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July 2010

Addenda #35 American Society of Professional Estimators Great Plains Chapter #35


VOLUME 1, ISSUE 2

Page 2

MEMBER COMPANIES

Ahern Fire Protection

Kiewit Building Group, Inc.

Bldg Cost Consultants, Inc.

L & L Builders Co.

Davis Erection Co., Inc.

MCM Services

Drake-Williams Steel Inc.

New Steel Inc.

Essex Corporation

Omaha Electric Service Inc.

Heartland Scenic Studio, Inc.

Sampson Construction Co., Inc.

Interstates Const. Srvcs. Inc.

Tempest Company

Kidwell Inc. UPCOMING EVENTS

Social Activities: Sporting Clays Invitational—July 22, 2010 Chapter Meeting: Construction Ethics—The Owner’s Perspective—August 25, 2010

Other Member Benefits include

Regional and National: Central Region Fall Meeting—October 14 & 15, 2010, in Grand Rapids, MI

Industry Recognition and

SPONSORSHIP AVAILABLE

Career Enhancement

Advertising in this newsletter is a great way to get your contact information out to local contractors and help you stay connected with upcoming projects. $50 gets you a business card sized spot for the year. There are also spots for 1/4, 1/2, and full page adds. Contact a board member for further information and pricing, and availability

MEMBER BENEFIT DISCOUNTED PUBLICATIONS Craftsman books are discounted for ASPE Members.

• • •

Free subscription to Design Cost Data Magazine Get Engineering News Record (ENR) - save 40% off regular rate Walker’s Technical Books— save 20%.

ENR Smart Market Reports—50% Discount ENR Green Reports—Prices drastically lowered • Free subscription to Estimating Today , the monthly publication of ASPE, featuring Industry & Society News and member technical papers


Addenda #35 June 2010

American Society of Professional Estimators Great Plains Chapter #35 CONVENTION INFORMATION

ASPE CHP 35 OFFICERS

MESSAGE FROM THE PRESIDENT

F E AT U R E S

REVIEW OF LAST MEETING

BOARD MEETING MINUTES & HIGHLIGHTS COMMITTEE REPORTS MEMBER BENEFITS

President Chris Ahrenholtz ahrenholtz@gmail.com First Vice President Justin Short justins@tempestcompany.com

MEMBER COMPANIES ASPE CANONS

CRITICAL CALENDAR ITEMS MEMBER COMPANIES SPONSORS

Second Vice President Mark Mentele markm@tempestcompany.com Treasurer David Hansen david@newsteelinc.com

MEMBER BENEFITS UPCOMING MEETINGS NEW MEMBERS SPECIAL POINTS OF INTEREST: The First ASPE Chapter 35 Sporting Clays Invitational will be held on July 22, 2010

The cover art is titled Omaha, NE: Central HS and points NW from top of FNB tower.

The next chapter meeting is August 25, 2010. More details will be included in the next newsletter

The picture was posted to the internet by John Watts on July 11, 2008 The picture is posted at the site: http://www.city-data.com/picfilesc/ picc46966.php


THE GREAT PLAINS ADDENDA #35

Page 4

THE ART OF ESTIMATING by Craig Pierce Reprinted from ConstructionMonkey.com

Sun Tzu wrote the Art of War in the 6th Century BC. Since that time military experts have considered it a complete view on how to operate a military machine and business scholars have claimed it applies to business dealings as well. I can tell you that there are several parts that directly apply to Estimating in Construction. Sun Tzu says: "In respect of...method, we have: 1. 2. 3. 4. 5.

Measurement Estimation of Quantity Calculation Balancing of Chances Victory"

He was talking about sizing up a battle, but let's face it every estimating (especially in today's environment) is a battle if not an all out war. So let's see how these principles apply to our ability to get and win work. Measurement Measurement is not quantity survey. From the Chinese word it actually translates to something more like surveying. In battle it is understanding the position you have and what position your competition has. In work procurement it is not different. Do you have a shot at the project? Where is your competition? What strengths do you have that you can bring to bear? What weaknesses do they have that you can exploit? Most contractors that I know occasionally skip this step. They are asked to bid a project and the question is do I have the time? This is the wrong question, it should really be about measurement. Sun Tzu also said "If you know yourself but not the enemy, for every victory gained you will also suffer a defeat,

but if you know the enemy and know yourself, you need not fear the result of a hundred battles." Know the battle space. Know the competition. Know yourself. If you don't start here, victory surely lies in the hands of chance and not skill. Estimation of Quantity This is the easy correlation. Takeoff the job. Get a good sense of the quantities needed to perform the project. Calculation Probably the most overlooked yet performed function in winning a project. Surely you need to calculate the total material dollars and hours needed to perform the project. Without such calculations the total bid amount could not be ascertained. During these calculations there are sometimes things that are overlooked in the costing structure. This is typically because the Measurement stage was not followed. If properly done, the Measurement stage should tell you a lot about the battlefield. The battlefield is the job condition. How many stories, what are the safety requirements, what are the work hours, is it LEED Certified, etc.? All of the data about the battlefield gained in the measurement stage should be related over to the calculation phase, otherwise you will not have all of the cost covered or possibly some costs covered too much. Balancing of Chances Your almost done. Now it is time to go out with the proposal. Any job affords itself with many different ways to propose on a project. Do you offer Value Engineering? Do you need to put your past experience in (Continued on page 9)


