TZL 1579 (web)

March 31, 2025, Issue 1579 WWW.ZWEIGGROUP.COM

TRENDLINES

Value/backlog ratio

0.75

0.7

0.65

0.6

A bold vision of delivering business solutions through an expanded collective of resources and expertise. A shared vision for elevating AEC

2021 2022 2023 2024 2025

FIRM INDEX AECOM...............................................................6 Fluor Corporation....................................10 LDG....................................................................... 4 MKN & Associates......................................8 Tutor Perini Corporation........................2 Ware Malcomb.............................................8 MORE ARTICLES n ASHLEY HEINNICKEL: From vision to victory Page 3 n MARK ZWEIG: We can all do with less Page 5 n KEVIN NORGAARD: The last of my kind Page 7 n LAUREN MARTIN: Navigating the evolving standard of care Page 9 Zweig Group’s 2025 Valuation Report shows a gradual decline in the value/backlog ratio, dropping from 0.73 in 2022 and 2023 to 0.63 in 2025. While backlog is considered a forward-looking indicator of future revenue and potential profit, the relationship between value and backlog can be complex due to varying project budgeting methods across firms. Participate in a survey and save 50 percent on the final or pre- publication price of any Zweig Group research publication.

B y now, you’ve likely heard about the strategic partnership we are forming between Zweig Group and Stambaugh Ness. As the CEOs of these two national, AEC industry-leading firms, we want to go beyond the headlines and share what this truly means for you. At the heart of this commitment is a bold vision of delivering business solutions through an expanded collective of resources and expertise. Through this strategic partnership, you can now benefit from the full strength of both teams working together. Through this collaboration, we can deliver additional firepower for strategic planning and compensation benchmarking, mergers and acquisitions, and more. And with a broader audience base, our industry research will uncover deeper insights, delivering greater value to the clients we serve. As Mark Zweig, founder of Zweig Group, puts it, “The professionals who own and operate AEC firms are among the most dedicated, resilient, and innovative business leaders in any industry. This partnership is a testament to our shared belief in their potential and our commitment to equipping them with the strategies and resources they need to thrive. And while many collaborations fall short of their anticipated impact, we are confident that this one will deliver lasting value because of the unwavering dedication of both organizations to the firms we serve.” But that’s just the beginning. This partnership also means an expanded suite of services to help your firm soar. SN is uniquely positioned to deliver financial and business expertise to Zweig Group clients, including:

Chad Clinehens, P.E.

Steve Hake, CPA

■ Government contracting audit and advisory, including FAR audits

■ Outsourced accounting on Deltek Ajera, Vision, or Vantagepoint

■ Fractional leadership, including CFO and CIO advisory

■ Technology services, including managed technology, data solutions, and cybersecurity

■ ERP selection, implementation, and consulting

AEC-focused tax advisory

■

State advisory services

■

See CHAD CLINEHENS & STEVE HAKE, page 2

THE VOICE OF REASON FOR THE AEC INDUSTRY

BUSINESS NEWS TUTOR PERINI-NAN JV AWARDED ADDITIONAL $232 MILLION FOR THE APRA HARBOR WATERFRONT REPAIRS PROJECT FOR A TOTAL AWARDED VALUE OF $563 MILLION Tutor Perini Corporation, a leading civil, building and specialty construction company, announced today that the Tutor Perini-Nan Joint Venture has been awarded several options by the Naval Facilities Engineering Systems Command, Marianas, for additional scope of work on the previously announced Apra Harbor Waterfront Repairs Project in Guam. The additional scope options are valued at approximately $232 million, bringing the total contract value of the project to approximately $563 million. This is a design-build construction project to repair the Apra Harbor’s Glass Breakwater and restore and modernize waterfront areas that have been physically eroded and damaged from storms, including the recent Typhoon Mawar in May 2023. The project scope of work now

includes repairs to various sections of the Glass Breakwater to minimize future breaching potential of the breakwater, as well as shoreline repairs to the inner harbor. Tutor Perini is the managing partner in the joint venture, with Nan, Inc. serving as a 30 percent partner. The Company’s Guam-based subsidiary, Black Construction Corporation, is managing the execution of the work on this project. Design work is already underway with in-water construction anticipated to commence in the fourth quarter of 2025 and substantial completion expected in July 2029. The $232 million incremental value related to the approved options will be added to the Company’s backlog in the first quarter of 2025. Tutor Perini Corporation is a leading civil, building and specialty construction company offering diversified general contracting and design-build services to private customers and public agencies throughout the world.

