TZL 1555

September 30, 2024, Issue 1555 WWW.ZWEIGGROUP.COM

TRENDLINES

Voluntary turnover

15%

10%

Six skills to succeed for the next five years in an AI-driven world. Future-proofing leadership

According to Zweig Group’s 2024 Recruitment & Retention Report , voluntary turnover rates in AEC firms range from 7 percent at the lower quartile to 14 percent at the upper quartile. The median turnover rate is 10 percent, with an average of 11 percent, reflecting the ongoing challenge of employee retention in the industry. Participate in a survey and save 50 percent on the final or pre- publication price of any Zweig Group research publication.

A s our AEC industry runs the marathon toward an AI-dominated future, the skill set required for firm leaders is evolving at an unprecedented pace. The next five years will bring challenges and opportunities that demand a radical shift in leadership approaches. The integration of AI into everyday business processes will not only redefine how firms operate but also who leads them. Leaders who can adapt, innovate, and inspire will thrive in this brave new world. To prepare, today’s leaders must cultivate several essential skills that will become non-negotiable in the near future, including: 1. Openness to difficult conversations. One of the most significant challenges AI brings to the AEC industry is the disruption of established norms. From automating tasks once thought to be the sole domain of human expertise to introducing ethical quandaries around data use and privacy, AI will force firm leaders to navigate uncharted waters. This environment requires a leader who is not only comfortable with difficult conversations but seeks them out. Difficult conversations are no longer just about navigating interpersonal conflicts – they now encompass discussions about AI ethics, job displacement, and the equitable distribution of technological benefits. Leaders who can engage in these conversations transparently and constructively will build trust with their teams and stakeholders, creating a culture where innovation can flourish without fear of retribution or resistance. 2. Understanding new levels of risk and mitigation. AI’s influence on risk management is profound. On one hand, AI can enhance risk assessment by analyzing vast datasets to predict potential issues before they arise. On the other, it introduces new risks – such as algorithmic bias, cybersecurity threats, and the unpredictability of autonomous systems – that leaders must be prepared to address. AEC leaders must develop a keen understanding of these new risks and how to mitigate them. This involves staying informed about the latest advancements in AI technology, engaging with experts who can provide insights into emerging threats, and developing robust strategies to protect both the firm and its clients. Proactively addressing AI-related risks will not only safeguard the firm’s reputation but also position it as a leader in responsible innovation. 3. Mentorship and talent development. As AI transforms the AEC

Kristin Kautz, CPSM

FIRM INDEX AECOM......................................................................... 9

Balfour Beatty ......................................................... 6

EEA Consulting Engineers.............................9

Prairie Engineers..................................................11

MORE ARTICLES n SARAH R. ADAMS-SLOMINSKI: Addressing generational differences Page 3 n MARK ZWEIG: Competent financial management Page 5 n MORGAN STINSON: The subtle art of cloning yourself Page 8 n MATTHEW MILLER: Ten tips to mitigate scope creep Page 10

See KRISTIN KAUTZ, page 2

THE VOICE OF REASON FOR THE AEC INDUSTRY

Chad Clinehens | Publisher cclinehens@zweiggroup.com Sara Parkman | Senior Editor sparkman@zweiggroup.com Tel: 800-466-6275 Email: info@zweiggroup.com Online: zweiggroup.com/blogs/ news

