TZL 1391 (web)

TZL 1391 (web)

T R E N D L I N E S M a y 1 0 , 2 0 2 1 , I s s u e 1 3 9 1 W W W . T H E Z W E I G L E T T E R . C O M

Finance and accounting staff

Matching your communication style to the needs of those you’re communicating with will ensure your message is received. Connect across generations

Finance and accounting staff as a percentage of total staff was analyzed among firm participants in Zweig Group’s soon-to-be-released 2021 Financial Performance Survey of AEC Firms . This follows a common theme among nontechnical staff in which the department staff percentage decreases as the total firm size increases. Because of this increase in responsibility for finance staff in larger firms, financial directors see a bump in base salary of about 35 percent relative to industry norm. Participate in a survey and save 50 percent on the final or pre- publication price of any Zweig Group research publication.

T he pandemic has certainly forced us to communicate differently and to use even more tools than before, such as Microsoft Teams, Zoom, and Slack, just to name a few. By now, most of us have figured out the communication medium we prefer, as well as the preferences of those we work with frequently. However, have you stopped to think about the preferences of those you’re working with for the first time (be they a new client/ consultant, or a co-worker from another team)? Even if you don’t know someone, you can usually deduce some of their preferences based on their generation. Taking the time to do this can foster improved communications and stronger relationships. Most workplaces today have three or four different generations working together. At TETER, our generational makeup is 0 percent traditionalist (pre-1946), 24 percent baby boomer (1946- 1964), 25 percent Generation X (1965-1980), and 51 percent millennial (1981-1999). As we’ve worked together, we’ve learned that some of the keys to successful communication involve the appropriate communication medium and the messaging tenor for each individual generation. You’ll find that different generations tend to prefer different communication methods, with each generation becoming less and less formal. Traditionalists gravitate toward in-person meetings and formal memos; baby boomers prefer phone calls or in-person conversations; Generation X favors emails and phone calls; and millennials wish most communication could be done with their phone via texts and instant messaging. Even with working remotely, these differences in preference tend to remain true. It should be noted, however, that as much as video calls can bring the in-person aspect back to working remotely, the likelihood of having technical difficulties still makes a phone call preferable for most baby boomers and traditionalists. It almost goes without saying that individual preferences will vary from person to person, and some items (such as proposals/RFQs or business reports) will require formal communication, whether you’re a millennial or not! In addition to modes of communication, understanding differences in society and historical events for each generation can also help you better tailor your messaging itself. After all, each generation was raised in a society that was significantly different than the one before it, especially in regards to technology. ❚ ❚ Traditionalists were raised during World War II and the Great Depression, and became adults as we were making huge advances in technology, so much so that they put a man on the moon. However,

Allyson McDonald

Megan Chang

F I R M I N D E X Dewberry................................................4

Lynn Engineering.....................................6

Shive-Hattery Architecture-Engineering.12

TETER. ...................................................2

Ware Malcomb......................................12

MO R E A R T I C L E S xz JOAN DELOREY & JARED MAXWELL: Results from A&G’s 2021 insurance survey Page 3 xz Think big: Stuart Lynn Page 6 xz MARK ZWEIG: So you want to buy an A/E firm? Page 9 xz JENNY PHAN: But I’m not an expert! Page 11

See ALLYSON MCDONALD & MEGAN CHANG, page 2

T H E V O I C E O F R E A S O N F O R T H E A E C I N D U S T R Y

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DEADL INE FOR AWARDS ENTRY

MAY 17 DEADLINE FOR AWARDS ENTRY Exceptional firms deserve to be noticed! Zweig Group awards recognize and celebrate top-firm performance in the AEC industry. ❚ ❚ The Zweig Group Hot Firm List recognizes the 100 fastest-growing AEC firms in the United States and Canada. These firms have outperformed the economy and competitors to become leaders in their chosen fields. ❚ ❚ Zweig Group’s Marketing Excellence Awards recognize outstanding and effective marketing in our industry. Choose one category or multiple. Award entries will be judged by an external team of senior AEC marketing professionals and evaluated based upon overall creativity, messaging, results achieved by the campaign, and level of design. Click here to learn more!

Interested in learning more

about the projects and ideas driving the AEC industry forward? Learn more with Civil+Structural Engineer Media.

