Proposed Budget For the Year ending December 31, 2011

1. Proposed BudgetFor the Year endingDecember 31, 2011

2. AGENDA • Review of 2010 financials & milestones • Presentation of 2011 budget • Highlights of new activities • Potential opportunities • Contingent Requests

3. CMAA Mission Statement The Mission of CMAA is to promote and enhance leadership, professionalism, and excellence in managing the development and construction of projects and programs. The Vision of CMAA is to be the recognized authority in managing the development and construction of projects and programs.

4. Primary Activities • The mission of CMAA is achieved through – • Accredited certification program designating Construction Managers as meeting or exceeding professional standards and best practices; • Professional education in a variety of areas critical to the success and promotion of the Construction Management industry and profession; • Innovative tools and assessments to keep abreast of the changing skills and roles of Construction Managers; • Publications to convey value of the profession; • Creation and maintenance of Body of Knowledge; and • Promotion and advocacy for the industry

5. CMAA Historical Statement of Activities • Overall, revenues have increased steadily year-over-year • 2008 was very challenging – 2009 & 2010 focus on tight expense control • Maintain commitment to overall strategic mission

6. 2010 Milestones • Record breaking year • 6,434 Members • More than 1,000 attendees at National Conference • Almost 280 certification applications processed • 229 new CCMs (as of November 30, 2010) • New programs and benefits • Sustainability Guideline published • Launch of CMpatTM Assessment Tool • Repurposed Spring Conference into Owners Forum • Solid Progress with Alliance between CMAA & CII • Introduction of the Live Learning Center

7. Membership Milestones Membership of 6,434 27 regional chapters and 26 student chapters Board approved Mega Member category offering unlimited employee memberships and significant professional development benefits

8. Membership Opportunities • New Mega Member category • New insurance program for small and mid-size service providers • More members = more opportunities for certification, meetings, and professional development Challenges • While the number of members has increased by 60% over past 4 years, dues revenues have only increased by 10% • Declining retention in key areas such as owners and service providers • Number of student members increasing each year, minimal revenue impact • No specific membership marketing plan • ANSI imposed limitations on soliciting certification candidates for CMAA membership • How can we leverage what we have within the boundaries? • Continued mergers and acquisitions among members • No membership dues increase since 2000

9. Membership Next steps • Membership marketing plan – renew, retain, and recruit • Further engage chapters to help with membership retention Resources needed • Specific, consistent marketing program focusing on membership • Overhaul website • Promote CMAA to increase visibility and awareness • Outreach to current and potential members • Includes targeted membership brochures • Allowance for continued membership contact through email and small, target mailings • Industry relations activities – CII, SAME, GSA

10. Meetings & Tradeshows Milestones Record attendance at National Conference with more than 1,000 attendees Successful Rebranding of Spring event into Owners Forum High quality educational programming Positive overall attendee experience – excitement (buzz)

11. Meetings & Tradeshows Opportunities • Owners Forum with 3 concurrent summits • Tie to membership recruitment efforts • Increase sponsorships through summit model • National Conference to be held in DC • High number of federal owners • More members = more potential meeting attendees Challenges • Reduced number of booth spaces available • Less revenues and opportunities for members • Minimal attendee pricing increases past several years to reflect the added value

12. Certification Milestones 50% growth in applications processed from 2007 – 2010 67% growth in the number of individuals certified from 2007 – 2010 *Total through 11/30/10

13. Certification Opportunities • Substantial interest in webinars on becoming a CCM and the application process • Potential new Mega Member anticipates sending 85 individuals through the certification process in 2011 • VDOT committed to sending an additional 20 individuals through the certification process • GSA intends to require 300 senior project managers to obtain CCM credential in the next 2 years • More members = more potential certification candidates Challenges • Manual intensive process to review and approve certification applications • Manual approach to recertify individuals, leading to lower renewal rates Next Steps • Select and acquire certification specific management system to automate certification process

14. Other Professional Development Activities Milestones Record 10 SOP Courses conducted in 2010 Introduction of CMpatTM in early December, 2010 Record 24 webinars broadcast in 2010

15. Other Professional Development Activities Opportunities • SOP courses delivered easily with chapter involvement • Increased interest from owners in training and preparation for CCM • More members = more potential professional development participants Challenges • Hard to anticipate needs of new individuals joining with Mega Membership program • Free webinars eliminates a current revenue source for the organization Next Steps • Develop and produce an additional 4 modules needed for the online SOP training program • Review Body of Knowledge • Monitor popularity and expense of free webinars Resources Needed • Cost to develop and produce new SOP modules

16. RECAP • Survived difficult recession • All major programs and revenues have been growing • Expenses have been held tight • Organization has continued to grow despite limited outreach, marketing, or retention efforts WE HAVE A HUGE OPPORTUNITY!!

