TZL 1604 (web)

TRENDLINES Business development models October 6, 2025, Issue 1604 WWW.ZWEIGGROUP.COM

Seller-doers

Dedicated BD staff

Record-breaking performance, bold innovation, and a new generation of leaders are redefining what’s possible in AEC. Afterburners on

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Zweig Group’s 2025 Marketing & Business Development Report finds that business development in AEC firms is still largely driven by seller-doers, with 55% of firms relying on technical staff to both win and deliver work. Meanwhile, 45% employ full-time business development representatives, reflecting a split in how firms approach growth efforts. Participate in a survey and save on a Zweig Group research publication.

E levateAEC 2025 didn’t just open like any other conference. It blasted off like a jet on full throttle. From the moment attendees shouted back “the need for speed,” the tone was set – this was going to be the fastest, most high-energy gathering the AEC industry has ever seen. Over two days in San Antonio, more than a thousand leaders came together to swap ideas, celebrate wins, and dive into the data shaping the future of the industry. The message was loud and clear – if you’re not moving faster, you’re already falling behind. And the numbers proved this to be true. According to Zweig Group’s 2025 awards data, profit margins across the industry surged to 17.5% – the highest in 37 years – while backlogs stretched to a record 10.7 months, giving firms unprecedented confidence in their pipelines. Return on equity hit an eye-popping 45%, showing just how much value today’s firms are creating for their people and owners alike. The takeaway? This isn’t just a strong market. It’s a once-in-a-generation moment where the smartest, fastest firms are turning momentum into historic performance. Speed wasn’t the full story, though. Culture also took center stage. Data from the Best Firms to Work For program revealed 82% of top workplaces are also high-profit firms. This proves that investing in people pays off in dollars and impact. Bonuses are also trending up, which is a signal of progress on compensation pressures. However, employees also voiced concern that leadership isn’t moving fast enough on innovation and AI. The message rang clear. In today’s market, culture isn’t “nice to have.” It’s an engine that fuels profitability, retention, and long-term growth. Growth was another headline-grabber. Firms on the Hot Firm List posted an average of 122% revenue increase over just three years, which is nearly double the pace of the broader market. The data showed that while organic growth is powerful, the firms combining it with smart acquisitions are the ones rocketing to the top. Add in the proof that Marketing Excellence Award winners were nearly twice as likely to be fast-growth firms, and the formula became impossible to ignore – agility, strategy, and bold investment are the afterburners driving today’s breakout success stories. AEC Innovation Award winners pushed the energy in the room even higher. IMEG took home the gold for its IDEA program, which empowers

Chad Clinehens, P.E.

FIRM INDEX AECOM...............................................................6

Atwell................................................................... 2

Garver..................................................................8

HLB Lighting...............................................10

Tutor Perini Corporation........................6

MORE ARTICLES n ROBERT JONES: FAR overhead audits vs. compilations Page 3 n MARK ZWEIG: Failure is not good! Page 5 n BRIAN SHANNON: Courage, confidence, and competition Page 7 n ERIK STROEMBERG: Creating an AI company policy Page 9

See CHAD CLINEHENS, page 2

THE VOICE OF REASON FOR THE AEC INDUSTRY

TRANSACTIONS ATWELL ACQUIRES MAJORITY STAKE IN CENTURION POWER, ADDING ELECTRICAL ACCEPTANCE TESTING AND COMMISSIONING SERVICES As part of its continued growth and expansion, Atwell announced it has acquired a majority stake in Centurion Power, a company based in Washougal, Washington, that provides third-party electrical acceptance testing, inspection, certification, and commissioning, serving the electrical power industry. Centurion Power serves clients in the utility, power generation, renewable energy, industrial, and mission critical/data center markets. “Our approach centers on a team of professionals united to deliver high-

value results while building long-term relationships with clients,” said Tony Asciutto, founder and president of Centurion Power. “We believe that our approach to our clients and overall leadership in the industry aligns perfectly with Atwell. Our shared vision and values will allow us to drive client success at the highest level.” “The added talent and experience that the team at Centurion brings to Atwell will support our continued growth in the power and energy industry,” said Dan McNulty, COO at Atwell. “We are excited to have them join our team to offer our clients coordinated, best-in-industry electrical testing solutions.”

