July 28, 2025, Issue 1595 WWW.ZWEIGGROUP.COM
TRENDLINES
Breakeven multiplier
2.7
2.6
2.5
2.4
Selling your firm requires early, intentional prep to maximize valuation, avoid risks, and ensure successful transition. Ready to sell? Start here
2021 2022 2023 2024 2025
FIRM INDEX Bowman Consulting Group Ltd.......8 C. Howard Crane.........................................2 ISG..........................................................................8 SCS Engineers..............................................4 Stantec............................................................... 2 MORE ARTICLES n SOM KUNDRAL: Giving credit where it’s due Page 3 n MARK ZWEIG: Various thoughts on AEC marketing Page 5 n DAVE WILLIAMS: Cut your leaders some slack Page 7 n A strong foundation: Chad Drummond Page 9 According to Zweig Group’s 2025 Financial Performance Report , the median breakeven multiplier for AEC firms is 2.6, indicating that firms must generate $2.60 in revenue for every dollar of direct labor to cover overhead and labor costs. While the multiplier has fluctuated slightly in recent years, it remains relatively stable, reflecting consistent overhead recovery needs across the industry. Participate in a survey and save on a Zweig Group research publication.
D eciding to sell your firm can be an emotional decision that requires a lot of thoughtful preparation and pre-sale diligence. However owners often don’t dedicate the necessary time, energy, and resources toward this preparation phase. This results in conversations and processes with incomplete information, which can lead to sloppy financials, misaligned leadership objectives, attempting to rework agreements, and potentially detrimental outcomes to the seller. Additionally, admitting you are willing to sell the company is a very closely guarded topic and not one that’s often discussed openly with key leadership and ownership. This is where the nuanced guidance from an outside advisor can help create structure, clarity, and an outlet to develop a best case scenario plan. Typically transition planning is viewed as an exit plan, but in reality it should be tied to a strategic plan that is oriented around a growth- focused culture. This subtle shift can position a potential seller for a more successful transition. When planning to transition a business with a tightly held ownership structure, there may not be a culture of collaboration and communication from leadership. In these instances, bottlenecks, miscommunication, and other issues can arise if not dealt with accordingly. Developing a growth-oriented culture creates business attributes that are attractive (to both internal and external stakeholders). This takes time and intentional focus from management to get both the culture and the leadership of the firm aligned. But, when this happens it can produce cultural and financial performance outcomes that are very desirable. We suggest companies spend at least 12 to 24 months working internally to truly assess the different facets of the business and ensure that the backend office reporting and overall business operation is as tight as possible before going into a sell-side posture. A few of the unknowns that pop up during the due diligence effort in a transaction relate to contract transferability, cash management, role definition, HR, and payroll related matters, and the different elements of risk that can be split between the buyer and the seller. If understanding and expectations relating to each of these topics is unclear, a seller could potentially be in jeopardy of forfeiting significant chunks of the overall consideration. For many sellers, one of the biggest unknown variables in the overall valuation calculation is the net working capital component. Oftentimes,
Will Swearingen
See WILL SWEARINGEN, page 2
THE VOICE OF REASON FOR THE AEC INDUSTRY
2
BUSINESS NEWS STANTEC-DESIGNED AC DETROIT AT THE BONSTELLE NOW OPEN TO GUESTS The new AC Hotel Detroit at the Bonstelle has opened its doors to guests, marking a new chapter for the neighborhoods of Midtown Detroit. Stantec, a global leader in sustainable design and engineering, provided building design and Architect of Record services and Patrick Thompson Design led the interior design of public areas and hotel rooms. The new design incorporates the restoration of the historic Bonstelle Playhouse – restored to its original 1903 Albert Kahn-designed exterior and its 1925 interior redesign by architect C. Howard Crane. The Bonstelle will be used for live performances, civic, corporate, and private events; it is connected to the hotel
via a glass-enclosed lobby bar called the Conservatory. Reaching 11 stories, the hotel includes 154 guest rooms, a fitness room, and meeting rooms. Additional dining can be found on the rooftop bar. The sleek and modern lobby is surrounded by repurposed brick. Various arched openings designed with rich walnut casings lead to the lounge where the seating area is surrounded by texture and color. “The design of the AC Detroit is a beautiful mix of new construction and historic preservation,” said Stantec’s Michael Decoster, AIA. “We are excited to see it bring new life to the city of Detroit and become a significant space for community and celebration.”
