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SEPTEMBER 2010
ENGINEERING
IN THIS ISSUE
CERTIFICATION PAPER
Risk Management
A Developing Field of Study and
Application
TECHNICAL ARTICLE
Steel Fabrication Costs in China
PRESIDENTS MESSAGE
Truly International
EXECUTIVE ARTICLE
AACE INTERNATIONAL
SECTION AWARDS
AACE INTERNATIONAL
BULLETIN
Section News From
Around the World
COST
ENGINEERING
ESTABLISHED 1958
Headquarters
Morgantown, WV 26501
ph: 800.858.COST
fax: 304.291.5728
CONTENTS
Board of Directors ............................3
Presidents Message ..........................3
Executive Article................................6
Professional Services Directory......26
Index to Advertisers ........................26
AACE International Bulletin ........27
2010 Section Awards ......................28
How to Submit Section News........31
In Memoriam ................................31
AACE International Bookstore ......32
2010-2011 Organization Chart ......34
Article Reprints and Permissions ..35
Calendar of Events ........................36
ON THE COVER:
The 2010-2011 AACE International Board of Directors
took their oaths of office at the annual business meeting, which was a part of the Annual Meeting in Atlanta
June 27-30. Names for the individual photos match the
Board of Directors list published on page 3 of this issue.
The current board of directors is also shown on the
cover in a group photo.
18
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AACE International
Board of Directors
President
Stephen O. Revay, CCC CFCC
Revay and Associates Limited, Canada
403.-777-4900
e-mail: president@aacei.org
President-Elect
Michael R. Nosbisch, CCC PSP
SM&A, CA
949-975-1550
e-mail: preselect@aacei.org
Past President
Mark G. Grotefend, CCC
Jacobs Engineering, WA
425-233-7417
e-mail: pastpres@aacei.org
Vice President-Administration
Alexia A. Nalewaik, CCE MRICS
QS Requin Corporation, CA
213-399-1373
e-mail: vpadmin@aacei.org
Vice President-Finance
John J. Ciccarelli, PE CCE PSP
Deloitte FAS, PA
212-436-2038
e-mail: vpfinance@aacei.org
Vice President-TEC
Ken Cressman, CCC EVP
Environmental Chemical Co, CO
709-219-8526
e-mail: vptec@aacei.org
Vice President-Regions
Andy Padilla, ECCC
505-362-2633
e-mail: vpregions@aacei.org
Director-Region 1
Ginette Basak, P.Eng
Nexen Inc., Canada
403-699-6649
e-mail: dirregion1@aacei.org
Director-Region 2
John C. Livengood, CFCC PSP
ARCADIS, DC
202-669-1360
e-mail: dirregion2@aacei.org
Director-Region 3
Asoka K. Pillai, CCE EVP
Savannah River Remediation, LLC, GA
803-208-0054
e-mail: dirregion3@aacei.org
Director-Region 4
Duane R. Meyer, PE CCE
Hixson, Inc., OH
513-241-1230 x 620
e-mail: dirregion4@aacei.org
Director-Region 5
Martin Darley, CCC FRICS
Turner & Townsend Energy, TX
713-457-9400
e-mail: dirregion5@aacei.org
Director-Region 6
Julie Owen, CCC PSP
Los Angeles County Metropolitan
Transportation Authority, CA
213-922-7313
e-mail: dirregion6@aacei.org
Director-Region 7
Philips Tharakan Mulackal, CCE MRICS
Johnson Controls, Dubai, UAE
+91-476-287-2898
e-mail: dirregion7@aacei.org
Director-Region 8
Tetsuya Yonezawa, CCE
Toyo Engineering Corporation, Japan
+81-47-4541582
e-mail: dirregion8@aacei.org
Executive Director
Dennis G. Stork
304-296-8444
e-mail: dstork@aacei.org
PRESIDENTS MESSAGE
Stephen O. Revay, CCC CFCC, President
Truly
INTERNATIONAL
A
s one of the seven faithful readers of
this column you know that this message was written some time ago. It was
actually written shortly after returning from
our very successful Annual Meeting in Atlanta. Given the economy leading up to the
conference, attendance was spectacular at just
over 700 people.
