a/e/c industry 101: essentials overview

A/E/C Industry 101:Essentials Overview

www.cofebuz.com

Agenda

The Marketing CoordinatorMarketing / BD RolesUnderstanding the Industry

The Brooks ActThe TeamDelivery MethodsGSA SchedulesAverage Design CostsMinority ParticipationTerminologyFormsMarketing Communications

CPSM Exam

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

Your Job

10%

25%

5%

60%

AdministrativeQualsMarCommProposals

Marketing vs. Business Development Roles

MarketingIn-officeProposalsPublic relationsMarketing collateralAward submissionsPhotography

Business Development

Out-of-officeLead generatorsSalesNetworking/ conferences/trade showsClient contact

Marketing vs. Business Development Roles

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

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

Understanding the Industry

Competitor research

Book of Lists (WBJ)

Websites

Conferences, seminars, and courses

Your firm’s marketing materials

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

The Brooks Act

Pursuing federal design work under QBS:

1. Public solicitation for A/E services

2. Submission of SOQs and supplemental statements of ability to design specific projects via public announcement

3. Evaluation of submitted materials

4. Development of a short-list of at least three submitting firms in order to conduct interviews

5. Interviews with the firms

6. Ranking of the top three firms

7. Negotiation with the top ranked firm

The “Who Does What” of Design Teams

Architect

MEP Engineer

Structural Engineer

Civil Engineer

Surveyors

Geotechnical Engineer

Environmental Engineer

Cost Estimator

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

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.

Design Bid 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

Pre- Design Design

Build

10 – 30%

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

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

Integrated Design-Bid-Build

Design

CM

Sub-Contractors

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

GSA Schedules

Environmental ServicesEnvironmental 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

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

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

Average Design Team Costs

Architect 35% - 65%

MEP Engineer 20% - 30%

Civil Engineer 10% - 20%

Structural Engineer 10% - 15%

Misc. 0% - 10%

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

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

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

Forms

SF 330Federal government

SF 255/254State and local government

VA AE1-6Commonwealth of Virginia

Solicitation, Offer and Award, SF 33GSA Request for Proposal (usually CM work)

Online Representations & Certifications Application (ORCA)

Central Contractor Registration (CCR)

Marketing Communications

PhotographyIdentify projects to photographPhoto libraryWork with photographers

Awards Competitions

Identify awards programsCreate yearly submittal calendarRequires a lot of time and research (similar to a proposal)Special photography

Marketing Communications

BrochuresIdentify target audienceManage and produce

NewslettersInternal and externalPrinted and Electronic

Direct MailPostcards announcing projects, new people and awards

Marketing Communications

Mailing ListBuy it or keep updated databaseMaintain regularlyRecord who in the firm is responsible for the contact

Trade ShowsExhibit booth designPre-show mailerCollateral materials and giveaways

Special EventsCompany partiesOpen houseMake it memorable!

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

Certified Professional Services Marketer (CPSM)

150 multiple-choice online examSix Domains of Practice

Marketing ResearchMarketing PlanClient and Business DevelopmentSOQs / ProposalsPromotional ActivityInformation, Resource, and Organizational Management

CostApplication Fee: $195Examination Fee: $250 onlineBooks: $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