CHAD CLINEHENS, from page 1

employees to transform concepts into tools like VR systems and sustainability calculators. HFA earned silver for its firmwide AI Search Assistant, while MAKE projects captured bronze for redefining how AEC firms blend finance and design strategy. Leadership and workforce evolution tied it all together. From the Rising Stars honored at the gala to the spotlights on Engineers Without Borders and ElevateHER, the focus was on people who are reshaping the profession and pushing it forward with purpose. At the same time, data revealed a growing generational gap – emerging leaders want faster innovation and greater adaptability, while senior leadership often hesitate to move at that pace. The challenge ahead is clear: building cultures and pipelines that not only attract top talent but also empower them to lead the industry into its next era. The awards gala was a show-stopping reminder of why this event matters. Amy Jones of O’Connell Robertson was surprised on stage with the Jerry Allen Courage in Leadership Award, which celebrated her people-first leadership style and steady guiding hand while her firm underwent transformational growth. The Best Firms to Work For once again proved that culture drives results, with Comprehensive Environmental, Campos Engineering, Patel, Greene & Associates, and Bowers+Kubota Consulting among those topping their categories. The Marketing Excellence Awards lit up the room as firms like Gilbert Architects, Garmann Miller, and Wood Rogers showed how creative campaigns fuel growth and visibility. And when it came time to reveal the No. 1 Hot Firm, Verdantas took the crown, capping a year of explosive growth that’s redefining what’s possible for private-equity-backed firms in the environmental space. By the time the lights dimmed at the Black Tie Gala, the message of ElevateAEC 2025 was undeniable – this is the AEC industry’s inflection point. Record-breaking performance, bold innovation, and a new generation of leaders who are redefining what’s possible in architecture, engineering, and construction. The firms that succeed from here won’t be the biggest or even the oldest. They will be the ones that move with clarity, agility, and purpose at the speed of business. For everyone in San Antonio, the charge was clear: buckle up because the future is arriving fast. Chad Clinehens is president and CEO of Zweig Group. Contact him at cclinehens@ zweiggroup.com.

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.

THE PRINCIPALS ACADEMY Elevate your ability to lead and grow your firm with this program designed to inspire and inform existing and emerging AEC leaders in key areas of firm management. Like a mini- MBA, this seminar is an impactful way to learn how to build your career and your firm. Join us Nov. 5-6 in Los Angeles, California. Learn more!

THE ZWEIG LETTER OCTOBER 6, 2025, ISSUE 1604

OPINION

F or architecture, engineering, and other professional services firms working with state Departments of Transportation, preparing a compliant overhead rate is a critical step in securing and maintaining contracts. Missed deadlines, unexpected costs, and rejected rates can derail a project before it even begins. Understanding the difference between FAR overhead audits and compilations helps AEC firms secure DOT contracts and avoid costly setbacks. FAR overhead audits vs. compilations

Robert Jones, CPA, CPCM

Whether your firm is new to government contracting or transitioning out of a Safe Harbor program, understanding the difference between a FAR overhead compilation and a FAR overhead audit, and preparing accordingly, can save time, reduce costs, and ensure timely approvals. WHAT IS A FAR OVERHEAD COMPILATION? A FAR overhead compilation is a financial statement prepared by a firm’s accountant that calculates the indirect cost rate (also known as the overhead rate) in accordance with the Federal Acquisitions Regulation (FAR) Part 31. This rate is used to determine allowable overhead costs that can be billed to government contracts. Unlike an audit, a compilation does not involve testing or verification by an independent CPA. Instead, it is a presentation of financial data provided by management, formatted to meet the requirements of FAR and the AASHTO Uniform Audit & Accounting Guide.

