The theme for Fall BIMForum meeting, to be held on October 8-9, 2009 in Philadelphia, Pa., will be “BIM AS THE EVOLVING STANDARD OF CARE: Driving process transformation for designers, contractors and owners.” The BIMForum Leadership is submitting this call for proposals to solicit ideas for presentations that explore the depth and breadth of this topic. Click here for more details about the Fall BIMForum Call for Presentations!

Contact Megan McGarvey at mcgarveym@agc.org or 703-837-5369 with any questions.

Attending the AGC's 2009 Training & Development Conference (T&D) and HR Professionals Conference provides a unique opportunity for contractor and Chapter staff to participate in industry-focused sessions to learn innovative approaches to managing training and human capital. 

For 2009, both conferences will be held concurrently, October 27–29, in Atlanta, Ga.  Participants will be able to migrate between conference tracks, attend some joint sessions and network with both T&D and HR professionals throughout the event.  With expert speakers providing compliance-related guidance for HR professionals and interactive sessions, T&D professionals will sharpen skills, solve common challenges, and learn best practices for maximizing efficiency and effectiveness.

Review full session descriptions, schedule and registration information.

Don’t miss out on the early-bird discount, so register today!

Submitted by Peter Nielsen and Randy Nemchin on behalf of FMI Corporation

Negotiation as construction projects progress is inevitable. In many companies, project managers handle a significant amount of this negotiation. To some, the word “negotiate” denotes an adversarial tone. Others prefer to think of negotiation simply as a “means to an end.” However, no matter how it is viewed, savvy negotiation skills are critical for success. The volume and tactics of negotiation varies widely by company, type of work and the demands of projects. Some organizations negotiate everything from the contract to subcontracts, purchase orders, change orders, payment terms, etc. Other organizations negotiate very little. However, this important business skill is crucial for project teams to make money, build and maintain relationships and meet schedules for the long-term.

For a successful project manager to negotiate with a win-win approach, he/she must cultivate the client relationship. Any tactic that would diminish the relationship will not be successful in the long-term. People want to do business with people they like and trust. Negotiating throughout a project to build trust builds relationships, and that is more important than anything gained in the short-term from a win-lose negotiation type. “The common perception is that negotiation is a means with which to acquire work,” said Glenn Kistler, president and chief operating officer of J.D. Beam, a $50 million-a-year general contractor based in Raleigh, N.C. “I would tell you that you negotiate on most everything you do.” Whatever the specific issues, negotiations with owners and subcontractors revolve around primarily three things: price, scope and quality. “Scope is probably the largest item,” said Dave Alexander, vice president of James McHugh, a $280-million-a-year general contractor headquartered in Chicago. “We may ask a subcontractor to do something that to us sounds reasonable, but to them is very expensive. They may say, ‘Well I haven’t included it because that’s very unusual’ or they may say, ‘I’ve included it, but that’s why my price is so high.’ Therefore, you start negotiating scope and price. You really can’t talk about one without the other because every scope item you want them to do has a dollar value associated with it.”

Sometimes when subcontractors submit proposals, they include work not required by the RFP or leave out required work because they want to bid on what they do best. Project managers who evaluate proposals must be able to recognize these scope issues as they negotiate terms and conditions with the subcontractors. Time, or the schedule of work, is another factor that project managers must address in negotiations. “You may want the work done in a month, and the subcontractor says, ‘Well I’m going to offer it to you at a better price, but it’s going to take me two months to do it.’ So you might be negotiating money vs. schedule,” Alexander said. Disagreements during negotiations often result when contract language isn’t clear or doesn’t address a particular point, said Gary Jaslovsky, construction manager at Graycor, a $300-million-a-year general contractor based in Homewood, Ill. For example, a general contractor and a subcontractor could haggle over overhead and profit adjustment for work that the subcontractor reasonably performed even though it was not included in any contract. “So the subcontractor is essentially claiming, ‘Hey, I did some of your work that you have fee on. I should get some of your fee.’ And we’re saying we don’t disagree but we also did some of your work and we should get fee on it if you want to play that game,” Jaslovsky said.

