TZL 1479 (web)

The PDF edition of The Zweig Letter.

TRENDLINES Factors that hinder a company’s ability to leverage data March 6, 2023, Issue 1479 WWW.ZWEIGGROUP.COM

Lack of sufficient tools

Missing or inaccurate data

If your want your firm to be an early adopter, you must be aware of this new technology and be willing to adapt. AI is coming for AEC

Little or no appreciation for using data Lack of data availability

Data isn’t actionable

A ccording to Goldman Sachs, over the last 10 years, companies that were defined as “technological disruptors” have outperformed those that were vulnerable to being disrupted by 411 percent. As most intuitively know, first movers and early adopters (those who establish/are first to adopt new technology) within the AEC space will grow at an outlier pace compared to the rest of the industry. The efficiency of firms that adopt new technology will drastically increase, leaving laggards (those who adopt new technology late) at a lower profitability than their counterparts. Higher profitability allows for reinvestment, reinvestment results in faster growth, and so on and so forth. What will future disruption look like? Well, according to 47.5 percent of respondents to a 2021 Statista survey, AI/machine learning is expected to be the most disruptive technology over the coming years. One could argue this opinion is already playing itself out. OpenAI’s recent release of ChatGPT has resulted in many AEC professionals looking for what’s next within our industry. There are already existing applications that can give us a glimpse into what could be coming. A few examples include: ■ Delve by Sidewalk Labs. Using the power of machine learning, this generative design tool helps urban development teams identify far better neighborhood design options than time and cost constraints typically allow. ■ Generative Design in Autodesk Revit. This AI-powered design feature allows engineers to generate design iterations based on constraints such as spatial requirements, materials, manufacturing methods, and cost, defined by the engineer or designer. ■ Finch3D. Designed to be used in the early stages of a project, this tool helps automate repetitive tasks and helps guide architects into making informed decisions using simulations and artificial intelligence. ■ Autodesk’s Spacemaker. An early-stage planning software that helps design high-quality site proposals. It uses AI to generate alternatives based on set parameters and tests site proposals for criteria such as noise, wind, sun, microclimate, and more. Disclaimer: To create this list, I asked ChatGPT to “write a list of the latest

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FIRM INDEX Bowen Consultants Ltd ....................................2 Bowman Consulting Group Ltd. .............. 12 CHA Consulting ..................................................... 6 CQS Solutions ..........................................................2 Fluor Corporation ..................................................4 FXCollaborative Architects LLP ..................4 MORE ARTICLES n JODIE QUINTER: A new firm culture Page 3 n Creating lasting change: Jim Stephenson Page 6 n LAUREN MARTIN: Beware of third- party beneficiary clauses Page 9 n MARK ZWEIG: Things you cannot do as a firm leader Page 11 According to Unanet’s 2022-2023 AEC Inspire Report , among the factors that AEC firms identified as hindering their ability to leverage data, a lack of sufficient tools to access, integrate, and analyze data was the primary culprit (named by 41 percent of survey participants), followed by missing, outdated, or inaccurate data, and a lack of data accessibility or availability. Meanwhile, about one-quarter (24 percent) of tech-forward firms reported having no issues at all leveraging data.

Travis White

See TRAVIS WHITE, page 2

THE VOICE OF REASON FOR THE AEC INDUSTRY

TRANSACTIONS QUANTITY SURVEYOR COMPANY EXPANDS ITS BUSINESS England-based CQS Solutions has joined forces with Bowen Consultants Ltd, which has offices in North Wales. The expanded team includes 10 quantity surveyors headed by

principal surveyor and company owner, Tim Lloyd, and backed by business support staff. Lloyd said the move would expand the team and knowledge base on offer to clients whilst maintaining the ethos of personal service.

Interested in learning more

about the projects and ideas driving the AEC industry forward? Learn more with Civil+Structural Engineer Media.