Some state DOTs, particularly for smaller or newer firms, may accept a compilation in lieu of an audit, especially for firms exiting Safe Harbor programs or those with limited government contract activity. WHAT IS A FAR OVERHEAD AUDIT? A FAR overhead audit is a formal examination of a firm’s indirect cost rate scheduled by an independent CPA. The audit must be conducted in accordance with Generally Accepted Government Auditing Standards (GAGAS), also known as the Yellow Book, and must evaluate compliance with:

FAR Part 31 cost principles

■

Cost Accountant Standards (CAS)

■

AASHTO Audit Guide requirements

■

State-specific regulations, where applicable

■

See ROBERT JONES, page 4

THE ZWEIG LETTER OCTOBER 6, 2025, ISSUE 1604

ELEVATE THE INDUSTRY®

Financial Reporting Services at a Glance

Financial Statement Preparation

Metric

Compilation

Review

Audit

CPA provides no assurance that there are no material modifications needed. To prepare financial statements pursuant to a specified reporting framework.

CPA provides no assurance that there are no material modifications needed.

CPA obtains limited assurance that there are no material modifications needed. To report whether the CPA is aware of any material modifications needed, primarily through inquiry and analytical procedures.

CPA provides reasonable (high, but not absolute) assurance that statements are free of material misstatement. To express an opinion on whether the financial statements are presented fairly in accordance with the reporting framework.

Level of Assurance

To assist management in the presentation of financial statements.

Objective

No (but lack of independence must be disclosed)

Yes

CPA Independence Required?

firm organize and prepare all necessary documentation and schedules before the audit. Key components include: ■ AASHTO Internal Control Questionnaire (ICQ) preparation. The ICQ is a required document that outlines your firm’s accounting policies, timekeeping procedures, and internal controls. It is reviewed by auditors and DOTs to assess risk and compliance. ■ Indirect cost rate schedule preparation. Your firm’s version of the Statement of Direct Labor, Fringe Benefits, and General Overhead must be prepared in accordance with the AASHTO Guide. This includes segregation of direct and indirect costs, identification of unallowable costs (FAR 31.205), and proper allocation of expenses. ■ Supporting documentation. Auditors will require access to payroll registers, timesheets, invoices, receipts, the general ledger, and executive compensation analysis. ■ Review of high-risk accounts. Certain accounts, such as travel, meals, advertising, and professional fees, are frequently scrutinized. A readiness review ensures these are properly classified and supported. ■ Reconciliation to financial statements. The overhead schedule must reconcile to your firm’s financial statements and tax filings. Discrepancies can trigger audit findings or rate disallowances. GET YOUR FIRM AUDIT-READY. Now that you understand the critical differences between a FAR overhead compilation and audit, the next step is to put that knowledge into action. In our 90-minute on-demand webinar , I personally walk you through a step-by-step guide to building a compliant and defensible indirect cost rate. My goal is to help you move from theory to practice. Learn how to assemble the right documentation, complete the AASHTO ICQ, and avoid the common pitfalls I’ve seen delay approvals and increase costs for firms like yours. This is the perfect next step toward FAR overhead audit readiness. Watch the webinar here . Robert Jones, CPA, CPCM is director of Outsourced Accounting Services – GovCon at Stambaugh Ness. Connect with him on LinkedIn .

ROBERT JONES, from page 3

The audit includes testing of labor distribution, unallowable costs, internal controls, and the accuracy of the indirect cost rate schedule. It results in an audit opinion and is often required for firms with larger contracts or those seeking a cognizant approval of their rate. The chart above demonstrates the key differences between various levels of financial reporting. Each level offers a different degree of scrutiny. WHEN IS A COMPILATION ACCEPTABLE? While each state DOT has its own policies, a compilation may be accepted when:

The firm is new to government contracting.

■

The firm is exiting a Safe Harbor program.

■

■ The firm’s contract volume is below a certain threshold.

■ The DOT has not designated the firm as high-risk.

However, even when a compilation is accepted, the firm must still comply with FAR Part 31 and be prepared for a future audit. That’s where audit readiness becomes essential. WHY AUDIT READINESS MATTERS. Whether your firm is preparing a compilation or an audit, the accuracy and completeness of your indirect cost rate schedule are critical. Auditors are prohibited from preparing the same financial statements they audit, due to independence rules under GAGAS. This means that if your CPA auditor has to assist in preparing your indirect cost rate schedule, it can:

Delay the audit

■

Increase audit costs

■

Disrupt the auditor’s schedule

■

■ Cause missed DOT submission deadlines To avoid these issues, many firms engage in a FAR Overhead Audit Readiness project before the audit begins. WHAT’S INCLUDED IN A FAR OVERHEAD AUDIT READINESS PROJECT? A FAR overhead audit readiness project helps your

THE ZWEIG LETTER OCTOBER 6, 2025, ISSUE 1604

FROM THE FOUNDER

Failure is not good!