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transition as older leaders retire and younger professionals step into leadership roles. This transition presents an opportunity for firms to infuse fresh perspectives and innovative ideas into their leadership teams. However, successful leadership transition requires trust. Older leaders must be willing to empower the next generation, providing them with the support and autonomy they need to lead effectively, especially in a business environment that looks nothing like it did even 10 years ago. This also means recognizing that younger leaders may approach problems differently, particularly with their deepening understanding of AI and digital tools. By fostering intergenerational trust, firms can ensure a seamless leadership transition and continued growth. Looking ahead, AEC leaders must adopt a techno-optimist philosophy. This mindset embraces the potential of AI and other technologies to drive positive change, rather than viewing them as threats. By seeing AI as a tool for enhancing human capabilities rather than replacing them, leaders can inspire their teams to leverage technology for the greater good. Despite the power of AI, human oversight remains essential. Leaders must establish roles that ensure AI is used ethically and responsibly, with humans in the loop to guide decision- making. This approach will help mitigate risks associated with AI, such as biases in algorithms or unintended consequences, and maintain the trust of clients and the public. Finally, AEC leaders must foster a community that encourages experimentation. In a rapidly changing world, firms must be willing to try new things, learn from failures, and iterate quickly. By creating an environment where experimentation is valued, leaders can drive continuous improvement and innovation, keeping their firms at the forefront of the industry. In this new era, the true leaders will be those who recognize that while AI can accelerate progress, it is human wisdom, creativity, and vision that will define the ultimate value of every project and elevate the entire industry. You might’ve noticed that I like to visualize AI as a marathon. This marathon is in the shape of a mobius strip, so you don’t know the route, and that route is always changing. You don’t know your pace. You don’t know if other runners are ahead of you or behind you. Sometimes you feel upside down. Sometimes you feel like you’re back at square one. You most likely are blindfolded. And there is no finish line. As tiresome as this sounds, you cannot sit out the race. If you would like AI training or consulting for your firm, I can help you get started and moving forward. Reach out to me at kkautz@zweiggroup. com . Kristin Kautz, CPSM is Zweig Group’s artificial intelligence (AI) consultant and trainer. Learn more about Kristin here.

KRISTIN KAUTZ, from page 1

landscape, the role of mentorship becomes more critical than ever. Leaders must be committed to nurturing the next generation of talent, equipping them with the skills and knowledge they need to succeed in an AI-driven world. This goes beyond technical training; it involves fostering a growth mindset, encouraging creative problem- solving, and instilling a sense of ethical responsibility. Mentorship in the age of AI also means preparing younger professionals for roles that do not yet exist. Leaders must help their teams navigate ambiguity and uncertainty, guiding them through the complexities of integrating AI into their work. By investing in mentorship, leaders ensure that their firms remain competitive and innovative, with a workforce ready to tackle the challenges of the future. 4. Focus on flexibility and change management. The pace of technological change right now is unimaginable. AEC leaders must be flexible, adaptable, and capable of leading their firms through constant change, both seen and unseen, preparing for a future that we simply can no longer predict. This requires a deep understanding of change management principles and the ability to implement them effectively. Leaders must be prepared to pivot quickly in response to new developments, whether it is adopting new AI tools, adjusting business models, or rethinking project delivery methods. Flexibility also means being open to experimenting with new approaches and learning from failures. By fostering a culture that embraces change, leaders can ensure their firms remain resilient and relevant in a rapidly evolving industry. 5. Cultivating creativity and true innovation. AI has the potential to unlock unprecedented levels of creativity and innovation in the AEC industry. However, realizing this potential requires leaders who can think outside the box and encourage their teams to do the same. True innovation goes beyond incremental improvements; it involves reimagining how projects are designed, managed, and delivered. Leaders must be willing to challenge conventional wisdom and take calculated risks to explore new possibilities. This might mean experimenting with AI-driven design tools, exploring new materials and construction methods, or rethinking the entire project lifecycle. By fostering a culture of creativity, leaders can position their firms competitively, setting the stage for long-term success. 6. Transition of leadership and trust in the younger generation. As the industry evolves, so too must its leadership. The coming years will see a significant

THE ZWEIG LETTER SEPTEMBER 30, 2024, ISSUE 1555

OPINION

E veryone seems to be talking about generational differences and conflicts. Don’t believe me? Simply conduct a quick Google search for news stories, journal articles, blogs, comedy routines, and memes on the subject, and you’ll find an overwhelming rabbit hole of opinion and conflicting viewpoints. Team leaders can more effectively manage employees of all ages through strategic communication practices. Addressing generational differences

Sarah R. Adams- Slominski, M.A.

True, the validity of so-called “generational cohorts” (as they’re called) is debated among scholars . But it does stand to reason that there would be some conflict among members of different generations. After all, various generations have had contrasting experiences in their childhoods, coming-of-age years, young adulthood, and beyond. Each generation played with very different toys, enjoyed very different movies and music, used very different technology (or lack thereof), and even watched very different historical events play out on very different media. Some argue these differences have led to contrasting values – particularly when it comes to the workplace. For example: ■ Baby boomers (born and raised between the late 1940s and 1960s) have been observed to prize efficiency and a life centered around a stable nine-to-five job.

