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Borrowing to purchase firm shares T R E N D L I N E S W W W . T H E Z W E I G L E T T E R . C O M O c t o b e r 3 1 , 2 0 1 6 , I s s u e 1 1 7 4

Do something for you “What are you doing that you really want to do? Do you

M any of us – as responsible spouses, parents, and business owners – always do what we think we are supposed to. Our whole lives are based on serving and taking care of other people. Unfortunately, sometimes we forget about ourselves in the process. Typically, when talking about “taking care of ourselves,” the conversation revolves around diet, exercise, and sleep. Those are all good and necessary things that we need to pay attention to. But there are OTHER things as well. What are your passions? I woke up super early this morning as I often do – 3:38 a.m. is a magic time for me. I immediately went to my email and then to my favorite social media platforms. By a little after 6, I was out doing my almost-daily 2.3 mile super-hilly walk. Then I had a nice breakfast with coffee and the paper. Then, after more emails, I cleaned up and went down to the garage. It’s a fantastic day here today. 72 degrees. Low humidity. So instead of hopping in my company car for the short drive to Zweig Group HQ at 1200 North College, I decided I’d hop on a motorcycle instead. My trusty 2013 Honda CB1100 was raring to go as it always is. Turn on the key, hit the starter button, and “vroom,” that perfectly- engineered 1152 cc in-line four-cylinder was idling away comfortably – reminding me of the 1975 Honda CB550-4 I had in college years ago. As I pulled down the street, I grabbed some throttle. As I shifted into second gear, the front wheel gently raised off the ground about a foot. What a feeling! A

According to Zweig Group’s 2016 Principals, Partners & Owners Survey , 51 percent of owners did not borrow money to purchase shares in their firm. Of those who did, 14 percent borrowed from another shareholder , 12 percent borrowed from a bank , 6 percent used another source of funding , and 25 percent of respondents borrowed money from the firm . The average interest rate on funds borrowed from the firm was 3 percent. Totals exceed 100 percent because answers were not mutually exclusive. (Special discount to TZL subscribers: Use code SRVY35off to order this survey at 35 percent off at zweiggroup.myshopify.com/collections/ frontpage) F I R M I N D E X DLR Group. ............................................2

Mark Zweig

make any time for that – ever? If not, you probably need to.”

Jacobs Engineering Group Inc..............10

MORE COLUMNS xz CONTINUING ED: Don’t outsource your leadership Page 3 xz BEST PRACTICES: Be a dreamer Page 5 xz GUEST SPEAKER: Rules of the road Page 9

JQ...........................................................8

KBR......................................................10

Kisinger Campo and Associates............11

SMEC Australia.....................................10

Westlake Reed Leskosky........................2

See MARK ZWEIG, page 2

Forty bigones

Page 6 The anatomy of a (really big) hot dog

Page 11

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

TRANSACT IONS WESTLAKE REED LESKOSKY TO JOIN DLR GROUP DLR Group CEO Griff Davenport, AIA, announced that Westlake Reed Leskosky is joining DLR Group. Together, DLR Group and WRL will create a global design leader providing integrated architecture, engineering, interiors, planning, building optimization, and specialty consulting services. The strategic aim is to deliver a wide range of building type expertise to a diverse group of public and private sector clients throughout the world. “WRL has been seeking to join a firm of like beliefs and values to increase the distribution of our design expertise,” said WRL Managing Principal Paul Westlake, FAIA. “DLR Group is the ideal partner, an integrated design firm committed to design excellence and environmental stewardship. This also ensures the design legacy of WRL and provides our staff with ownership opportunity through DLR Group’s ESOP structure.” “It’s a case of right creative partner, right place, and right time,” said Davenport. “This increases the geographic reach of both firms and creates a design firm with demonstrated market-leading practices in the space of cultural and performing arts, energy services, healthcare, hospitality, justice, K-12 education, preservation, retail and mixed-use, sports, and workplace.” Together, the two firms feature a roster of signature clients and projects including Boeing, Cleveland Clinic, General Services Administration, Google, Hyatt, Los Angeles Memorial Coliseum, Mall of America, Pro Football Hall of Fame, Rock & Roll Hall of Fame, Smithsonian Institution, University of Southern California, U.S. Department of State, and the U.S. Federal Reserve.