Interested in learning more

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

CHAD CLINEHENS & STEVE HAKE, from page 1

■ Wealth management (through a partnership with Stonebridge Financial Group) Similarly, Zweig Group’s expertise – especially in executive search, industry insights, and leadership development becomes even more accessible to SN clients. An additional driver for joining forces is combining our abundant thought leadership. SN delivers more than 60 webinars and virtual user groups, and live trainings on a variety of topics throughout the year. Zweig Group offers nearly a dozen industry insight reports annually, along with a host of roundtables and conferences for executives each year, including the industry’s preeminent awards program. All of these translate into more opportunities for you to stay connected, learn, and develop as professionals and leaders in your AEC businesses. We’re thrilled about what this partnership will bring, and we hope you are, too. Whether through webinars, surveys, events, or consulting services, we are committed to delivering greater value and deeper insights to help your business succeed. We look forward to collaborating with you, sharing knowledge, and driving meaningful growth together. And, as always, we welcome your feedback. Onwards and upwards, AEC! Chad Clinehens is president and CEO of Zweig Group. Contact him at cclinehens@ zweiggroup.com. Steve Hake is president and CEO of Stambaugh Ness. Connect with him on LinkedIn.

PO Box 1528 Fayetteville, AR 72702

Chad Clinehens | Publisher cclinehens@zweiggroup.com Sara Parkman | Senior Editor & Designer sparkman@zweiggroup.com Tel: 800.466.6275 Email: info@zweiggroup.com Online: zweiggroup.com/blogs/news LinkedIn: linkedin.com/company/22522 Instagram: instagram.com/zweiggroup Twitter: twitter.com/ZweigGroup Facebook: facebook.com/p/Zweig- Group-100064113750086 Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/year). © Copyright 2025, Zweig Group. All rights reserved.

EXECUTIVE ROUNDTABLE RETREAT This one-of-a-kind event creates a unique forum for CEOs, CSOs, and related C-suite officers to participate in facilitated discussions around strategy, growth, and innovation. This small group format event is designed to maximize the opportunity for attendees to connect, share, and gain insights specific to their role. Join us April 22-24 in Boston, Massachusetts. Click here to learn more!

THE ZWEIG LETTER MARCH 31, 2025, ISSUE 1579

OPINION

From vision to victory

Set yourself up for success, stay focused, and communicate well in order to sustain momentum in strategic plan implementation.

Y ou’ve done the work of planning and preparing a strategic plan for your company. It’s been collaborated on, poured over, refined, edited, proofed, and published to your employees. You feel proud of what you’ve accomplished and excited for the implementation – and then immediately after it’s announced that nice, shiny strategic plan sits on a shelf and gathers dust. What happened?

Ashley Heinnickel

The short answer is that your strategic plan needed a strategy of its own for implementation. In terms of what’s needed for success, it’s not unlike any client project your firm would take on: you need to have the right team, monitor progress, validate priorities, and communicate milestones and other successes. ALIGN IT WITH YOUR BUSINESS PLAN. Once a strategic plan is developed, there is often an annual budgeting or business plan process. To ensure you don’t lose momentum on the vision you just set, it’s important to make sure you align your annual budget and resources for your long-term investments. Sometimes the first year or two of a strategic plan doesn’t have an ROI – does your annual business plan have the space for those investments? Also, are you staying focused by keeping your teams aligned around your strategic plan projects, or are you experiencing unintentional scope creep by taking on other initiatives that might end up competing?