■ Gen X, born in the mid-1960s to the late 1970s, tends to prize independence and work-life balance, often citing their own “latch-key kid” upbringing as the source of their values. ■ The millennial cohort grew up roughly from the early 1980s to the mid-1990s. They emerged from high school and college with new technology and social media at their fingertips. In the workplace, this cohort has been described as progressive, empathetic, eager to learn new skills, and highly communicative. ■ And then there is Gen Z. Born between the late 1990s and 2010, they’ve grown up in a globally connected digital world. They also endured a global pandemic and experienced interaction with the world via Zoom during their formative years. When it comes to the workplace, they

See SARAH R. ADAMS-SLOMINSKI , page 4

THE ZWEIG LETTER SEPTEMBER 30, 2024, ISSUE 1555

with your team. Whether via emails, through reports, or in face-to-face meetings, choose words that have concrete meaning, rather than those that are open to interpretation. Avoid metaphors that may only be understood by those whose life experience mirrors your own. Realize that certain phrases, expressions, pop culture references – and yes, even emojis – will inevitably mean different things to different members of your team. 3. Consider your tone. The best communication strategies center on keeping your messages simple and direct. At the same time, be aware of how your tone may be interpreted – especially in written communication. Keep in mind that how you phrase instructions, relay feedback, and pose requests really does matter when it comes to morale and team building. As Aristotle once taught, all communication involves persuading the receiver of something. Think about how you want your team to perceive you and the workplace culture you’re creating, and then act accordingly. As leaders brace for older generations entering their retirement and watch new cohorts enter the workforce every day, new challenges will inevitably arise. But concise communication tools and a strategic approach to understanding your team will go a long way in creating efficient and satisfying work environments where people of all ages feel successful. Sarah R. Adams-Slominski, M.A. is an executive consultant for Hurley Write and the co-host of The Writing Docs podcast. Connect with her on LinkedIn . For more information, visit hurleywrite.com .

SARAH R. ADAMS-SLOMINSKI , from page 3

value flexibility, collaboration, and teamwork. They expect management to demonstrate empathy and emotional intelligence. Gen Z prioritizes mental health and rest, and they value authenticity and the rising “gig economy.” Of course, I’m generalizing here, based on hundreds of think pieces, articles, blogs, and research studies. Some researchers even say perceived generational differences are a moot point when it comes to a satisfying work life experience. On the other hand, the interest in how different generations function at work speaks to the need for team leaders, managers, and CEOs to think about the same concepts that I share with our clients about writing and overall communication in the business world: 1. Know your audience. Savvy leaders know that real leadership is about empowering employees to do their best work. The modern workplace has become a melting pot of ideas and norms, of varying values and expectations – regardless of the year employees were born or received their first cell phone. So why wouldn’t you dig deeper to find out what makes the team tick? Find out what tools they need. Set concrete standards about what you need from them, rather than arbitrary expectations. Observe which character traits they value and inspire them by mirroring those same qualities as you hone your own leadership skills. 2. Minimize any chance of misunderstanding. Effective leadership is also about clear and concise communication

THE ZWEIG LETTER SEPTEMBER 30, 2024, ISSUE 1555

FROM THE FOUNDER

This person is at the core of what makes your business successful, however not all financial managers are competent. Competent financial management

A s someone who has been an entrepreneur since I was a little kid and started businesses and grown them and bought businesses and sold them, and who teaches entrepreneurship at a major business college, I have always liked the architecture and engineering business because it doesn’t take much to start one of these firms. All you really need is a skill, along with a computer and a client, and voila – you can be in business! That’s great!