ALLYSON MCDONALD & MEGAN CHANG, from page 1

their practical outlook and dedication to hard physical labor means they prefer to do things manually and are suspicious of technological short-cuts. ❚ ❚ Baby boomers experienced the Vietnam War, the Civil Rights Movement, and watched man landing on the moon as children, spurring a dream to push boundaries and pursue the impossible. They want to master technology and make the most of it. ❚ ❚ Generation X experienced the Gulf War and watched the Berlin Wall fall. They watched barriers disappear and connection happen through the development of the personal computer and the internet becoming available at home. This allowed them to enjoy technology and use it as a tool to pursue careers that included multiple companies and freelancing, especially as they looked for work-life balance. ❚ ❚ Technology has been part of millennials’ lives from the beginning, or it at least came to be commonplace when they were relatively young. It allowed them to closely experience major events such as 9/11 and the Great Recession. Technology is part of everyday life and easily connects millennials to the rest of the world – but only on a basic, surface level. As a result, they can struggle in developing strong, meaningful personal relationships. When you communicate, reflect on the different ways each generation looks at the world and technology so you can frame your communication in a way that shows you care. Some examples might be: respect the traditionalist’s plethora of experience and institutional knowledge; affirm the baby boomer’s commitment to the organization and the importance of their contributions to the team; reply to the Gen Xer while the information is still relevant; and help connect millennials to the big picture, showing how they fit into the vision for the future. Regardless of the generation, the time of day you expect to communicate should also be taken into consideration, especially with many working remotely with flexible schedules. The typical 8 a.m. to 5 p.m. window is a safe bet, but be sensitive to when others need you to respond so they get information at a time when they can act upon it. If your millennial co-worker has young children and is juggling distance learning as well as their own work, there’s a good chance they’ll be working early (or up late) to finish those tasks that were interrupted during the day, and they’ll need you to respond in a timely fashion so they can keep working after you may have logged off for the night. Conversely, if your baby boomer co- worker is at the office from 8 a.m. to 5 p.m., make sure they have what they need to start their day productively when they come in at 8 a.m. and make yourself available for phone calls to discuss items when they’re on the clock. Communication is often about compromise, and matching your communication style to those you’re communicating with will help ensure your message is received. ALLYSON MCDONALD, SHRM-CP, is TETER’s HR generalist. Connect with her on LinkedIn. MEGAN CHANG is an associate and professional engineer at TETER. Contact her at [email protected].

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THE ZWEIG LETTER MAY 10, 2021, ISSUE 1391

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O P I N I O N

All indications point to 2021 being a year when more buyers see higher rates for their professional liability insurance. Results from A&G’s 2021 insurance survey

D espite the surprising resiliency of the U.S. construction industry during the COVID-19 pandemic, many insurers providing architects and engineers professional liability insurance have concerns about the prospects for the U.S. economy in 2021. Simultaneously, even as their premiums generally grew last year, these insurers also had worsening loss experience prompting them to consider more significant rate actions this year.

Joan DeLorey

As they reformulate their business plans for this year and beyond, design firms may want to consider how their growth and operational strategies might impact their risk and insurance programs, including related costs. Here are 10 takeaways from the Ames & Gough 2021 survey of 20 leading insurance companies providing professional liability insurance to AEC firms in the U.S. that offer insights on factors influencing their decision-making: 1) Insurers concerned about deteriorating claims experience. Nearly half the insurers surveyed reported their claims experience worsened in 2020, while the other half indicated their claims were similar to the previous year. These realities

are shaping how insurers view their relationships with AEC clientele, including policy pricing, terms, conditions, and available capacity in 2021. 2) Rate hike requests may be more widespread. While 57 percent of the insurers surveyed plan only modest rate increases of up to 5 percent in 2021, one in four expect to raise rates by 6 percent to 10 percent and one in five expect to raise rates above 10 percent. Although insurers applied targeted rate increases in previous years based on an account’s loss experience, project mix, disciplines, and even geography, more now plan to seek higher rates across their entire book. 3) Insurers sharpen focus on risky projects. One