IDENTIFY AND TRACK PROJECT LEADS AND TEAMS. While being careful not to take critical time away from other projects, lean on your experienced and knowledgeable employees to serve in varying roles in implementing the strategic plan. Fairly senior people have management experience and can serve as project leads or point people, but teams can and should be diverse, including those with strong administrative skills. It can also present growth opportunities, learning experience, and great exposure for those who participate and succeed in their roles – something that can be looked at for future or succession planning. Support from your board of directors and executive or senior leadership team is also an important step to benefit from their experience or lessons learned. HOW TO MEASURE SUCCESS A very useful approach

See ASHLEY HEINNICKEL, page 4

THE ZWEIG LETTER MARCH 31, 2025, ISSUE 1579

crucial to have support for your internal staff who are working on the implementation team and need clarity. COMMUNICATE PROGRESS. You should regularly communicate and celebrate the milestones of your plan, but there can be a lot of information to share. When in doubt, stick to the basics: core metrics, actions, and results. Provide enough details so that people have confidence that progress is being made, but be careful of creating too much noise, and remember that what that looks like is different for every company. In addition, if you’re not regularly communicating core business information, a strategic plan can be a good way to start, especially if you’ve aligned it with your annual business plan. HAVE FUN WHILE YOU’RE AT IT. Give your plan a theme. It might feel like business as usual for those managing the implementation behind the scenes, but overall, it is a different initiative with its own goals and milestones – so it should feel different. A theme can serve as an overarching vision for a plan and as an engaging, creative way to communicate and celebrate progress. Like any project, implementation – not just organization – can make your strategic plan a success. Set yourself up, stay focused, and communicate well, and instead of gathering dust, that shiny new plan will end up well-worn and dog-eared from constant use. Ashley Heinnickel is the chief marketing officer for LDG and has led the project management office for multiple strategic plans throughout her career. Connect with her on LinkedIn.

ASHLEY HEINNICKEL, from page 3

is to appoint a project management office, or PMO, that will oversee the execution of your strategic plan. From overseeing scope, schedule, and budget, as well as approving project leaders and teams, a PMO can help ensure successful collaboration, communication, and implementation of the plan. A PMO can have a dedicated leader responsible for capturing progress, understanding risks and issues, and acting as an accountability partner to ensure that the plan is not getting dusty. Be sure to establish mechanisms for tracking and measuring success, especially a method in your financial system or enterprise resource planning tool. This is a streamlined way to capture time and expenses in one place for ease of analytics and insights. In addition, using well- organized progress trackers can keep people focused on their goals and milestones. You can also drive accountability by having individual project leaders set annual priorities and milestones that they will report on in a consistent rhythm, such as quarterly. MANAGE PROGRESS AND ADDRESS ISSUES. Keep in mind that even though it’s often called a strategic “plan,” it might be a more fluid process than a rigid checklist – perhaps more like a strategic direction. Aspects can change and priorities can shift as the plan progresses over time, so like most situations, be prepared to pivot when challenges or barriers present themselves. Maybe the right candidate for a new position is proving elusive and that goal needs to shift to the next quarter; maybe a dramatic change in market forces or the economy will require the whole plan to be revalidated. This is where it’s

THE ZWEIG LETTER MARCH 31, 2025, ISSUE 1579

FROM THE FOUNDER

We can all do with less

You will be less stressed and might find your business more successful if you can shed some baggage.

I ’m three days into a four-day spring break camping trip with my 13-year-old daughter, Hazel, and her best friend, Lilly (they have been inseparable practically since birth). And the full recognition just hit me (not for the first time, mind you!) this morning, as I sit here at a picnic table drinking my coffee with our female Great Pyrenees, “Bella,” that we can all do with less.

Mark Zweig

On this trip, our meals have been simple and our days have been even simpler. Three of us are living comfortably in what is probably, at most, a 240-square-foot space. And while I can’t say everything happens faster (try cleaning a cast iron skillet in a motorhome sink or changing clothes in a bedroom that has about 12 inches of space surrounding the bed), it all still gets done and you have so much time for solitude and reflection. Of course, being the compulsive cleaner and fixer that I am, the condition of our RV is making me want to take it home and rip everything out for a top to bottom cleaning, and it’s driving me a little mad that I cannot fix the leaky kitchen faucet because I somehow left my camper toolbox either at the

last campground we went to or at home. But those minor irritations aside, the taste of minimalist life is quite enjoyable. Instead of working on my yard and cleaning my cars and working on a house down the street that we are redoing – as I do most every other weekend – I can pretty much do absolutely nothing if I want to for most of the day. I think most of our readers can identify with me when I say that all of the stuff we aspire to own can become a trap. And it seems like one that so many successful people fall into. Every single thing you own has other purchases and other activities tied to it. And it takes up space.