Training the Art of Negotiation

Most contractors agree that traditional construction management or engineering programs do not teach negotiation and other business skills. “The stuff that’s really needed in the real world in many respects was left as an elective,” said Jeff Barnes, a vice president at Bobbitt & Associates. This lack of formal training leaves the development of negotiating skills up to companies and individuals. The amount and type of training varies. Many companies use informal mentoring programs to develop these skills in junior project managers. Some companies also have in-house programs or send their employees to outside seminars. Individual project managers may seek out additional training through books and other resources. Bobbitt holds monthly training sessions, and some of these focus on finance, negotiating and customer relations. But much of the company’s negotiating and business training takes place on the job. “We try to draw on the experience of the successful people at Bobbitt,” Barnes said. “The new guys on the block learn from the old ones.”

An Innate Ability

Many contractors believe that negotiating skills — unlike a new construction method —cannot be acquired by everyone. Therefore, Bobbitt also heavily weighs communication skills and business acumen as it evaluates potential project managers to hire. No matter how much training is provided in negotiating, customer relations and finance, some people are just innately better in those areas than others. “You get the right ones, and they know how to do it,” Comer said. Bobbitt — which specializes in $750,000 to $2 million commercial projects — likes to hire people immediately out of college with four year degrees, preferably in construction management or engineering. After being hired, employees have a 90-day probation period during which they serve as assistant superintendents. A senior superintendent keeps a close eye on the areas in which they excel, trying to determine their best role in the company. “What the superintendent tries to do in that first 90 days is expose the employee to everything Bobbitt does — all the types of buildings we do, the difficult customers, the easy customers,” said Barnes. At the end of the 90-day period, the new employees are evaluated and either given more responsibility and salary, retained in their current position at their current salary, or not hired permanently. Although some strong communicators simply prefer to work in the field, the ability to communicate is critical in determining who is cut out to be a project manager. “It’s one of those characteristics that you can typically identify in 90 days — either they’ve got it or they don’t,” Barnes said. Barnes is indicative of the career path a talented communicator and businessperson can take at Bobbitt. He clearly had what it took to become a project manager when he started with the company in 1977. He started as a form carpenter, but in less than six months he was running his own crew. After about a year, he was promoted to superintendent. In the early 1980s, he became a project manager. Barnes, whose father was a general contractor and part-time farmer, credits his parents and his farm upbringing with giving him a good head for business. He developed an entrepreneurial streak as a teenager cutting wood and selling it to neighbors. “The art of negotiating, to some degree, just like the ability to sell — is something that’s in an individual’s personality,” he said. “You have to be able to talk to people. You’ve got to be a good communicator.” It also involves knowing how to interact with different personalities. One approach won’t work with all people. “Some people believe you can’t get anybody’s attention until you start by screaming, and I don’t think that’s the way it has to be,” Kistler said. “But I think there are definitely people that respond only to that; the trick is finding how to make each individual you interact with respond in a way you want. For some of them, it’s asking for their help even when they are wrong, to fix their problem. And they respond real well to that. Some of them you have to get their attention pretty abruptly — pretty sharply — early on. It’s not much fun to do business that way, but it is a requirement.”

J.D. Beam has hired most of their project managers from North Carolina State University’s civil engineering program. The technical background is important, but not as much as a person’s negotiating and business skills. “You can’t turn everybody into an engineer without the background in school, but if someone knows right from wrong and can interact with people, you can usually teach them enough of the technical aspects to be successful at it,” Kistler said. One of J.D. Beam’s current project mangers was a school teacher before entering the industry. “I don’t know how those skills are taught,” Kistler said. “I think that part of it is how you are raised and your education early on, and the other thing is being in the hot seat and being responsible. It’s easy for people to get along when there is no pressure; it’s a little more interesting when the pressure gets turned on.”

Summary

Overall, the bottom line is negotiation is a process that with trust, skill and an eye on the relationship will create opportunity for success. Negotiation should not be viewed as a chore or a task that only skilled individuals should use; negotiations should be a part of dialog to ensure the project and individual needs are continuously met and exceeded.

Register Today

Join us in San Diego, CA  September 29-30 and begin to change the way you do business by learning these valuable skills. Registration  is now open.

For more information, please contact Carrie Harper via email at harperc@agc.org.

*Please note, this interview was conducted several years ago and information for interview participants may have changed. For current contact information for interview participants, please contact FMI Corporation.

More than 122,000 front-line construction supervisors and managers have participated in AGC’s Supervisory Training Program (STP) since its inception, building their supervisory skills. Each year AGC’s Supervisory Training Committee (STC) reviews the program to determine which units to update in order to guarantee the program remains highly-relevant and effective.