“The term ‘peer firm’ tends to be tossed around loosely,” said Davenport. “As we went through this process it became readily apparent that within our firms is a clear cultural alignment. The common foundations are a commitment to the benefits of an integrated design process, supported by a dedication to design excellence and the sustainability goals of Architecture 2030.” “This is a unique opportunity to better serve the needs of both DLR Group and WRL clients in the Federal market as well as our private and public sector clients throughout the region,” said Davenport. “Nikki Sorg, Suman Sorg, and Rachel Chung from DLR Group will collaborate with WRL’s Jason Adolff and Roger Chang to create what I believe will be the leading integrated design firm in Washington DC.” Together, DLR Group and WRL will serve clients from 26 locations: Charlotte, Chicago, Cleveland, Colorado Springs, Denver, Des Moines, Dubai, Honolulu, Houston, Kansas City, Las Vegas, Lincoln, Los Angeles, Minneapolis, Nairobi, New York, Omaha, Orlando, Phoenix, Portland, Riverside, Sacramento, Seattle, Shanghai, Tucson, and Washington DC. The combined firm will be staffed by more than 1,000 design professionals. “DLR Group’s brand promise is to elevate the human experience through design,” said Westlake. “The essence of that idea is certainly at the central core of our design teams. This is a great day for all WRL employees as it provides ownership opportunity for every employee as part of DLR Group and ensures and leverages the design legacy of WRL.”

1200 North College Ave. Fayetteville, AR 72703 Mark Zweig | Publisher mzweig@zweiggroup.com Richard Massey | Managing Editor rmassey@zweiggroup.com Christina Zweig | Contributing Editor christinaz@zweiggroup.com Sara Parkman | Editor and Designer sparkman@zweiggroup.com Liisa Andreassen | Correspondent landreassen@zweiggroup.com Tel: 800-466-6275 Fax: 800-842-1560 Email: info@zweiggroup.com Online: www.thezweigletter.com Twitter: twitter.com/zweigletter Blog: blog.zweiggroup.com

MARK ZWEIG, from page 1

perfectly designed machine on a beautiful day – the sights, smells, and memories – all coming together to make a perfect morning. I’ve had a lot of bikes – well over 250 – and each one has done something better than the others I have had. I still have multiple bikes – including a late-model Harley Davidson and even the late Joe Lalli’s 1972 Honda CL350 (I restored it for Joe about 20 years ago and it needs it again), right here in our lobby. I just love motorcycles. And the truth is riding is one of the very few times I completely disconnect from my cellphone (and I think you all know how much I value responsiveness). The point is this. Having a bike is important to me. It certainly doesn’t help anyone else in my family or business for me to have one. It is an unnecessary luxury. But on the rare days like today when I can ride it, I love it. It makes me feel alive. Just that little bit of time I get to spend on it is incredibly valuable to me. What are you doing that you really want to do? Do you make any time for that – ever? If not, you probably need to. It may be therapeutic for you. It may actually make you more productive and less stressed. Golf? Cars? Brewery trips? Handball? Painting? Mountain climbing? Triathlons? What is on your bucket list? Go for it now! MARK ZWEIG is Zweig Group’s founder and CEO. Contact him at mzweig@zweiggroup.com.

Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/yr.). $475 for one-year subscription, $775 for two-year subscription. Article reprints: For high-quality reprints, including Eprints and NXTprints, please contact The YGS Group at 717-399- 1900, ext. 139, or email TheZweigLetter@ TheYGSGroup.com. © Copyright 2016, Zweig Group. All rights reserved.

THE ZWEIG LETTER October 31, 2016, ISSUE 1174

O P I N I O N

S ince when is it okay for a firm’s senior executive to outsource leadership? Hopefully, you answered “never” to that rhetorical question. Unfortunately, too many firms haven’t figured out that leadership cannot be delegated. Don’t outsource your leadership Executives who delegate important decisions to the second tier, and not the principals, run the risk of curbing their firm’s potential.

when firms begin to look forward to 2017 and setting their new “strategic” goals. As a side note, if it’s a one-year plan, it’s really not “strategic,” so plan bigger. In this season of strategic planning, how are firms determining which strategic consultants to hire to help build their plans? Some firms are doing “Organizational leaders are supposed to set the direction for their company, establish the goals they seek to achieve, and connect individual tasks to the overall strategy.”

Organizational leaders are supposed to set the direction for their company, establish the goals they seek to achieve, and connect individual tasks to the overall strategy. Leaders are also supposed to retain the responsibility of making decisions affecting the long-term health of the organization. Why are so many principals handing top-level responsibilities to non-principals? In all of the leadership programs I’ve attended, not once did I hear someone recommend that, when handed a significant decision, it’s best to pass it down the chain. All too often that’s what principals are doing and it’s chipping away at your firm’s potential. How many difficult decisions do you pass down your company’s ladder? IT’S STRATEGY SEASON. It’s that time of year again

