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In This Issue:
ACEC Welcomes New President,
Mr. John Gamble, P.Eng.
The Association of Consulting Engineering Companies is very pleased to introduce John Gamble, P.Eng. as the new President and Chief Operating Officer of ACEC. John will be joining the ACEC team on October 5, 2009.
John Gamble has been president of Consulting Engineers of Ontario for nearly eight years where he has been an effective association manager and a well respected advocate of the industry.
His strong support of ACEC and his collaborative approach with the member organizations has been evident over the past several years. When called upon, he has enthusiastically taken on many initiatives on behalf of ACEC including the procurement task force and ACEC relationship manager for organizing the 2008 FIDIC conference in Quebec City. The Board has previously recognized John's contributions by making him a co-recipient of the first ACEC Chairman's Award in 2006 for his leadership in promoting QBS.
John's background prior to joining CEO is quite unique - blending government affairs and association management with nearly ten years experience as a practicing engineer in the consulting engineering sector. Following is a brief summary of his career:
- Environmental Engineer with Gore & Storrie Limited (now CH2M Hill Canada) - 1987 to 1996
- Policy Advisor and Special Assistant to the Ontario Minister of the Environment - 1996 to 1999
- Manager of Government Affairs, Professional Engineers Ontario - 1999 to 2001
- President, Consulting Engineers of Ontario - 2002 to 2009
In summary, John possesses the key qualifications and competencies required for the position of President and Chief Operating Officer of ACEC:
- National and international recognition as an effective and articulate advocate of the engineering profession and the consulting engineering industry
- In-depth knowledge of and a proven commitment to the mission, objectives and programs of ACEC
- Demonstrated success in relationship building with the ACEC Board and staff; member firms and member organizations; and external stakeholders
- Directly applicable skills, knowledge and experience from successful careers in not-for-profit association management, government affairs and consulting engineering
Please join us in welcoming John to the leadership of ACEC.
ACEC Brief to Parliament
Over the past several years, ACEC has been invited to appear before the House of Commons Standing Committee on Finance to present its views on how the Government can best invest in Canada’s infrastructure. Below is a summary of ACEC’s recommendations to the Parliamentary Committee this year.
For more information concerning ACEC’s advocacy position, please contact Susie Grynol, Director of Public Affairs and Business Practices at sgrynol@acec.ca or by calling 1-800-565-0569.
EXECUTIVE SUMMARY
The Committee has asked stakeholders to comment specifically on the 2 following questions:
1. What federal tax and program spending measures are needed to ensure prosperity and a sustainable future for Canadians from an economic, social and/or environmental perspective?
2. What federal stimulus measures have been effective and how might relatively ineffective measures be changed to ensure that they have the intended effects?
ACEC is happy to address both questions through three specific recommendations, and offers some commentary on the current situation from our sector’s perspective as background.
RECOMMENDATIONS
Recommendation 1: Put in place, or augment, a mechanism that will ensure long term, predictable, stable infrastructure funding.
Recommendation 2: Reorient Canadian international assistance funding to put a greater focus on project-based investments, and consider a long-term increase in Canada’s international assistance budget.
Recommendation 3: Extend the March 31, 2011 deadline for completion of the current stimulus-funded infrastructure projects by at least one year.
BACKGROUND
The Current Economic Climate
Clearly the global economic downturn has impacted Canada. However, the consulting engineering industry in Canada appears to be weathering the storm. Although official up to the minute industry-wide data is difficult to obtain (Statistics Canada data released in mid-2009 provided revenue, operating, and other data only from 2007), ACEC member firms have generally reported that their work volumes have been relatively stable over the past year. Weaknesses have been reported in sectors of the industry that have business with private sector clients, but this weakness has appeared to be counterbalanced by public sector projects.
There are, however, concerns over the ability of the consulting engineering industry to sustain this economic stability. With the overall economic downturn, projects that may have required design work over the next several months or years have recently been shelved or postponed. There is an additional concern that once the short-term funding from the stimulus measures has been exhausted, there will be a corresponding slump in those industries that have benefitted from the stimulus measures, such as the consulting engineering sector. As a result, ACEC is anxious to work with the federal government to introduce measures and policies that will assist in addressing any potential negative pressures.
