A/E/C Industry 101: Essentials Overview

1. A/E/C Industry 101:Essentials Overview www.cofebuz.com

2. Agenda • The Marketing Coordinator • Marketing / BD Roles • Understanding the Industry • The Brooks Act • The Team • Delivery Methods • GSA Schedules • Average Design Costs • Minority Participation • Terminology • Forms • Marketing Communications • CPSM Exam

3. The Marketing Coordinator • Plans, conducts and coordinates a range of marketing support activities from concept to completion • The glue that holds the marketing effort together • Jack of all trades

4. Your Job

5. Marketing In-office Proposals Public relations Marketing collateral Award submissions Photography Business Development Out-of-office Lead generators Sales Networking/ conferences/trade shows Client contact Marketing vs. Business Development Roles

6. Marketing Chief Marketing Officer Principal, Marketing Strategist Marketing Director Marketing Manager Proposal Manager Marketing Coordinator Marketing Assistant Business Development VP Business Development Director of Business Development Business Development Manager Business Development Coordinator Marketing vs. Business Development Roles

7. Understanding the Industry • Reading • Newsletters (Bisnow) • Trade magazines (ENR) • Newspapers (Washington Business Journal) • The Marketer (SMPS) • Networking • SMPS, SAME, CREW, NAIOP, DCBIA, WBC • Identify Industry Mentors

8. Understanding the Industry • Competitor research • Book of Lists (WBJ) • Websites • Conferences, seminars, and courses • Your firm’s marketing materials

9. The Brooks Act • The Brooks Act (Public Law 92-582), also known as Qualifications Based Selection (QBS) • Enacted on October 8, 1972 • Establishes procurement process for A/E selection for design contracts with federal design and construction agencies

10. The Brooks Act Pursuing federal design work under QBS: • Public solicitation for A/E services • Submission of SOQs and supplemental statements of ability to design specific projects via public announcement • Evaluation of submitted materials • Development of a short-list of at least three submitting firms in order to conduct interviews • Interviews with the firms • Ranking of the top three firms • Negotiation with the top ranked firm

11. The “Who Does What” of Design Teams • Architect • MEP Engineer • Structural Engineer • Civil Engineer • Surveyors • Geotechnical Engineer • Environmental Engineer • Cost Estimator

12. The “Who Does What” of Design Teams • Construction industry includes three parties: • Owner, designer and builder • Two contracts among three parties to plan, design, and construct the project • First contract is owner-designer contract, involving planning, design, and aspects of construction • Second contract is owner-contractor contract involving construction • An indirect, third-party relationship exists between the designer and the contractor due to these two contracts

13. Design Bid Build Design – Bid - Build Design-Bid-Build: project delivery method in which the agency or owner contracts with separate entities for each the design and construction of a project.

14. 10 – 30% Pre- Design Design Build Design–Build • Design-Build: design and construction aspects are contracted with the D-B • Usually GC, but may be the design professional • Used to minimize project risk for the owner and to reduce delivery schedule by overlapping design and construction phases • When D-B is contractor, design professionals are retained directly by the contractor

15. Construction Management • Construction Management: construction consultant providing design/construction advice • Fee-based service responsible exclusively to the owner and acts in the owner's interests • CM offers advice uncolored by any conflicting interest CM Design Bid Build

16. Construction Management At-Risk • Construction Management At-Risk:commitment by CM to deliver the project within a Guaranteed Maximum Price (GMP) • CM acts as consultant to the owner in the development and design phases but as the equivalent of a GC during the construction phase Design CM Sub-Contractors

17. Design CM Sub-Contractors Integrated Design-Bid-Build

18. GSA Schedules • GSA Schedules: Multiple Award Schedules and Federal Supply Schedules • Pre-negotiated, long-term government-wide contracts with commercial firms to provide supplies and services that can be ordered directly from GSA Schedule • Offer customers direct delivery of millions of state-of-the-art, high-quality commercial supplies/services at volume discount pricing • Fee Based Solicitations • A/E services covered by the Brooks Act cannot be processed under GSA Schedule • www.gsa.gov/schedules