WILL SWEARINGEN , from page 1
this nuanced yet straightforward calculation doesn’t get the appropriate amount of attention until it’s too late in the process. Initial studies need to be consistent with the rhythm of the business and reflect the true working capital needs of the business at the time of the transaction. Evaluating on and off balance sheet items that relate to the true net working capital requirements of the business gives owners better data as they look to manage cash and position specific business activities going into a transaction. Another area that is perhaps not given as much attention as the valuation of the company is the sales, marketing, and business development engine that the company needs to have running full throttle going into a sale. Backlog, pipeline, and potential opportunities in a particular market truly determine the success of the transaction. Buyers are purchasing the forward-looking success of the business. They really don’t care how successful you were 15 years ago. No offense! It’s just the truth. There’s a lot that goes into transition planning. Prepping to take your business out to market should not be a hasty decision, but one that leadership and ownership are focused on executing at a high level. Spending the extra time and resources to get it right will pay off significantly in the long run. Adjustments and all the machinations of EBITDA addbacks and cleaning up your P&L is the easiest part. I can tell you, your return on the investment will come back in multiples of the investment, not pennies on the dollar. So don’t shy away from making the leap if an external path is on the table for your firm. Zweig Group’s Mergers & Acquisitions team specializes in helping AEC firm owners navigate the complexities of sell-side transactions with clarity and confidence. From preparing your business for market to identifying the right buyers and negotiating the best terms, we manage the process from start to finish. Our proven approach combines deep industry expertise, strategic positioning, and a relentless focus on maximizing value for our clients. Partner with Zweig Group to ensure your firm’s next chapter is as successful as its legacy. Reach out to our M&A team today to start a confidential conversation. Will Swearingen is senior director of Transition consulting at Zweig Group. Contact him at wswearingen@zweiggroup.com.
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THE ZWEIG LETTER JULY 28, 2025, ISSUE 1595
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OPINION
Giving credit where it’s due
Leadership isn’t about standing out – it’s about lifting others up and making sure no one’s contribution goes unseen.
A s a vice president of an environmental consulting firm, I’ve overseen countless projects – each with its own set of challenges, deadlines, and breakthroughs. We’ve celebrated hard-won victories and enjoyed smoother-than-expected successes. But one lesson that’s stuck with me, learned more often through missteps than triumphs, is this: success is never a solo achievement. It’s the product of collaboration – between the client, the consulting team, and every stakeholder involved.
Som Kundral, PE, BCEE
Throughout my 16 year career, I’ve noticed recognition disproportionately focused on the team leader or project manager – sometimes by the client, sometimes by our own organization, and, admittedly, sometimes by me. The quieter, though equally vital contributions often went unrecognized and, as I’ve grown in my career, so has my understanding that celebrating every individual contributor is not just nice, it’s essential. It builds trust, boosts morale, and strengthens a team’s sense of purpose. One project crystallized this for me. We were working on a high-stakes deliverable for a key client. While I held senior oversight, our project manager was the one in the trenches – juggling timelines, managing client expectations, and delivering polished updates with composure and clarity. This person made leadership look effortless.