If you were one of those 700 people you
likely heard our Past President Mark Grotefend read out the names of some of the countries that were represented at our meeting. I
should not have been so impressed as we
have, after all, members in 84 countries. Nevertheless, I was impressed with that list, so I
have decided it to share it with you. The following is the list of countries besides Canada,
my home country, and the US that were represented at our Annual Meeting:
Australia;
Brazil;
Chile;
France;
Gabon;
Germany;
Ghana;
Indonesia;
Iran;
Italy;
Japan;
Korea South;
Malaysia;
Monaco;
Netherlands;
Nigeria;
Norway;
Panama;
Qatar;
Russia;
Saudi Arabia;
Switzerland;
Trinidad and Tobago;
United Arab Emirates;
United Kingdom; and
Venezuela.
LEADERSHIP RETREAT
October 2, 2010 at the Magnolia Hotel
Houston, Texas
A Leadership Retreat is planned for October 2, at the Magnolia Hotel in Houston.The retreat is open to the public. For additional information, visit www.aacei.org; or e-mail info@aacei.org;
or call 1-800-858-COST. An online brochure is posted with information on the various sessions and the guest speakers.
Sponsors include DRMcNatty & Associates, Inc., MLM Project Services, Inc., Venters Consulting, LLC., the Women in Project Controls Committee, the Diversity Task Force, Young
Professionals, the Houston Gulf Coast Section, Nevada Section,
and Southern California Section.
EXECUTIVE ARTICLE
Barton Goldsmith, Ph.D.
EMOTIONAL FITNESS
AT WORK
CREATING A POSITIVE WORKPLACE
T
1
hese ten tips will help you create and maintain the positive
workplace habits we all want to see and be around.
Recognize your co-workers for their commitment and caring. The number one motivator of people is recognition.
Saying to a teammate that you recognize their efforts to
make your working relationship great is the best motivator you
could give to her or him. Letting someone you love know that
they have added to the team by being their best is one of the
highest compliments you can give. Make sure you get some
for yourself as well.
Share in creating a positive and emotionally comfortable working environment. Satisfaction cannot thrive
in a negative environment. If you have developed a
downer work-style, where no one tries to lift their co-workers
out of the doldrums, it prevents everyone from finding emotional and even physical comfort and that will lower productivity. Keeping it positive helps everyone in the workplace
enjoy their jobs more.
Balance the work and the rewards. Trade off duties with
co-workers every now and then, it will help your teammates feel your respect their contribution. If you get recognized make sure you also recognize the other members of
10
The techniques above are specifically designed to help facilitate the necessary thinking required to produce and maintain
healthy workplace habits. You don't need to use them all, try the
ones that are easiest for you and see how they work. Understanding
the need for feeling satisfied and contributing to that necessity in
your work life will make everyone in the company happier people.
These tips will help you maintain a fulfilling business relationship,
and will prevent your team members from feeling that they cant
get no satisfaction.
ABOUT THE AUTHOR
Award winning psychotherapist, syndicated columnist and
radio host, Barton Goldsmith, Ph.D., is an internationally recognized counselor, author and speaker, who has appeared on and
been interviewed and quoted by all the major television networks,
numerous radio shows as well as national magazines like Cosmopolitan and Family Circle. Since 2002, his weekly column, Emotional Fitness, which is syndicated by Scripps-Howard News
Service, runs in The Ventura County Star, The Chicago SunTimes, The Orange County Register, The Detroit News, The
Cincinnati Post, The San Diego Union-Tribune and over 250
other newspapers giving him a readership in the millions. In addition, his popular monthly business column has appeared in over
200 other publications. Dr. Goldsmith also hosts a weekly radio
show on the most award-winning station in Southern California,
KCLU/NPR, with 80,000 listeners in Los Angeles, Ventura and
Santa Barbara.
CERTIFICATION PAPER
Internal Risks the company can control the occurrence and can mitigate impact.
11
A fundamental concept is that the magnitude of the risk can be expressed as a combination, or product, of the probability of an
event or situation occurring and the seriousness of its consequence (or impact) if it does
happen, in terms of a negative effect on one
or more of the key project goals of cost,
schedule and performance(Steyn ). Simply
stated:
Risk = Probability x Consequence
The risk analysis step involves gathering
as much information about the risk as possible and making a best possible assessment
of probability of occurrence and level of
consequence or impact. As stated, this must
take into account all three aspects of cost,
schedule and performance.
The following two stages are then involved, the first to rank the risks in order of
12
magnitude and the second to quantify the for probability is proposed, see table 1 [11].