Don’t take a cavalier attitude toward potential disaster, but recognize that experimentation is essential for building a growing, successful company.

I have had some thoughts recently that I wanted to get out there. One of my pet peeves is the constant talk on podcasts or articles I see about how great it is to fail. “Fail early, fail often.” I always take exception to that. My goal both here and as a teacher at the Walton College of Business at the University of Arkansas is to help our readers and my students NOT fail. Failure is expensive! You can ruin your credit and your reputation. And it can be devastating to your psyche. Not to mention you will also probably hurt other people who lose their jobs or don’t get paid.

Mark Zweig

“But we learn more from our failures than we do our successes,” you might say. Sure – you can learn a lot from failure, but it’s awful. Learn from the mistakes of others so you don’t fail. Besides that, I also prefer living by the mantra that, “If you never give up, you will never fail.” That said, what I really think many of the “failure advocates” (for lack of a better term) are really saying is, “Don’t be afraid to experiment.” Experiments that don’t work out – as long as you don’t bet the entire farm at once – are not “failures.” These are just things you tried that didn’t get the results you needed so you pulled the plug on it. And experiments ARE necessary if you want to run a growing, successful company that evolves over time.

You may be asking, “What kind of experiments?” In an AEC firm context, many come to mind. First and foremost, experiments in marketing. What are you trying there that you didn’t do before? Are there any new tactics? Using AI for different website experiences based on what a specific visitor is interested in? Being much, much more active with your email program? Doing a podcast or video series? Doing weekly messages from your CEO on video that you share on social media? Trying out a new working visibility program with wrapped or branded company vehicles and better signage? Having a manned 24-hour “hot line” for clients to call who are

See MARK ZWEIG , page 6

THE ZWEIG LETTER OCTOBER 6, 2025, ISSUE 1604

ELEVATE THE INDUSTRY®

BUSINESS NEWS AECOM SELECTED TO

DELIVER

“This appointment builds on our track record of delivering complex, high- profile developments that shape the cities of tomorrow,” said Jason Kroll, chief executive of AECOM Arabia. “Our integrated team brings deep regional experience, digital delivery capabilities and industry-leading expertise in sustainability, and we look forward to collaborating with our partners to bring this world-class destination to life.” AECOM will deploy advanced digital project management tools, data-driven dashboards and lean construction methodologies to optimize project tracking, enhance stakeholder communications, and proactively mitigate risks – setting new standards for project delivery in the region. AECOM is the global infrastructure leader, committed to delivering a better world. As a trusted professional services firm powered by deep technical abilities, AECOM solves clients’ complex challenges in water, environment, energy, transportation and buildings. PERINI MANAGEMENT SERVICES, INC. ANNOUNCES TWO PROJECTS COLLECTIVELY VALUED AT $48.9 MILLION Tutor Perini Corporation, a leading civil, building and specialty construction company, announced that its subsidiary, Perini Management Services, Inc., is underway with work on two new projects that were awarded earlier this year.

The Barrier System Repair at Royal Air Force Lakenheath, United Kingdom project was awarded as a task order under the United States Air Force’s Worldwide Engineering & Construction contract. The project includes civil, mechanical, electrical, and paving scopes of work involved in the design and construction of security fencing; aircraft, vehicle, and pedestrian gates; infrastructure to support surveillance equipment; and patrol roads. Work began in February 2025 and substantial completion is anticipated in the fall of 2026. The Rio Bayamon Housing Infrastructure, Utilities, and Resiliency in Puerto Rico is a design-build project that will improve the resilience of the electrical and water storage infrastructure and distribution at the Rio Bayamon Housing site. The scope of work includes construction of new access roads, security fencing and gates, patching existing roadways and curbs for the new electrical distribution, and resiliency work, in addition to providing a new utility building, water storage tank, selective demolition, and improvements to existing storm drainage piping. Work began in January 2025 and substantial completion is anticipated in the spring of 2027. 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.