Jared Maxwell

See JOAN DELOREY & JARED MAXWELL, page 4

THE ZWEIG LETTER MAY 10, 2021, ISSUE 1391

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BUSINESS NEWS DEWBERRY ENGINEERING PROJECT RECEIVES NEW JERSEYALLIANCE FORACTIONAWARD Dewberry , a privately held professional services firm, has announced that its Newark Bay-Hudson County Extension deck reconstruction project in Essex and Hudson counties was recently awarded a Leading Infrastructure Award by the New Jersey Alliance for Action. The award recognizes innovative, pioneering, and landmark construction initiatives that greatly impact New Jersey’s economy. Award recipients were announced during a virtual ceremony in February. “We are honored to receive this award,” says Dewberry Vice President and Senior Project Manager S. Andrew Kamilaris, PE.

“The success of this project allowed for enhanced safety and the prolonged life of the structures within this critical corridor,” adds Dewberry Project Engineer Edward Bier, PE. The New Jersey Turnpike Newark Bay- Hudson County Extension roadway serves as a critical connection between the Holland Tunnel, Interstate 78, Routes 1 and 9, and the Newark Liberty International Airport and Port Newark facilities. Dewberry provided engineering services for the preliminary and final design of the deck reconstruction and structural steel rehabilitation of the westerly approach structures, including one of the curved Interchange 14 ramps

and the structural rehabilitation of the iconic Newark Bay Bridge. Dewberry is a leading, market-facing firm with a proven history of providing professional services to a wide variety of public- and private-sector clients. Recognized for combining unsurpassed commitment to client service with deep subject matter expertise, Dewberry is dedicated to solving clients’ most complex challenges and transforming their communities. Established in 1956, Dewberry is headquartered in Fairfax, Virginia, with more than 50 locations and more than 2,000 professionals nationwide.

JOAN DELOREY & JARED MAXWELL, from page 3

those citing regional claim activity, 40 percent saw more claims in the Northeast and 35 percent in the Southwest. Meanwhile, 30 percent saw more claims each in the Southeast and West Coast. The higher claim levels can be explained in part by greater business activity in each of the areas. Nonetheless, some insurers are considering applying higher rates to firms with a concentration of projects in areas associated with higher claim activity. 8) Additional red flags for insurers: project delivery, complexity. Insurers also had underwriting concerns about fast track and designer-led design/build project delivery, construction complexity with increased costs, and public-private partnerships. Design firms expanding their involvement in these types of arrangements should recognize that some insurers are taking a closer look at them in terms of potential risks they represent. 9) Warning signs on cyber-risk. The COVID-19 pandemic and remote working arrangements left employers in all industries more vulnerable to cyber-attacks, including those involving ransomware. In this environment, design firms should take advantage of the pre-breach services available through their cyber-insurance policy to identify potential system vulnerabilities. In addition, putting the appropriate security measures in place to help mitigate a cyber-attack is becoming a critical component for meeting insurance underwriting requirements to obtain or renew insurance coverage. 10) Practicing sound risk management remains key for AEC firms. The good news is that despite all the concerns, there’s still some competition in the professional liability insurance marketplace. Nonetheless, the beneficiaries among design firms of any favorable conditions that remain this year will be those with clean loss histories, lower risk disciplines, projects, and sound risk management. However, for the most part, all indications point to 2021 being a year when more buyers see higher rates for their professional liability insurance. To obtain a complimentary copy of the Ames & Gough survey, PLI Market 2021: As Claims Experience Deteriorates, Insurers Seek New Rate Hikes , email [email protected]. JOAN DELOREY, senior vice president and partner, Ames & Gough, and JARED MAXWELL, vice president and partner, Ames & Gough. Joan DeLorey can be reached at [email protected]; Jared Maxwell can be reached at [email protected].

in four insurers surveyed reported having more claims associated with certain project types, such as residential and infrastructure. As a result, underwriters look carefully at a design firm’s project mix in considering a potential rate action. While many design firms are looking for new growth opportunities, they need to recognize that project mix changes may affect how underwriters approach their policy renewals. 4) Higher-risk disciplines continue to draw underwriter scrutiny. Concerning their underwriting assessments, 95 percent of the insurers surveyed cited structural engineering as the top discipline in terms of risk, followed by geotechnical engineering (75 percent) and architecture (40 percent). Insurers’ historical claims >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12

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