But behind the scenes was a team of unsung heroes. One team member stayed up night after night analyzing complex data. Another transformed that data into strategy, directly shaping our recommendations. A quieter teammate – often overlooked – kept morale high with well-timed humor and unwavering support. When the client sent a glowing note of thanks and mentioned only the project manager by name, I missed the moment to publicly acknowledge the rest of the team. I regret that deeply but embrace it now as a significant learning moment. That experience became a turning point in my career. It reminded me of Maya Angelou’s words: “People will forget what you said, people will forget what you did,
See SOM KUNDRAL, page 4
THE ZWEIG LETTER JULY 28, 2025, ISSUE 1595
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This gets more nuanced when it comes to project managers. They often function as “the face” on behalf of the team to the client. I’ve been in that position earlier in my career, and I remember the pressure to deliver. It’s tempting to accept praise and move on. But it takes humility and awareness to say, “Thank you, but I couldn’t have done it without Joe, Jim, and Sally. ” Looking back, I wish I had embraced that mindset sooner. There were times when hierarchy shaped who got credit, and times I assumed people knew their value without me saying it. I was wrong. Now, I make it a habit to pause and reflect: Did I acknowledge everyone? Did I say it out loud? How can I celebrate each contributor so that they feel seen? It’s a small shift, but it’s changed everything. When people feel valued, the whole team performs better – and the wins that much more meaningful. My advice to fellow leaders: Call out the contributions of your field techs, analysts, advisors, and support staff. Name names. Be specific. Say it in the moment and say it out loud among their peers and senior management. Ultimately, leadership isn’t about standing out, it’s about lifting others up and making sure no one’s contribution goes unseen. Somshekhar (Som) Kundral, PE, BCEE, is vice president and project director at SCS Engineers. Contact him at skundral@ scsengineers.com.
SOM KUNDRAL , from page 3
but people will never forget how you made them feel.” When we fail to recognize someone’s contributions, we risk making them feel invisible. And no one should feel that way when they’ve helped make something great happen. “When we fail to recognize someone’s contributions, we risk making them feel invisible. And no one should feel that way when they’ve helped make something great happen.” The data backs this up. A Harvard Business Review study (Tsedal Neeley, 2015) found that recognition is a stronger driver of employee engagement than even compensation. As leaders, we help shape the workplace culture. If we want high performing, connected teams, we must start by truly seeing and acknowledging the value each person brings. I’ll admit, I’ve sometimes defaulted to a generic, “Great job, team!” in the rush of back-to-back deadlines. But that’s not enough. A specific, sincere acknowledgment (“Your late-night data crunching saved us” or “Your timely reporting helped us nail the client presentation”) carries far more weight. I’ve seen how much it matters. When someone hears that their work made a difference, you can see it in their posture, in their eyes. It’s not about praise for praise’s sake. It’s about truth and respect.
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THE ZWEIG LETTER JULY 28, 2025, ISSUE 1595
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FROM THE FOUNDER
I ’m sure I spend too much time on LinkedIn (thanks, Dr. Matt Waller for telling me years ago I needed to be on it in spite of my prejudices against it!), but I have found it educational and helpful for the most part. If anyone gets political or too wacky, I just unfollow them. Most AEC firms play it safe with bland marketing, but bold, consistent outreach is what actually drives results. Various thoughts on AEC marketing
So being on LinkedIn often with the network I have that includes thousands of people involved in the AEC business, I read a lot of stuff about AEC marketing. Some of it is good and some of it mediocre. But let me share my thoughts on some of what I’ve read that confirms my own experience as an AEC firm marketing director and owner in a number of other firms in this business: 1. Most AEC marketing is boring. It’s what you expect. Pretty pictures of projects – most of which aren’t all that unique – with tons of cliches describing them. It doesn’t matter whether we are talking proposals and qualification docs or social media posts. There is nothing noteworthy about them. 2. In general, architects and engineers are afraid to do two of the three things they should do
to make their marketing stand out. First is humor. That is deemed “unprofessional.” Next is controversy. We shy away from that and are afraid of it. The third thing that we do sometimes but not often enough is provide helpful, useful information. Examples would be publishing “10 things to consider when planning new office space,” or “Eight things that happen over time that keep your HVAC working like it was designed to work,” etc. 3. AEC firms don’t do enough original research that they can share with their clients and potential clients. Research on problems and issues those clients are facing. Survey Monkey surveys are great. So are white papers based on secondary research. Then publish it for them. It’s useful
Mark Zweig
See MARK ZWEIG , page 6
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percentage if you look at the numbers but the odds bear out. 6. In general, AEC firms just don’t do enough stuff. All of our numbers are too low. Not enough emails, social media posts, press releases, etc. I was a grad assistant to a guy who understood probabilities. He taught me the rule of big numbers. The odds bear out over time. AEC principals are more afraid of opt outs than they are of not getting results. They need to be the opposite. 7. AEC firms do a bad job with their branding. Their company vehicles are not unique or even branded in any way. Their project signage is inconsistent. They don’t have enough merch and when they do, it’s ball caps, insulated cups, and golf shirts with polyester in them. Their use of color is inconsistent. Their trade show booths are boring. Their business cards forgettable. Is any of this helpful? I could go on here and add a bunch more but am out of time and space. Let’s hear from you all with some of your ideas for how we could all do better! Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.