For the consequence/level of impact asimpact and make necessary allowances in
pect the following numerical values may be
the cost and schedule.
used [11]:
Qualitative Risk Analysis
In the qualitative analysis one relatively For Cost:
0 No effect on cost;
simple technique uses descriptive words
3 Cost increase < 10 percent;
such as low, moderate and high to de5 Cost increase < 25 percent, but >
scribe both the probability and the conse10 percent;
quence of each risk. A matrix such as that in
7 Cost increase < 50 percent, but >
figure 2 can then be constructed and each
25 percent; and,
risk fitted into the appropriate square [4]. In
10 Cost increase > 50 percent.
this way, the low risks can be eliminated
from further study unless further investigaAlternatively actual values can be used.
tion is considered necessary in particular instances (for example where the basis for
For schedule:
assessment is unsure.
0 No effect on schedule.
In order to help decide into which box
1 Delay of element schedule but no
of the matrix the risk should be placed the
project delay.
following definitions may be used [8].
3 Delay if intermediate milestone,
but no end date delay.
High Risk likely to cause significant,
5
Delay in completion date of < 3
serious, disruption in schedule, increase in
months.
cost, or degradation in performance, even
7 Delay in completion date of < 6
with special attention from the contractor
months but > 3 months.
and close government monitoring.
9 Delay in completion date of < 12
Moderate Risk can cause some dismonths but > 6 months. And,
ruption in schedule, increase in cost or
10 Delay in project of > 12 months.
degradation in performance, but special attention from the contractor and close govAlternatively, percentages can be used.
ernment monitoring can probably
overcome the difficulties.
Non-linear scales may be used for exLow Risk has little potential for causing disruption in schedule, increase in cost ample to ensure that risks with low probaof
occurrence
but
high
or degradation in performance; normal ef- bility
fort from the contractor and normal govern- impact/consequence do not get overlooked.
ment monitoring can probably overcome
Quantitative Risk Analysis
the difficulties.
Having made a qualitative assessment
Alternatively, or as a further refinement, and selected the risks for further consideranumerical values can be applied to both the tion, the aim of this stage is to quantify the
probability and the consequence. The impact in order to determine an estimated
product of these provides an immediate nu- cost or duration which has the required
merical ranking. According to Herman probability of being underrun.
Assuming that a point estimate has
Steyn and his co-authors, in the Australian/New Zealand Standard (Aus- been made for the cost of an item or the
tralian/New Zealand Risk Management schedule duration this cost/duration is subStandard AS/NZS 4360) a five point scale jected to review by relevant experts. Using
avoidance (elimination);
reduction (mitigation);
acceptance; and,
transfer (deflection).
13
with through normal project control procedures, whereas risks must be addressed from
the point of view of their uncertainty.
Examples were provided as follows:
Examples of Risks:
Currency fluctuation.
Late delivery of long lead time equipment.
General strikes, go slow, work to rule.
Poor channels of communication considered as a huge risk.
Communication.
Shortage of personnel with appropriate
skills a major difficulty in the global
project environment.
Communication and cultural issues also a very real issue in todays global
project environment. And,
Lack of trained personnel a major
source of risk in todays world.
Examples of Issues:
Inflation based on historical trends it
is almost 100 percent certain that it will
occur.
Inspection delays, access to worksite
not risks as should be part of the routine
monitoring and control system.
Climatic conditions. And,
Environmental impact.
Current Trends
Emphasis is now being placed on turning risks into opportunities or positive events.
An example would be where an owner can
purchase materials in bulk across multiple
projects being simultaneously executed. In
terms of risk sharing, there is also a trend to a
more open book situation between owner
and contractor with regard to risk. Risks are
openly discussed and allocated/accepted in
accordance with whoever is considered to be
able to handle most cost effectively. For example, in terms of currency fluctuation, an
owner is far more likely to have the contacts
and expertise to manage this than the contractor, and would accept this risk. This
avoids the contractor having to include significant contingency/or possibly sustain a serious loss which could affect project
performance.
Risk Register
This is generally adopted at completion
(although a different name may be used) as
the means of recording all risks, which have
been identified, and tracking through the
various stages, until the risk is no longer applicable.
A simplified version of such a document
Case Studies
As an illustration of certain of the prin-
ciples advanced above, two examples are
shared from recent projects, information on
which is in the public domain (websites).
The first is an illustration of the point
made in the introduction that high risk projects can be completed within budget and
15
Opportunities Exploited:
Positive steps where risks managed and
opportunities exploited:
Consortium formed - Owner, EPCM
contractor, Mozambican and South
African government.
