tm the northwest recap...curt kolar, cpe (503) 962-8840 [email protected] certiﬁ cation chana...

October 2014

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Columbia | Pacifi c Chapter 54TM

Upcoming Events

October 21 - Program: A must see!

Page 3.

Check out other Construction Industry Related Organizations:

ASPE groups on LinkedIn.com www.linkedin.com/groups/American- Society-Professional-Estimatorsnational- group-750797/about

A/E/C Industry Networking Group on Linkedin.com www.linkedin.com/groups/E-C-Industry- Networking-Group-46976/about AACE Cascade - www.aacei-cascade.org/ CSI Portland - www.portland.csinet.org/ Check out CSI Regional Conference

NAWIC - http://www.nawicportland54.org/

Volume 24 | Issue 10 | October 2014

The Northwest Recap

IN THIS EDITION OF THE RECAP:

Prez Snippet p 2October Program p 3Walt’s Ramblings p 5Job Hotline p 6Oregon Construction p 8Employment Statistics

To Protest or Not to Protest?That is the question

Oregon Construction Employment Statisticspage 8

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Offi cers and Chairs

Columbia Pacifi c 2014 - 2015

PresidentHester Troutman, CPE(503) 535-2637 [email protected]

1st Vice PresidentSteve Clapp, CPE(503) 953-4425 [email protected]

2nd - Vice PresidentPosition Open!

SecretaryMike Flynn, CPE (971) 279-5002 mikefl [email protected]

TreasurerRobert Rivera, C(503) 846-7849 [email protected]

Past PresidentChana Frederick, CPE(971) 832-3944 [email protected]

Membership Jared Carkin, E(503) 209-6048 [email protected]

Programs/ Newsletter Editor Curt Kolar, CPE(503) 962-8840 [email protected]

Certifi cation Chana Frederick, CPE(971) 832-3944 [email protected]

PublisherSamantha Jordan(503) 777-5531 [email protected]

AdvertisingSteve Clapp, CPE(503) 953-4425 [email protected]

Chana Frederick, CPE(971) 832-3944 [email protected]

Chapter GeneralPO Box 6661 Portland, OR [email protected]

Prez Snippet

Here we are into fall. The nights are longer and blissfully cooler. It’s one of my favorite seasons!

I think we are blessed to have seasons that change in the Pacifi c Northwest! Soon the trees will be completely orange before they become barren till spring. I had to dig out all my refl ective running gear last night for the fi rst time since my knee operation last fall. It was completely dark during my evening run!1

I’d like to say thank you to Cherise Schacter for spending some time educating us during the September program. She brought us a highly energetic introduction to the world of Twitter, facebook and Linked In. Are you Linked In? You can fi nd me there, and my own twitter handle is @trout3063 however I don’t actively tweet much!

Social night! As promised we will be hosting our fi rst social night of 2015 on January 20th. Location to be determined! Watch this newsletter for the announcement next month!Getting closer….regional meeting will be held in Scottsdale, AZ the fi rst weekend of November. These meetings are open to every member! If you’ve never attended a regional or national ASPE meeting you are missing out on huge network opportunities! I hope to see you in Scottsdale!

Hester Troutman, CPEIncoming Chapter 54 President

For more information, please visit ARC’s

website or call today:

Phone: (503) 227-3424 www.e-arc.com

Bid ProtestsTo fi le or not to fi le / my competitor doth protest too much!

Featuring

Jeremy Vermilyea • Attorney, Schwabe, Williamson & Wyatt

When: Tuesday October 21, 2014 Social Time – 5:30pm • Dinner & Program 6:15pm

Where: University Place • 310 SW Lincoln, Portland ***Free parking – go to the hotel lobby and say that you are with ASPE ***

When is it wise - or imperative to fi le a bid protest? What if your bid has become the subject of a protest? What are the costs and risks associated with protesting a public project? What difference does it make if the project is hard bid vs. negotiated award?

Join us as we once again, as we explore important topics in the construction industry. Our speaker, Jeremy Vermilyea, has two decades of experience litigating public and private construction disputes, including numerous bid protests. Jeremy will fi rst frighten you and then arm you against the uncertainty and perils surrounding public bidding and bid protests.

** This educational program qualifi es for 1 CED hour for Oregon CCB license renewal **

Meeting Cost: $35.00 with Reservation & Credit Card payment*$45.00 via check at the door • Ask about Special Student Rates

*Reservation Deadline: Noon, Wednesday, October 15Includes Dinner – Meal is guaranteed only with reservation For Reservations: http://aspe54.org

If this does not take you to it, then look for, and click on, “October Program Meeting”Questions or special circumstances: contact Curt Kolar 503-962-8840 [email protected]

Cancellations: (see The Fine Print below)The Fine Print: if you reserve (online or otherwise) and do not attend and have pre-paid, thank you for your

donation to our Society! OR you July send someone to the event in your place. No-show reservations not pre-paid, will be invoiced $45.00 PLUS a $15.00 processing fee.