MARK ZWEIG, from page 5
information. No advertising. This also produces great material to turn into press releases that actually get picked up because they contain data. 4. AEC firms don’t do enough to build their client and potential client databases. They need to systematically identify every potential organization within whatever geographic reach they have and everyone in those organizations who could hire them. It needs to be a consistent and intense effort over an extended period of time and has to be convenient for every employee to access. The fixation on duplicate entries and keeping the wrong people out is misplaced. You want to get everyone you can IN and then come up with ways to clean up later. 5. AEC firms don’t do enough PR. Again – it starts with a list. Then it has to include frequent press releases to a large enough list. Let the odds work in your favor. For example, in our business 20-plus years ago (when we were growing by 30 percent plus annually), we sent out three different press releases a week to a 500-plus name press list. Many were controversial or cited unique data. We got 15-20 press mentions a month from that. It’s a very low
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THE ZWEIG LETTER JULY 28, 2025, ISSUE 1595
www.amesgough.com
7
OPINION
Cut your leaders some slack
Policy slack combines structure with flexibility, empowering leaders with the room to move, own decisions, and grow.
A few years ago, I watched a team lead wrestle with whether to pull the trigger on a stressful client decision and the potential for being reprimanded. A stringent policy said one thing. The short timeline said another. They didn’t have permission – the leader had judgment. And that individual used it. The result? The client stayed on schedule, the trust deepened, and the leader grew.
Dave Williams
That moment stuck with me. Not because it was perfect, but because it showed what happens when we stop trying to script every move and start trusting the people closest to the work. In times of uncertainty, organizations tend to tighten the reins. We add more structure, more rules, more safeguards, often in an effort to reduce risk. However, ISG, an architecture, engineering, environmental, and planning firm, has found real progress comes not from over-engineering control, but from developing leaders who can think clearly in the chaos. That is where the idea of policy slack comes in. Policy slack refers to the space within a system –
flexibility in expectations, procedures, or roles – that allows people to respond effectively to change. When applied to leadership, it becomes something powerful: room to move, own decisions, and grow. STRUCTURE WITH FLEXIBILITY. The combination of strong systems and thoughtful flexibility has shaped how we grow our teams. We value transparency at every level and create space for individual autonomy. Clear structures, like two team leaders to anchor accountability or holding team meetings that connect people across geographies, help define expectations while leaving room to adapt.
See DAVE WILLIAMS, page 8
THE ZWEIG LETTER JULY 28, 2025, ISSUE 1595
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BUSINESS NEWS BOWMAN SECURES 4-YEAR CONTRACT TO PROVIDE ENGINEERING DESIGN SERVICES FOR THE UNIVERSITY OF NEW MEXICO Bowman Consulting Group Ltd., a national engineering services firm, has been awarded a four-year contract to provide on-call engineering design services for the University of New Mexico with a total aggregate cap of $7.5 million. Under the agreement, Bowman may provide surveying, civil engineering and subsurface utility engineering services across UNM’s extensive network of campuses, medical facilities, research hubs and academic institutions. These include UNM’s Central and Branch campuses, UNM Hospital, the UNM Science & Technology Park, South Campus, the UNM Comprehensive Cancer Center and the UNM Health
Sciences Center. Bowman’s expertise in these disciplines will support campus expansion, facility upgrades and long- term infrastructure planning. A key focus of Bowman’s work is the UNM Hospital, where the team will assist with subsurface utility mapping and surveying for ongoing construction and expansion projects. Additionally, Bowman will deploy advanced drone imaging and GIS modeling technology to create and maintain detailed digital records of UNM’s existing utility conditions. “This assignment with UNM speaks to Bowman’s commitment to maintaining and strengthening the client relationships established by acquired firms while also driving organic growth,” said Gary Bowman, chairman and CEO of Bowman.