Technology proven recently constructed similar project in South Africa,
70 percent of owner/contractor team on
that project were involved on the
Mozambican project.
Low cost/reliable source of electricity
from Cabora Bassa hydro-electric plant.
Agreement with electricity supply company (ESKOM) to link electricity price
to LME aluminum price [12].
Harbor location changed because of
foreseen problem of delays because of
high usage of originally selected harbor
spin off of lower road transport cost.
Site close to harbour for import of raw
material and export of product. And,
Government incentives very low tax
rate
Hanford Waste Treatment Plant [3]
Located in the South Eastern Washington State this project is concerned with the
treatment of radioactive waste material which
is leaking from underground containers.
The project was commenced in the year
2000, and is on-going. From an original
budget of US $4.2 billion, the estimate at
completion is now US $8.77 billion. This is
because of significant scope changes, and the
impact of unproven technology.
Areas of risk stemmed mainly from the
fact that the technology was unproven, and
that the material to be treated is extremely
hazardous. Major reasons for the increase in
predicted cost include the following.
It must be said that this project is indicative of the fact that cost and schedule for projects involving new and unproven technology
cannot be estimated to any degree of accuracy. What may have been a realistic contin-
16
gency of 100 percent or more would probably not provide an acceptable estimate to the
owner.
In the case of a nuclear waste project,
which must implicitly be technology, rather 2.
than cost or schedule driven, and especially
where the specific technology is unproven, it
may be more realistic to state that it will cost 3.
what it will cost and it will take as long as it
takes!
4.
CONCLUSIONS
From this necessarily brief investigation,
it is nevertheless possible to draw some con- 5.
clusions and highlight areas requiring further
investigation. It is evident that risk management is a developing subject, which is receiv- 6.
ing attention from authors and those working
in the project field. From the authors perspective of training of cost engineers, it has
served to highlight the need to carry out a 7.
much more in depth study so that the topic
can be better presented in keeping with latest
developments.
8.
Areas which require further investigation, include the following.
website:
http://www.bechtel.com/PDF/WTP_wri
tten_testimony.pdf.
Humphreys, Gary C. Project Management Using Earned Value. Humphreys
and Associates Inc, 2002.
Kaliprasad, Minnesh, CCE. Proactive
Risk Management, Cost Engineering,
December 2006.
Kerzner, Harold, Project Management,
A Systems Approach to Planning,
Scheduling and Controlling. Wiley &
Sons Inc, 2003.
Mozal Project - website:
http:
http//www.pmi.org/pathfinders/articles/N
02JAN20.pdf.
PMBOK, A Guide to the Project Management Body of Knowledge, Third
Edition, Project Management Institute,
PA, 2004.
The definition or link between risk 9. Reid, Tony, Risk Management Isnt
and opportunity.
That All About the Contract? Project
The difference between risks and isControl, professional journal of the Assues. And,
sociation of Cost Engineers, Vol 45, No.
Possible addition of safety and scope
2, March 2007.
to the three, generally accepted, project 10. Skills and Knowledge of Cost Engigoals of cost, time, and performance,
neering, 5th Edition, AACE Internawhich are the subject of risk analysis.
tional.
11. Steyn, Herman; Gert Basson; Michael
Illustrations From Case Studies
Carruthers, Yvonne du Plessis; Birgit
Projects with numerous high risk eleProzesky-Kuschke; Deon Kruger, Stefan
ments can be successfully accomvan Eck and Krige Visser. Project Manplished, providing that risks are properly
agement - A Multi Disciplinary Apidentified, analysed, responded to, and
proach. FPM Publishing, South Africa,
monitored/controlled (with the proviso
2003.
that the technology is proven).
12. When Politics Kills: Malaria and the
Unproven technology is a key risk and is
DDT
story
website:
virtually impossible to quantify in terms
http://www.cei.org/PDFs/malaria.pdf.
of cost or contingency allowance in an
11. RECOMMENDED READING
estimate. And,
Risk associated with unproven technol- 1. Louw, Wynand, Project Control Tools,
iMEC (Pty) Ltd South Africa2002.
ogy cannot be transferred without reper2.
