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THIS ISSUE What is the Value of Value if Value Is Not Valued? e-Builder
Cape May Coast Guard CM Services, Cape May, NJ: MBP provided construction inspection services and surveillance.
ALUE. It’s a term that we use often throughout the day – every day.
We see it on signs in parking lots – lock up your “valuables”.
We use this term in mathematics – what is the “value” of Y if X equals 2?
We even use the term to articulate the principles for which a business claims to represent – our core “values”.
We use it in commerce – the real estate is “valued” at one million dollars.
At the same time, we see the term “value” used frequently in the architecture, engineering, and
construction (AEC) consulting industry. Many firms try to differentiate themselves through value pricing or even a unique value proposition. Other firms proclaim to save money through services such as value analysis or value engineering. As often as we toss out the term “value”, it seems at times that the relative value of our professional service is questioned or maybe not recognized at all.
How can this be, that we see value in our engineering or project management service, yet our clients do not recognize the same value? Even worse, has “value” evolved over time to mean “lowest cost”? The goal of this series of articles is to examine the concept of VALUE and to survey leaders within the AEC industry to see how or why value is not recognized or even not valued.
is desirable and measured against something else.
this article in attempt to confuse the notion of value.)
This idea of value conjures up visions of the fast food industry in my mind. Many will remember the days of ordering a combo meal at a fast food restaurant. The person at the register would smile and ask, “Would you like to value size your order?” Aha!! So, in this example, I am the one who desires value, and I am measuring the “value size” against the regular size.
This may seem like a silly approach, but it highlights some of the silliness that has been taking place for years in the AEC industry. We talk of value pricing, but that is too often code for higher billing rates. We demand qualifications-based selections, yet we celebrate our low fees as a valuable differentiator. At times, we create unachievable expectations through our desire to differentiate ourselves through a value proposition that predicts unattainable cost savings or schedule reductions.
About 15 years ago, it was common Let’s dissect what it meant to “value for business consultants to advise size” an order. The sandwich remained their AEC clients to do a better job the same size. It was not larger or did of “value pricing” their services (i.e. not contain more or better ingredients not charging their clients enough money). A bell-shaped curve would be drawn According to dictionary.com, the definition of the term on the white board to “value” is “the worth of something in terms of the amount represent a consultant’s fee structure and of other things for which it can be exchanged or in terms of corresponding profit margins versus the value some medium of exchange.” of a specific technical – no value there. The drink cup was service. In the end, the point seemed Just as the definition of “value” is to be that the AEC industry needed to larger. However, refills were free. In somewhat confusing, we have made the end, you merely drank the same charge the owner high fees because the determination of value in our quantity of soda from a bigger cup – of the higher “value” that they were industry equally confusing. Just as no value there. Lastly, the French fries the example of “value” represents delivering. As a result, “value pricing” were in a larger container. However, became an important differentiator a situation where the customer if you ever took the time to compare for many firms. But what did that is simply paying more money and the regular size to the value size, mean? receives nothing in return, we have the most significant difference was polluted the real meaning of “value” that the value sized fries were in a by striving to charge more for less. As What is this value of a professional cardboard container versus a paper a result, many owners do not appear AEC service? How do owners define container. If you dumped out a regular to value the value that we value. the value of the services? How size adjacent to a value size, the do we quantify it and measure it? quantity of fries was not significantly Before unpacking how value can be Before I share my theories related different. In the end, the value could measured, let’s confuse matters a to the measurement of value of be quantified at roughly ten fries for little more with a simple definition of professional AEC services, I would ask an additional dollar. value and an example from the fast that anyone who read all the way to food industry. this point share your ideas as well. Now that is some great margin at Especially owners, what do you value? $0.10 per fry!!! In this example, it According to dictionary.com, the seems that the real value was to the definition of the term “value” is “the In conclusion, VALUE does not mean restaurant. The consumer desired worth of something in terms of the the lowest cost…..but it doesn’t mean value, but there was no significant amount of other things for which it the highest cost either. can be exchanged or in terms of some difference when measured against the regular order. Therefore, it was medium of exchange”. What?!?! Even Josh Rowan is Branch Manager actually little value. the definition of value is confusing. of MBP and can be reached at Let’s try another definition. Value email@example.com. (Please note that I am trying to use is “that quality of anything which the term “value” as often as I can in renders it desirable or useful.” Value
OUTLOOK | 3
Mairav Mintz, PE, JD has been promoted to Senior Vice President. Mairavâ€™s 22 years of geotechnical engineering, construction inspection, cost estimating, CPM scheduling, delay analysis, and claims analysis experience have added great value to her team which includes both the Columbia, Maryland and Fairfax, Virginia branches. Mairav most recently served as Vice President of the firm. She joined the firm in 1993 as an Engineer and became an MBP Shareholder in 2001. Sagar Khadka, CCP, PSP, DRMP has been promoted to Director of Project Risk Management Services. Sagar has been with MBP for more than 12 years, previously serving as Senior Project Manager, and has more than 26 years of experience in the construction industry. His background includes experience in federal and commercial buildings, and he has extensive experience in Critical Path Method scheduling, risk management, cost estimating, cost control and analysis, contracts administration, and in design and implementation of in-house database applications.