TRAVIS WHITE , from page 1

AI integrated tools and applications being used within engineering and architecture,” chose a few, applied corrections, and then added a few more. When significant disruption hits the AEC industry, how do you ensure that your firm is at the forefront of the adoption curve? Your firm’s likelihood of being an early adopter comes down to two things: awareness of industry developments and willingness to invest/commit to change. Firms must have a finger on the pulse of the industry and be aware of new technology when it becomes available. Here are a few ways to do this: 1. Participate in organizations. Get involved with AIA, NSPE, ABC, or whichever professional organization suits you best. This allows you to stay up to date with the latest industry trends, network with others in the field, and gain valuable contacts and resources. 2. Attend industry events. There are many options out there. Zweig Group offers a variety of training seminars and events. Let us know if you would like to get involved so we can get you plugged in (at the 2022 ElevateAEC Conference, a panel called “Engineering Efficiency with Automation and Software” spoke about topics such as these). 3. Know your competition. Keep up with what your competitors are doing, using their website and social media to see what new products, services, and strategies they may be implementing. 4. Keep up with industry white papers. These are a great way to stay informed on the latest trends and advancements within our industry, as well as gain insight into what competitors are doing. You likely have organizations that you admire from afar – this is a great way to keep up with their latest movements. 5. Subscribe to trade journals/newsletters/magazines. Get connected. Publications such as The Zweig Letter help keep your organization up-to-date on recent developments in our industry. If you’re actively participating, you’ll maximize your likelihood of being an early adopter. Once your firm has consistent awareness regarding new developments within the AEC space, the organization needs to be willing to experiment, invest, and adapt when these tools become available. Start small by testing these applications for their true capability as they’re developed. There will be many with big claims – and you will need to determine which are the best fit for your firm. Adopting new technology doesn’t (usually) come free and firms will need to be both fiscally and mentally prepared for a new normal. Travis White is a strategy and operations advisor at Zweig Group. Contact him at twhite@ zweiggroup.com.

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Chad Clinehens | Publisher cclinehens@zweiggroup.com Sara Parkman | Senior Editor & Designer sparkman@zweiggroup.com Shirley Che | Contributing Editor sche@zweiggroup.com Liisa Andreassen | Correspondent landreassen@zweiggroup.com Tel: 800-466-6275 Fax: 800-842-1560 Email: info@zweiggroup.com Online: zweiggroup.com/blogs/news Twitter: twitter.com/zweigletter Facebook: facebook.com/Zweig- Group-1030428053722402 Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/year). Free electronic subscription at zweiggroup.com © Copyright 2023, Zweig Group. All rights reserved.

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THE ZWEIG LETTER MARCH 6, 2023, ISSUE 1479

OPINION

A new firm culture

We have an opportunity to reset our company cultures in a way that recognizes adaptability, while prioritizing the ways in which our people want to work and live.

I n many ways, the pandemic brought us collectively to our knees, both personally and professionally. As we begin to stand back up, it is critical that we rise with intention – assess what’s been broken, what should be left behind, what needs to be reclaimed, what’s been preserved, and what’s been eroded by three years of uncertainty that needs to be rebuilt. For many of us, that includes our firm culture.

Jodie Quinter, AIA

While the concept has varied meaning, fundamentally, firm culture includes the systems, behaviors, and values that shape how work gets done. It is the patterns upon which a staff understands how to operate in an organization aimed at producing exemplary work alongside fostering fruitful careers devoid of frustration and rich in personal growth and development. At its essence, firm culture is the atmosphere we work within – a company climate. An environment that seems to be revealing the same variability as the actual weather in the post-COVID era. To put it bluntly, we can’t just go back to the way things were and we should stop using that language.

That notion fails to acknowledge that the world has fundamentally changed – that people, our workforce, are forever changed. Admittedly, entertaining this mindset leaves a lot of people feeling frustrated that we can’t just pick up where we left off. But to move forward, we must acknowledge that “back to normal” is an elusive and impossible goal – the exact reason many of us are finding ourselves caught in a reckoning of sorts, realizing the tension of trying to fit a picture of what was onto a future landscape that won’t support it anymore.