OBrien, James, J. and Frederic L, Plotcussions.
nick, CPM. Construction ManageACKNOWLEDGMENTS
ment, 5th edition, McGraw Hill, Boston,
The author wishes to register his thanks
1984.
and appreciation to those who gave of their
valuable time to assist with the Contractors ABOUT THE AUTHOR
Alan J. Chilcott, CCE, is a presenter
and Operators section of this article.
with ElPavo Training, in Flintshire, United
Kingdom. He can be contacted by sending
REFERENCES
1. Burke, Rory, Project Management, e-mail to: elpavo@absamail.co.za.
50th ANNUAL
Register Now
Early Rate ends September 30, 2010
www.aacei.org/regions/2011www
TECHNICAL ARTICLE
PEER REVIEWED
18
Exchange Rates
A recent BLS Chinese compensation
study reports that between 2002 and 2006,
compensation costs in renminbi (RMB) for
urban workers grew by an average of 12
percent per year. In addition, since 2005
the RMB is no longer pegged to the US
dollar, resulting in an even greater increase
in Chinese labor costs when computed in
dollars [2]. For simplicity, the exchange
rate used throughout this article is 7RMB
to $1 (refer to figure 1). The analyst should
take into consideration the effects of the
exchange rate and escalation on the basic Total Compensation Components
The 2002 BLS Manufacturing
hourly rate.
Earnings and Compensation in China
study reports an average hourly
Work Shifts and Hourly Rates
The basic work shift in China is an 8- compensation rate of $1.87 for Shanghai.
hour weekday shift. The model assumes This rate includes the worker earnings
that the worker can be assigned to a regular (basic pay and any additional taxable
shift or a swing shift. A swing shift begins earnings), as well as government social
later in the day and continues into the welfare and company benefits at a rate of
night (e.g. 4 p.m. to midnight) and is 53.8 percent. Government social welfare
estimated to pay a premium of 115 percent benefits have increased over the years [1],
of the basic hourly rate. The model selects and so did the benefits companies must
the expected shift regular or swing by a provide to reduce worker turnover, which
discrete distribution function, and the has been on the rise in China [9]. Our data
corresponding hourly rate is used as the suggests that the total benefits rate is now
basic hourly rate for the model between 64 percent and 105 percent of the
taxable earnings (table 2).
calculations.
Table 2 describes the various
According to the Chinese labor law [6]
weekday overtime should be paid at a rate components that the model applies to the
19
21
22
Additional
Quality
Control
Fabricators in the US, Europe, and
Japan use sophisticated, automated
one-pass welding machines to achieve
the quality of the weld through the
required depth and length of the weld.
The Chinese process is semiautomated, and includes a first-run
through a machine, followed by
subsequent passes by hand to continue Table 5 US and Chinese Steel Fabrication Estimated Shop Rates
23
24
node17256/Node17413/node17427/us
erobject6ai1952.html.
Shanghai Municipal Labor & Social
Security Bureau. March 24, 2008, The
Circular of Adjusting the Minimum
Hourly Wage Rate in Shanghai
Municipality Document No (24) 2008.
Accessed on January 23, 2010
http://www.12333sh.gov.cn/english/rul
es/rule/200812/P02008121059839203
7898.pdf
Unknown Author. March 27, 2006
How Rising Wages Are Changing The
Game In China. BusinessWeek.
Accessed November 24, 2009,
http://www.businessweek.com/magazi
ne/content/06_13/b3977049.htm
REFERENCES
1. Banister, Judith. August 2005 11. Unknown Author. December 22,
2008. Burden on Firms Eased to Save
Manufacturing
Earnings
and
Jobs ChinaDaily.com Accessed June
Compensation in China, Monthly
26, 2009. http://www.chinadaily.com.
Labor Review (August 2005): 22-40.
cn/cndy/2008-12/22/content_
2. Banister, Judith, and Erin Lett.
7326051.htm.
Chinas Manufacturing Employment
and Compensation Costs: 200206. 12. Unknown Author. October 13, 2009.
Employee Statutory and Public
Monthly Labor Review, (April 2009):
Holiday Entitlements Global
30-38.
Comparisons Worldwide Benefit &
3. Bureau of Labor Statistics, United
Employment Guidelines (WBEG)
States Department of Labor, May
Accessed
12
Dec.
2009.
2008 Occupational Employment and
http://www.mercer.com/summary.htm
Wages. Occupational Employment
?idContent=1360620
Statistics. Accessed on January 20,
13. Zong, Kelly, and Matthew McKee
2010 http://www.bls.gov/oes/current/
Employee Insurance Entitlements:
oes514121.htm.
What do employers need to pay?