Bill Murphey CONTINUING ED

See BILL MURPHEY, page 4

THE ZWEIG LETTER October 31, 2016, ISSUE 1174

BILL MURPHEY, from page 3

over the course of six weeks going back and forth, at a median labor cost of $40 per hour. That $1,500 seminar you were consid- ering will now cost you over $2,100 because of your outsourced search process. If you had handled the search yourself – and you could, because you know the market – you would have reduced the lead time and sig- nificantly cut your overhead costs. On the positive side, I’ve worked with many firms that understand leadership can’t be outsourced. Those are the firms with principals who know what their company needs and are looking for options to meet those needs. They ask probing questions to better understand the pros and cons of our company and our programs, and then they make a decision. Many of those firms were recently represented at Zweig Group’s 2016 Hot Firm and AEC Industry Awards Conference. Some things to consider: ❚ ❚ Senior leaders of the Best Firms to Work For companies invest in their employ- ees. They understand what their employees need because they actually spend time talk- ing and working with them; they don’t have to ask others what their employees need. ❚ ❚ Hot Firms know the industry. They know which peer firms are growing and which ones are in decline, and they know what’s causing the growth or decline. Hot Firm leaders haven’t outsourced the task of as- sessing industry trends to their HR depart- ment; they take it on themselves. ❚ ❚ Hot Firms make timely and thoughtful decisions. Once these leaders have the in- formation they need, they make a decision without delay. Pausing to ponder and waffle back-and-forth is a waste of billable time. Hot Firms gather information, evaluate, decide, and move on. They don’t get trapped in an endless gather-and-evaluate loop. According to Zweig Group’s 2016 Principals, Partners & Owners Survey , principals spend an average of 34 percent of their day in firm management, but they wish they could bring that number down to 28 percent of their day. Sure, they could reduce the amount of time they spend on firm management by outsourcing their leadership decisions, but then, what type of firm would they have? It certainly wouldn’t be a Hot Firm or Best Firm to Work For. BILL MURPHEY is Zweig Group’s director of education. Contact him at bmurphey@zweiggroup. com.

their planning internally, while others are outsourcing the consultant search process to their human resources department. Outsourcing your search for a strategy consultant to the HR department is like asking your IT department to look for a new healthcare provider for your firm. Sure, they could possibly find a great provider, but is that really the best, most qualified department to conduct your research? Who knows more about your company’s current direction than your principals? It only makes sense that they are the best equipped to ask the important questions of potential strategy consultants. Too often, HR managers are made to be the firm’s hunter-gatherers, but quite often, they’re simply a speed bump in the process. Put your principals to work and have one of them do your research. I take the same approach to training programs. For smaller firms, the principals are best positioned to understand where their employees need development. Hopefully, your managing principal is well enough connected to your project managers to understand their strengths, their challenges, and their professional development needs. Larger firms typically have a robust HR department with experienced training managers, but they still need direct involvement from senior leadership to effectively identify the firm’s needs. ❚ ❚ Assign a decider. Make one of your prin- cipals a project manager for firm-level pro- grams, such as strategy development and training. Give them the authority to make a decision about a consultant or training program without having to go before a full executive committee meeting. ❚ ❚ An outsourced decision will cost you more. Do the math on delaying your deci- sions. Let’s say you’re in the market for a principal leadership training program. As a princi- pal, you outsource the search to your HR manager, who conducts a lengthy search and comes up with five potential consult- ing firms. The manager reports the findings back to you and you have questions about the program options. The HR manager then researches the additional questions and reports back to you. You trim the list to two potential firms and you ask your HR manager for more details. Finally, you de- cide to go with option “C.” The HR manager has now spent more than a dozen hours

A HOW-TO SEMINAR FOR DESIGN AND TECHNICAL PROFESSIONALS Could every person in your firm describe your services in a succinct and persuasive way that demonstrates what sets you apart from the competition? It’s not enough to have the technical expertise to complete projects, you need seller-doers who can convey excitement and tailor the message for the audience. Everyone is not a born seller, but everyone can learn how to be more effective at capitalizing on opportunities, creating business, marketing, and promotion. AEC Business Development Training is a one-day seminar that was specifically developed to help design and technical professionals in A/E/P and environmental firms become more comfortable dealing with clients and promoting your firm and its services. What attendees will learn from this program: ❚ ❚ What’s different about business development, marketing, and selling ❚ ❚ Dispelling the myths about selling ❚ ❚ How to overcome “sales reluctance” ❚ ❚ A practical system of targeting and specialization ❚ ❚ Techniques for dealing with obstructions ❚ ❚ Proposals that get noticed ❚ ❚ Presentations that will get the job ❚ ❚ The client-centric approach ❚ ❚ Building a personal brand Attendees of AEC Business Development Training can earn 4.5 PDH/CEUs. Zweig Group seminars are eligible for Professional Development Hours credits and Continuing Education Units. All attendees receive a certificate of completion indicating the number of hours earned during each seminar. To sign up or for more information, please visit zweiggroup.com/ seminars/ or call 800.466.6275.

THE ZWEIG LETTER October 31, 2016, ISSUE 1174

O P I N I O N

Be a dreamer Do you have a vision for the future of your firm? It’s a must, so climb out from behind the day-to-day, engage your team, and chart your course.