See JODIE QUINTER, page 4

THE ZWEIG LETTER MARCH 6, 2023, ISSUE 1479

BUSINESS NEWS FLUOR SELECTED FOR SKOURIES PROJECT IN GREECE Fluor Corporation announced that it was selected by Hellas Gold Single Member S.A., a wholly- owned subsidiary of Eldorado Gold Corp., to provide engineering, procurement and construction management services for its Skouries gold-copper mining project located within the Halkidiki Peninsula of Greece. “The execution of this project will build on Fluor’s technical expertise in large- scale gold and copper projects,” said Tony Morgan, president of Fluor’s Mining & Metals business. “Fluor is excited to

be a part of this important project that will drive economic development in the region and provide the essential raw materials to support the transition to a more sustainable future.” Fluor’s scope of work includes infrastructure, non-process facilities, process area and tailings filtration. The project is expected to produce, on average, 140,000 ounces of gold and 67 million pounds of copper annually over its initial 20-year mine life. Fluor’s Vancouver office will serve as the lead office for the project with support

from its New Delhi and Calgary offices. Onshore construction management and detailed engineering will be led by Fluor’s office in Greece and executed by a consortium of Greece-based engineering service providers managed on the owner’s behalf. At construction peak, the project is expected to employ up to 800 local construction workers and create 1,400 long-term jobs over the 20-year life of mine. Construction will begin in 2023 with a total project duration for 2.5 to 3 years and the first production expected in the second half of 2025.

project or something you can complete, something you can sign up for, an event you can go to, or even something you can easily fall out of in the day-to-day because, by definition, it is the day-to-day. In that light, maintaining firm culture becomes as simple as asking how we show up for each other day-in and day-out in a way that builds an environment such that both our work and our people can thrive. Admittedly, picturing that in a hybrid world is uncharted territory. Remote work adds elements of chaos to what was previously more defined by boundaries and physical presence. In that sense, hybrid has almost presented a lack of control. This current crossroads shouldn’t be surprising when you consider that lockdown accelerated the dismantling of a work system that has been growing upon itself for a century, so of course we don’t know what to do – but we can question how we’re doing it. We can ask ourselves: What role can our culture play in helping our people feel greater control, not just in their work but in their lives? And how will we move forward as a hybrid workplace that embraces culture rather than one that views it as an add-on? The highest imperative right now is simply getting all employees to share the value that culture is important to their organization. While we don’t know what that looks like in a hybrid world just yet, we have to be willing to go on that journey together. It is essential that we take this opportunity to reset in a way that builds an intentional company culture, one grounded in the realities of a hybrid workplace, and one that recognizes adaptability, while deliberately defining and prioritizing the ways in which people in our organizations want to interact, exist, and behave. Moving forward, our cultures have to be different than they were in March 2020, simply because, as we enter March 2023, we are different. Jodie Quinter, AIA, is an intermediate architect at FXCollaborative Architects LLP. Connect with her on LinkedIn.

JODIE QUINTER , from page 3

The good news about transitioning into a more permanent hybrid format is that we get a reset. A (hopefully) once in a lifetime opportunity as a result of a global pandemic to rethink how we do things, and to change how we come together, how we support each other, and how we work together – in whatever way “together” has come to mean. That is both exciting and hopeful, albeit intimidating. Good leaders will take this moment to embrace these challenges and demonstrate new insight and understanding from the last 33 months, forging a path to the future that looks quite different than a return to “normal.” “We can’t just go back to the way things were and we should stop using that language. That notion fails to acknowledge that the world has fundamentally changed.” While leaders by definition can and should spearhead change, it takes people on all levels of an organization to enact a new way forward. Many of us, leaders included, are just searching for solid ground in a hybrid world and we should acknowledge our shared struggles across all levels. This time of uncertainty and change demands open, honest communication, collaborative troubleshooting, and a firm culture that ardently supports that. By definition, culture is just an umbrella term – a word used to describe the collective behavior of a group of people. There can’t be a separation between our work and our culture, and so we shouldn’t speak of it as an add-on. This idea that culture is something external to how and what we work on every day is simply false. We always have a culture. And each of us participates in it every single day we show up as an employee of an organization. Cultural shift takes time and good culture requires constant energy and attention, because it’s ever present. It’s not a

THE ZWEIG LETTER MARCH 6, 2023, ISSUE 1479

PROFILE

Creating lasting change: Jim Stephenson President and CEO of CHA Consulting (Albany, NY), an innovative, full-service engineering consulting and construction management firm.