PROJECT AND ENGINEERING SERVICES FOR THE AVENUES – RIYADH PHASE II AECOM, the trusted global infrastructure leader, announced it has been appointed by Shomoul Holding Company as the Project Management Consultant and engineer for Phase II of The Avenues – Riyadh, a transformative mixed-use development in North Riyadh City, Saudi Arabia, following the successful delivery of The Avenues Phase I. The Avenues aims to be one of the most prominent commercial and investment destinations in the Middle East, elevating Saudi Arabia’s position as a regional hub for business, innovation and lifestyle. MANAGEMENT “We are honored that Shomoul Holding Company has entrusted us to extend our key role on The Avenues - Riyadh,” said Hamed Zaghw, chief executive of AECOM’s Middle East and Africa region. “This award is a testament to the transformational outcomes we are delivering for our clients across the Kingdom, and we are excited to shape a development that aligns with Vision 2030 and sets a new benchmark for mixed- use environments in the Middle East.” Valued at over $4 billion, the project spans 1.870,000 square meters of built- up area and 370,000 square meters of leasable area. It will include a luxury shopping mall and five towers featuring mixed-use functionalities. It is scheduled to open in early 2026.

They are two different things. “Failure” means major business failure to me. I do not subscribe to the theory that one of my guest speakers once told my students, that “everyone who is a millionaire has gone broke at least once.” That’s BS. In fact, very, very few of the wealthiest and most successful people I know in this business (or any other business) have ever gone broke. We don’t want to have a cavalier attitude toward potential disaster. That is just not smart. But experimentation – trying new things continuously – is essential. That shouldn’t be discouraged. We don’t want our people afraid to try new things for fear of reprimand or losing their jobs. We need to encourage that because every so often one of those experiments will yield a major breakthrough. Do enough of them and odds are you will make a major discovery that can positively impact the future of your business. Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

MARK ZWEIG , from page 5

having a problem? Adopting new branding? Creating a whole new service package and selling it like a product? Selling free or low cost audits of a client’s facilities as a way to get an “in”? Marketing requires constant experimentation. It won’t all work but the downside risk of an experiment not working out is usually pretty low. Or what about people and organization? Running a business requires constantly evaluating whether or not you have the right people in the right roles. Have you done any experiments trying specific people out in new roles? Have you promoted anyone who is not ostensibly “qualified” for the job? Have you brought in someone new to add a whole new service line? Have you created an all-new role for someone to get something done that you really want to get accomplished? These are all experiments that may or may not work out. I could go on here but the message is this: Don’t confuse failure with experimentation – for your people or yourself.

THE ZWEIG LETTER OCTOBER 6, 2025, ISSUE 1604

OPINION

Healthy rivalries fuel collaboration and innovation, ultimately benefiting communities and strengthening the AEC industry. Courage, confidence, and competition

I n the world of water and wastewater engineering, where the stakes are high and the challenges are complex, competition often gets a bad rap. It’s easy to view rival firms as obstacles to success – barriers to winning bids, securing funding, or gaining recognition. But in truth, healthy competition is one of the most powerful forces driving innovation, collaboration, and ultimately, community benefit in the AEC industry.

Brian Shannon, PE

As engineers, we are trained to solve problems. We thrive on constraints, on pushing the limits of what’s possible, and on delivering solutions that are not only functional but sustainable and resilient. When we compete – especially in a healthy, respectful way – we sharpen those skills. We challenge each other to think bigger, design smarter, and build better. And in doing so, we elevate the entire industry. COURAGE TO COMPETE. It takes courage to enter a competitive arena, especially when the outcome is uncertain or if you’re a smaller firm going up against a bigger one. Whether it’s a design-build proposal, a public-private partnership, or a municipal infrastructure upgrade, the process of competing demands vulnerability. We put our ideas, our

reputations, and our values on the line. Some firms won’t compete on certain projects because they’re afraid of losing. But while losing is never fun, it makes the wins even better. We’ve proven that at Garver. We’ve gone up against the biggest firms in the country, and we’ve beaten them. That’s the kind of reward worth the risk. The truth is competing isn’t easy but most good things in life do not come easy. Courage is what fuels progress. It forces us to ask hard questions like, “Can we do this more efficiently?” This doesn’t just lead to better proposals – it leads to better projects. CONFIDENCE IN OUR ABILITIES. Healthy competition