Tax and Spending Measures
ACEC is cognizant of the spending and tax constraints in which the federal government currently finds itself. With a $50 billion deficit forecast for the current fiscal year, and with further deficits forecast in the years ahead, the federal government will be limited in terms of its spending ability. Despite these hurdles, ACEC believes there are two areas where the federal government can help to create a more sustainable economic, social, and environmental future – ensuring long-term, sustainable infrastructure funding, and reorienting Canada’s foreign aid delivery system.
Celebrate excellence at the
2009 CCE Awards Gala!
On November 3rd, ACEC will be hosting its annual Canadian Consulting Engineering Awards at the Chateau Laurier in Ottawa, Ontario. The Awards Gala brings together the best and the brightest of the consulting industry for an evening of entertainment to celebrate the year’s most ground-breaking and forward thinking projects.
The celebration is also a premiere networking event with many members of parliament and industry officials among the attendees.
This year’s entertainment is bound to heat up the room with rhythm and flare. Flamenco dancers will grace the stage accompanied by live musicians displaying what is known as one of the most passionate Spanish traditions.
Awards being handed out again this year: the Beaubien Award bestowed to an individual who has demonstrated exceptional work as a member of the Association of Consulting Engineering Companies and for contributions to the advancement of consulting engineering through professional accomplishments; and the “Tree of Life” Award honouring the firm that has excelled in environmental engineering and design. Other award categories include Building; Transportation; Water Resources & Energy Production; Environment; Studies, Software & Special Services; Project Management; International and Community Outreach and In-House Initiatives.
For ticket information, contact Sylvie Rioux at 1-800-565-0569 or events@acec.ca.
QBS GAINS MOMENTUM IN CANADA
Canadian Standards Association developing procurement training based on InfraGuide
The Canadian Standards Association (CSA), under the auspices of its Infrastructure Solutions Program, recently accepted a proposal from the Association of Canadian Engineering Companies to work collaboratively on the development of a course for procurement officers on how to implement a qualifications-based (QBS) procurement system for selection of professional consultants. The course will be based on the recommendations contained in the InfraGuide Best Practices document on Selecting a Professional Consultant, but will go much further than the InfraGuide document by providing instruction on how to prepare proper requests for proposals, determining quality evaluation criteria and scoring systems, incorporating sustainability and lifecycle costing into the evaluation, and negotiating equitable fees and remuneration. The course will be web-based, and will be available to anyone involved in the procurement of consultants in both the private and public sector, and around the world.
Parliamentary Committee recommends adoption of QBS
The House of Commons Standing Committee on Government Operations and Estimates has issued a report to Parliament entitled “In Pursuit of Balance: Assisting Small and Medium Enterprises in Accessing Federal Procurement”. The report called for 5 goals to be incorporated into PWGSC procurement practices. One of these goals is stated as follows: “Allowing innovation and quality to be key selection criteria”. The report goes further, recommending that PWGSC “consider the merits of legislating the use of Qualifications-Based Selection (QBS) as the required procurement process”.
During the Committee’s consultations, the consulting engineering sector was represented by former ACEC Chair Andrew Steeves and CEO President John Gamble who had urged the Committee to recommend QBS as the preferred procurement system for professional consultants procured by Public Works and Government Services Canada (PWGSC). Given that federal departments directly procure billions of dollars worth of infrastructure and building services, it is in the best interest of the federal government to ensure maximum value, including lifecycle value, for those dollars it spends. ACEC convinced the Committee that evidence shows that the best way to do this is by procuring consultants using QBS.
The Committee’s report to Parliament is an unprecedented endorsement of QBS by federal politicians. ACEC hopes to follow up with PWGSC Minister Christian Paradis and his officials to pursue the recommendations of Parliamentary Committee report. The full text of the report can be found at http://www2.parl.gc.ca
APWA Study confirms QBS works: Provides best benefit to owners
The results of a recent study conducted for the American Public Works Association (APWA) and the American Council of Engineering Companies (ACEC-US) clearly demonstrates the substantial benefits to taxpayers and to both public and private sector clients of using QBS to select engineering and architectural consultants.
The study was conducted for APWA and ACEC-US by researchers at the Georgia Institute of Technology and the University of Colorado. The researchers reviewed over 200 projects representing a variety of procurement and delivery models.
Not only does the study show increased client satisfaction when using QBS, it also proves that QBS results in fewer change orders and delays on projects, which lowers overall cost, litigation, and delays. For instance, the study found that cost growth during construction is typically around 10% of a project; while on QBS procured projects, this cost was reduced to 3%. These findings, when extrapolated to a project with a $10 million construction budget, demonstrate a potential savings of $700,000 when using QBS.