VOLUME 1, ISSUE 2

Page 5

H URRY AND SIGN UP TODAY! S PACES ARE LIMITED

DON’T HAVE A GROUP? THAT’S OK — WE’ LL HELP FILL OUT YOUR GROUP OF FOUR TO SIX SHOOTERS!

THURSDAY JULY 2 2, 2010 SIGN- IN B EGINS AT NOON, A ND SHOOTING BEGINS AT 1 PM E NTRY F EE: $ 3 5 PER SHOOTER ( WITH ADVANCE R EGISTRATION) ENTRY F EE INCLUDES 1 ROUND 100 SPORTING C LAYS SHOOTERS

OF

TO SUPPLY GUNS AND AMMO

SUBMIT YOUR REGISTRATION TO DON SHORT ( DONSHORT@ TEMPESTCOMPANY. COM) OR THROUGH THE ASPE WEBSITE ( SITE. GOOGLE. COM/ SITE/ ASPE3 5 ) E VENT L OCATION: O AK C REEK S PORTING C LUB 2890 W R B RAINARD, N E 6 8 6 2 6 4 0 2 .5 4 5 -3 1 1 1 WWW. OAK-CREEEK-CLUB. COM


THE GREAT PLAINS ADDENDA #35

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2010 CHAPTER ESTIMATOR OF THE YEAR Presented to Dale A Kittleson, JR At Gorat’s Steakhouse

From Left to Right: Justin Short, Mark Mentele, Dale Kittleson, Chris Ahrenholtz, David Hansen


VOLUME 1, ISSUE 2

Page 7


THE GREAT PLAINS ADDENDA #35

Page 8

ASPE CANONS

REVIEW OF LAST MEETING

Canon #1

No chapter meeting was held in June

BOARD MEETING MINUTES & COMMITTEE REPORTS Meeting Date: June 14, 2010

Discussion topics:

Time: 11:45 AM

Appointment of

Location: Granite City Food and Brewery

Steve Rice as Chapter Treasurer

Board Members:

Discussion of National proposed by-laws

committee appointments and officer duties. Pages from Chapter Development Handbook passed out Decision was made to donate to the National Convention host chapter to help funding of convention activities.

Other members in attendance: Don Short (Programs Chair)

Canon #3

Planning for upcoming chapter year Planning for other chapter events Set dates for upcoming chapter board meetings

CENTRAL PLAIN REGIONAL MEETING Meeting Date: July 10, 2010 Location: Hilton DFW Lakes ECC, Grapevine, TX Meeting Agenda: 1.

Call to Order

2.

Appointment of Recording Secretary

3.

Welcome and Introductions

4.

By-laws Revision discussion

5.

Membership Report

6.

Review of Spring 2010 Teleconference minutes

7.

Review of Governor’s Report to BOT for 2010 convention

8.

Chapter IRS and Incorporation status discus-

sion 9.

Chapter Development Handbook status

10. Chapter Websites status Committee Reports 11. Standards 12. Certification 13. Education 14. ConsensusDOCS Committee Report: Awards 15. New Chapter update 16. Renewed Chapter updates 17. Struggling Chapter updates 18. Upcoming events 19. Chapter meeting attendance ideas and discus-

Canon #2 Professional estimator shall continue to expand their professional capabilities through continuing education programs to better enable them to serve clients, employers and the industry.

Discussion of

Chris Ahrenholtz (present) Mark Mentele (present) David Hansen (present) Jonathan Hatcher (present) Steve Rice (absent) Jerry Onik (present) Isaac Davidson (present) Jason Prebyl (present) Justin Short (present)

Professional estimator shall perform services in areas of their discipline and competence.

sion 20. SBO assistance requests—membership renewals, CPE renewals, trade show staffing 21. Fall 2010 Regional Meeting—Grand Rapids, MI—October 14th & 15th 22. Central Plains to host 2014 National Convention 23. ―Conducting a Successful ASPE Chapter Year: Utilizing the Chapter Achievement Awards Guidelines and the Critical Calendar 24. Governor visits to chapters—Columbus, Omaha, Ft. Wayne, and Cincinnati. 25. Questions/Adjourn

Professional estimator shall conduct themselves in a manner which will promote cooperation and good relations among members of our profession and those directly related to our profession.