By LIISA ANDREASSEN Correspondent

S tephenson became president and CEO of CHA Consulting in January 2020. He was almost instantly faced with navigating and managing through a global pandemic that had no historical blueprint for success. Despite the headwinds of the pandemic, CHA continued to prosper and deliver for its clients in extraordinary ways. Stephenson says he’s proud of creating a culture of growth and excellence and expanding rewards and recognition deeper into the organization for exceptional performance. CREATING LASTING CHANGE. “Our organization has successfully executed a complete organizational restructure and go-to-market strategy to be more operationally- and client-focused, while also being more scalable and efficient,” he says. This strategy included a pivot to pushing decision-making further down into the organization to be more nimble and empowering management to take ownership of their respective businesses, as well as executing on and fully integrating eight accretive acquisitions over the last four years that have aligned with the firm’s strategic growth plan.

The impact of COVID-19 also reinforced that CHA can be effective in a hybrid working environment that provides for a better work-life balance for its employees. It has found a solid balance by instituting a more-flexible, hybrid model that has opened up recruitment, helped with employee retention, reduced unnecessary travel expenses, trimmed the office footprint, and is widely embraced by staff. “We also understand that there’s great value to be had from in-person collaboration and believe it’s vital to have staff in our offices each week,” he shares. That’s one of the reasons why CHA has invested in upgrading office spaces – so its working environments are welcoming, collaborative, and somewhere employees want to come to work. From project work collaboration to building relationships with colleagues and fostering junior-level employee professional development – these things cannot happen at home. “Ultimately, creating a fun, engaging, and entrepreneurial

THE ZWEIG LETTER MA

company culture that employees want to be a part of is key,” Stephenson says. He believes that strong retention is a product of creating a differentiated employee experience, starting with adopting a proactive mindset where you give people reasons to want to come and stay versus working to avoid giving them a reason to leave. This starts with identifying a few key areas that are most important to your staff to prevent falling into the trap of trying to be everything to everyone. Once you know what those are, you commit to them, making sure employees can see and feel the organization’s efforts to build, enhance, and improve in those areas. Employees are loyal and committed when they feel valued and like their input matters. For CHA, coupling a foundation of competitive compensation and benefits with clarity around growth and development opportunities and highly effective leadership has the firm focused on the areas its employees have said are key to their engagement and longevity. “We pursue acquisitions where we see opportunities to fill service, geographic, and end-market gaps and add talent to broaden and deepen our capabilities and better serve clients.” A TARGETED APPROACH. And when employees are happy, the business is happy. As a private equity-backed company, achieving consistent, profitable growth is a core objective. At CHA, leadership have built a team with deep expertise and experience in all phases of the M&A process from sourcing opportunities to due diligence, transaction execution, operational integration, and growth synergy realization. To ensure they remain focused and disciplined, they’ve developed a strategic growth plan built on pursuing a balanced approach of organic acquisitive growth strategies within each of the firm’s operating sectors. The plan is focused on identified end-markets and services while pursuing innovation as a differentiator. “We pursue acquisitions where we see opportunities to fill service, geographic, and end-market gaps and add talent to broaden and deepen our capabilities and better serve clients,” Stephenson says. When looking to acquire or merge with a firm, CHA seeks well-run, well-managed, and profitably growing firms that:

1. Align with CHA’s strategic plan and fill a specific gap and growth opportunity; 2. Culturally align with CHA’s approach to business and respect for its employees; and 3. Have demonstrated a differentiated position in the market, so coming together allows both firms to realize tangible outcomes and synergies beyond what can be done individually. As part of its growth and strategic plan, CHA is continually looking to leverage best-in-class technology solutions to enhance the delivery of its projects. Its digital and cloud platforms allow project stakeholders to receive and act on data near real-time during the design process. “Our shift to digital review platforms has allowed our teams to deliver projects faster while improving quality,” Stephenson says. Using AI and machine learning to manage the tidal wave of data that is now inherent with all engineering projects is critical to exceeding the requirements of its customers. One example of project execution heavily reliant on technology is CHA’s work in Intelligent Transportation Systems. It’s using big data aggregation and analytics to optimize traffic flow and improve congestion and safety in some of the largest metro regions in the U.S. by collecting large amounts of data which is then analyzed in simulations and used to manage systems at signalized intersections on heavily traveled corridors. Its bridge engineers are also on the cutting edge of innovation. They most recently designed a unique steel straddle bent for a bridge in Connecticut that has become a game-changer in bridge design. CHA designed a unique and innovative triple I-girder configuration that can provide load path redundancy, thereby eliminating the fracture- critical designation and the special long-term inspection requirements. Several states are now adding this innovative design as a key tool in their steel bridge toolbox. TOOLS FOR SUCCESS. Stephenson says that as he looks ahead to the rest of 2023, there are four major drivers of change in the engineering industry that he foresees in terms of the work itself. There’s an acceleration of the energy transition and electrification toward clean energy, driving utilities to modernize the grid and accelerating the acceptance of alternative energy sources. There’s also unprecedented federal funding from the IIJA See CREATING LASTING CHANGE , page 8

HEADQUARTERS: Albany, NY

NUMBER OF EMPLOYEES: 1,500

YEAR FOUNDED: 1952

OFFICE LOCATIONS: 47 offices in 21 states and Canada

MARKETS:

Government

■

Utilities

■

Industrial

■

Commercial

■

Education

■

SERVICES:

Engineering design

■

Architecture

■

Consulting

■

Construction management

■

Technology services

■

AWARD WINNER: Ranked No. 61 on ENR 2022 Top 500, CHA is a leader in aviation, transportation, water resources, building design, fire protection services, land development, project management and construction management, sports, advanced energy and manufacturing, asset management, and utility infrastructure

ARCH 6, 2023, ISSUE 1479

CHA Consulting staff enjoying an open house at the firm’s Boston office.

to gain better insight into the organization and employee needs to improve the retention and attraction of staff in a very competitive, resource-constrained environment. This effort resulted in a complete training roadmap to equip people managers with the competencies, tools, and resources they need to continue to grow and develop as successful managers. “As a growing firm, another challenge specific to CHA is the continuing need to scale efficiently and effectively to be responsive to clients and realize the benefits of expanded capabilities and services across new geographies and markets,” he says. And, there’s no magic bullet for success. “It’s rather a combination of skills and qualities continually developing and evolving as circumstances change,” Stephenson shares. Some skills he believes are essential elements of success include: establishing a clear vision and expectations; being collaborative and open to the exchange of ideas; being responsive to employees and clients; surrounding yourself internally and externally with successful people with different experiences; developing a high level of trust; and most importantly, leading with integrity and empathy. He’s also learned, over time, that patience is critical to success. “Not everyone or every process will operate at the pace at which you may want to go. While positive, forward momentum and achieving progress are important elements of success, it should not be at the expense of failing to solicit critical input and feedback to ensure you are setting yourself up for the best opportunity to achieve success. Learning from failures (as painful as they may be) often provides valuable experience toward future success,” he says.

CREATING LASTING CHANGE, from page 7

and IRA exerting pressure to deploy and energize projects more quickly and increasing the need for design/build and alternative project delivery. Firms across the industry are experiencing a realization of investments being made in technology/digitization as well as AI in a resource-constrained and more complex-interconnected design world, in addition to the continued consolidation of what is still a highly-fragmented industry. “The challenge to our industry and CHA is meeting the growing demand for our services in a resource-constrained environment,” Stephenson says. “Ultimately, creating a fun, engaging, and entrepreneurial company culture that employees want to be a part of is key.” He believes that hiring and retaining talent will continue to be a challenge and CHA is strategically sourcing and hiring highly- skilled new staff, while focusing on the retention of current staff by creating a differentiated employee experience driven by the needs of its workforce. CHA is heavily investing in the training and development of people managers, recognizing there is a difference between being a great technical or project manager and a manager who can lead and engage teams effectively. “We recently hired a dedicated, professional manager of training and development to lead and guide our training efforts more formally as we continue our aggressive growth and add new staff to the organization,” Stephenson says. With the help of an industry-leading outside consulting firm, CHA has conducted a deep dive into its employee experience