4. China. Country Commerce Report.
Lehman, Lee & Xu Briefing Papers
Economist Intelligence Unit, New
Series. Accessed on November 23,
York, February 2009.
2009.
5. Engardio, Pete. May 13, 2009, Battling
http://www.lehmanlaw.com/
China on Price BusinessWeek
fileadmin/lehmanlaw_com/
Accessed November 13, 2009.
Publications/Briefing_Paper_Series/
http://www.businessweek.com/
Employee_Insurance_Entitlementsmanaging/content/may2009/ca
What_do_employers_need_to_pay.pdf
6. 20090513_648654.htm.
7. Labor Law of the Peoples Republic
of China 1995. Accessed on ABOUT THE AUTHORS
Stephen ONeill, is with Hatch Mott
November 23, 2009,
MacDonald
of Pleasanton, CA. He can be
http://www.lehmanlaw.com/resourcecontacted
by
sending e-mail to:
centre/laws-and-regulations/labor/
stephen.oneill@hatchmott.com
labor-law-of-the-peoples-republic-ofLimor Rozmarin is with the URS
china-1995.html.
Corporation
of Orinda, CA. She can be
8. Shanghai
Municipal
Peoples
contacted
by
sending e-mail to:
Government. March 28, 2008,
limor_rozmarin@urscorp.com
Decision of Shanghai Municipal
People's
Government
on
the
Amendment of the "Procedures of
Shanghai Municipality on Basic
Medical
Insurance
for
Town
Employees" (Decree No. 92) Accessed
on
January
27,
2010.
http://www.shanghai.gov.cn/shanghai/
The myth of Chinese competitiveness
is that China, with its inexhaustible supply
of low cost labor can beat almost any other 9.
country in terms of price in the
manufacturing sphere. China is highly
competitive in labor intensive, low-end
manufacturing operations, but it is not as
competitive in capital intensive operations,
such as steel fabrication. China is
experiencing a shortage of skilled
employees required for steel fabrication,
and market trends indicate a steady 10.
increase in the cost of Chinese labor,
which
diminish
Chinas
price
competitiveness in these industries.
www.aacei.org/cyber
Sign up for the CyberSection forum and begin the on-line section experience.
Advertise in
Cost Engineering
EcoSys, page 5
Management Technologies, this page
McDonough Bolyard Peck, page 4
MOCA Systems, page 7
ORACLE/Primavera, inside front cover
ProEst - Construction, page 2
Ron Winter Consulting, page 4
Skire, Inc., page 7
U.S. Cost, inside back cover
For additional information about the listed advertisers or about advertising with us, please
phone Keith Price at Network Media Partners, (410) 584-1966, or e-mail him at
kprice@networkmediapartners.com
26
www.aacei.org/bookstore/
The PSP Certification Study Guide
is intended to assist you as one step toward
successful Planning and Scheduling Professional certification. Each chapter contains sample exercises, which test your
knowledge of that chapter's concepts. Additional sample questions are provided in
an appendix.
SECTION
NEWS
Arizona Section
The Arizona Sections June meeting was at the Kitchells office
in Phoenix, AZ. Ten members and guests enjoyed a presentation
on, How to Prepare Daily Construction Reports, by the guest
speaker, Gordon Aronson, PE, president of Vision Consultants
LLC. Mr. Aronson talked about the legal aspects, purposes, and
content of daily reports for construction projects. He stressed the
importance of preparing the daily reports contemporaneously and
using them as a tool to document, communicate, and manage the
project.
At the conclusion of the presentation, Hannah Schumacher
presented a speakers certificate to Mr. Aronson, thanking him for
his time and contribution to the Arizona Section.
Section members welcomed Evan Bingham, one of the guests
who attended the presentation. Evan is a recent recipient of an
AACE International scholarship. He is a masters student in construction at ASU (Arizona State University). Also, the 2010 local
election results were announced.
Submitted photo
McDonough Bolyard Peck won the AACE International Industry Appreciation Award.
Charlie Bolyard was honored as a Fellow of AACE International,
27
28
The New Jersey Section has received an Outstanding Section award. Shown
above, Michael Bennink, CCE PSP, receives the award from Mike Nosbisch, CCC PSP, and Mark Grotefend, CCC.
The Delaware Valley Section has received a Superior Section award. Shown
above, John Ciccarelli, PE CCE PSP, receives the award from Mike Nosbisch, CCC PSP, and Mark Grotefend, CCC.