A ny quick online search will bring up a number of references and definitions for strategic vision. As an important aspect of your long-term planning efforts, knowing the vision for your firm’s future – for its reason for being – should be something that your entire team embraces. A well-respected expert on the subject, Burt Nanus, defines a strategic vision as a realistic, credible, attractive future for an organization. And isn’t that the goal – to identify the ultimate purpose of your firm?

Stephen Lucy

about imagining the possibilities and determining how best to achieve what may seem to be the impossible. RISKS WORTH TAKING. As companies mature, many be- come too cautious. They worry too much about the “Over time and through the day-to- day work of operating a firm, it’s easy to forget the vision of those early years.”

Remember when you started your firm? The excitement? The boundless opportunities? The “sky’s the limit” potential? Over time and through the day-to-day work of operating a firm, it’s easy to forget the vision of those early years. You may be focusing so much on the near term that looking out a year – much less five or more years – is just not happening. More often than not, strategic visions are unidentified, or worse, forgotten. Strategic visioning should focus on where you want to be a decade or more from now, and firm leadership is responsible for identifying the path and sharing that vision with everyone within the firm. It’s all

See STEPHEN LUCY, page 8

THE ZWEIG LETTER October 31, 2016, ISSUE 1174

Ho t

P R O F I L E

Due to zoning regulations, the trademark Pal’s hotdog was made out of brick for the new location in Johnson City, Tennessee. The hot dog and a companion hamburger weighed in at about 6,500 pounds.

The anatomy of a (really big) hot dog Planning regulations in Johnson City, Tennessee produced a 26-foot bun and frankfurter made of brick, and it’s the talk of the town.

since the food art is typically made of fiberglass. In assessing the situation, Pal’s soon realized that stone was never really an option. So Pal’s, a 29-loca- tion chain based in Kingsport, opted for brick. “When we saw that we weren’t going to get them to give, we said, ‘We’ve got lemons and how do we make lemonade,’” says Pal’s president and CEO, Thom Crosby. Pal’s mounted a national search, and found few- er than a dozen companies with the resources to do the job. The list was narrowed down to three, and then to one, Images in Brick in Lincoln, Ne- braska. Tschetter took about four months and used about 2,000 bricks to complete the hot dog.

By RICHARD MASSEY Managing Editor

J ohnson City is a quaint place of 66,000 people near the Blue Ridge Mountains in northeast Tennessee. Perhaps best known as the childhood home of football coach Steve Spurrier, and for its ties to popular soft drink Mountain Dew, Johnson City has recently added a new claim to fame – a 26- foot hot dog made of brick. A key piece of the branding “trade dress” of beloved regional fast food chain Pal’s Sudden Service, the hot dog, and a companion hamburger, had to com- ply with the city’s Design Overlay District, which says that 75 percent of the exterior building must be brick or naturally quarried stone. “When we saw that we weren’t going to get them to give, we said, ‘We’ve got lemons and how do we make lemonade.’”

Thom Crosby, President and CEO, Pal’s Sudden Service

Jay Schetter, Founder and

And that’s when things got interesting.

President, Images in Brick

“This was a very unusual project – quite out of the ordinary,” says Jay Tschetter, founder and presi- dent of Images in Brick.

That put a big wrinkle in the restaurant’s plans,

THE ZWEIG LETTER Octo

t d o g While most of Tschetter’s pieces are es- sentially “in relief,” the hot dog was “in the round.” As a result, Tschetter had to create a rotating sling system so that the work – centered on a fiberglass core filled with poly foam – was suspended while brick was applied to all sides.

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FOR YOUR BOOKSHELF The Policies,

Procedures & Benefits Survey of Architecture, Eng i nee r i ng , Planning & Environmental C o n s u l t i n g F i r m s underwent a total overhaul in 2015 to bring

He originally tried using wet material and bending it to the contours of the design. That didn’t work, so instead he applied fired brick and used a mason- ry saw to cut in the design. All told, Tschetter took about four months and used about 2,000 bricks to complete the hot dog. It and the hamburger, at a combined 6,500 pounds, were then trucked more than 1,000 miles to their destination in Tennessee. The restaurant opened in early Septem- ber. When asked by The Zweig Letter what he got out of the experience, Tschetter laughed and said, “I can brick just about anything. By the time I was done, I thought maybe I’ll do state fairs – corn on the cob and cotton candy.” “I can brick just about anything. By the time I was done, I thought maybe I’ll do state fairs – corn on the cob and cotton candy.” Pal’s said that all told, the 75 percent brick construction regulation cost about $250,000. And even though Pal’s had to sacrifice some of its branding – the building’s pill blue exterior, for ex- ample – Crosby said it was worth it. “We think it turned out to be a good site for it, we’ve gotten a lot of “We think it turned out to be a good site for it, we’ve gotten a lot of feedback on it, and we’re having fun with it.”