17. 2011 Proposed Budget

18. New Initiatives in 2011 • Expand New Mega Membership Category • Conduct marketing & advertising campaign – Budget of $57,000 • Develop and produce 4 new SOP modules – total investment $40,000, 2011 expense $13,000 • Overhaul Association website – total investment $30,000, 2011 expense $10,000 • Purchase and implement certification management system – total investment of $30,000, 2011 expense $10,000 • Support International Committee request of $10,000 • Carry out expanded industry relations activities – Cost of $6,500 • Carry out leadership training for chapter presidents – new expense of $5,000 • Provide free webinar series • Bring all accounting functions in house – annual savings $70,000

19. Membership • Key Assumptions • 8 Large corporate members have upgraded to Mega Membership category • ARCADIS, Heery Intl, Hill International, Jacobs, Parsons, PB, Shaw Group, URS • 1 New Mega Member budgeted in 2011 • Focus on retaining members in owner and service provider categories • Anticipate continued loss at a decreasing rate of individual memberships

20. Membership Opportunities • Come Back Campaign • Sent to 443 former service provider members • Total revenue potential $200,000 • Recruit new Mega Member companies • Each new company generates $25,000 in new dues • Currently being sold by professional association business development consultant • Recruit 10 new water/transportation related owner organizations • Focus of Owners Forum Summits • Each new owner would be $1,200 or $12,000 for 10 (at small owner rate)

21. Membership Expenses • Key assumptions • Continued use of business development consultant for first half of 2011 • Reduce database vendor costs

22. Meetings & Conferences • Key Assumptions • Owners Forum • New Sponsorship model changed yielding an increase of $15,000 • Attendance boost to 330 • National Conference • Attendance budgeted at 870 attendees • Sponsorships maintain 2010 levels • Opportunities • Increase National Conference attendee registration fees • Increase Owners Forum registration fees • Additional leadership sponsorship for Owners Forum

23. Marketing & Tradeshows • Key Assumptions • Tradeshow space limited to 69 booths • Budget assumes continued sell out of the space • Renewed organizational marketing and advertising campaign implemented at a cost of $57,000 • Overhaul website • Total investment $30,000 • 2011 depreciation expense $10,000

24. Certification • Key Assumptions • Budgeted for 300 application fees, 250 exam fees • Recertification fees for 1,000 CCMs • Implementation of certification management system • Total cost $30,000, 2011 depreciation expense $10,000 • Opportunities • Increase application fees by $20 each = $6,000 • 10% increase in the number of applications = $8,850

25. Other Professional Development • Key Assumptions • Expand online SOP modules with 4 new modules • Unlimited Subscription/licensed use with Mega memberships • CMpatTM launch in December, 2010 and included in Mega Membership • Assumes breakeven with $7,500 in additional revenues from individual purchases • SOP Courses will include 3 in-house and 9 chapter sponsored • Twelve webinars provided at no charge to members, overall cost underwritten by 5 sponsorships at $5,000 each • Increase travel costs of $6,500 for industry relations activities

26. Other Professional Development Opportunities • 18 chapters not currently planning to host SOP Course • Minimum 8 attendees would net $1,400 after revenue sharing • Participating chapter also gets $1,400 • 10 additional chapters SOP Courses yields $14,000

27. Publications • Key Assumptions • Revenues flat from prior year • One time implementation costs of $5,000 in 2010 • Credit card fees charged against revenues starting in 2011

28. Chapters • Key Assumptions • Conduct chapter leadership training $5,000 – new in 2011 • Increase in chapter revenue sharing cost based on increase in number of members $4,000 • Opportunity • Revamp revenue sharing formula and distribution model • Need to limit risk with new Mega Member category

29. Leadership & Governance • Key Assumptions • Expenses consistent year over year • Transfer some smaller expenses to marketing

30. General & Admin • Key Assumptions • Bring all accounting functions back in-house • Yields savings of $70,000 • Total savings compared to 2010 $58,000 (eliminated prior to year end) • Modest increases in other areas including rent and general office expenses

31. Other Revenues • Key Assumptions • Revenues will be flat on Career Headquarters, Other Revenues • Reimbursements in Chapters and Governance offset directly against expenses in 2011

32. Financial Impact

33. 2011 Proposed Budget Recap • Continued growth in most areas • Space limitations in tradeshow • PD lower by including benefits under Mega Membership

34. 2011 Proposed Budget Recap (cont) • Primary increases for marketing & advertising campaign • Investments needed in website, SOP modules, and certification management system • Fund International Committee Request for $10,000

35. 2011 Proposed Budget Recap (cont) • Focus on increasing revenues • Opportunities to improve bottom line

36. Contingency • Request to Add 2 New Program Expenses • Requires CMAA management to increase revenues above budgeted level • Continue to provide regular forecasts throughout 2011 • Request to use 50% of additional revenues for: • Additional administrative staff position • Continue marketing & advertising campaign • Incentive to find creative solutions • Ensure Increase Net Assets

37. Action • Motion to approve the budget