The Great Lakes Section has received a Superior Section award. Shown
above, James E. Krebs, PE CCE, receives the award from Mike Nosbisch,
CCC PSP, and Mark Grotefend, CCC.
The Metro New York Section has received a Superior Section award. Shown
above, John Ciccarelli, PE CCE PSP, receives the award from Mike Nosbisch, CCC PSP, and Mark Grotefend, CCC.
29
30
The Nevada Section has received a Superior Section award. Shown above,
Neil Opfer, CCE CEP PSP, receives the award from Mike Nosbisch, CCC
PSP, and Mark Grotefend, CCC.
The St. Louis Section has received a Superior Section award. Shown above,
James E. Krebs, PE CCE, receives the award from Mike Nosbisch, CCC
PSP, and Mark Grotefend, CCC.
The United Arab Emirates Section has received a Superior Section award.
Shown above, Emelyn W. Martinez and Philips Mulackal, CCE, receive
the award from Mike Nosbisch, CCC PSP, and Mark Grotefend, CCC.
The Arabian Gulf Section has received an Excellent Section award. Shown
above, Majed Al-Dossary, CCC, and Farouk Khory, CCE receive the award
from Stephen O. Revay, CCC CFCC.
IN MEMORIAM
Arthur Stanley Edwards (1925-2004)
Word has been received that AACE International Emeritus member, Arthur S. Edwards, died in 2004. He was a resident
of Caringbah, New South Wales, Australia.
He had become a member of AACE on Dec. 10, 1974, and
was the first and founding member of AACE in Australia and initiated the Victoria Section which later became the Australian Section. It was chartered Jan. 28, 1978. He was also the first Australian
to achieve Certified Cost Engineer certification in 1978. He became an emeritus member in 1991.
In a 1987 letter, Mr. Edwards wrote that, I am and have always been proud of my membership in AACE and I have taken
every opportunity to promote the association throughout Australia.
He also wrote, I look forward to receiving Cost Engineering and
all the other technical data from around the world, which is a direct result of my membership in AACE, and keeps me up to date
in the profession.
His cost engineering and project management career spanned
back to 1954. He had been involved with major resource developments in Australia, including power stations, oil refineries, steel
works projects, aluminum refineries and smelters, chemical plants,
and other heavy engineering construction industry projects. On
these projects, he did a lot of piping work.
From 1954 to 1956, he had been a senior design engineer with
ICIAHZ. From 1956 to 1966, he was a chief estimator with Evans
31
NOW
AVAILABLE
Covers: Recognition of Affects and Economic Costs on the Environment; Formulating Ways of Addressing Green Building
Strategies and Associated Economic Costs; Specific Green
Building Strategies and Project Costs; Budgeting and Justifying
the Cost of Sustainable Practices; Evaluating Competing Sustainable Strategies: Using Value Engineering; Evaluating Competing Sustainable Strategies: Other Techniques
Aurora-Edmonton
Bluewater (Sarnia, ON)
Bow River Calgary
Student
British Columbia
Chinook-Calgary
Concordia University
Ft. McMurray
Keystone (Saskatoon)
Montreal
Saskatoon Prairie
Toronto
DIRECTOR-REGION 1
Ginette B. Basak, P.Eng
MITTEE
CYBERSECTION COM-
NOMINATIONS
Mark G. Grotefend, CCC
AWARDS
Mark G. Grotefend, CCC
PAST PRESIDENT
Mark G. Grotefend, CCC
Baltimore Metro
Central Virginia
Connecticut/Nutmeg
Delaware Valley
Genesee Valley
Metro New York
National Capital
New England-Boston
New Jersey
Niagara Frontier
DIRECTOR-REGION 2
John C. Livengood,
CFCC PSP
INTER-ORGANIZATIONAL LIAISON