Mark Zweig

As long as your personal overhead isn’t too high, and your client pays their bills, you have the foundation for a business you can build on. But as the years go by, and the business grows with new clients and new people, financial management becomes a bigger and bigger issue. Not all of those clients pay their bills promptly, and cash flow becomes more critical. A line of credit is often necessary and banking relationships become more important to you. The firm becomes valuable, and other employees are added as owners. Leases have to be taken on for equipment and space – maybe a building is even acquired for office space. The accounting system has to be rethought, and information on projects and the business becomes more and more important. Bills have to go out

faster and be collected sooner. Overhead increases constantly. Things start to get a lot more complicated. That’s when you find yourself in need of a competent financial manager – someone who can deal with all of this stuff and make sure you have the capital you need to operate and grow the business. And someone who can take care of all of the business stuff no one else wants to deal with, or has the knowledge to deal with. The problem is not all financial managers ARE competent. I have worked with a lot of them – really good ones and really bad ones. The bad ones make

See MARK ZWEIG , page 6

THE ZWEIG LETTER SEPTEMBER 30, 2024, ISSUE 1555

BUSINESS NEWS LOS ANGELES’ AFRICAN AMERICAN BUSINESS LEADERS NAME BALFOUR BEATTY PUBLIC WORKS CONTRACTOR OF THE YEAR The Greater Los Angeles African American Chamber of Commerce honors Balfour Beatty with its Public Works Contractor of the Year Award as part of its annual Economic Awards program. The GLAAACC awards program recognizes individuals, small businesses and corporations who have contributed to the economic growth and development of the African American small business community. “At Balfour Beatty, we recognize that intentional efforts create positive and significant impact in our communities,” said Brian Cahill, Balfour Beatty president in California. “Which is why we partner with organizations like GLAAACC to provide opportunities, mentoring and scholarship funding to empower minority businesses as well as future generations. It’s an honor to be recognized for our work in the field and in the community. We are even more grateful for GLAAAC’s support in providing our company along with many other local organizations with unlimited opportunities to develop working relationships within Los Angeles’ small business community.” For four decades Balfour Beatty has been

building and promoting the economic growth and development of the Greater Los Angeles community through its ongoing efforts to deliver projects such as the LAX Automated People Mover, Hamilton High School Modernization, Heart of Los Angeles Performing Arts Center and San Gabriel Valley Aquatics Center. In partnering with GLAAACC, Balfour Beatty provides small businesses with job opportunities for these projects which has helped to exceed small business participation and inclusion goals. Balfour Beatty has also supported GLAAACC events including business development seminars for members, charity drives and business mixers. As part of its commitment to making long- term investments in the communities it serves, Balfour Beatty is an active contributor to GLAAACC’s Education Fund and Foundation Scholarship program which awards scholarships to graduating high school students in the Los Angeles area. The company, as part of LAX Integrated Express Solutions joint venture team, awarded $120,000 to this program and most recently, Balfour Beatty donated scholarships to two Hamilton High School students interested in architecture, engineering and construction careers. The scholarships were named in honor of

Mayor Karen Bass who is an alumnus of Hamilton High School. GLAAACC has been active in its advocacy and support of African American business enterprise by providing a variety of programs and services to assist in their growth and development. GLAAACC works to combine the resources of the African American business community and other business organizations in order to secure solutions for expanding business opportunities. In addition to lobbying to city, state and federal lawmakers on issues affecting business enterprises, GLAAACC assists in providing information, resources and referrals to the community at large. Balfour Beatty is an industry-leading provider of general contracting, at-risk construction management and design- build services for public and private sector clients across the United States. Headquartered in Dallas, Texas, the company performs heavy civil, rail and a broad variety of vertical construction. The company is held by Balfour Beatty plc, who is global leader in international infrastructure with interests in Hong Kong, UK and US. Balfour Beatty US is ranked among the top domestic building contractors in the United States by Engineering News-Record.

service businesses, cash flow, and working capital really well. I expect accuracy in all things and especially any reporting, because anything less calls into question all of our reporting and jeopardizes our credibility with lenders, investors, and employees. People like this ARE out there. They won’t be the cheapest and they may want to become an owner. Maybe a little grey hair can be valuable, too, for the person in this role. They won’t all be young folks with CPAs and MBAs from Ivy League business schools, either. They could be someone with a bachelor’s degree from a state school who worked their way through college. They have to be highly engaged and involved in everything. The right financial manager is invaluable. He or she will make your job easier, less stressful, and more fun. So what do you think? Do you have the right person in the job or is it time to make a change? And if you do need to make a change, do you have the courage to confront the problem or are you just going to let it go on? Let me know your thoughts! Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