“By expanding and investing in advanced technologies, we have enhanced our capabilities in surveying, SUE and GIS modeling. This positions us to support UNM’s evolving infrastructure needs with data-driven solutions that ensure long- term sustainability and efficiency across its campuses.” Through Bowman’s acquisition of High Mesa, the Company continues to build upon a decades-long relationship with UNM, contributing to hundreds of projects and studies across the university, including subsurface utilities, surveying, civil engineering design and construction. This new contract builds on that legacy to further strengthen Bowman’s presence in the higher education market and its reputation as a trusted provider of engineering solutions.
over time. The key is to listen, adapt, and stay grounded in continuous improvement. True performance culture is something built through consistency, clarity, and care. RAISING THE BAR, NOT WRITING THE RULES. The truth is, policy slack isn’t about relaxing standards. It’s about trusting leaders to rise to the occasion with the coaching and tools to do so. We don’t need more rules, but rather more people who are confident and capable enough to lead with intention. Without that foundation, adding more framework, rules, or process only creates noise. Leaders must be coached not just to follow process, but to recognize when process is truly needed. Purpose should drive the method – otherwise, a policy thrown at the wrong problem, or applied at the wrong time, will be ignored, misused, or even make things worse. To create an environment where flexibility fuels performance, not chaos, organizations need: ■ Strategic leaders who are clear on values and empowered to act. ■ Guardrails that replace rigid policy with clarity of intent and outcomes. ■ Cross-functional alignment to ensure the slack supports the mission – not undermine it. ■ Problem solvers over policy pushers, giving teams autonomy to bring creativity to clients. ■ Confidence instead of fear, knowing that performance coaching can develop agile, adaptable employees. Policy slack isn’t the absence of discipline. It is the presence of trust, guided by purpose. Dave Williams is a performance strategist with ISG. Connect with him on LinkedIn.
DAVE WILLIAMS , from page 7
But not everything needs to be a policy. Sometimes, clarity comes from a shared mindset rather than a written rule. Frameworks that support autonomy often yield better results compared with processes that restrict it. Teams need to feel the weight of decisions, navigate complexity, and act in the best interests of their colleagues. Policy slack can benefit a business when:
■ You trust your leaders but see them blocked by red tape.
■ Your environment is changing faster than your rulebook.
■ Innovation or responsiveness is suffering due to approval delays. ■ There are a number of experts who know they need to make decisions based on client needs rather than a formal policy process. ■ Rigid processes are slowing down decisions and blocking forward progress. Not every team is ready for it, but the right conditions unlock performance that structure alone can’t. PERFORMANCE IS A MINDSET, NOT A MANUAL. High-performing teams don’t just follow steps, they understand their purpose. Performance thrives when there is clarity of purpose, space to grow, and support along the way. In a system built on trust and accountability, leaders aren’t managed by manuals. They are coached to think critically, communicate transparently, and keep people at the center of every decision. Growth happens when individuals are given the tools to navigate complexity and the responsibility to do it well. Even in high-functioning teams, gaps emerge – in conversations, in exit interviews, in the patterns noticed
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THE ZWEIG LETTER JULY 28, 2025, ISSUE 1595
9
PROFILE
A strong foundation: Chad Drummond CEO and president of Drummond Carpenter, a service-disabled veteran-owned small business specializing in civil, environmental engineering, and applied research.
By LIISA ANDREASSEN Correspondent
A s the 2025 U.S. Small Business Administration Veteran- Owned Business Person of the Year for the state of Florida, Drummond is building one of Florida’s fastest-growing engineering firms – one that’s tackling complex infrastructure and environmental challenges across the state and beyond. Drummond Carpenter (Orlando, FL) was also a 2025 Zweig Group Hot Firm Award winner. MILITARY EXPERIENCE SHAPED FIRM NICHE. Specifically, Drummond Carpenter is a certified Service- Disabled Veteran-Owned Small Business. While Drummond was in the Navy, he knew long before joining the ranks that he wanted to work in science and engineering. His military experience only served to heighten that interest. He served in the Persian Gulf during Operations Desert Shield and Desert Storm which he says was the catalyst for his decision to pursue environmental engineering. “I saw firsthand the environmental devastation – oil wells burning black into the sky and crude oil blanketing the water for miles,” he says. “I knew I wanted a career focused on solving those kinds of problems.”
