtesy of our colleagues at EFCA, the
European Federation of Consulting Engineering Associations. Click here
for details.
Infrastructure Trade Mission to Vietnam, and Hong Kong.
Sponsored by the U.S. Commerce Department, this September 2001
delegation will showcase U.S. expertise to potential clients and
partners. For information on how to participate, visit
www.usatrade.gov/matchmaker
New! Latin America E-Business Fellowship Program. Hosting a
Latin American professional as part of this Bush Administration
initiative can strengthen your business ties to the region. Visit
www.ita.doc.gov/media/fellowship423.html for details.
Can the Adult in You be Zapped Into a
Leader?
"Developing character and vision is the way leaders invent
themselves," according to Warren Bennis, a management expert, in his
new book On Becoming a Leader.
As part of the first of five sessions in ACEC’s Senior Executives
Institute (SEI), senior-level executives from A/E firms across the
nation explore Bennis’ basic ingredients to leadership: Integrity,
Passion, Guiding Vision, Trust, Curiosity, and Daring.
SEI is a unique training program focusing on public policy,
advanced management, and leadership. As described by Keith Kuzio,
President of Larson Design Group in Williamsport, PA, and the first
of three executives from his firm to join SEI, "… the learning was
much deeper than the typical ‘Do x, and y will result’ approach that
is prevalent in the A/E training market today. SEI incorporated a
rich variety of readings, including books, articles and case
studies, presenting the most current, highly respected ideas in
leadership and management.
"Through the interactive dialog, discussion, and role playing in
the five sessions, I was presented with methods and learning models
with which to transform our company from a typical profit-minded
business to a high-powered learning organization," said Kuzio."
Personally and professionally, my life has become calmer and more
balanced, and I have established rich relationships with my
classmates and instructors that will remain strong for a lifetime.
But most significantly, through the SEI process I have become
recharged and excited about the potential that exists within me and
every employee in my organization."
Only two openings remain in SEI Class VI, starting October 13-18,
2001, in Washington, DC. Terra Insurance Company, RA&MCO
Insurance Services, CNA/Schinnerer, and DPIC Companies provide
financial support to participating firms. Visit www.acec.org, or for
more information, contact Maria Galvan (mgalvan@acec.org;
202-347-7474) at ACEC.
The following editions of the Last Word are
available online, to retrieve a particular issue, choose the date
from the drop down box below, and click "Go Get It!"
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