PSMJ's Mergers & Acquisitions Division has learned that Florida based TBE Group announced it has joined forces with Australian-based Cardno Limited in a merger that took effect Sept 15, 2008.
The merger with Cardno means that TBE, a 450-person engineering, environment and planning firm becomes a key part of an international industry leader with a combined resource base of 3,400 staff working on projects in more than 60 countries.
Patrick Beyer, President of TBE explained that the benefits of the merger include providing clients with a wider range of services and locations, providing staff with additional opportunities for career development, and to accelerate the growth of TBE across the US and overseas.
TBE has achieved approximately 14% percent annual revenue growth for the last 10 years and has also expanded into Canada, the United Kingdom and Asia in recent years.
TBE brings to Cardno a core competency in coordination of major infrastructure projects - particularly in the areas of utility mapping, utilities coordination, right-of-way acquisition and relocation, transportation engineering, construction engineering, and civil and environmental engineering. Recent projects include construction of the new I-35 Mississippi River Bridge in Minnesota and the Metro Parkway - State Route 739 project in Florida.
Cardno brings to TBE a broader range of civil and structural engineering, international development assistance, environmental, project management and planning services across many countries including Australia, New Zealand, United States, United Kingdom, Indonesia, Kenya, Sri Lanka, China and United Arab Emirates.
With the addition of TBE, staff reporting to Cardno’s U.S. operations now comprise 1,150 staff across 39 offices and a further four branch offices in the United Kingdom, Belgium and Canada. Cardno’s other U.S. businesses include WRG Design, Emerging Markets Group and XP Software.
President of Cardno USA, Michael Renshaw, said TBE offers tremendous potential to cross-sell capabilities with Cardno’s existing US based businesses and also with its operations in other countries and continues Cardno’s strategy of diversifying its skills base and markets.
TBE’s key management will become Cardno shareholders and remain active in the company. Pat Beyer the founder of TBE will remain as President.
For more information, go to http://www.tbegroup.com/
Wednesday, September 17, 2008
Monday, September 15, 2008
Early impressions of PSMJ Quarterly Economic Indicator Survey
Looking at the third quarter Quarterly Economic Indicator Survey at the midpoint of the month(150 responses) here is my key read on our profession:
- The usual areas are still going strong - health care, education, environmental, water/wastewater, energy/utilities. Water has slowed a bit, but is still strongly positive. Even Telecom is now positive and it was a drag on this sector the past couple of years.
- The housing market is still in its steep rate of decline, we have not slowed the descent as yet. I think we are still over a year out from any decent work in this sector.
- Commercial for both developers and owners has declined further since the last quarter. Clearly this sector is headed for a marked slow down over the next year.
- Transportation has taken a surprising downturn. There are an increasing number of states that are stopping projects due to higher construction costs and the effects of lower gas tax revenues on programs. Last week's drain of the federal trust fund didn't help the mood, either. I think we will be down in this sector until someone decides how funds are going to be increased (then it will take off like a rocket).
- Overall, we are negative in backlogs, and also in revenue growth quarter over quarter. Proposals have also turned negative overall.
Not much change, but what change there is is not positive, so I think we will see slower economic activity in our sector over the next year at least.
Bill Fanning, PSMJ Director of Research
Friday, September 12, 2008
Federal Highway Fund Crisis Averted!
Stop the presses! (I just can't let the opportunity to use an old movie line go by)
House and Senate passed refinancing, President will sign tomorrow, crises over! No contractors or A/Es will be deprived of timely payment, other than through the usual lack of administrative speed of the DOTs.
Bill Fanning
House and Senate passed refinancing, President will sign tomorrow, crises over! No contractors or A/Es will be deprived of timely payment, other than through the usual lack of administrative speed of the DOTs.