you the most up-to-date and relevant information in a new easy-to-read format. This study will help you benchmark your firm against industry standards to determine whether you’re under- or overspending on benefits and compensation. The 2016 Policies, Procedures & Benefits Survey of Architecture, Engineering, Planning & Environmental Consulting Firms also provides you with industry norms on policies and procedures, so you can support your policy decisions with hard data. Get all the benchmarks you need on compensation policies, benefits, HR staff, and other major HR issues in one comprehensive publication! Use the 2016 Policies, Procedures & Benefits Survey to: ❚ ❚ Identify HR operating expenses that you can — or can’t — afford to cut ❚ ❚ Benchmark your firm’s medical, dental, and life insurance packages against those of your peers and against the firms you desire to be more like ❚ ❚ Support your firm’s paid-time-off and other policies with hard data on industry norms ❚ ❚ Find out if firms are projecting benefits increases and make sure your budget aligns with the industry ❚ ❚ Get data on HR directors’ typical backgrounds, education, roles, and compensation and find out how your HR staff stacks up Purchase any publication before its release date and enjoy $100 off the list price or participate in any survey and save 65 percent. Go to zweiggroup.myshopify.com/ collections/frontpage for more information.

The original Pal’s branding concept drawn on a napkin by artist Tony Barone. The napkin is framed and on display at Pal’s headquarters.

feedback on it, and we’re having fun with it,” he says.

Looking into the future, if Pal’s wants to expand into yet another area where there are planning restrictions and the company has to again build in brick, it won’t be starting from scratch. “We captured all the how-to,” Crosby says. Senior city planner Angie Charles, cit- ing code section 6.30.1, says the over- lay district – which calls for greenways, underground signage, and screened mechanical systems – was created to “establish higher environmental, aes- thetic, and design standards,” and that the district has been in effect for just over a year. In essence, the hot dog was the test case for the code’s effectiveness. “Pal’s is a perfect example,” Charles says. “The hot dog’s been a topic of con- versation in town. Everyone loves it.” “Pal’s is a perfect example. The hot dog’s been a topic of conversation in town. Everyone loves it.”

ober 31, 2016, ISSUE 1174

IN MEMORIAM ARCHITECT BING THOM DIES AGED 75 DURING VISIT TO HONG KONG BIRTHPLACE South China Morning Post Hong Kong-born architect Bing Thom, who migrated to Canada as a child, died of a brain aneurysm during a visit to the city. He died on Tuesday at the age of 75 before seeing the completion of his “homecoming” project – the Xiqu Centre Opera House at the West Kowloon Cultural District. “It’s a shame that he could not see the completion of his project,” Ivan Ho, a board member of the Hong Kong Institute of Architects, said. Thom studied architecture at the University of British Columbia in Canada and received his master of architecture degree from the University of California at Berkeley. He worked in the offices of Fumihiko Maki and Arthur Erickson before opening his own firm in Vancouver in 1982.

Bing Thom, architect, 1940 to 2016

STEPHEN LUCY, from page 5

If used to create your firm’s vision, this same unencumbered thinking can activate the entrepreneurial yearnings within both you and your team. Many on your staff may have always had entrepreneurial thoughts that they will take to other firms if you do not allow them the freedom to express and potentially act on those desires. After investing in your staff, do you want them to work for the betterment of your firm, or for the betterment of someone else’s? GO TEAM! One of the important duties for any leader is to be a promoter and cheerleader providing support and excite- ment about your firm’s future. You have the primary re- sponsibility to convey the strategic vision and to invigorate your team to accomplish the goals in front of them. Absent you clearly exhibiting your own enthusiasm for the stra- tegic vision, the vision is doomed to failure before it even gets started. “Challenging the status quo is often viewed as an act of rebellion when it should be seen as a continuing process for evaluation, improvement, and growth.” EVALUATE AND ADJUST. The creation of a strategic vision may be a specific statement in the evolution of your firm, but it should be evaluated as an ongoing activity. You do not want to continually shift gears and go in ever changing di- rections, but you do want to evaluate your path and make adjustments as needed. Just as there are no absolutes in life, there are no absolutes in the development of your firm. GET STARTED. If you do not have a strategic vision, how can you ever know if you are going in the right direction? En- gage your team. Enlist them to help plan and drive the future of the firm. Give your team the confidence to offer up their visions, both individually and collectively. Then fa- cilitate the firm’s vision so that leadership, including those younger partners, can truly take the entrepreneurial risks to get you to your desired destination. STEPHEN LUCY is CEO of JQ with offices in Austin, Dallas, Fort Worth, Houston, and Lubbock. Contact him at slucy@jqeng.com.