He shares that it was his Navy training, particularly in nuclear systems, that gave him a unique foundation that continues to shape the work they do at Drummond Carpenter. “Today, one of our specialties is assisting the federal government with the safe storage and disposal of materials from the Manhattan Project era. That niche is directly tied to my naval background and the technical rigor it demanded,” he says. The majority of Drummond Carpenter’s work is with federal and municipal clients, though they also support select private and nonprofit organizations. He explains that their federal partnerships are central to their business and include agencies like NASA, the Department of Energy, and the Department of Veterans Affairs. “One of the most significant projects in our firm’s history is currently underway with the VA, where we’re leading the full redesign of utility infrastructure – water, stormwater, sewer, and natural gas – at a hospital campus in Arkansas,” he shares.
See A STRONG FOUNDATION , page 10
THE ZWEIG LETTER JULY 28, 2025, ISSUE 1595
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HEADQUARTERS: Orlando, FL NUMBER OF EMPLOYEES: 40
YEAR FOUNDED: 2016 OFFICE LOCATIONS: 5 MARKETS:
The Drummond Carpenter team enjoying a corporate retreat in Traverse City, Michigan.
Utilities
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Water
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exceptional service, investing in technical expertise, and innovating in ways that sets it apart. Drummond says he’s most energized by the possibilities emerging from artificial intelligence. Last year, the company launched an Augmented Intelligence Application Initiative, or what they call (AI)², to explore how AI can strengthen their work. “We’ve already developed internal tools that are transforming how we manage operations and execute projects, and we’re seeing real gains in both efficiency and quality, with great implications for the broader AEC industry,” he says. He’s also excited about collaborating with higher education institutions and believes it’s a critical part of investing in the industry’s future. “By engaging with universities, we’re gaining access to cutting-edge research and fresh perspectives, and helping to shape and mentor the next generation of engineers and scientists,” he says. Several members of their team, including Drummond, have served as adjunct or tenured faculty, and they continue to stay closely involved with academic programs across the country. One example is Drummond’s role on the Advisory Board for Florida International University’s Applied Research Center, where he works alongside university leadership to improve student employability and develop joint research opportunities. “That collaboration has already led to recruiting top student talent and is opening doors for impactful, funded research that will help push the AEC industry forward,” he shares. “When you invest in people – early and often – you build a stronger company, and you contribute to a more innovative and resilient industry.”
A STRONG FOUNDATION, from page 9
Nuclear
As a service-disabled veteran-owned small business, there’s a natural connection to this type of mission-driven federal work. “We’re proud to bring technical precision and science-based solutions to complex infrastructure and environmental challenges and we’re especially grateful for the programs at the federal, state, and local levels that help elevate the impact of businesses like ours,” he says. “That support has helped us grow and contribute to the future of critical public-sector systems.” INTENTIONAL COLLABORATION, CULTURE CREATION, AND GROWTH. And sustaining the culture that has fueled their growth while preparing the next generation of scientists and engineers to thrive is what continues to drive Drummond forward. “We’re intentional about creating an environment where talent is supported, challenged, and inspired,” he says. “Our team culture is built around collaboration, not competition. We like to say we’re ‘cool people doing cool projects,’ but behind that is a serious commitment to mentorship, career development, and retention.” From day one, the company has demonstrated commitment to hiring not just for technical ability, but for character. “We look for good humans first,” he says. “And because we’ve maintained incredibly low staff turnover, many of those early team members have grown into today’s firm leaders. They have shaped our culture, and that makes all the difference.” And despite a climate of economic uncertainty, Drummond says their strategy is to stay focused on what they can control – delivering
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Ecology
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Environmental assessment and remediation Federal, state, and local
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SERVICES: Green Infrastructure & Sustainability: Assisting communities in planning, designing, and implementing green infrastructure; Civil & Water Resources Engineering: Addressing multidisciplinary water resources issues and civil site development; Environmental Modeling: Developing, calibrating, and applying surface and groundwater models; Environmental Assessment & Remediation: Assessing and remediating media contaminated with various constituents; Nuclear Disposal & Storage: Providing radiological and containment modeling for nuclear waste storage
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THE ZWEIG LETTER JULY 28, 2025, ISSUE 1595
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