Bill Fanning
Thursday, September 11, 2008
US DOT slows highway payments
Ken Simonson, Chief Economist at The Associated General Contractors of America reports this week that the federal Highway Trust Fund would not have enough money to make full payments to states for highway construction expenditures they had already incurred and submitted for reimbursement. DOT Secretary Mary Peters called on Congress to immediately pass a bill transferring $8 billion from the general fund. When the House passed such a bill in July, the White House had issued a veto threat. The New York Times reported on Sept. 6 that DOT “expects to have enough money to make all payments to the states for the second week of September but enough for only about 64% of the payments the third week, said Brian Turmail, an agency spokesman. Then, with a regular infusion of two weeks’ worth of gasoline-tax revenue from the Treasury, [DOT] will have enough money to make 88% of its payments in the fourth week of September—except that it will have to first make up payments it could not meet earlier in the month. Thus, as states wind down the busy summer construction season, their transportation officials can anticipate longer and longer delays in getting payments from Washington, Mr. Turmail said. State transportation officials expressed alarm. The money shortage will have ‘grave repercussions for the states, for hundreds of thousands of workers in the construction industry and the driving public,’ said John Horsley, executive director of the American Association of State Highway and Transportation Officials. Some AGC chapters reported that their state DOTs have already delayed contract awards.
State revenue shortfalls are leading some states to cut highway construction and other spending. The Washington Post reported this week, “Maryland transportation officials plan to announce today the deferral of about $1.1 billion in transportation [projects] in a $10.5 billion capital plan for the next six years. The announcement…is prompted by lagging revenues in a separate fund for transportation projects. Two of those revenue sources, the gas and titling taxes, have slowed considerably because of higher gas prices and slumping car sales.” In addition, “Budget Secretary T. Eloise Foster said she plans to recommend at least $250 million in spending cuts next month” to the Board of Public Works. “Just weeks after more than half of the states closed shortfalls in their 2009 budgets totaling $48 billion, the budgets in 13 of those states have fallen out of balance again,” the Center on Budget and Policy Priorities reported on Monday. “In the six of these 13 states that have made specific estimates, the new gaps total $4.4 billion, or 4% of their budgets….The 13 states facing new, mid-year shortfalls for fiscal year 2009 (which began on July 1 in most states) are Arizona, Connecticut, Florida, Georgia, Illinois, Massachusetts, Nevada, New Hampshire, New York, Ohio, South Carolina, Vermont, and Virginia.”
PSMJ Research Director Bill Fanning told me this week that the FHWA program pays bills due to states on a first in-first out basis, but only up to the amount of the cash balance in the trust fund.
This means delays in payments to contractors and A/Es will be a snowball slowdown as FHWA cumulatively delays from $0 to the $8 billion shortage.
We should begin to hear about this from A/Es about the end of November as the slowdown becomes noticeable. And the contractors (who have bigger bills) will start screaming long before the A/Es.
Fanning went on to say that Congress could fix the problem with the $8 billion transfer internally within DOT, but counting on Congress to do anything responsible is probably wishful thinking.
Bruce
State revenue shortfalls are leading some states to cut highway construction and other spending. The Washington Post reported this week, “Maryland transportation officials plan to announce today the deferral of about $1.1 billion in transportation [projects] in a $10.5 billion capital plan for the next six years. The announcement…is prompted by lagging revenues in a separate fund for transportation projects. Two of those revenue sources, the gas and titling taxes, have slowed considerably because of higher gas prices and slumping car sales.” In addition, “Budget Secretary T. Eloise Foster said she plans to recommend at least $250 million in spending cuts next month” to the Board of Public Works. “Just weeks after more than half of the states closed shortfalls in their 2009 budgets totaling $48 billion, the budgets in 13 of those states have fallen out of balance again,” the Center on Budget and Policy Priorities reported on Monday. “In the six of these 13 states that have made specific estimates, the new gaps total $4.4 billion, or 4% of their budgets….The 13 states facing new, mid-year shortfalls for fiscal year 2009 (which began on July 1 in most states) are Arizona, Connecticut, Florida, Georgia, Illinois, Massachusetts, Nevada, New Hampshire, New York, Ohio, South Carolina, Vermont, and Virginia.”
PSMJ Research Director Bill Fanning told me this week that the FHWA program pays bills due to states on a first in-first out basis, but only up to the amount of the cash balance in the trust fund.
This means delays in payments to contractors and A/Es will be a snowball slowdown as FHWA cumulatively delays from $0 to the $8 billion shortage.
We should begin to hear about this from A/Es about the end of November as the slowdown becomes noticeable. And the contractors (who have bigger bills) will start screaming long before the A/Es.
Fanning went on to say that Congress could fix the problem with the $8 billion transfer internally within DOT, but counting on Congress to do anything responsible is probably wishful thinking.
Bruce
Friday, September 5, 2008
Do you know a seagull manager? Are you one yourself?