NEW TEAM MEMBERS
FAIRFAX, VA Matthew Collins joined our Corporate office as Chief Financial Officer. He has more than 13 years of financial management experience working with growing organizations. Dan Elliot, PMP, LEED GA joined our Fairfax team as Project Manager. He brings more than 14 years of experience as a government and commercial project manager. COLUMBIA, MD Keith White joined our Columbia team as Branch Operations Manager. He has 21 years of experience in the information technology services and software development industry as a Certified Program Management and Master Planning/Scheduling Professional, as well as in the architecture field. RICHMOND, VA Brian Cox joined our Richmond team as Project Manager. He has more than 15 years of experience in the construction industry including commercial, municipal, healthcare, and retail sectors.
Steve Doane, CCM has been promoted to Construction Manager. Most recently serving as Senior Inspector, Steve has been with MBP for more than three years and brings over 30 years of experience and education in operational environments and project management services. Angie Oaks, CCM has been promoted to Project Manager from Construction Manager. Angie has been with MBP for more than 18 years and has over 24 years of extensive experience with project management and coordination. Kevin Day, PE, LEED AP, CEM has been promoted to Commissioning Project Manager. Previously serving as Senior Commissioning Engineer, Kevin has been with MBP for more than four years. Kevin has more than 16 years of experience as a mechanical designer and commissioning engineer.
Dennis Martin joined our Richmond team as Construction Manager and brings more than 35 years of experience in the construction industry. CHESAPEAKE, VA Bill Jennings, PE joined our Chesapeake team as Project Manager and brings more than 30 years of construction industry experience, specializing in electrical engineering. Andrew Crumbly, PMP joined our Chesapeake team as a Project Manager. He has more than 20 years of Professional Project Management experience in large scope industrial construction and engineering projects. ATLANTA, GA Ainun Qazi, PE joined our Atlanta team as Construction Manager. He has more than 28 years of experience in the construction industry, and 13 years of project management experience including the installation and construction of facilities and infrastructure. David Lundquist joined our Atlanta team as Construction Manager and brings 15 years of construction management experience.
Bob Pfeiffer, CCM, ASP has been promoted to Project Manager, previously Senior Consultant. Bob has been with MBP for more than seven years and brings over 40 years of experience as an educator, a facilitator of public policy, as well as a wide variety of construction management experiences to both residential and commercial construction.
Joe Murphy, CCM, CCCA was promoted to Project Manager. Most recently serving as Senior Consultant, Joe has been with MBP for more than five years and has over 29 years of experience in design and construction.
Robert Carter, CCM has been promoted to Senior Project Manager. Robert has been with MBP for more than 14 years, previously serving as Project Manager. He has over 37 years of experience in the building construction industry including commercial, municipal, residential, industrial, and educational building construction.
Kevin Lugo, PE, CCM has been promoted to Vice President/Branch Manager, previously Vice President/ Branch Operations Manager, in our Raleigh, North Carolina office. Kevin has been with MBP for 18 years and brings more than 20 years of varied engineering and management experience.
Kay Jackson, CCM, GGP, GPCP was promoted to Senior Project Manager. Kay previously served as Project Manager, and has been with MBP for more than 12 years. She brings more than 20 years of varied experience in the construction field including construction management,
Matt DeSilver, PE, CCM, LEED AP was promoted from Senior Engineer to Project Manager. He has 15 years of experience in the construction and engineering industry and has been with MBP for more than eight years.
claims analysis/resolution, project controls, marketing, purchasing, and operations management.
e-Builder MBP and e-Builder, the industryâ€™s leading electronic project management system, have joined forces in an effort to improve the approach and consistency in how we maintain project documentation and information for our construction management clients. MBPâ€™s professionals are thoroughly trained and work with e-Builder to improve capital project execution for increased productivity, accountability, and tighter control over cost and schedule. OUTLOOK | 5
PENNSYLVANIA Kostos Building, PSU Hazleton, Philadelphia, PA: The Pennsylvania State University has selected MBP to provide commissioning services for the design, bidding, construction, and warranty occupancy phases for the renovation of an existing class room and laboratory building.
