TZL 1479 (web)

10

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

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THE ZWEIG LETTER MARCH 6, 2023, ISSUE 1479

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