See MARK ZWEIG, page 6

THE ZWEIG LETTER MARCH 31, 2025, ISSUE 1579

BUSINESS NEWS AECOM ACHIEVES NO. 1 RANKING BY FORTUNE MAGAZINE AS THE WORLD’S MOST ADMIRED COMPANY IN ITS INDUSTRY AECOM, the trusted global infrastructure leader, announced that it has been recognized as the No. 1 ranking on Fortune magazine’s list of the World’s Most Admired Companies in its industry, marking the eleventh consecutive year the company has been recognized on this list. “Earning the top position in our industry on Fortune ’s World’s Most Admired Companies list is an incredible honor and a testament to the exceptional expertise and dedication of our people,” said Troy Rudd, AECOM’s chief executive officer. “Their unwavering commitment to innovation, technical excellence, and delivering transformative outcomes continues to set us apart as an industry leader, driving meaningful impact for our clients and the communities we serve.” AECOM accomplished numerous milestones throughout fiscal 2024 through the execution of its Think and Act Globally strategy, including the following highlights:

holding the number one position as top design firm in all key markets – including water, transportation, environment, and facilities. offerings through investments in organic growth by launching a new Water and Environment Advisory global business line to expand the advisory services for clients who are increasingly advancing challenging, multi-decade initiatives. Transformed service Continued to further strengthen the company’s employee value proposition, achieving record employee satisfaction scores and low attrition. Set several financial performance records, including for net service revenue, margins, earnings and cash flow.

company in our industry on Fortune ’s World’s Most Admired Companies list,” said Lara Poloni, AECOM’s president. “Through the collaboration of our teams, we’ve achieved record-setting results, expanded our offerings, enhanced our digital capabilities, and deepened client partnerships to advance our purpose of delivering a better world.” Fortune collaborated with Korn Ferry on this survey of corporate reputations and determined the best-regarded companies by asking executives, directors, and analysts to rate enterprises in their own industry on nine criteria, from investment value and talent management to innovation and quality of products. AECOM is the global infrastructure leader, committed to delivering a better world. As a trusted professional services firm powered by deep technical abilities, we solve our clients’ complex challenges in water, environment, energy, transportation and buildings. The company’s teams partner with public- and private-sector clients to create innovative, sustainable and resilient solutions throughout the project lifecycle – from advisory, planning, design and engineering to program and construction management.

■

■ implementation of the company’s digital strategy, including responsibly leveraging AI to transform professional services delivery, enhance bid quality, win more work, and reallocate time to higher-value tasks. “We are proud to be named the no. 1 Advanced the

Gained market share as the number one ranked Water design firm by Engineering News-Record, now

■

start shedding as much of it as possible. Of course, that’s easier said than done. Most of us “boomers” rationalize we need a place like ours for family gatherings; it’s nice, but our older girls each have nice homes we could go to and the country club we belong to has free rooms and great food and we could always go there. We don’t NEED what we have for such infrequent use. The point of all this is that we all complain about not having enough time. The AEC business is client- and deadline-driven. So much is out of our control and if we want to have successful companies, we have to do what we have to do when we need to do it. Then we have families and friends who need our time and attention. So why take up what little time we have that is not consumed by the business with all of our stuff? Does that make us happier? And what about personal overhead? You think your businesses are more likely to survive and thrive if you can leave more cash in them to fund the growth and get over humps? I do. I also think we are headed for a slowdown, even if it is only temporary. The bottom line: you will be less stressed and might find your business more successful if you can shed some of this baggage. We all would be! Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

MARK ZWEIG, from page 5

We have some friends who owned a $1.15 million house here in Fayetteville, Arkansas. They had a house in Scottsdale, multiple vacation homes in various places in Michigan, an Airbnb in Chicago, and also rented an expensive apartment in New York that was their primary residence. After one recently retired, they just sold four or five of those properties and gave up their rental, and bought a nice house in Michigan to retire to. Can you imagine the stress of trying to keep up with all of those homes? Between the maintenance, cleaning, utilities, and furnishing/decorating – along with 60- or 70-hour a week professional jobs, there would be no time for anything else. I have been there myself at one point when we had more than 60 highly leveraged houses and apartments and 44,000 square feet of commercial space, along with about 15 cars and 10 motorcycles. Too much to keep up with – and unnecessary. I can honestly say at this point in my life I have every single THING I could want. And probably three or four times as much as I need. I still hate to think about the mess my kids would inherit if my wife and I both passed away or were incapacitated and had to go into a facility somewhere. We still have way, way too much stuff in our huge house with a four car garage and massive closets with 10 times the clothes anyone needs. We need to