The online resource changingminds.org defines seagull management as a management style whereby a manager “flies in, poops on you and then flies away again”.
Seagull managers typically give criticism and direction in equal quantities often without any real understanding of what the job entails. Then before you can object or ask what they really want, they have something more urgent to do. The experience of having a seagull manager is not positive. The best thing that can be said is that they are typically there not very often and you can largely get on with the job by yourself.
Seagull management happens when the manager doesn’t really know that much and fears being exposed by questions or debate. They consequently grab the talking stick and do not stop until they can excuse themselves and leave. It is possible that they really are busy, but what they miss is the importance of person-management. They are likely to be strongly task-based and consider the 'soft stuff' as fluffy and unnecessary. Their approach is thus highly transactional, based on the simple premise 'do as I say and you'll continue to get paid'.
What you need to do about seagull managers depends largely on your job. If you can work independently, then the best approach is to listen patiently then ignore them. As long as you are delivering value, they may not actually be too concerned about how you get there. Unlike the micromanager, they are not that interested in control over you.
If, however, their approach is damaging to your career and health, then you need to address the issue. Book a meeting with them (if you can) to discuss your work. Write down what your objectives are and what you are doing and give it to them. They may ignore it but this will give you tacit ammunition if you need it later. If things are particularly bad, this is a definite case for assertiveness (which is probably good anyway). Talk to them about what they are doing and the effect they are having. Worst case, look for another position with a better manager who knows how to lead.
A novel approach is to deliberately 'chase' them with complex detail for which they have 'no time'. As they retreat or waffle, offer a simpler alternative that is easy for them to accept. You can also always reframe what they said, casting it into a more sensible light.
Because the most important thing in the seagull manager's life is the seagull manager, if you can deliver results, then they may well leave you to your own devices or give moderate support. Deliver regular short messages that show you are making good progress. Also work to make them look good to the rest of the organization (despite temptations to the contrary!). If they think you are acting contrary to their interests, they will just fly by more often and poop on you even more.
If you are a manager, then seagull management is something to avoid. It is a trap that will alienate and demotivate your staff. If there are wiser people above you, then they also will find out what is happening and your advancement will halt or regress.
The real lesson here is to sustain a good relationship with your people. Respect them and communicate regularly and with integrity. And don’t forget to listen.
Bruce
Seagull managers typically give criticism and direction in equal quantities often without any real understanding of what the job entails. Then before you can object or ask what they really want, they have something more urgent to do. The experience of having a seagull manager is not positive. The best thing that can be said is that they are typically there not very often and you can largely get on with the job by yourself.
Seagull management happens when the manager doesn’t really know that much and fears being exposed by questions or debate. They consequently grab the talking stick and do not stop until they can excuse themselves and leave. It is possible that they really are busy, but what they miss is the importance of person-management. They are likely to be strongly task-based and consider the 'soft stuff' as fluffy and unnecessary. Their approach is thus highly transactional, based on the simple premise 'do as I say and you'll continue to get paid'.
What you need to do about seagull managers depends largely on your job. If you can work independently, then the best approach is to listen patiently then ignore them. As long as you are delivering value, they may not actually be too concerned about how you get there. Unlike the micromanager, they are not that interested in control over you.
If, however, their approach is damaging to your career and health, then you need to address the issue. Book a meeting with them (if you can) to discuss your work. Write down what your objectives are and what you are doing and give it to them. They may ignore it but this will give you tacit ammunition if you need it later. If things are particularly bad, this is a definite case for assertiveness (which is probably good anyway). Talk to them about what they are doing and the effect they are having. Worst case, look for another position with a better manager who knows how to lead.
A novel approach is to deliberately 'chase' them with complex detail for which they have 'no time'. As they retreat or waffle, offer a simpler alternative that is easy for them to accept. You can also always reframe what they said, casting it into a more sensible light.
Because the most important thing in the seagull manager's life is the seagull manager, if you can deliver results, then they may well leave you to your own devices or give moderate support. Deliver regular short messages that show you are making good progress. Also work to make them look good to the rest of the organization (despite temptations to the contrary!). If they think you are acting contrary to their interests, they will just fly by more often and poop on you even more.
If you are a manager, then seagull management is something to avoid. It is a trap that will alienate and demotivate your staff. If there are wiser people above you, then they also will find out what is happening and your advancement will halt or regress.