The APWA study also demonstrated that risk was lowered for both owner and consultant – particularly for more complex projects. Furthermore, QBS encourages greater innovation in design. Perhaps more importantly, QBS provided greater opportunity to accommodate local sensitivities and societal needs.
This study supports ACEC’s contention that QBS allows projects to be planned and designed in a much more sustainable fashion, where the environmental footprint and lifecycle cost is much lower. Lifecycle costs are an extremely important consideration when one considers that engineering and design represents 1-2% of a project’s total cost, while operation and maintenance represents 80 to 93% of the total project cost.
Canadians make their mark at FIDIC conference in the UK
Nearly 30 Canadians will be attending the annual conference of the International Federation of Consulting Engineers (FIDIC) from September 13 to 16 in London. Among the Canadian delegation are ACEC’s Chair, Andy Robinson, and several members of the Board, MOs and ACEC staff. This year’s 2009 conference is of special interest to Canada because it follows last year’s enormously successful 2008 conference hosted by ACEC and AICQ in Quebec City. Also, it marks the end of Canadian John Boyd’s eventful and influential term as FIDIC president.
The annual FIDIC conference is the largest and most important international forum for the consulting engineering sector - bringing together eminent international speakers representing clients, industry, government, funding agencies, consultants, and engineers. Over 600 delegates and other guests will discuss and debate how the consulting engineering industry can take the lead in planning and delivering sustainable solutions to the global challenges facing the world's infrastructure. The theme of this year’s conference in London is Global Challenges – Sustainable Solutions. Today's financial crisis and the ensuing recession provide the backdrop to the urgent global issues that will be addressed at the FIDIC 2009 London Conference.
In addition to John Boyd presiding over many of the major conference events, a number of other Canadians are also playing key roles in the conference. AICQ President Johanne Desrochers will be making a highly anticipated presentation on QBS developments in Canada – including the recent legislation by the Quebec Government. Johanne will also be chairing one of the concurrent panel discussions. Senior ACEC staffer, Susie Grynol will be sharing the development and evolution of ACEC’s video and student outreach project with association managers from nearly 60 countries at the Directors and Secretaries Meeting. Current CEO President, and soon to be ACEC president, John Gamble is one of two co-chairs for this year’s Directors and Secretaries Meeting. John will also be participating in the organizing committee for FIDIC’s centenary conference to be held in 2013. Former ACEC Chair Andrew Steeves will also be attending meetings of FIDIC’s QBS Task Force.
Find more conference and registration information at www.fidic2009.org
Special events for ACEC members in London
For the benefit of its members attending the FIDIC conference, ACEC has organized a couple of special events to promote and showcase the Canadian consulting engineering sector.
Business Development Information Session at the High Commission
ACEC in cooperation with the Canadian Government has arranged an information session on possible business opportunities in the UK and Europe hosted by the Canadian High Commission in London. Presenters will include representatives from:
- The High Commission of Canada
- Canadian Trade Commission Service (TCS)
- Think London
- European Bank for Reconstruction and Development (EBRD)
This event, arranged specially for members of ACEC, will take place on Monday, September 14, 2009 at Canada House in Trafalgar Square. ACEC and the Canadian Government expect to organize a similar event for the 2010 FIDIC conference in New Delhi, India.
A Celebration of John Boyd’s two years as FIDIC President
ACEC will be hosting an informal celebration with Canada’s own John Boyd on his final evening as FIDIC president – Tuesday, September 15, 2009. The Canadian delegation, together with special guests, will gather at the Audley Pub to honour John and celebrate his successful term..
ACEC officially kicks off its
“Engineering Legacies” campaign!
ACEC is proud to announce the official kick off of its much anticipated video campaign entitled Engineering Legacies!
The Task Force has worked very hard over the last month to finish the French portion of the video website which can now be viewed at www.legeniededemain.com. With the help of ACEC’s French counterparts, L’association des ingenieurs-conseils du Quebec, ACEC was able to successfully capture some most impressive projects in the province of Quebec, and Algeria. A French highlight reel was also completed as a teaser for the entire series. Promotional material is also now available in both official languages and will be used extensively to promote the project over the coming months.
Also new on both sites, are links to three major social networking sites: Facebook, Youtube and Twitter where ACEC has established a presence for students to participate in forums, network with fellow engineering students and ask questions pertaining to our industry. ACEC will be consulting social media experts in the coming weeks, in order to successfully maximize the benefits of the ACEC social media campaign.