MARK ZWEIG , from page 5

lots of little mistakes. Their spreadsheets have errors that they don’t see (and they should). They give you too much information and cannot discern what’s most important. They see themselves as reporters of results versus generators of results. That means they are waiting for everyone else to do their job. They don’t know how to work with banks to maximize available credit before it is needed. They don’t understand capitalization and ownership transition and how to raise more capital and finance ownership buybacks. They don’t understand what makes the company more valuable. They don’t understand the tax implications of various decisions. They don’t know how to get landlords to pay for buildouts. They don’t know how important it is to get the owners of the business off any personal guarantees or pledging of other assets they may have for collateral for loans. I could go on here but you probably get the idea. If I am looking for a top-level financial manager, I am looking for someone who is going to be functioning as a real partner in the business, whether or not they actually become an owner in it. I want someone who is highly engaged and that I will be talking to a lot every day throughout the day – someone with broad-based business knowledge who understands

THE ZWEIG LETTER SEPTEMBER 30, 2024, ISSUE 1555

OPINION

Delegation is crucial for growth, helping managers shift from doing the work themselves to empowering others effectively. The subtle art of cloning yourself

A s AEC professionals develop in their career, there inevitably comes a crucial pivot point where the job transitions from “doing the work yourself” to “doing through others.” Moving up the ranks into a management role (whether project, personnel, or firm related) is a common path, but most of us enter this period with little training on how to handle the role effectively. We also don’t talk enough about why this can be such a struggle.

Morgan Stinson

Consider this: You’ve been a high performer for years as a young professional, putting out excellent work on schedule and on budget. As a result, you’re rewarded with a promotion to a management role, and your success now has nothing to do with you producing awesome work. You’re expected to help others produce awesome work, so the thing that made you special no longer makes you special. Talk about an identity crisis! This conflict of self-worth underlies many of the struggles that new managers have with delegation but make no mistake: delegation is crucial to you and your firm’s future success. The most common reasons I hear against delegation include: ■ I can do it faster myself. Your years of practice have turned you into a finely honed machine. If you can do a task in one hour that would take

someone else three hours, why on earth would you hand that off? ■ I know it will be correct if I do it. In addition to the extra time someone else would take, you’ll have to spend time checking their work (maybe more than once!). ■ I don’t want to over-burden my team. Work- life balance has (rightfully) taken on greater importance in recent years, and any good manager wants to make sure they aren’t driving their team too hard. All those reasons lead managers to just do the work themselves. In the short-term this can feel like the right answer. After all, it’ll be faster, more accurate, cost less, and keep others from getting burned out.

THE ZWEIG LETTER SEPTEMBER 30, 2024, ISSUE 1555

BUSINESS NEWS AECOM AWARDED U.S. NATIONWIDE PROGRAM MANAGEMENT SERVICES CONTRACT TO SUPPORT FEMA’S DISASTER RESILIENCE EFFORTS AECOM, the world’s trusted infrastructure consulting firm, today announced that the U.S. Department of Homeland Security’s Federal Emergency Management Agency has awarded AECOM a single- award professional services contract that has a one year base period with two one- year option periods that can be exercised at the government’s discretion to provide advisory and program management services to its four Consolidated Resource Centers in Winchester, Virginia; Denton, Texas; Sacramento, California, and Guaynabo, Puerto Rico. Under the contract, AECOM will support FEMA’s Public Assistance grant program which is focused on repairing and/or replacing damaged public infrastructure after catastrophic disasters. “The delivery of FEMA’s Public Assistance Program will allow state, tribal and local governments, and disaster relief

nonprofits to quickly respond and drive the recovery of communities impacted by major disasters,” said Lara Poloni, AECOM’s president. “This critical work ties directly into our Sustainable Legacies strategy, rooted in our commitment to deliver a better world. Our vision, world- class technical teams, and leadership in disaster resiliency uniquely positions us to bring this critical program to completion.” CRCs were established to improve the efficiency, precision, and transparency of FEMA’s Public Assistance Program. AECOM will support FEMA’s mission to validate, consolidate, collate, and review infrastructure projects, as well as provide technical support for Environmental Planning and Historical Preservation (EHP) and insurance. This critical work provides communities impacted from disasters with resources to recover more quickly. AECOM will also help FEMA meet and deliver their equity commitments, by providing critical disaster support to underserved communities.