See BRIAN SHANNON, page 8

THE ZWEIG LETTER OCTOBER 6, 2025, ISSUE 1604

ELEVATE THE INDUSTRY®

When we do need to team up with a competitor for whatever reason, it should bring value to our client. If I already have a relationship with a competitor, I’m very comfortable calling them and having a conversation regarding upcoming opportunities, sharing our knowledge, and getting their opinion on projects or pursuits. For the past 25 years, I’ve built relationships within the industry, and those have served Garver, our clients, and our communities well. Having these enduring relationships also gives me insight into how our competitors think so that when we partner with them – or go head-to-head – I don’t have to read their minds. COMMUNITIES ARE THE REAL WINNERS. At the end of the day, the true beneficiaries of healthy competition are not the firms that win the contracts or the engineers who get the accolades. The real winners are the communities that gain access to clean water, reliable sanitation, and resilient infrastructure. When competition drives us to innovate, to exceed standards, and to deliver lasting value, it’s the public that reaps the rewards. That’s why we need to foster a culture of courageous, confident, and constructive competition in the AEC industry. Not for the sake of ego or market share, but for the sake of the people who depend on our work every day. Brian Shannon, PE is East Region Water Director at Garver. Connect with him on LinkedIn.

BRIAN SHANNON, from page 7

also builds confidence – not just in ourselves, but in our teams and our industry. When we see our peers delivering exceptional work, it inspires us to rise to the occasion. It reminds us that we are part of a dynamic, evolving field. That confidence is contagious. It empowers junior engineers to speak up and share their ideas; it encourages innovation; and it reassures clients and communities that they are in capable hands. When our junior engineers see us challenging the status quo, tackling complex multi-discipline projects, and contributing big-time to industry organizations, they feel inspired and energized. Empowering them to lead these efforts before they feel fully ready helps build their confidence, accelerating both their career growth and progress within the water industry. COLLABORATION THROUGH COMPETITION. Ironically, some of the most impactful collaborations I’ve experienced have emerged from competitive environments. The drive to deliver maximum value to our clients has brought together firms that might otherwise never have worked side by side. In these settings, competition doesn’t divide – it unites around a shared goal: delivering the best possible outcome for the people we serve. In water infrastructure, that might mean we partner with a firm that has expertise in an area that we do not, such as rate setting, geotechnical engineering, or subsurface utility investigation. These are not just technical challenges; they are human ones. And when we compete to solve them, we all win.

THE ZWEIG LETTER OCTOBER 6, 2025, ISSUE 1604

OPINION

Practical insights and recommendations for creating, communicating, and maintaining an effective AI policy. Creating an AI company policy

Technology update brought to you by

W hen we first explored artificial intelligence at HLB, like many in the architecture, engineering, and construction industry, we approached it with excitement and caution. Implementing AI offered incredible potential, but the risks quickly became evident. If your firm does not yet have an AI policy, learn from our experience and establish one as soon as possible. Here are practical insights and recommendations to guide you through creating, communicating, and maintaining an effective AI policy.

Erik Stroemberg

PLANNING. In the wake of ChatGPT 3.5’s release in November 2022, when the world saw just how transformative AI could be, we moved quickly. By February 2023 we had assembled a dedicated AI team that blended HLB’s strategic vision with deep technical and educational expertise. Within weeks, this small group began researching trends, evaluating tools, and translating insights into clear, actionable guidance. Having one point of contact within our AI team helped us to drive consistency and kept our strategy aligned

and accessible, accelerating the understanding and potential for this technology within HLB. Next, the team generated and deployed our AI policy with a focus on speed over perfection. We knew it was more important to get a solid baseline in place, something clear but not overly granular, than to wait for every detail to be perfect. Policy creation was not limited to leadership or IT – open, cross- disciplinary conversations, together with advice from our legal team, brought forward diverse perspectives