THE ZWEIG LETTER MARCH 31, 2025, ISSUE 1579

OPINION

The last of my kind

Together, younger and older employees create a dynamic and innovative workplace where every generation has something valuable to offer.

I ’ve been an engineer for more than three decades. I remember the days when drafting was done by hand, couriers delivered drawing sets, time-sensitive communication was faxed, AutoCAD was revolutionary, equipment information was in product manuals and catalogs, and you had to call someone on the phone to solve a problem. Now I find myself in an office where drafting is done with AutoCAD Civil 3D, drawing sets and time- sensitive communications are emailed, and all equipment information is easily found on the internet. In my 30+ years, we went from sitting at a drafting table with a phone to sitting at a computer with a camera.

Kevin Norgaard

Generation X was at the forefront of the transition to computers, AutoCAD, email, and the internet. Our industry has changed drastically over these 30 years and often it is difficult for Gen X to let go of some of the historical practices. On the other hand, it is difficult for Generation Z to see the rationale to some of the historical procedures. There are some generation gap hurdles that must be overcome in a Gen X/Gen Z working relationship, including: ■ Overcoming stereotypes. Senior staff members may assume junior staff lack the necessary

experience, technical expertise, or familiarity with industry standards to contribute meaningfully. While junior staff may perceive senior employees as outdated in their approach, resistant to new technologies, or unwilling to adapt to modern industry practices. These misconceptions can create barriers to collaboration and hinder the growth of both individuals and the organization. In our office, we actively work to break down these stereotypes by fostering open

See KEVIN NORGAARD, page 8

THE ZWEIG LETTER MARCH 31, 2025, ISSUE 1579

ON THE MOVE WARE MALCOMB ANNOUNCES PROMOTION OF ANA CERVANTES TO DIRECTOR, RESOURCE SERVICES IN IRVINE OFFICE Ware Malcomb, an international design firm, announced that Ana Cervantes has been promoted to Director, Resource Services in the firm’s Irvine, California, office. In this role, she will lead operations for the firm’s U.S. production studios, while collaborating with her team to enhance architecture project delivery best practices. Cervantes has been involved in the industry since 2012 and has earned multiple promotions in her 10 years at Ware Malcomb. A licensed California architect, she has worked on a wide variety of project types including corporate office, industrial, healthcare,

and science and technology. Her experience includes overseeing all aspects of the development of drawings, including space planning, planning packages, schematic designs, pricing plans, as well as design development and contract documents. “Ana has been an integral part of the firm since 2015, mentoring countless team members and playing a key role in improving our production operations across the U.S.,” said Ilyes Nouizi, Principal, Resource Services. “Her exceptional dedication and innovative thinking consistently reflect our core leadership values at Ware Malcomb, and we congratulate her on this well-earned promotion.”

Cervantes previously served as studio manager of the firm’s Studio-West group, responsible for overall management of staff, overseeing project schedules and budgets, and developing and maintaining companywide templates to ensure consistency with industry standards and compliance with building codes. While in this role, she also made significant contributions to the firm’s production studio operations, overseeing quality assurance and quality control for contract documents coming out of the Southern California, Northwest, Central and San Diego offices. Cervantes earned a bachelor’s degree in architecture from Universidad Autónoma de Baja California.

