The Pegasus-Global July/August 2009 Newsletter

NRC Report on Competitiveness and Efficiency now available

In 2008, the National Institute of Standards and Technologies (NIST) requested that the National Research Council (NRC) appoint an ad hoc committee of experts to provide advice for advancing the competitiveness and productivity of the U.S. Construction Industry. The committee's specific task was to plan and conduct a workshop to identify and prioritize technologies, processes, and deployment activities that have the greatest potential to advance significantly the productivity and competitiveness of the capital facilities sector of the U.S. construction industry in the next 20 years.

To gather data for this task, the committee commissioned three white papers by industry analysts and held a 2-day workshop in November 2008 to which 50 additional experts were invited. A range of activities that could improve construction productivity were identified in the papers, at the workshop, and by the committee itself. From these the committee identified five interrelated activities that could lead to breakthrough improvements in construction efficiency and productivity in 2 to 10 years, in contrast to 20 years.

If implemented throughout the capital facilities sector, these activities could significantly advance construction efficiency and improve the quality, timeliness, cost effectiveness, and sustainability of construction projects. To read what these five breakthroughs are and the full committee report, please go to the National Academies Press website.

The report is entitled "Advancing the Competitiveness and Efficiency of the U.S. Construction Industry". It was prepared by the Committee on Advancing the Competitiveness and Productivity of the U.S. Construction Industry for the NRC under the Board of Infrastructure and the Constructed Environment, the Division on Engineering and Physical Sciences.

ASCE Creates the Industry Leaders Council

Established in 2009, the ASCE Industry Leaders Council (ILC) engages senior leaders from industry, academia, government, and non-governmental organizations to identify tactical actions for ASCE and the civil engineering profession. The Council serves as a strategic advisor in identifying emerging trends and developing strategies that promote innovation and strengthen project productivity, quality, and performance in the built and natural environment.

The key responsibilities of the ILC include: identify emerging industry trends impacting the civil engineering profession; identify innovative approaches and solutions to infrastructure challenges; partner with ASCE to drive change in the industry and the profession; provide ongoing strategic advice and guidance to ASCE Board of Direction; promote awards fostering innovation and leadership and participate in selection process; provide guidance on use of ASCE Innovation Fund; and facilitate effective interaction with related organizations.

Participation in the Council provides opportunities for networking and collaboration with industry leaders in a multi-disciplinary setting to develop solutions to key challenges facing the profession such as workforce development, sustainability, project delivery improvement, risk management, and infrastructure resilience. Membership is by invitation only.

Pegasus-Global provides testimony for KCP&L on Iatan I

In his testimony before the commission, Dr. Nielsen had filed pre-filed rebuttal testimony in the case, arguing that "prudence" and "avoidable costs", both terms having a strong contemporary interest for today's consulting engineer, were definable and enforceable within the limitations he outlined. He pointed out the importance of establishing a connection or "nexus" between upper management decisions and any subsequent allowances or disallowances in day to day assessments of prudency of action. His testimony established that there is a "zone of reasonableness" within which a decision may be considered prudent, and that this concept further refines the very general nature of the definition of prudency in any decision-making process.

Dr. Nielsen said the concept of avoidable costs, which the staff and staff's expert were promoting, only acquires meaning within the concept of prudence and is in itself not a term with any accepted standard definition. Terms that are considered in governing the actions of those who make decisions must be reasonable and have generally accepted definitions; otherwise they become subject to the interpretations of the person using the word, and do not benefit the process they are intended to govern.

The complex and inter-dependent nature of decisions on today's large scale public works projects requires that standards be derived from existing standards and concepts that have been tested and have acquired some general statutory or behavioral stability. Beginning an analysis of a problem from the point of view of an end result, however good or bad, belies the procedural correctness that must accompany such decision making, and can not be used per se to justify that the level of decision making adhered to accepted standards of behavior.

Peter Hughes

Mr. Hughes has a B.S. in Mechanical Engineering (Energy Conversion Systems) from San Diego State, and his J.D. from Boalt Hall School of Law, University of California, Berkeley. He speaks and writes widely on matters of project risk management, including at the ABA Forum on the Construction Industry, the Design-Build Institute of America, the International Bar Association, and the Construction Super Conference. He led the effort which resulted in the adoption of progressive Integrated Project Delivery legislation in Colorado in 2007.

Mr. Hughes is a member of the Denver Tech Center Rotary Club, and chairs the Water & Sanitation Task Force of Rotary District 5450 (Northern Colorado). On weekends, he joins his wife Julie in attempting to make habitable the historic houses of the Central City Opera House Association, in which the famous Colorado opera company accommodates its singers for each summer opera season. Their two children are Katherine, presently teaching Graphic Design in Boston and Providence, and Geoffrey, presently practicing architecture in Shenzhen, China.

His other favorite quote, for those of you who read this far, and again from Einstein: "Any man who can drive safely while kissing a pretty girl is simply not giving the kiss the attention it deserves."

Peter has recently completed a paper on the dangers and challenges of setting up branch offices of an American firm in a foreign country. His characteristic 'humour' (he's Canadian) and analytic prowess is on display here: Going International: Rewards, Traps, and Pitfalls.

Read his complete references.

To view some of our past newsletters or to read other articles, visit the Pegasus-Global Archives.

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