THE ZWEIG LETTER MARCH 6, 2023, ISSUE 1479

OPINION

A nytime a prime design firm has a contract with an owner reviewed for insurability, it will likely see a recommendation from its legal or risk advisor that a third-party beneficiary clause be stricken from the agreement. It’s important for design firms to understand the potential peril to all parties involved should there be a third-party beneficiary clause in any contract. Beware third-party beneficiary clauses

There’s a sound reason for this: Depending on the jurisdiction and its acceptance or interpretation of the Economic Loss Doctrine, a claim arising from such a clause can result in a serious coverage issue – or possibly no coverage, whatsoever. To get their arms around this issue, design firms should become familiar with the concept of a third-party beneficiary. Basically, a third-party beneficiary is an individual or business that benefits from a contract between two other parties. HOW DO THIRD-PARTY BENEFICIARY CLAUSES IMPACT THE DESIGN CONTRACT? The most obvious scenario for design professionals involves the prime designer’s contracts with their consultants. While the consultants’ work ultimately is for the project owner’s benefit, the owner typically does not contract with them directly. Thus, the consultants are not subject to a direct claim by the owner. Yet, owners increasingly have been requesting that third-party beneficiary clauses be inserted into the

prime designer’s contract. Unfortunately, they are not beneficial – either for the prime design professional or the owners – given the significant coverage issues they can create. Certainly, from the prime’s perspective, it might appear more convenient to let the owner make a claim directly against a consultant whose work is at issue. However, by including a contractual provision that allows such a direct action, which may be the case under a third- party beneficiary clause, the prime designer might find itself in a position where its consultant has no insurance coverage. Under its contractual relationship with the owner, the prime is responsible for the work of its consultants. Thus, as the prime, you require your consultants to carry professional liability coverage, so you absolutely want the protection in place to respond should their work be at issue. Ultimately, the prime is legally responsible for the work

Lauren Martin

See LAUREN MARTIN , page 10

THE ZWEIG LETTER MARCH 6, 2023, ISSUE 1479

ZWEIG INDEX COMPANY SPOTLIGHT: AECOM Tracking and reporting on the financial standing of some of the industry’s leading firms will allow The Zweig Letter ’s readers to have another digestible form of information that will equip them with a greater understanding of the state of the industry. This report, the Zweig Index, will examine 11 of the AEC industry’s leading firms on a monthly basis. Click here for a detailed breakdown and company spotlight on AECOM from Zweig Group M&A advisor Andy Chavez, CM&AA .

Share Pricing

Valuation

Symbol

Company Name

Market Cap 12.10B

50-DMA Chg %

EPS (TTM)

EV/ EBITDA

Exchange Currency

Chg %

Last Price

EV/NSR

ACM

AECOM

NYQ USD

1.80% 0.56% 2.54

87.5

14.74

2.10

ARCAD. AS

Arcadis NV

AMS

EUR

3.66B

1.93% 0.52% 1.98

40.12

10.57

1.39

Atlas Technical Consultants, Inc.

ATCX

NGM

USD

463.72M

117.79% 4.31% -0.33

12.24

12.28

2.07

Bowman Consulting Group Ltd. Fluor Corporation

BWMN

NGM

USD

369.20M

4.77% 3.92% 0.27

26.77

21.91

2.68

FLR

NYQ USD

5.15B

-3.93% 0.74% 0.72

35.95

17.58

10.39

Montrose Environmental Group, Inc.

MEG

NYQ USD

1.50B

-2.09% 1.42% -1.27

51.59

21.69

5.18

NVEE

NV5 Global, Inc.

NCM USD NYQ USD

1.70B 6.49B 7.23B

-17.93% -23.94% 3.28

108.56 58.49 137.25 173.37 Mean

13.44 13.15 20.23 16.83 12.73

3.07 2.08 2.58 2.83 3.44 2.63

STN

Stantec Inc.

13.33% 7.45%

1.64

TTEK

Tetra Tech, Inc.

NMS TOR

USD

-10.81% -12.01% 5.8 2.07% 4.96% 3.68

WSP.TO WSP Global Inc.