office events in a social setting, allowing employees to build relationships beyond their daily work interactions. ■ Knowledge exchange. As the senior staff member in the office, I make it a priority to mentor and guide junior employees, sharing my experience while remaining open to fresh perspectives. Rather than immediately providing solutions or answers, I encourage junior staff to present their solutions and ideas first. This approach allows me to understand their thought processes while fostering creativity and problem-solving skills. When done correctly, these small but meaningful interactions help build trust and mutual understanding across generations. By fostering an environment where learning flows both ways, we cultivate a culture of teamwork, adaptability, and professional growth, ensuring that every team member, regardless of experience level, feels valued and empowered. A testament to this healthy exchange of knowledge is that our conversations have expanded beyond work-related topics. I openly share my life experiences, including past mistakes, while junior staff provide insights on societal and cultural changes. This ongoing dialogue strengthens relationships and enhances collaboration across generations. Being a 59-year-old engineer in an office with younger colleagues is a unique journey filled with learning, growth, and mutual respect. It’s about finding a balance between leveraging my experience and embracing new ideas. Together, we create a dynamic and innovative workplace where every generation has something valuable to offer. This allows us to help shape the next generation of design professionals by sharing knowledge, fostering their communication skills, and instilling a sense of mutual respect. I take great pride in mentoring young professionals and am always delighted to see those I have guided grow into highly successful individuals. Kevin Norgaard is a principal engineer at MKN & Associates. Contact him at knorgaard@mknassociates.us.

KEVIN NORGAARD, from page 7

communication, encouraging mutual respect, and promoting the continuous exchange of knowledge.

■ Communication. Gen X started their careers communicating primarily through phone calls and in- person meetings. As a result, we often prefer phone or video calls to quickly address questions and provide immediate responses. In contrast, newer staff members tend to rely more on electronic communication, such as emails and messaging platforms. Gen Xers believe that direct, first-person communication ensures mutual understanding and is often much faster than lengthy electronic exchanges. We encourage verbal communication as a way to build relationships based on trust and clarity – sometimes a simple phone call can eliminate multiple back-and-forth messages and reduce misunderstandings. At the same time, we recognize that Gen Z has introduced us to the benefits of electronic communication. Digital messaging is particularly effective when coordinating with multiple individuals on different schedules, allowing for flexibility and accessibility. By blending both approaches, we can enhance efficiency, strengthen collaboration, and foster a more connected workplace. ■ Mutual respect. There are many ways to foster a culture of mutual respect between generations. At our company, we have implemented a mentorship program that pairs junior staff with senior staff. These pairs meet monthly to discuss concerns, share perspectives, and exchange experiences, among other things, creating an ongoing dialogue that strengthens understanding and collaboration. Additionally, mutual respect must be a core value embraced at every level of the organization. Our CEO leads by example, consistently demonstrating respect for employees of all generations. To further support a culture of respect and connection, we host regular non-business

THE ZWEIG LETTER MARCH 31, 2025, ISSUE 1579

OPINION

I n all professions, steady advances are made that ultimately lead to changes in the standard of care. In the field of medicine, for instance, new medical devices and advances in technology like artificial intelligence create innovative ways to check a patient’s health status, and codes are updated. The standard of care for architects and engineers is evolving as climate change, disasters, and emerging risks reshape industry expectations. Navigating the evolving standard of care

Lauren Martin

The standard of care with respect to each profession is established, maintained, and updated by expert testimony, generally given by members of the profession who practice in a similar location, sub- specialty, or market (based on a range of definitions). Over the years, the medical community has seen the standard of care change most rapidly due to the continual flow of new research on appropriate treatment protocols, advances in surgical techniques, along with an array of new drug therapies, and emerging health and safety concerns among others. Arguably, however, the group of professionals most recently impacted by unusual changes is the design community. When natural disasters and other catastrophic events occur, experts often surface to opine that somehow

the architects and engineers involved in the design should have anticipated the catastrophe. This includes black swan events such as terrorists flying planes into buildings, as well as other man-made disasters including container ships hitting bridges and the sudden, unforeseen collapse of a condominium. Today, the expanding scope of potential catastrophic exposures also encompasses the widespread effects of global climate change, including flooding, freezing, wildfires, drought, hurricanes, and tornadoes – in many cases, occurring in areas not previously impacted. There also have been a series of changes in the past few years to the USGS seismic map of the U.S. which has identified entirely new swaths of the country with potential earthquake exposures.