To Be Determined
ICEC REPRESENTATIVE
Stephen O. Revay,
CCC CFCC
GOVERNMENT LIAISON
Charles E. Bolyard, Jr.,
PSP CFCC
Osmond F. Belcher, CFCC
MEETINGS COMMITTEE
Trevor X. Crawford, CCC
PRESIDENT-ELECT
Michael R. Nosbisch,
CCC PSP
Alabama
Atlanta Area
Catawba Valley (Charlotte, NC)
Central Savannah River
East Tennessee
Emerald Coast
Greater Miami
North Carolina
(Raleigh-Durham)
North Florida
Palm Beaches &
Treasure Coast
Southern Polytech
State University
Tennessee Valley
Upcountry South
Carolina
DIRECTOR-REGION 3
Asoka K. Pillai, CCE EVP
DIRECTOR-REGION 4
Duane R. Meyer,
PE CCC
Chicago-Midwest
Great Lakes
Greater New Orleans
Kansas City
Northeast Ohio
Northern West Virginia
Pittsburgh
Southwestern Ohio
St. Louis
Tri-States
Wisconsin
YOUNG PROFESSIONALS
TASK FORCE
Tanner J. Courrier CCT,
Chair
M. Rendy Tendean CCT,
Co-Chair
WOMEN IN PROJECT
CONTROLS COMMITTEE
Kristy Kastner, PSP, Chair
Carla Thomas-Baksh CCT,
Co-Chair
V.P.-REGIONS
Andy Padilla, ECCC
Central Texas
Dallas-Fort Worth
Houston-Gulf Coast
New Mexico
Oklahoma
Palo Duro Canyon
Rocky Mountain
Valle Grande (NM)
DIRECTOR-REGION 5
Martin Darley, CCC
FRICS
TECHNICAL BOARD
Larry R. Dysert, CCC CEP
Alaska
Arizona
Capital California
Cascade
Hawaii
Idaho Snake River
Nevada
Rattlesnake Mountain
San Francisco Bay Area
Seattle
South Central California
Southern California
Spokane
DIRECTOR-REGION 6
Julie Owen, CCC PSP
EDUCATION BOARD
Peter W. Griesmeyer
GAPPS
Patrick R. Haggerty, CCC
CONSTITUTION AND
BYLAWS
Douglas W. Leo, CCC CEP
ADMISSIONS
Donald F. McDonald, Jr.,
PE CCE PSP
V.P.-FINANCE
John J. Cicarelli,
PE CCE PSP
V.P.-ADMINISTRATION
Alexia A. Nalewaik, CCE
MRICS
PRESIDENT
Arabian Gulf
Central India
Greater Cairo
Greater Russia
Jordan
Kuwait
Moscow
Nigeria
North India
Norway
Pakistan
South India
Southern African
Sudan
Ukraine-Chornobyl
United Arab Emirates
DIRECTOR-REGION 7
Philips Tharakan,
CCE EVP MRICS
TIVES
CESB REPRESENTA-
CERTIFICATION EXAM
ADVISORY GROUP
Valerie G. Venters, CCC
M. Steven Franklin, CCE
George A. Whyle,
CEP EVP
AGEMENT
CERTIFICATION BOARD
Valerie G. Venters,
CCC, Chair
William E. Bill Kraus
PE CCE, Co-Chair
V.P.-TEC
Ken Cressman, CCC EVP
Australian
Caribbean
Japan
Korea
Malaysia
Puerto Rico
DIRECTOR-REGION 8
Tetsuya Yonezawa, CCE
C3PM CERTIFICATION
BOARD
Patrick R. Haggerty, CCC
INTERNATIONAL
MARKETING COMMIITTEE
NORTH AMERICAN
MARKETING COMMIITTEE
EXECUTIVE DIRECTOR
Dennis G. Stork
Pages 9-16
Reprint 21750
Pages 18-24
Reprint 21751
35
CALENDAR OF EVENTS
Vancouver Convention Centre
British Columbia, Canada
October 2010
2 Leadership Retreat,
AACE Internationals Women in Project
Controls Committee and the Houston
Gulf Coast Section of AACE International
Magnolia Hotel
Houston, TX
Contact: phone 1-800-858-COST
fax (304) 291-5728
info@aacei.org
www.aacei.org
November 2010
12-18 2010 ASME International
Mechanical Engineering Congress,
the American Society of Mechanical
Engineers (ASME)
Contact: www.asme.org
February 2011
2-6 50th Annual Western Winter
Workshop, AACE International
San Fransisco Bay Area Sector
Pebble Beach Resort
Pebble Beach, CA
Contact: John Haynes, PSP
phone 925-913-7541
johnhaynes@hillintl.net
www.aacei.org/regions/2011www
June 2011
16-19 AACE International Education
Seminars, AACE International
Disneyland Hotel
Anaheim, CA
Contact: phone 1-800-858-COST
fax (304) 291-5728
info@aacei.org
www.aacei.org
AACE International, 209 Prairie Avenue, Suite 100, Morgantown, WV 26501 USA
phone: 304-296-8444
fax: 304-291-5728
e-mail: editor@aacei.org
website: www.aacei.org
36