CAD 21.41B

*As of market close February 27, 2023

Median 14.09

stipulate that the design professional has breached the standard of care, coverage will likely not be an issue. However, this can be complicated by the presence of third-party beneficiary language in the contract. In this case, you could find yourself with unnecessary coverage issues that may only have existed because the clause was included. Keep in mind, your professional liability insurance policy has an exclusion that states there is no coverage for a claim arising out of liability assumed under a contract or agreement, except to the extent that there would have been liability in the absence of such contract or agreement. Accordingly, it’s important for design firms to have a basic understanding of the law that will apply to the contract they are working on and an understanding of the potential peril to all parties involved should there be a third-party beneficiary clause in the contract. Given the added complexity of jurisdictional issues, it’s helpful to have a knowledgeable risk advisor or legal counsel thoroughly review contracts for third-party beneficiary clauses or similar language, as well as other onerous wording. In the absence of a careful contractual review, the prime may find itself in a situation where it is on the hook for its consultant’s work due to a declination of coverage by their carrier. The consultant may find itself with uninsurable risk, and the owner may have less coverage in place than it intended. Lauren Martin is a risk manager and claims specialist at Ames & Gough. She can be reached at lmartin@amesgough.com.

LAUREN MARTIN, from page 9

of its consultants, whether they have coverage or not. Although it may seem more complicated to have claims follow the contracts, it is better for the prime once a consultant’s work is at issue or the subject of a claim to make an indemnity demand or claim against its consultant for the work at issue. As the prime, if your relationship with your consultants is strong and their carrier is reasonable, they will generally step up and defend their work. In most jurisdictions, for a third party to recover, the parties to the contract must have intended that a specific beneficiary would directly benefit from the performance of the contract. It is generally not enough that the party is incidentally benefitted. Where the contract does not mention a third party, it’s presumed the parties did not intend to benefit a third party. NAVIGATING JURISDICTIONAL ISSUES. Generally, the only time a third party can make a claim against a design professional is if there is bodily injury or property damage involved. However, there are jurisdictions where the courts allow third-party beneficiary claims for economic loss. These jurisdictions do not recognize the Economic Loss Doctrine, which essentially stipulates that if all you have lost is money, you must have a contractual relationship to recover. In some jurisdictions, not only can owners make direct claims, but contractors who rely on the plans and their subcontractors can also make claims. In these jurisdictions, where the claims

THE ZWEIG LETTER MARCH 6, 2023, ISSUE 1479

FROM THE FOUNDER

When it comes to leadership, things are rarely black and white – but there are some things leaders just shouldn’t ever do. Things you cannot do as a firm leader

W e all like to write and talk about behaviors that effective leaders should exemplify. There is a lot of information on this subject.

But what there is less information available on, and what is rarely talked about, are things leaders cannot do – behaviors leaders should NEVER display. Before I go into what some of those are, it’s once again confession time: I have been guilty of a few of these myself, although hopefully, I have learned, and will never repeat them again! You want to be sure you NEVER do any of these things: 1. Talking ill of other people who work in the organization. This is always unacceptable because anyone who hears this is bound to think, “What does this person say about me to other people?” Inexcusable. 2. Criticizing or berating someone publicly. Most people in leadership roles understand this. Yet it can come out in emotional situations. You can’t do it – ever.

3. Berating someone privately. “Berating” should never happen. Leaders should only talk with someone about changing a behavior, not destroying their character. You absolutely cannot do this no matter how egregious the behavior was. 4. Blaming someone else for something that you should be taking the blame for. This is one of the worst leadership practices ever. You are the boss; you are ultimately responsible. 5. Hogging all the credit. It’s much better to give the credit to the people you work with as it will motivate them to do more/do better. Leaders should deflect credit, not grab it.