The Engineering Legacies campaign began touring the country this month with its first stop in New Brunswick to speak to 1st year engineering students. There ACEC presented with ACEC-New Brunswick to a first year student audience. Presentations included three orientation sessions where ACEC discussed consulting engineering as a career option upon graduation. As suspected, many students were learning about consulting engineering for the first time.
“This was the first video I’ve seen coming out of high school that gave me a real visual about engineering and more importantly what consulting engineering is all about”, said Sean Carson, first year engineering student at the University of New Brunswick.
The tour will continue through the Atlantic Provinces this September and October with stops in St. John’s, Newfoundland at Memorial University and Dalhousie University in Halifax, Nova Scotia. ACEC Member Organizations from Central and Western Canada will also be participating in a variety of university events this fall, namely career fairs and information sessions.
Over the winter, ACEC will also be participating in the two major annual engineering student events: the Canadian Federation of Engineering Students conference taking place at McMaster University in Hamilton, Ontario; and the Canadian Engineering Competition at the University of Toronto. Both events will take place this January and February.
“I am very excited about the potential of this outreach campaign. I think students are learning for the first time what a consulting engineer actually does and that it can be a viable career choice for many students,” said Kyle Ruttan, President of the Canadian Federation of Engineering Students after to speaking to ACEC about its participation again this year in their conference.
Success of the campaign will continue to be measured via the collection of surveys and anecdotal feedback from students and presenters.
By means of the Engineering Legacies campaign, ACEC hopes to reach and inform every engineering student in Canada about the amazing opportunities our industry has to offer for young people and to make it their number one career choice right out of university.
Once again, ACEC would like to thank its valued sponsors for their generous support and belief in this project. Sponsors can be viewed at www.engineeringlegacies.com under “Sponsors”.
For more information about the “Engineering Legacies” campaign, please contact Susie Grynol, Director of Public Affairs and Business Practices at sgrynol@acec.ca or 1-800-565-0569.
New ACEC Resource Centre
In order to provide ACEC members with ongoing economic and business information, a resource centre has been created as a new section on the ACEC website which will feature white papers, articles on the industry, webcasts and other links provided all by ACEC corporate partners.
The link: http://www.acec.ca/en/services/resource.asp
Featured in the Resource Centre is ACEC’s long-time loyal Platinum Partner Encon who is celebrating its 40th anniversary this year with ACEC and who continues to be a valued partner of the association. Four other ACEC Corporate Partners also featured on the site include RBC Financial, Reed Construction Data, Deltek and Export Development Canada. Links to individual homepages provide more information for members on the value these partners bring to the association and to the industry.
Three things to check out this month on the Resource Centre:
- RBC Financial – “Who Turned Out the Lights?” a white paper that explores the massive potential for growth not only in North America but around the world and outlines some strategies that can help your business hit the ground running.
- Deltek – “Metrics that Matter: Keep Your Eye on the Ball and Reach Your Goals in a Challenging Environment” – a white paper that looks at the impact of the current economic downturn, policy measures that are being taken to address it, and how engineerin gfirsm can survive and in fact take advantage of the current downturn.
- Export Development Canada – “Tips for surviving the downturn” – an article which offers tips on how to emerge on top in the current economic climate in Canada and abroad.
Watch for new items in the Resource Centre by visiting:
http://www.acec.ca/en/services/resource.asp
How to Grow Your Firm in This
“Suddenly Better”
Economy Article by PSMJ
In a survey last month to 284 CEO members of the Design Firm Leadership Roundtable group on the Linked In networking site, 39 percent said things will be BETTER by December 31, 2009, 48 percent said things will be ABOUT THE SAME, and unlike three months ago only 11 percent think things will be WORSE by year end (2 percent had no opinion).
This is a dramatic POSITIVE shift in sentiment likely based on the suddenly rapid increase in the number of proposal opportunities seen across the United States in the past three to four months by most AEC firms. Whatever you think things will be like in five months, here is some PSMJ advice to ponder right now as you approach year-end strategic planning for your firm.
If you think things will be better by December 31, you should:
- Upgrade your staff IMMEDIATELY by stealing every great person you can from everywhere BEFORE the industry gets going again, including PARTNERS and PRINCIPALS from other firms.
- Make that ACQUISITION you’ve been debating about. Do it NOW while prices are still low.