In October 2008, the STC kicked-off the revision process on STP Unit 6: Understanding and Managing Project Costs. A group of highly qualified contractor members, Chapter staff and educational faculty met to determine the scope of the revision on this project. Following this review an RFP was issued and the task group selected Mark Federle, Ph.D., P.E., CPC to lead this revision.

Throughout the revision process, task group members review and provide feedback on the content of the material to ensure it reflects the challenges that today’s supervisors are facing every day in the field. The material will be field tested prior to publication on August 10-11, 2009 in conjunction with the Houston Chapter AGC and will debut this October at AGC’s HR Professionals and Training & Development Conference in Atlanta, Ga.

The STC performs an essential role in this revision and AGC would like to thank the members of the Unit 6 Review Task Group:
• Dirk Elsperman, Tarlton Corporation
• Victoria Gotts, AGC of Michigan
• Carl Heinlein, American Contractors Insurance Group
• Daphene Koch, Purdue University
• Michael Kuritz, Chair of the STC, Felmley-Dickerson Co
• Dan Welch, BRB Contractors Inc

If you are interested in becoming a member of the Supervisory Training Committee or a member of the task group for this revision, please contact Stephanie Mullins at mullinss@agc.org or (703) 837-5387.

“RIFs, Lay-Offs & Furloughs in Construction: Avoiding the Pitfalls” webinar will be held August 13, 2009 from 1:30 PM - 3:00 PM ET.
 
Construction HR professionals have been burdened with the responsibility of properly handling reductions-in-force (RIFs), lay-offs and furloughs, sometimes at a moment’s notice. These situations can be difficult to handle legally, practically and emotionally.

Labor and employment law attorney Bert Brannen of Fisher & Phillips, LLP, and construction-industry HR expert and consultant Doug Mure will take a tag-team approach to explaining the legal, practical and emotional aspects that HR professionals in the construction industry are faced with and how to avoid the pitfalls when forced to release employees.

Register and receive “When You Have to Release an Employee” DVD FREE (Retail: $150).
This DVD describes the legal challenges associated with handling involuntary terminations caused by misconduct and poor performance. It explains the good habits that can help a company avoid losses, provides a six-point checklist, and gives specific answers to several of the most commonly asked questions.
(Please allow 4-6 weeks after the webinar for delivery.)

Introducing the Subsubcontract, a ConsensusDOCS webinar, will be held August 5, 2009 from 1:00 PM - 2:00 PM ET. 

This webinar will explain the new ConsensusDOCS 725, the industry’s first and only standard agreement designed specifically for use between a subcontractor and subsubcontractor.  The expert panel will discuss the unique benefits and challenges of using a simplified agreement.

AGC members pay just $99 for this webinar ($229 retail price).  Learn more or register here.

Contact Megan McGarvey at mcgarveym@agc.org or 703-837-5369 with any questions.

Many contractors and managers fail to realize that the ability to successfully negotiate isn’t a product of luck or magic or even a specific talent. The ability to successfully negotiate is a skill that can be learned. In this two day seminar, Negotiating Skills for Contractors, participants will gain valuable working knowledge of negotiating and listening and how it will benefit their relationships, both personally and professionally.

After attending this two-day course, participants will be able to:
• Implement negotiating skills in a fair and respectful manner
• Discover ways to gain power and control and effectively use them during negotiations
• Learn methods to overcome fear and intimidation
• Identify useful value-based solutions rather than price-based solutions
• Learn the powerful art of listening
• Understand the psychology of negotiating
• Discover usable negotiating methods that work
• Develop methods to manage angry customers
• Discover new business strategies to improve profits
• Learn key tactics to move the hardball negotiator into a more productive frame of mind
• Discover ways to identify common ground for both sides
• Utilize negotiating skills to improve personal and professional life

Join us in San Diego, CA, September 29-30 and begin to change the way you do business by learning these valuable skills. Registration is now open. For more information, please contact Carrie Harper at harperc@agc.org.

The National Center for Construction Education & Research (NCCER) is again sponsoring its Careers in Construction Week to increase public awareness of the hard work and contributions of our nation’s craft professionals and increase young people’s interest in pursuing construction as a career.

Schools, contractors and other industry organizations are encouraged to host construction career events and programs during this week. These events allow students to speak directly to potential employers, and contractors can start a dialogue with potential employees.

Planning an event for Careers in Construction Week? Download free planning materials to help plan a successful event. You can also download logos and Web banner ads to help promote your event. Register your event and you can receive extra publicity by having your event profiled on the Construction Careers portion of NCCER’s Web site.