See LAUREN MARTIN, page 10

THE ZWEIG LETTER MARCH 31, 2025, ISSUE 1579

ON THE MOVE CHARLES BLANKENSHIP ELECTED TO FLUOR’S BOARD OF DIRECTORS Fluor Corporation has announced that Charles Blankenship Jr., chairman and CEO of Woodward Inc., a global energy control solutions company, has been elected to its board of directors. Blankenship will serve on the board’s Audit Committee and the Commercial Strategies and Operational Risk Committee, bringing the total number of Fluor board members to 11, of whom 10 are independent. “With Chip Blankenship’s appointment to Fluor’s board of directors, the company gains another distinguished advisor and business leader, known

for his transformative leadership in the industrial and aerospace sectors,” said David Constable, chairman and CEO of Fluor. “Chip’s strategic and operational expertise, paired with his ability to drive innovation, will support Fluor’s growth as we pursue opportunities in advanced manufacturing, life sciences, mining, chemicals and the energy markets, among others.” Prior to becoming Woodward’s CEO in May 2022, Blankenship’s leadership roles included serving as CEO of Arconic, an aerospace advanced alloys and components company, and a 24- year career at General Electric. While

at GE, he held significant leadership roles in aviation, energy and appliances, including CEO of GE Appliances and vice president and general manager of Commercial Aircraft Engines. He was also general manager of GE’s Aero Energy. Blankenship serves on the board of directors of the National Association of Manufacturers and the board of governors of the Aerospace Industries Association. He is a member of the National Academy of Engineering and served as the Montgomery distinguished professor of practice at the University of Virginia School of Engineering and Applied Sciences.

If someone from the design community is willing to testify that they would have done things differently and, as a result, there would have been less damage, the case will likely go to a decision maker to weigh the testimony. One of the first inquiries our firm received in 2025 came from a renowned lawyer who has defended design professionals for decades. He was concerned that all the recent publications discussing climate change by both design professionals and insurance companies could be unwittingly changing the standard of care. The answer seems to be probably “yes.” How can you defend yourself when there are hundreds of articles on the topic? It may be human nature to point the finger at humans when disaster occurs. We’ve seen it for years; arguments that the road design, not the drunk driver on that road caused an accident. Now it has become even more pervasive with the news media and politicians actively engaging in the blame game. Trying to ignore recent news reports on weather and climate events, evolving conditions and their impacts or finding another profession altogether may be options, but they certainly aren’t good ones. On the other hand, staying aware of what is being published, what others are opining, what your insurance carriers are publishing on these emerging issues, and then warning your clients of the potential risks involved in any type of construction is a better option. Furthermore, becoming more active in your professional communities is another prudent course of action. What are other architects and engineers in your field doing? Continued education is one of the best ways to become and remain aware of evolving risks and, thus, to avoid or effectively manage them. We, as a community, can also become more aware that by our words as well as our actions, we are in a position to affect the standard of care. 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

Indeed, with respect to weather and climate, who would have expected Asheville, North Carolina, to sustain major hurricane damage as it did only a few months ago? Certainly, not the many people who moved there in 2022 when the area was ranked number one on a list of 10 cities considered “climate havens.” To be clear, the standard of care for architects and engineers has been evolving incrementally for many years as knowledge advances about emerging exposures, the long-term viability of certain building products, and construction materials and design practices given a new set of challenges posed by weather, climate, and anticipated versus actual utilization. Codes have changed, albeit sometimes seemingly slowly, as knowledge increases with the gathering of new evidence on the potential health impacts of indoor air and water quality, fire protection, mold, and other contaminants affecting the public. Protecting the public and ensuring safety remains the first tenet of every design professional license. Years ago, there was a time when lead paint and asbestos were routinely specified; however, few architects today recall that time. Before the COVID-19 pandemic at an annual meeting attended by attorneys representing the design community, one lawyer gave a speech on how climate change might affect the standard of care. A general counsel from an engineering firm expressed concern that if claims were made against the firm one tactic by the plaintiff’s firm bringing a claim might be to find out if any members of the defendant firm attended the speech. 2024 concluded with unprecedented damage from hurricanes; subsequently, 2025 began with unprecedented damage from wildfires. Damage invariably results in litigation. Individual and class action claims can result, as well as claims from insurance companies looking to recover their payments. There was a time when an “Act of God” defense was a strong argument against this type of lawsuit – and even times when these actions would be dismissed by the courts. Those times appear to be long gone.

THE ZWEIG LETTER MARCH 31, 2025, ISSUE 1579

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10

Made with FlippingBook flipbook maker