The real lesson here is to sustain a good relationship with your people. Respect them and communicate regularly and with integrity. And don’t forget to listen.
Bruce
Thursday, September 4, 2008
How to Factor Gas Prices in Recruiting and Retention
The online recruiting community ere.net reports that employers offering transportation subsidies, telecommuting options, and virtual office arrangements may be wooing the best and the brightest candidates right now, even without the highest salaries and biggest relocation budgets in the marketplace.
Today it isn’t unusual to find employees spending $5,000 a year just in gas to commute. Many firms are using telecommuting to increase the pool of prospective candidates. If you have a policy like this, you may be able to offer less salary because the employee will no longer need to absorb the daily commute cost.
ere.net also reports that even firm management who commute 30 miles or more to work are turning over at higher rates because of high gas prices and it will only get worse when the job market and the economy rebound. Fuel prices are also affecting the cost of relocation. Candidates are scrutinizing the cost of living in prospective urban areas and more are either turning down offers or negotiating for higher salaries. Firms too, are responding differently – many now require relocating managers to sign repayment agreements, obligating them to repay the relocation costs if they quit before completing one year of employment. You need to factor these realities into your management recruitment and retention strategy.
Bruce
Today it isn’t unusual to find employees spending $5,000 a year just in gas to commute. Many firms are using telecommuting to increase the pool of prospective candidates. If you have a policy like this, you may be able to offer less salary because the employee will no longer need to absorb the daily commute cost.
ere.net also reports that even firm management who commute 30 miles or more to work are turning over at higher rates because of high gas prices and it will only get worse when the job market and the economy rebound. Fuel prices are also affecting the cost of relocation. Candidates are scrutinizing the cost of living in prospective urban areas and more are either turning down offers or negotiating for higher salaries. Firms too, are responding differently – many now require relocating managers to sign repayment agreements, obligating them to repay the relocation costs if they quit before completing one year of employment. You need to factor these realities into your management recruitment and retention strategy.
Bruce
Sunday, August 31, 2008
Welcome Enforcement
The Federal Transit Administration (FTA) recently required a local transit authority to return over $900,000 in federal grant funds that were used to pay an A/E firm for the design of a new facility.
The Lackawanna County (NY) Transit Authority must return the full federal grant applied to the hiring of an A/E firm to perform design services for a proposed intermodal transportation center.
The reason for this action? The local authority did not comply with applicable federal laws and regulations in the selection and contracting with this A/E. Failure to follow required Brooks Act procurement caused the design services to be not eligible for federal funding under the “common grant rule”, which forms one of the baseline grant rules applicable to recipients of federal funds.
Federal Grant rules, as specified by various laws and regulations make it very clear that if federal funds are used in the procurement of A/E services, federal law, including QBS (Brooks Act) and contracting and payments (FAR) must follow federal rules.
This action is long overdue, and hopefully will be the start of a trend that ends with all recipients of federal funds following the established best practices incorporated in federal procurement of A/E services.
Fair and open procurement, and fair contract terms for A/E firms have for many been often been a challenge at the state and local level.
Hopefully this “message” of the risks of not following fair contracting processes will spread to many other agencies with questionable contracting practices.
In this instance, FTA asked for the money back from the local transit authority, without any penalty or refund from the A/E.
Bill Fanning
Director of Research
The Lackawanna County (NY) Transit Authority must return the full federal grant applied to the hiring of an A/E firm to perform design services for a proposed intermodal transportation center.
The reason for this action? The local authority did not comply with applicable federal laws and regulations in the selection and contracting with this A/E. Failure to follow required Brooks Act procurement caused the design services to be not eligible for federal funding under the “common grant rule”, which forms one of the baseline grant rules applicable to recipients of federal funds.
Federal Grant rules, as specified by various laws and regulations make it very clear that if federal funds are used in the procurement of A/E services, federal law, including QBS (Brooks Act) and contracting and payments (FAR) must follow federal rules.
This action is long overdue, and hopefully will be the start of a trend that ends with all recipients of federal funds following the established best practices incorporated in federal procurement of A/E services.
Fair and open procurement, and fair contract terms for A/E firms have for many been often been a challenge at the state and local level.
Hopefully this “message” of the risks of not following fair contracting processes will spread to many other agencies with questionable contracting practices.
In this instance, FTA asked for the money back from the local transit authority, without any penalty or refund from the A/E.
Bill Fanning
Director of Research
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