See ERIK STROEMBERG , page 10

THE ZWEIG LETTER OCTOBER 6, 2025, ISSUE 1604

ELEVATE THE INDUSTRY®

judgments.” By keeping the disciplinary structure consistent, we eliminated ambiguity and reinforced that AI use is held to the same professional standards as other core responsibilities. We also learned that hard-coding specific tools into the policy didn’t work. The pace of AI software evolution made that approach impossible to maintain. We replaced it with a dynamic list of approved tools that live outside the main document and are revised regularly. This gave us flexibility while maintaining oversight and consistency. Data privacy was a foundational pillar. We clearly defined what information could never be shared with AI systems depending on whether it is a public LLM or a secure internal environment, while also distinguishing the difference between the two. We cautioned teams that while public AI tools are easy to access, they often harvest your inputs to improve their models, so using unauthorized chatbots can expose sensitive company data. Prompts themselves were treated as intellectual property, protected just like code, specifications, and client deliverables. Underlying all of this remains one core principle: human judgment remains essential. Our policy makes it clear that AI is a support tool, not a replacement for expertise. Every AI-assisted output must be reviewed for accuracy, bias, and alignment with our values, ensuring the work we deliver remains thoughtful, ethical, and high quality. FOLLOW THROUGH. A rigid policy can stifle creativity, while a vague one invites risk. We invest time in finding language that sets clear expectations and still encourages thoughtful exploration. Teams are invited to evaluate new workflows within safe boundaries, so innovation flourishes without compromising data-security, oversight, or quality. We hope these insights help you as you develop your own policy. We are still refining our own as a work-in-progress document – identifying gaps, rolling out additional training to ensure alignment across offices, and preparing to revise our guidelines as both market tools and our in-house solutions evolve. If you are debating whether to start, do not wait. You do not need perfection on day one. Give your team a structure for responsible AI use, gather feedback, and iterate. As technology matures, your plain-language instructions will evolve into automated workflows that drive geometry, populate schedules, and produce client-ready deliverables. Decide early where AI adds speed and insight, and where human intuition remains non-negotiable. Teach emerging staff the reasoning behind these choices so they build the judgment that senior reviewers rely on during QAQC. The richer the context you supply, the more accurate, personal, and valuable the AI’s response becomes, keeping you firmly in control while extending your reach throughout every project phase. Erik Stroemberg is an associate director and BIM manager at HLB Lighting. Connect with him on LinkedIn.

ERIK STROEMBERG , from page 9

on risks, opportunities, and practical needs. Through broad engagement and insights we gathered, we shaped a policy that anticipated how teams might work while leaving room to refine and expand as new tools emerged. We also ensured that the scope of the policy applied not only to chatbot interactions but also to AI image generation and AI meeting note takers, covering internal and external communications. Finally, before diving into specific tools or technologies, we made sure our AI team understood the current capabilities of AI and its rapid trajectory. We then organized collaborative workshops and pilot programs, carefully selecting participants who were quick learners and natural cheerleaders for the initiative. These sessions combined workflow mapping with the development and testing of well-thought-through prompts, helping us outline a solid strategy. We ensured that valuable data was collected throughout these pilots, measuring time taken, effort level, and quality compared to baseline methodologies. Through this hands-on exploration we identified where AI could boost speed and innovation and where we needed to keep human expertise firmly at the core of decision-making and quality control. These exercises gave us more context and insights into future revisions to the policy. “We invest time in finding language that sets clear expectations and still encourages thoughtful exploration. Teams are invited to evaluate new workflows within safe boundaries, so innovation flourishes without compromising data-security, oversight, or quality.” IMPLEMENTATION. We quickly discovered that an instructional PDF document doesn’t drive change. Real implementation came only when we committed to onboarding, ongoing education, demonstrating approved use cases, and creating space for discussion. That integration of policy into everyday practice made a meaningful difference. It wasn’t about getting signatures on policy documents; it was about building a shared understanding of the reasoning behind each of the provisions. When it came to AI-generated content, we communicated a clear analogy: treat outputs like junior staff work. Even when something looked polished, it could contain hidden inaccuracies, hallucinations, bias, or missing context. To protect quality and maintain trust, we implemented independent review processes for AI-assisted work regardless of the user’s experience level. One important decision during the development of our AI policy was aligning the consequences of misuse with our existing IT and HR policies. The policy also complements these documents; for example, it states that “AI should not be the primary decision-maker for any employment-related

THE ZWEIG LETTER OCTOBER 6, 2025, ISSUE 1604

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