- Lock in a 5- to 10-year commitment from your bank on your line of credit interest rate before rates goes through the roof.
- Lock in your space lease rate for 10 years.
- TRAIN all your people NOW on project management while things are still somewhat slow so EVERYONE is in prime form as things get busier.
If you think things will be about the same by December 31, you should:
- Get even more personal with past clients. PERSONALLY telephone them just to stay in touch.
- INVENT new consulting ‘products’ to help your clients with other aspects of their business.
- Expand GEOGRAPHICALLY but slowly, taking what you do locally very well to a new place. Pay attention to your HIT RATE as you expand.
- Focus on CHARGEABILITY and YOUR MULTIPLIER, making everyone chargeable. Get rid of non-chargeable people.
- Enhance your proposals even more adding MORE VALUE to each proposed task. Do NOT cut price. ADD VALUE.
If you think that things will get worse by December 31:
- Go immediately to a four-day work week, cutting compensation by 20 percent and rotating two teams’ days off on Monday and Friday so your office is ALWAYS open.
- Contract out all non-billable activities like accounting and eliminate staff in those categories, saving all fringe benefit costs.
- SELL the company now before things get worse.
- Increase your bank line of credit now using historically better financials than you’ll have at year end.
- Terminate ALL non-billable PRINCIPALS. After all, they cost the firm the most to keep.
Whatever you think the industry condition will be by December 31, 2009, there is one CERTAINTY: Things will probably NEVER be like they were in 2007 again. Our whole AEC industry is about to be re-invented with new and younger people at the controls, with new technology emerging to the forefront like BIM and use of SOCIAL NETWORKS, and constant BlackBerry communications 24/7, all shaping an industry going through MASSIVE Baby Boomer-driven recapitalization over the next decade.
What will emerge will be a leaner and completely different profession made up of global joint ventures, huge consolidators (AECOM and Stantec), tiny specialists able to deliver all over the world, linked experts working at home, private/public partnerships, new players, and younger, more agile clients eager to embrace everything new. All of this happening at a time that America faces insurmountable deficits, crumbling infrastructure, and exploding non-English population growth.
Who will emerge as the NEW FIRMS and NEW LEADERS in our industry? BOLD RISK-TAKING will be needed and historically that does not come from older, more mature firms or owners. Try to remember the names of the top design firms of the 1980s that no longer exist if you can. Real change comes from the naïve boundless energy of younger, more energetic entrepreneurs who know no better than to take a risk and start up.
The biggest challenge facing CEOs right now is to UNLEASH the young…and SHED the old…at a time when business is down. But the world has always faced this dilemma, hasn’t it?
Do you have the courage to do it in your firm?
Industry News
Canadian Society for Civil Engineer’s signs Civil Engineering and Climate Change Protocal with American and British engineering societies
Golder Associates Ltd. is pleased to announce Mr. Mark Brightman, as President of the firm’s Canadian operations
HDR Acquires iTRANS
Trow Global Ranks amongst top 150 Global Design Firms
Coming Events
November 3, 2009
Canadian Consulting Engineering Awards
Château Laurier, Ottawa, ON
For more information, please contact the ACEC office at 1-800-565-0569.
December 10-11, 2009
PSMJ Management
Project Manager's Bootcamp
Toronto, ON
For more information, please contact the ACEC office at 1-800-565-0569.
June 23-26, 2010
ACEC Summit
St. Andrew’s, NB
For more information, please contact the ACEC office at 1-800-565-0569.
Other Events
Various dates and cities across Canada
Building Information Modeling (BIM) Integration Tour
For more information, click here.
September 16-18, 2009
CDBI National Design-Build Conference 2009
Perfect Partnerships to Weather the Storm
Chicago, IL
For more information, click here.
September 23, 2009 (Toronto) & September 24, 2009 (Calgary)
Deltek: Wine and Wisdom Event
Gain a better understanding of the key metrics surrounding AE Firms and how to leverage them to reduce risks
For more information, click here.
October 6, 2009
EDC Seminar: “Doing Business in the US”
Vancouver, BC
For more information, click here.
October 6-9, 2009
The Application of Computers and
Operations Research in Mineral Conference
Ottawa, ON
For more information, click here.
November 22-24, 2009
Society for Sustainable & Environmental Engineering
2009 International Conference
For more information, click here.
June 22-25, 2010
Air & Waste Management Association Annual Conference
Calgary, AB
For more information, click here.
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