bureaucracy of firm operations and less about the future. Challenging the status quo is often viewed as an act of re- bellion when it should be seen as a continuing process for evaluation, improvement, and growth. “You may be focusing so much on the near term that looking out a year – much less five or more years – is just not happening.” As with any change, there is risk associated with creating a strategic vision for your firm when none currently exists. However, there are also risks with the status quo, especially if the status quo is not successful or fulfilling for you and your staff. Risks worth taking may feel like riding a rollercoaster with highs and lows, but if you have envisioned your success, you often are creating milestones that, in retrospect, will surprise and encourage you. And, if the saying is to be believed, with risks come rewards. SIZE SHOULDN’T MATTER. Any firm regardless of size should have a strategic vision. Yet so often smaller firms may think more about what they cannot do instead of what they want to do. They don’t think they deserve a seat at the big table. Envisioning your firm’s future should happen whether you are a sole proprietor or the leader of a fully integrated multi-office firm. The implementation process may be dif- ferent, but creation of a path forward is as important for a small firm as it is for a big one. ENTREPRENEURIAL THINKING IS IMPORTANT. Periodically, I still grab a pad of paper and write down all the “what ifs.” What if we could go here? What if we could do that? What if we pur- sued this business? Starting with the “what ifs” is a great way to rekindle that enthusiasm upon which most firms are founded. “Engage your team. Enlist them to help plan and drive the future of the firm. Give your team the confidence to offer up their visions, both individually and collectively.”

THE ZWEIG LETTER October 31, 2016, ISSUE 1174

O P I N I O N

I t is alarming to see how many companies have inconsistent travel time policies for their non-exempt employees, or no travel time policy at all. These same companies have varying definitions of what is considered “worked” or “paid” time. Rules of the road When does travel time become paid time? If you don’t know the answer, you might need to check in with the U.S. Department of Labor and dust off your policy manual.

time, rest/meal period, sleeping time, lectures, meetings, training, travel time, home-to-work travel, home-to-work on a special one-day assignment in another city, travel all in a day’s work, and travel away from home community. Any time an employee is “engaged and waiting” to work, he/she must be paid. Examples include driving from the main location to the work site, driving between work sites, eating lunch while continuing to answer phones, and waiting at the airport to board a plane during normal business hours. “According to the U.S. Department of Labor, all hours worked must be paid.”

How do you define compensable time in the following scenarios: ❚ ❚ Employee who reports to the main company loca- tion, and then gets into a company provided vehicle to drive to the work site. ❚ ❚ Employee who drives directly to the job site from his/her home. ❚ ❚ Employee who drives between client locations throughout the normal business day. ❚ ❚ Employee who travels out of town for training, or to attend company sponsored events. ❚ ❚ Employee who travels out of town to visit with cli- ents. According to the U.S. Department of Labor, all hours worked must be paid. Depending on the circumstances all of the following may be considered hours worked: waiting time, on-call

Kristi Weierbach

See KRISTI WEIERBACH, page 10

THE ZWEIG LETTER October 31, 2016, ISSUE 1174

BUSINESS NEWS JACOBS SECURES DESIGN ROLE ON DARLINGTON UPGRADE PROJECT IN AUSTRALIA Jacobs Engineering Group Inc. announced it is part of a design joint venture sub-contracted by the Gateway South Consortium which was recently selected to design and construct the Darlington Upgrade project in Adelaide, Australia. The Gateway South Consortium is a joint venture between Fulton Hogan and Laing O’Rourke. The design joint venture consists of Jacobs, KBR , and SMEC Australia . The major transport project, with a budget of

approximately $440 million, is the next stage in the upgrade of one of the regions’ most important transport corridors. Requirements of the joint venture include the reconfiguration of the existing 3.3 kilometer road from the Southern Expressway to north of Tonsley Boulevard, in addition to the design of a lowered, non-stop motorway passing under Flinders Driver, Sturt Road, Mimosa Terrance/ Sutton Road, and Tonsley Boulevard. Most of the detailed design and approvals work is scheduled to begin this year, with all

ground works expected to be completed by 2018. In making the announcement, Jacobs Senior Vice President Buildings and Infrastructure Patrick Hill said, “We are proud to be involved in this landmark transport project for South Australia and look forward to working closely with the other members of the Gateway South team. This project represents an excellent opportunity to leverage our proven experience and expertise on major transport infrastructure projects.”