For known or potential special circumstances, contact Curt Kolar immediately.

October 2014

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October Program

Register Today: http://aspe54.org

October 2014

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October 2014

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Walt’s Ramblings

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Have something to share with the group? New project, job opportunities, certifi cations? Let us know and we will feature it in the newsletter. Contact: Samantha Jordan - [email protected]

Advertise With Us... Contact Steve Clapp, CPE, for information regarding business or special event ads [email protected]

As members of ASPE and actually as members of the construction estimating world in general, we should present a certain façade of professionalism in the day to day operations. In other words, our estimates should not just be turned in and let the cards fall where they may. This is especially true for change orders.

Remember that project I mentioned last month. Well, the world continues to turn regarding the change orders on the project.

I was hired, as you recall, to check change order pricing as required by the owner’s rep. I am spending quite a lot of time on this challenge. A lot more time than should be required. But the general seems to have an opinion that since the owner is paying for my services, through his representative, they don’t have to perform due diligence on change quotes for the subs. For that matter, they are not preforming due diligence on their own estimates for change orders. Because of this lack of review by the general, the owner, in my opinion, is paying twice for overhead on changes.

The general is getting a fair markup on changes for the subs

work and for their work. This fee for overhead should be covering change order pricing reviews. Instead, the general is collecting the paperwork, assembling it into a package and forwarding it on to the owner’s rep, who in turn sends it to me for review. The rep adds their markup on to my billing and sends it to the owner for payment. My billings are not getting any cheaper.

The owner, therefore, is paying for change order overhead by the general and by his rep. Somehow it does not seem right. If I was the owner and the light came on, I would be deducting my review costs from the general’s markup. Just a thought.

Examples:

1. I just got a $250,000 change for rough carpentry. The backup included:A. A lumber quote addressed to a subcontractor who is not involved with the project. At least the quote referenced the correct job.B. A large request for an increase in labor. The backup consists of two line items. One for foreman hours times an

Continued pg 7

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For contact information, direct inquiries to Recap Editor, Curt Kolar, CPE 503-962-8840 [email protected]

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October 2014

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Cell: [email protected], BILL ELLIS, P.E

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hourly rate and one for journeyman hours times an hourly rate. They did not provide a line item estimate for the changes complete with production rates.C. The change referenced an ASI which was not included in the backup. As most of you know, ASI usually are issued with the statement that the architect must be notifi ed immediately if the general anticipates any change in dollars. I don’t know if such notifi cation was issued by the general. But I will need to see that notifi cation.D. There was a lump sum add for equipment. No indication of what type of equipment, how many hours/days/months or rental rates.

I will be sending the quote back stating there is not enough information for me to provide a response to the request.

I presume that there had to be an estimate in order to provide a lumber list to get a quote on the material. The estimator had to calculate man-hours for all of the material. The only way he could do that was to have a line item estimate which had production rates for each line item. Those production rates are divided into the quantities which produce the man-hours. Man hours times hourly rates equals labor dollars for each line item. Simple estimate.

The point I am making here is that on any change order, no matter the complexity or the dollars, the company submitting the change order request should be professional enough to outline how the dollars were derived. The company

should have enough respect for its client to provide enough information that the client can review the estimate and establish that the cost is fair and reasonable.

This is not the only project I have worked on as an estimator in the trenches (i.e. working for a company full time) or as a consultant just futzing around that this problem has cropped up.

In my working days I would send the change back to the subcontractor requesting additional information. I felt that I owed the owner that respect and protection. The other reason was that I was trying to derail any potential confrontation. Change orders are not the most popular aspect of a project. If I could justify the cost up front, the owner may not like it, but at least he could understand it.

It appears, however, that nothing changes. As estimators you have enough problems in your professional life. Don’t add to them by using practices that just increase your stress. Be fair to your clients. There is a possibility that it will pay off in the future with more work.

October 2014

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Madden Industrial Craftsmen, Inc.Contact: Ken Madden1-800-308-6424

Walt Continued

Thank you for listening | Walt Lemon, CPE (lifetime)American Society of Professional EstimatorsChapter 54 | Northwest Governor | [email protected]

October 2014

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Oregon Construction Employment Statistics

tm the northwest recap...curt kolar, cpe (503) 962-8840 [email protected] certiﬁ cation chana...

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