Governors are encouraged to proclaim the third week in October as Careers in Construction Week in their state.

For more information, as well as downloadable planning materials, copies of state proclamations and to register your event, please go the NCCER Careers in Construction Week web site.

Book Review
Title:  IT’S YOUR SHIP
Author:  Captain D. Michael Abrashoff
Reviewed By: Robert Bowen

Captain Abrashoff took over the USS Benfold.  The ship was in total disarray.  He took the ship from being the worst ship in the US Navy to being the “Best Damn Ship in the Navy”.  He did it by developing his own leadership skills to bring the entire crew to a level of excellence.    Before he took over the Benfold, retention of seamen at the end of their tour of duty was 2%.  After his tour on the Benfold, seaman retention was 98%.  The Navy now uses crew retention as a measure of command effectiveness.

Of all of the management training books I have read, this is the best.  It was an absolute page turner.  Each successive chapter was filled with exciting events that took the reader right into the situation.  You felt like you were right there and walking in the shoes of Captain Abrashoff.

A copy of the book has been given to every project manager, project engineer and superintendent in our company.  We use the material in our in-house leadership training program.  I also plan to include it in any future programs I do for AGC.

We are all trying to grow our companies.  The lessons demonstrated on the USS Benfold relate very well in the construction industry.  Captain Abrashoff has raised the bar.  He said, “If you show me a company whose employees take ownership, I will show you one that beats the competition.”  He went on to explain that for us to develop effective teams, the most important things we can do are:
      • Treating our people with respect and dignity
      • Providing opportunities for them to impact the organization
      • Listening to them
      • Increasing their responsibility

He went on to say when employees leave a company, 65% of the time they leave because of the manager.

One of the extraordinary things he did was to send birthday cards to family members of his crew.  When his crew did a great job on board, he often sent cards of praise to family members.  On one occasion, he sent a card to the dad of a marginal crew member who had been part of a successful shipboard operation.  As it turns out, the boy had never received a compliment from his dad.  When the dad received the letter from the captain of the Benfold, he praised the boy for the first time in the kid’s life.  Naturally he thanked the Captain, but what a moving story.

A leader’s optimism and pessimism are equally infectious.  An enthusiastic leader will beget an enthusiastic crew.  Tell your people how important they are.

He talked about problem solving.  When a leader has performance issues, the problem is often “You.”  A leader has to ask the following questions:
      • Did I articulate the goals?
      • Did I provide adequate time and resources?
      • Did I provide training?

The story of the USS Benfold will be part of my management training for a long time to come.  We can all learn from Captain Abrashoff.

Robert Bowen is the founder and owner of Bowen Engineering Corporation, a multi-market company specializing in water and wastewater treatment plants and energy utility construction. He is considered an authority on preplanning and leadership practices in construction.  Bowen Engineering has received four AGC Build America awards. Robert received his B.S. in Civil Engineering from Purdue University and was later bestowed an honorary Doctor of Engineering degree from his alma mater.  In 1994 he completed the Harvard Business School OPM Program. He and his wife, Terry, established the Bowen Foundation 13 years ago to provide scholarships to minority students in Indianapolis to help them pursue an education past high school.  About 300 students have received more than $750,000 in scholarships through this foundation.

Due to his strong leadership skills and successes both in the industry and in his community, Mr. Bowen is a frequent instructor at AGC’s Leadership in Construction Workshop, Construction Project Manager Course, and Advanced Management Programs.

Attend the pilot course of the newest STP unit—Understanding and Managing Project Costs, fifth edition.

In today’s competitive climate and uncertain economy, the role of the construction supervisor in project costs is more important than ever. STP Unit 6: Understanding and Managing Project Costs was revised with this in mind, providing early-career construction supervisors with the essential knowledge to manage costs on their projects.

The fifth edition of Unit 6 will officially be released in October 2009, however we are providing a special pilot of this course complimentary for 30 individuals in Houston, Texas.

AGC’s acclaimed Supervisory Training Program has providedessential skills to construction supervisors for the last 33 years. Developed, updated and field tested by and for contractors, STP teaches the skills that are crucial to a project’s success and provides the information every foreman and supervisor must know to make decisions quickly, confidently and effectively in the field.

This two-day course will be held on Monday, August 10 and Tuesday, August 11 from 7:30 AM-5:00 PM on both days at the Houston Chapter-AGC. Register online for this course here. Contact Stephanie Mullins with questions at mullinss@agc.org or (703) 837-5387.