❚ ❚ Paid for the 15 minutes or so that he arrives early to prepare for the day. ❚ ❚ Paid for any time that is in excess of his normal travel home, since he is leaving directly from the work site to the sporting event. ❚ ❚ All travel time is considered work time and must be counted towards overtime, should he work in excess of 40 hours the week he traveled. SCENARIO NO. 2. Stan Smith was asked if he wanted to attend a company sponsored event that was out of state, to which he accepted. The conference was on Monday and Tuesday from 8 a.m. to 5 p.m. and Wednesday from 8 a.m. to noon. His flight to the event was Sunday evening at 7 p.m. and his flight home was on Wednesday at 3 p.m. He was invited to a networking event Monday evening, while it was not mandatory he was highly encouraged to attend. Stan will need to be paid as follows: ❚ ❚ Sunday he will need to be paid for any time traveling during normal working hours, 8 a.m. to 5 p.m. ❚ ❚ Monday, Tuesday, and Wednesday he will need to be paid for the time spent at the conference. ❚ ❚ He will need to be paid for the time spent at the networking event because it was not voluntary and it is job related. ❚ ❚ He will need to be paid for all travel time on Wednesday dur- ing normal working hours including travel time from the airport to his home (less his regular travel time from the main location of business to his home). ❚ ❚ All travel time is considered work time and must be counted towards overtime, should he work in excess of 40 hours the week he traveled. You might need to dust off your old travel time policy and visit the DOL at dol.gov/whd/regs/compliance/whdfs22. pdf. KRISTI WEIERBACH is the HR/payroll advisory services manager at Stambaugh Ness. She can be reached at kweierbach@stambaughness. com “The DOL indicated that a typical problem in the construction industry is that employers fail to pay employees for travel from the shop (main location of business), to the work-site.”

KRISTI WEIERBACH, from page 9

Time spent by an employee “waiting to be engaged” is not considered work or paid time. Examples include travel to/ from home to the main location of business, when on-call without any restrictions to go about personal matters so long as employee can be reached via message, and waiting to board an airplane outside of normal business hours. Knowing the rules surrounding work time helps to determine when travel time becomes paid time. Time spent away from the main location of business is considered travel time. The DOL indicated that a typical problem in the construction industry is that employers fail to pay employees for travel from the shop (main location of business), to the work-site. Based on my observations, this problem is not limited to the construction industry. Currently the DOL has not provided guidance on how much an employee has to be paid for travel time, other than at least minimum wage must be paid for hours worked. Keep in mind that if an employee is paid at two different rates in the same work week (one rate for time spent working on the job versus time spent traveling), the regular rate of pay (used for calculating overtime), will need to be calculated. As you can tell, this can be a slippery slope so let’s walk through a few scenarios: SCENARIO NO. 1. John Green reports to the shop (main loca- tion of business), every day before going to the job site. Every day he arrives at least 15 minutes before his 6 a.m. start time so he can read over the work order for the day, and gather any additional supplies needed for the job. He takes his personal vehicle to the job site so he can drive directly to his son’s sporting event immediately after he is finished working at 3:30 p.m. John normally takes a half hour lunch each day; however, sometimes he will eat his lunch as he waits for the delivery truck arriving with more materials. John will need to be paid as follows: ❚ ❚ All time worked (including travel time), between 6 a.m. and 3:30 p.m. ❚ ❚ Paid for the time he waits for the delivery truck, even if it is during his normal lunch time. “Knowing the rules surrounding work time helps to determine when travel time becomes paid time.”

THE ZWEIG LETTER October 31, 2016, ISSUE 1174

Forty big ones Florida multidiscipline firm Kisinger Campo and Associates, with four decades under its belt, knows how to treat clients and employees. P R O F I L E

By LIISA ANDREASSEN Correspondent

K isinger Campo and Associates (Tampa, FL), a multidisciplinary engineering firm of more than 220 employees, is setting up to enter its next decade, but before it does, its celebrating its achievements. Its strategy is to build upon proven past experience through the application of innova- tive technologies while maintaining sensitivity to the environment and integrating principles of sus- tainable development. “We are committed to sharing our expertise and talent for the purpose of enhancing the quality of life for future generations,” CEO Stephen McGuck- en says. “We promise to promote our diverse close- knit workplace, commit our resources and talent to the local community, and preserve our long-stand- ing client relationships.” It was in 1975 that Joaquin Campo first had a vi- sion to provide high-quality engineering services to a variety of clients throughout Florida. In 1976, that vision quickly became a reality and for the past 40 years, it’s persevered through good times and bad. A LITTLE HISTORY. Campo passed away in 2015, but key players, including co-founder Ed Burkett, con- tinued to move the company forward. Today, KCA offers a lot of latitude to its employees to pursue work and offers them the support to be successful. The principals and managers of the firm stress the need to provide quality services, be responsive to the client’s needs, and to be ethical in their profes- sion. “We promote rewarding staff for a job well done and regularly have fun functions for employees to say thank you. We are not constrained by a rigid corporate structure, which creates a more relaxed work environment,” McGucken says. PERKS-A-PLENTY! KCA offers many of the more usual benefits – full medical, dental, life, long and short term disability, and 401(k) plans – but they also provide a variety of others that include wellness plans, such as quit smoking and weight loss pro- grams, and contribute to employee gym member- ships. They encourage and participate in employee jogging groups, local charity runs, and sporting ac- tivities, too. See KCA, page 12

I-4/I-275 Downtown interchange modifications, Tampa, Florida.

I-85 bridge replacement over the Yadkin River in North Carolina.