Canon #4 Professional estimator shall safeguard and keep in confidence all knowledge of the business affairs and technical procedures of an employer or client.

Canon #5 Professional estimator shall conduct themselves with integrity at all times and not knowingly or willingly enter into agreements that violate the laws of the United States of America or of the states in which they practice. They shall establish guidelines for setting forth prices and receiving quotations that are fair and equitable to all parties.


VOLUME 1, ISSUE 2

Page 9

NATIONAL COUNCIL BUSINESS SESSION Meeting Date: July 10, 2010 Location: Hilton DFW Lakes ECC, Grapevine, TX Meeting Agenda: 1.

Call to Order

2.

Pledge of Allegiance

3.

Roll Call of National Officers

4.

Appointments

5.

Introduction of Guests

6.

Credentials Report

7.

Announcement of Meeting Rules

8.

Agenda Modifications

9.

Officer Reports President Director of Administration

Executive Director Treasurer 1st VP Standards Marketing Industry Awareness Fellows Human Resources Nominations Chief Teller 2nd VP Certification Chapter Development Bylaws/Bylaws Revision Sustainability Strategic Planning Speakers Bureau 3rd VP Education Membership Awards MAL Services Professional Recognition Convention

Scholarship Immediate Past President 10. Regional Governor Reports Northwest Southwest Central Plains Southeast Northeast 11. Business Adoption of Bylaws Revisions 12. Adjournment

ASPE CANONS Canon #6 Professional estimator shall utilize their education, years of experience and acquired skills in the preparation of each estimate or assignment with full commitment to make each estimate or assignment as detailed and accurate as their talents and abilities allow.

Canon #7 Professional estimator shall not engage in the practice of ―bid peddling‖ as defined by this code. This is a breach of moral and ethical standards, and this practice shall not be entered into by a member of this society.

Canon #8

THE ART OF ESTIMATING (CONTINUED) (Continued from page 4)

front of them to separate yourself from the competition? The means by which you go out will be a function of balancing the chances you will win. At this stage, it is critical to step back and look at the entire picture. Take a satellite view of everything from your competition's past experience to your team's resume. Look at the job in depth. Look at everything from the eyes of the client. A good vision of all of the items relative to the job will allow you to pick the right strategy. Victory The easy part. With a perfect execution of the above steps, it is a matter of signing a contract and generating revenue. I would suggest you look at putting together a process if you don't have one that embodies these steps. Over 2,500 years have past since Sun Tzu wrote his masterpiece, but it is as real today as it was in ancient China.

Professional estimator and those in training to be estimator shall not enter into any agreement that may be considered acts of collusion or conspiracy (bid rigging) with the implied or express purpose of defrauding clients. Acts of this type are in direct violation of the Code of Ethics of the American Society of Professional Estimators.

Canon #9 Professional estimator and those in training to be estimator shall not participate in acts, such as the giving or receiving of gifts, that are intended to be or may be construed as being unlawful acts of bribery.


MISSION STATEMENT

Www.sites.google.com/site/aspe35

AMERICAN SOCIETY OF PROFESSIONAL ESTIMATORS GREAT PLAINS CHAPTER 35

Upcoming Chapter Meetings July 22 - Sporting Clays August 25 - Ethics in Construction Part Two September 8 - Building Technology into Estimates October 13 - Omaha Chamber of Commerce November 10 - Andy Greenberg December 8 - Estimating Errors January 12, 2011 - Tom Becka February 9, 2011 - Legal Issues in Construction March 9, 2011 - Site Visit

The American Society of Professional Estimators serves construction Estimators by providing education, fellowship, and opportunity for professional development.

April 13, 2011 - Federal Issues in Construction May 11, 2011 - Educational Seminar, Elections, and Awards Upcoming Board Meeting: July TBD - August 4 - September 1 - September 29 - October 27 - November 24 - January 5, 2011 - January 26, 2011 February 23, 2011 - March 23, 2011 - April 27, 2011 - May 18, 2011 I N

T H E

B E G I N N I N G T H E R E E S T I M A T E .

I S

A N

CRITICAL CALENDAR ITEMS July 20, 2010 Deadline for August/September Estimating Today articles to the Society Business Office

July 31, 2010 Fiscal Year End – Renewal dues due to the Society Business Office for members to be included in the membership directory July Anniversary Dues Members deleted from membership if not paid Annual Renewing Members deleted from Membership if not paid

PRESIDENTS MESSAGE

There are many activities planned for the coming year. If you have program suggestions, newsletter topics, or other ideas to share, we would love to hear from you


Addenda #35 Volume 1 Issue 2