“We’re proud AECOM has successfully interacted with FEMA for more than 40 years on community resiliency initiatives,” said Karl Jensen, executive vice president of AECOM’s National Governments business. “Leveraging our team of highly skilled technical staff, many who have dedicated their careers to supporting FEMA’s mission, AECOM is well positioned to enhance the delivery and processing of these federal grants to build better, stronger, more resilient infrastructure nationwide.” AECOM is the world’s trusted infrastructure consulting firm, delivering professional services throughout the project lifecycle – from advisory, planning, design and engineering to program and construction management. On projects spanning transportation, buildings, water, new energy, and the environment, public- and private-sector clients trust AECOM to solve their most complex challenges.

From a long-term perspective though, this way of thinking can cause tremendous harm for you, your team, and your company. Mastering the art of delegation allows you to take what has made you special and replicate it throughout the firm, providing a boost in three key ways: 1. Time. There aren’t enough hours in the day for you to do it all. Delegating work to others can help prevent your own burn out, and allows you to… 2. Focus. Delegating work that can be done by others will allow you to focus on the work where you provide unique value and contribution. As Michael Hyatt says in his book Free to Focus , “Delegation means focusing primarily on the work only you can do by transferring everything else to others who are more passionate about the work or proficient in the tasks.” Focusing on your unique areas of strength and value will ultimately facilitate… 3. Growth. If the people under your care are not growing in their skills and abilities, then you aren’t able to grow in yours, which could stifle the growth prospects of the whole firm. When talking about company growth, most firms focus heavily on the revenue portion of the equation, without sufficiently scrutinizing the development of talent required to perform on the increased revenue. Effective delegation throughout the firm is like a skeleton key that unlocks the firm’s ability to grow, individuals to develop their skills, and young managers to better balance their work and personal lives. So where to begin? Here are some tips to get you started:

■ If someone can do a task 80 percent as well as you can, hand it off immediately. Too often we hold out for perfection, but that’s an unrealistic framework. Trust the person to do the work, be patient as they work out the kinks of that last 20 percent, and be flexible on the execution; they might think of even better ways to do the task! ■ Teach the process so you can delegate the outcome. For someone performing a task for the first time, have the patience to walk them through your processes and check in at appropriate milestones along the way. While at first this can seem like micromanaging, once they understand what they’re doing and why your oversight can dial down, and they can take full responsibility for the outcomes. aspects of your job and role that are unique to you, focus your time and energy on those, and find ways to delegate the rest. You might enjoy designing in Revit, but there are likely several people in your firm capable of serving that function. Delegation is a classic example of something that is simple but not always easy. There is no time like the present to develop this skill for yourself, so that you can unlock the full potential of the firm and the talent in your charge. You’re great at what you do; finding ways to clone those traits in others is like the rising tide that lifts all boats. Good luck! ■ Know where you provide unique value. Identify the Morgan Stinson is chief operating officer at EEA Consulting Engineers. Contact him at morganstinson@eeace.com.

THE ZWEIG LETTER SEPTEMBER 30, 2024, ISSUE 1555

OPINION

Ten tips to mitigate scope creep

By understanding and addressing the factors that contribute to scope creep, project managers can mitigate its impact.

E ngineering consultants see it all too often. An agreed upon project scope expands as the project progresses, putting strain on time and resources. Uncontrolled or unauthorized changes to a project scope can easily compromise a project’s overall success or sour relationships among clients and consultants. At the very least, failing to properly manage project scopes results in a consistently lower return on effort and investment for consultants. Recognizing the specific patterns that lead to a wandering scope allows us to address the situation early and adhere to project targets.