PROJECT PRIDE While the firm has seen countless projects come and go, there are a few that are a source of special pride: ❚ ❚ The I-4/I-275 Downtown interchange modifications located in Tampa added new ramps and reconfigured others. It had 26 new or widened bridges on it. It was a challenging project to develop a plan to construct it under traffic with no lane closures except at night and it eliminated a bottle neck in the interstate system. ❚ ❚ KCA provided construction inspection services for the I-85 Bridge Replacement over the Yadkin River in North Carolina. The project relieved a significant bottle neck between Atlanta and Richmond, Virginia and won multiple awards. After the recession, it re- established KCA as a leader in inspection in North Carolina.

THE ZWEIG LETTER October 31, 2016, ISSUE 1174

KCA, from page 11

Along with annual picnics, fishing trips, and holiday cele- brations, KCA also rewards employees for performance in a variety of ways, including activities such as golf outings, departmental luncheons, and professional football/baseball games. KCA participates in the employee education at 100 per- cent for an A grade with stepped reductions in participation based on grade. In addition, they pay 100 percent for spe- cific training needed for all positions. And, there’s more: ❚ ❚ Breakfast snacks once a week and monthly lunches ❚ ❚ Cakes to celebrate anniversaries and brownies for afternoon snacks ❚ ❚ Cash tenure rewards for employees for every five years of ser- vice that increase for each five years. ❚ ❚ Support for employee charities of choice ❚ ❚ Sponsored staff attending missions on a regular basis

KCA employees at Paint Your Heart Out.

president while walking down the hall,” Senerchia says. “The CFO knows my name, and I can crack jokes with the head of IT or HR. Having spent a little time working with a large company, where employees seem to be treated merely as a profit center with an ID number, I really value the relation- ships that are cultivated here.” KEYS TO SUCCESS. KCA has the staff and expertise to compete with the larger firms. The managers, staff, and marketing department work hard on project pursuits. They do their homework and research and they involve the whole pursuit team in developing solutions and innovation. “We spend a lot of time on strategy to determine what is important and what cannot be overlooked. We spend a lot of time on practicing presentations, answering questions, and mentoring newer presenters. We know that winning or losing a project can come down to the smallest detail men- tioned or overlooked,” McGucken says. In 1976, KCA was founded as an engineering consulting firm to serve the needs of their clients, both public agen- cies and private developers. The mainstays contributing to their early success include bridge inspection, civil engineer- ing, CEI, and transportation planning and design. “With the passing of each year, our successful accomplish- ments have sustained our steady growth into new business areas, from small local civil projects to large, long-term, mul- tidisciplinary projects in public transportation,” McGucken adds. “KCA continues to expand throughout the southeast- ern United States while providing additional services in as- set management, traffic analysis, environmental services, and design-build. The source of our continuing success is a dedicated and loyal staff with proven expertise.” PARTY TIME! This past June, to celebrate 40 years of success, KCA held an anniversary celebration. Special panels were made that commemorated key milestones throughout KCA’s history and are now hung in the lobby for all to see. “Our timeline of successful projects is extensive, and it’s truly inspiring to see all that we have accomplished in 40 years,” McGucken says. In addition, a 40th anniversary book was made and given to dedicated employees that have been with the firm for more than 10 years. Their celebration day began in the morning with a staff brunch and gift bags. In the evening, they invit- ed many clients and fellow consultants to a catered event in the office. Many stories were shared.

❚ ❚ An annual putt-putt tournament in the office ❚ ❚ Celebration of awesomeness (as needed!)

❚ ❚ Ongoing staff training (e.g., this past summer they had a three-day training on using Microstation for 3-D modeling of highways) Despite all these perks and benefits, Colleen Carter, vice president/director of human resources, says that recruiting can still be a challenge. “There was a time several years ago when recruitment of any position was not difficult at all. When KCA would post a po- sition, we had multiple qualified applicants along with em- ployee referrals. In more recent years, recruitment has be- come more of a challenge, wherein we rely heavily on em- ployee referrals to hire quality staff. We are fortunate that a high percentage of our staff is based on employee referrals,” she says. KCA has also been very successful with their internship pro- grams. Many are hired full-time upon graduation. They also have many engineers that are active in mentoring programs and participate in college engineering job fairs. WHAT ARE EMPLOYEES SAYING? Tim Heath, area manager/project administrator, has worked for KCA for more than 30 years. “I’ve always felt like I’m part of a family and not just an em- ployee. We’ve all gone through both good and not so good times, but we have always come through by supporting each other,” he says. Ashley Abdel-Hadi, environmental scientist, says that he most enjoys the constant opportunity to learn and be chal- lenged by the diverse array of company projects. This is sup- plemented by the inclination of project managers to train and further the development of less experienced staff. Abe Senerchia, GIS technician, most enjoys the small-busi- ness, family-type atmosphere. “I can chat with the CEO while getting coffee, or with the

THE ZWEIG LETTER October 31, 2016, ISSUE 1174

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