19. GSA Schedules • Environmental Services • Environmental Planning Services and Documentation • Mission Oriented Business Integrated Services (MOBIS): • Consulting Services • Facilitation Services • Survey Services • Training Services • Support Products • Privatization Support Services and Documentation • Program Integration and Project Management Services • Introduction of New Services

20. GSA Schedules • Professional Engineering Services (PES): • Strategic Planning for Technology Programs/Activities • Concept Development and Requirements Analysis • System Design, Engineering and Integration • Test and Evaluation • Integrated Logistics Support • Acquisition and Life Cycle Management

21. Average Design Costs • Total design costs average 6½ to 7½% of the total construction cost • Variance depending on size • Example: • $1,000,000 (Construction Cost) ~ 12% = $120,000 Design Cost • $100,000,000 (Construction Cost) ~ 6% = $6,000,000 Design Cost • Complexity of New Construction vs. Renovation

22. Average Design Team Costs • Architect 35% - 65% • MEP Engineer 20% - 30% • Civil Engineer 10% - 20% • Structural Engineer 10% - 15% • Misc. 0% - 10%

23. Minority Participation • North American Industry Classification Codes (NAICS)– set what a small business is • http://www.census.gov/epcd/www/naics.html • 541310 Architecture • 541330 Engineering Qualify for minority status: • 51% minority, disadvantage or woman owned, and a small business

24. Minority Participation • Commonwealth of VirginiaDepartment of Minority Business Enterprisewww.dmbe.state.va.us • State of MarylandDepartment of TransportationMinority Business Enterprisewww.mdot.state.md.us • District of ColumbiaSmall and Local Business Developmentolbd.dc.gov/olbd • General Services AdministrationOffice of Small Business Utilizationwww.gsa.gov/sbu • US Small Business Administrationwww.sba.gov

25. Terminology • 8(a) Business – small business owned by socially and economically disadvantaged citizens • DBE - Disadvantaged Business Enterprise • LSDBE – Local, Small and Disadvantaged Business Enterprise • MBE – Minority Business Enterprise • LBE - Local Business Enterprise • CBE - Certified Business Enterprise • SBE - Small Business Enterprise • WOB – Women-Owned Business • SDB – Small Disadvantaged Business • VOSB – Veteran-Owned Small Business • SDVOSB – Service-Disabled Veteran-Owned Small Business • HUBZone – Historically Underutilized Business Zone

26. Forms • SF 330 • Federal government • SF 255/254 • State and local government • VA AE1-6 • Commonwealth of Virginia • Solicitation, Offer and Award, SF 33 • GSA Request for Proposal (usually CM work) • Online Representations & Certifications Application (ORCA) • Central Contractor Registration (CCR)

27. Marketing Communications • Photography • Identify projects to photograph • Photo library • Work with photographers • Awards Competitions • Identify awards programs • Create yearly submittal calendar • Requires a lot of time and research (similar to a proposal) • Special photography

28. Marketing Communications • Brochures • Identify target audience • Manage and produce • Newsletters • Internal and external • Printed and Electronic • Direct Mail • Postcards announcing projects, new people and awards

29. Marketing Communications • Mailing List • Buy it or keep updated database • Maintain regularly • Record who in the firm is responsible for the contact • Trade Shows • Exhibit booth design • Pre-show mailer • Collateral materials and giveaways • Special Events • Company parties • Open house • Make it memorable!

30. Consultant/Client Etiquette • Know what you want before you call • Introduce yourself and the project • Don’t assume familiarity • Represent your firm • Be professional • Follow up with email request

31. Certified Professional Services Marketer (CPSM) • 150 multiple-choice online exam • Six Domains of Practice • Marketing Research • Marketing Plan • Client and Business Development • SOQs / Proposals • Promotional Activity • Information, Resource, and Organizational Management • Cost • Application Fee: $195 • Examination Fee: $250 online • Books: $345 for recommended full set • Eligibility: bachelor’s degree or advanced degree plus 4 years experience in marketing or business development for firms providing professional services