Matthew Miller, PE, PLS

IT’S USUALLY JUST A FEW SMALL CHANGES – NO BIG DEAL, RIGHT? Slight additions or alterations seem harmless in isolation, but the cumulative effect of these frequent changes takes a toll on project resources, and the resulting impact can lead to distrust or unease among stakeholders. Expanding project requirements without amending the contract increases consultant workload while compensation and timeline remain unchanged. This strains project budgets and may also pull resources from other projects, compress timelines, and compromise the quality of work completed. HOW DO WE END UP IN THIS SITUATION IN THE FIRST PLACE? Scope creep is not all created equal,

and it’s not always preventable either. Most often, unexpected changes in project requirements can be traced back to inadequate planning, insufficient communication, failure to implement or uphold change control processes, or legitimate changes in project circumstances. When one or more of these factors exists, it provides opportunity for a scope to drift out of control. HOW DO WE RECOGNIZE AND STOP SCOPE CREEP? Clarity is king when considering potential scope changes. A thorough understanding of project details and clear communication among all parties in the initial phases sets the tone for the duration of the project. When all parties know what is included and

THE ZWEIG LETTER SEPTEMBER 30, 2024, ISSUE 1555

not included in the scope, changes can be easily recognized. Establishing change management policies upfront provides a structured process to address future scope changes. As the project progresses and scope changes emerge, maintaining open communication regarding the project status among all parties is imperative. Project managers should follow change management procedures to assess the necessity, impact, and feasibility of scope changes without delay. With clarity in expectations and procedures, everyone can work in unison to achieve the project goals. Here are my top 10 tips to mitigate scope creep: 1. Your approach matters. Respectfully approach the client openly and honestly about the situation. Avoid phrases or renouncing terms like “We are not completing another task until you provide a supplement.” 2. Do your homework. Never approach a client with a supplement request for additional scope without confirming that the task was not included in the scoping document, contract language, or applicable client manual. 3. Don’t waste time. Addressing scope creep can be uncomfortable at times; however, avoiding this conversation could lead to a worse outcome. In certain cases, supplements can take time to process. Delaying the discussion could lead to overall project delays. 4. Clients make mistakes too. Our industry is fast paced. Engineers have a lot on their plates. This includes client contract and project managers. A client’s request for additional work can be made unknowing of the fact that it wasn’t included in the original scope of services. 5. A detailed scope is invaluable. Spend the front-end project time to clearly define scope, assumptions and exclusions. Your scoping documents should become more detailed each year as you learn from past mistakes. 6. Additional fee is not the only solution. Keep an open mind when discussing the requested additional work. To the client, it may be of higher value than tasks in the executed contract, and additional fee may not always be available for new tasks. If scope is changed, be sure client acceptance is in writing. 7. Be a team player. The stakeholders, owner, client and consultant are a team with a shared goal of successful project completion. Being a team player and creating solutions to scope creep will be remembered by clients and may lead to future selections. 8. Prepare an estimate. When an out-of-scope request is made, price it. Telling a client that an additional request is out of scope will typically lead them to ask, “How much will it cost?” When high-level estimating, be conservative, identify key assumptions, and add contingency. 9. Don’t be surprised. Projects rarely go precisely according to plan. Additions and variations to scope are normal. Project success relies on how you react and adapt to them.

10. Not all scope creep is created equal. Too often, scope creep gets a bad rap. When handled properly, it can lead to higher project revenue, more comprehensive designs, and better client-consultant relationships. Be open- minded and reasonable. WON’T MY CLIENTS BE UPSET? Clients, consultants, owners, and stakeholders all benefit from clear expectations and properly organized projects. By understanding and addressing the factors that contribute to scope creep, project managers can mitigate its impact to ensure that projects are completed on time, within budget, and most importantly, to the desired quality standards. As an added bonus, strong communication and clear expectations yield the most collaborative and high- quality solutions – strengthening relationships with clients and bringing more work to your firm. Matthew Miller, PE, PLS is the Department of Transportation Market Lead at Prairie Engineers. Contact him at mmiller@ prairieengineers.com.

THE ZWEIG LETTER SEPTEMBER 30, 2024, ISSUE 1555

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