Boeing 3-31 AHU-5B Cx, Prospect Park, PA: The firm is providing commissioning services for the renovation of the existing HVAC equipment, which included installation of new air-handling units and replacement of pneumatic HVAC controls with BAS controls and electronic actuated valves. Cape May U.S. Coast Guard Training Center, Cape May, NJ: MBP is providing construction inspection services and surveillance. The surveillance ensured compliance with contract documents and informed the Contracting Officer and designated representatives if these requirements werenâ€™t being met. Keller Army Community Hospital, West Point, NY: The firm is
providing commissioning of the building envelope, electrical and life safety systems, HVAC and plumbing systems, automatic control systems, security systems, and communication systems. Maintained and provided copies to the Green Building Certification Institute (GBCI) of all necessary Leadership in Energy and Environmental Design (LEED) documentation for Credit EA 3 Enhanced Commissioning. Towne Building Renovation, University of Pennsylvania, Philadelphia, PA: MBP is providing commissioning services to ensure that the HVAC equipment and associated controls, electrical service and distribution, and related equipment were installed as specified, properly started, tested, documented and are operating according to the intent of the construction documents.
VIRGINIA Washington-Lee High School, Arlington, VA: MBP is providing construction management advisory services for the Washington-Lee High School Capacity Optimization Project. A variety of construction
management services were provided during design, bidding, construction, and close-out. Smithfield Chemical Storage Building, Smithfield, VA: MBP is providing project management services, in accordance with the requirements of the DGS standard contract, to work in collaboration with VDOT staff, the designer, and the general contractor on the project through the design, bidding, construction, and closeout phases. Chesterfield County CEI, Chesterfield, VA: The firm is providing professional engineering services from the preliminary design phase to the construction design phase and construction engineering inspection services from the pre-construction phase to the construction phase. Loudoun County CEI Services for Route 7 & 659 Interchange, Loudoun, VA: MBP is providing construction engineering and inspection services during the construction phase of the project.
VCU Wood and Lyons Hall Buildings, Richmond, VA: Virginia Commonwealth University has selected the firm to provide verbal recommendations related to the scope of work for planned improvements at the existing facility, on behalf of the client on an as needed basis. William and Mary Law School Expansion, Williamsburg, VA: MBP is providing commissioning services in accordance with the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Guidelines 0-2013 and 1.1 - 2007 and the Building Commissioning Association (BCA) Handbook. VDOT Southwest/Northwest Regions Traffic Signal Projects, Various Locations, VA: The firm is providing inspection personnel of various levels to supplement VDOTâ€™s inspection staff in charge of Operations Construction and a variety of ITS related projects throughout the Southwest Region Operations Area and the Northwest Region Operations Area.
City of Hampton CEI Term Contract, Hampton, VA: MBP is providing construction inspection and testing services for the City of Hampton. City of Roanoke Construction Inspection Program, Roanoke, VA: MBP is providing construction engineering inspection services to aid in the Cityâ€™s capital improvement program for bridges and roadways.
NORTH CAROLINA Duke New Arts Building, Durham, NC: Duke University has selected the firm to provide the client with commissioning services for quality assurance of the construction and system operation of the Duke New Arts Building. NCDOT VE Study Limited Services, Raleigh, NC: MBP is providing value engineering services for this project.
Sugarloaf Elementary School, Frederick County, MD: MBP is providing the client with a construction document (CD) level technical review of the construction document submission documents for Sugarloaf Elementary School located in Frederick County, MD.
Tryon Place, Charlotte, NC: The firm is providing estimate reviews, constructibility/value analysis, commissioning reviews, schedule reviews, and master schedule from the design phase to the construction phase.
Ned Dickerson Farm House, Gaithersburg, MD: The MarylandNational Capital Park and Planning Commission has selected the firm to provide a facilities assessment and cost estimate to identify deficiencies, quantify the probable costs to address those deficiencies, and to prioritize improvements to the property as part of its capital improvement program.
WVU Percival/Allen Hall Laboratories, Morgantown, WV: MBP is providing the client with cost estimating services for the Percival/ Allen Hall Laboratories fire alarm and fire suppression upgrades.
OUTLOOK | 7