Mark Zweig

See MARK ZWEIG , page 12

THE ZWEIG LETTER MARCH 6, 2023, ISSUE 1479

BUSINESS NEWS BOWMAN SELECTED AS PRIME DESIGN CONSULTANT FOR PENNSYLVANIA TURNPIKE COMMISSION’S ALLEGHENY TUNNEL TRANSPORTATION IMPROVEMENT PROJECT Bowman Consulting Group Ltd. announced its selection by the Pennsylvania Turnpike Commission to serve as prime consultant with respect to preliminary and final design for the projected $400-500 million Allegheny Tunnel Transportation Improvement Project in Western Pennsylvania. As primary consultant, Bowman will lead all associated design services as well as manage a team of environmental, structural, geotechnical and survey firms experienced with sizable, multifaceted transportation projects. The direct assignment was awarded to Bowman’s wholly owned McMahon subsidiary. While the exact amount of the award has not yet been determined and will depend on the ultimate scope of work, the Turnpike has initially authorized $16 million to commence preliminary design with additional allocations to be determined as the project progresses. The Allegheny Tunnel project will be one of the largest and most complex mainline projects in the history of the PA Turnpike. The project principally involves bypassing the existing tunnel through the realignment and construction of approximately 3.8 miles of new PA Turnpike roadway around the south side of the existing tunnel. Additional components of the project include construction of a large mainline bridge, several smaller mainline structures and culverts, a wildlife crossing bridge, retaining walls, along with the evaluation, stabilization and remediation of an ancient landslide area. “The Pennsylvania Turnpike Commission

has dedicated extensive resources to identifying the best solutions for the ongoing issues with the Allegheny Tunnel,” said Gary Graham, PE, regional chief engineer at Bowman. “We are confident that our team of experts will deliver a project outcome that benefits local communities and addresses environmental concerns, while providing a safer route for all who travel through this important corridor.” “The Allegheny Tunnel project is critical to reduce congestion and improve mobility in this mountainous corridor where we continue to see increasing traffic volumes, especially among commercial carriers,” said PTC Chief Engineer Brad Heigel. “A key objective is to improve traveler safety by reducing the frequency and severity of crashes. To address this, traffic will bypass the tunnels and travel on a wider, more modern roadway with gentler curves and slopes that meet today’s engineering-design criteria.” Heigel explained that the structural condition of the 82-year-old tunnel continues to decline. “Though safe enough to accommodate traffic, the facility will require a costly rehabilitation in the coming years if it is to remain in service,” he said. “However, such a restoration would not address critical requirements including congestion and safety.” By bypassing the tunnels, tractor trailers carrying hazardous materials would no longer be required to travel on local roads. “Federal regulations restrict certain hazardous materials from being transported through tunnels, so truckers are forced to leave our system and haul their freight through the regions’ towns and boroughs. Keeping these haulers on the PA Turnpike makes a much safer alternative than using local routes.”

“This selection extends Bowman’s recent string of significant transportation infrastructure assignments including project awards from the Pennsylvania Department of Transportation and the Illinois Tollway Authority,” said Gary Bowman, chairman and CEO of Bowman. “We remain focused on increasing the concentration of transportation revenue in our business and this award demonstrates yet another achievement toward that commitment. It takes a team of talented and dedicated professionals to secure an award like this and I am proud to have such a group here at Bowman.” The Allegheny Transportation Project was first initiated by the PTC in 1996. Since then, numerous alternatives for open-cut and new tunnel design were evaluated and the Gray cut alternative was recommended since it provided the best balance of operational, safety, cost and environmental considerations. With this award selection, the project moves into the preliminary design phase which will include further evaluation of the preferred alternative and recommendation of a final alignment configuration. Headquartered in Reston, Virginia, Bowman is an engineering services firm delivering infrastructure solutions to customers who own, develop, and maintain the built environment. With approximately 1,700 employees in more than 70 offices in the United States, Bowman provides a variety of planning, engineering, geospatial, construction management, commissioning, environmental consulting, land procurement and other technical services to customers operating in a diverse set of regulated end markets.

situation is different. But there are some things leaders just shouldn’t ever do. The list above includes some of those. What would you add? Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com. “We all like to talk about behaviors effective leaders should exemplify ... But there is less information available on the things leaders cannot do.”

MARK ZWEIG, from page 11

6. Doing anything remotely unethical in front of anyone else. As soon as a leader crosses this line, he or she opens Pandora’s box and gives a green light to unethical behaviors from others. That’s dangerous! 7. Showing too much fear of what is to come. While leaders have to be authentic, they also need to project confidence that success IS possible. Showing doubt about that will be demotivating to everyone else. When it comes to leadership, it’s rarely black and white. Each

THE ZWEIG LETTER MARCH 6, 2023, ISSUE 1479

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