WSPE eNews

A monthly publication from the Wisconsin Society of Professional Engineers

May 1, 2007 Edition

1. 

WSPE's President Corner

2.

Be Sure to Participate in the 2007 WSPE Membership Directory

3.

WSPE Election Results

4.

Engineer of the Year Awards

5.

2007 Discovery Conference a Success

6.

Welcome New WSPE Members!

7.

Cost Estimates by Design Professionals - by Robert J. Kay

8.

2007 Dates to Remember


1.

WSPE's President Corner

WSPE just completed its busiest part of the year—spring. It kicked off with E-Week and the MATHCOUNTS competitions in February and March and followed with the annual conference and the Governors New Product Awards in April. Thanks to all who attended the conference; it was great seeing everyone and a very nice job by the Waukesha Chapter this year. Thanks to chair Jim Buggs and the entire Discovery Conference committee. Dale Swenson did a great job once again with the GNPA. One awards winner described the ceremony as the Academy Awards of New Products in Wisconsin, which is a pretty good description if you haven't experienced it yet for yourself. At the annual meeting we discussed the state of the society and where we are going next year. We passed a motion to combine two chapters; the Milwaukee and Waukesha Chapters are merging effective July 1, 2007 into a single new chapter. There will still remain two MATHCOUNTS competitions, existing scholarships, and so forth, but one chapter. We will now have 7 chapters in the state.

Congratulations to the newest NSPE Fellow from Wisconsin, Glen Schwalbach, P.E., F. NSPE. Glen has served WSPE for many years, including State President in 1990. He has been extremely active at NSPE for years, representing WSPE in many capacities. Congratulations to the Engineer of the Year Recipients: Norm Arendt, Chris Stamborski, Jeff Russell, and James Kochie.

On the legislative front, the public hearing for two professional engineering bills we have been discussing over the past year is being held Wednesday, May 2nd at the Capitol. The WSPE board has voted to support both bills. Assembly Bill 181 gives the licensing board authority to implement continuing education requirements for license renewal. It does not stipulate nor specify any requirements, just grants authority. Assembly Bill 69 updates the requirements to become licensed. It reduces the multiple paths currently available now to only one: a four-year degree plus four years of experience plus passing the exams.

The Leadership Conference is scheduled for Friday, June 22 in Wisconsin Dells. All state and chapter officers along with key committee chairs are encouraged to attend, so please mark this important date on your calendar and plan to attend. This is going to be a great conference, kicking off what I believe will be a good 2007-2008 year for WSPE. After a year of stability at the state office and some great new officers coming on board, things are really starting to roll. At the conference we will develop clear specific goals for the year and bring everyone up to speed on their roles to make our efforts in the society successful and meaningful next year.

Robb Peebles

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2.

Be Sure to Participate in the 2007 WSPE Membership Directory

Back by popular demand! In July the Wisconsin Society of Professional Engineers is once again publishing a special edition of the 2007 WSPE Membership Directory.

Please consider the value of listing your firm in the 2007 WSPE Membership Directory. For a low cost of just $295, your company listing will reach the Wisconsin Society of Professional Engineers members, engineering firms, city public works directors, state and federal agencies, libraries, engineering schools and advertisers. A Business Card listing is also available for $100. Advertise in both the directory listing and business card directory at a discounted rate of $335.

To request a sign up form and/or to reserve your space in the 2007 Directory, please contact Don McMurray in the media services department today. He can be reached at dmcmurray@wspe.org or 414-908-4950 ext. 111. All forms must be received by May 31, 2007 to be included. A copy of the Directory will be mailed to you following publication date.

Special display advertising rates also apply for those companies wishing to increase their exposure to this distinguished group of professional engineers. Please contact Don if you would like to learn more about the display advertising rates.

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3.

WSPE Election Results

Results are in. Here are the 2007-2008 WSPE officers. Congratulations to all of you!

President - James Buggs, P.E.
Vice President - Chad O'Donnell, P.E.
Vice President - Matt Richards, P.E.
Vice President - John Parisi, P.E.
Vice President - Tracy Pinkowski, P.E.
Secretary - Christopher Stamborski, P.E.
Treasurer - VACANT
Past President - Robb Peebles, P.E.

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4.

Engineer of the Year Awards

Congratulations to the following Engineer of the Year Recipients! Nominated and chosen by their peers as the engineers in Wisconsin who exemplify the very best in our profession, it is with great honor that we recognize these individuals:

Engineer of the Year - Norm Arendt, Ph.D.
Young Engineer of the Year - Christopher Stamborski, P.E.
Engineer in Education - Jeffrey Russell, Ph.D., P.E.
Engineer in Private Practice - James Kochie, P.E.

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5.

2007 Discovery Conference a Success

By Jim Buggs, DC Committee Chairman

The 2007 WSPE Discovery Conference was held on April 19th at the Sheraton Milwaukee Brookfield Hotel. Over 50 attendees enjoyed the interesting and informative sessions related to "Engineering the Future," including an update on activities at NSPE, the latest trends in minimum requirements for engineering licensure, engineering ethics, economic initiatives in southeast Wisconsin, current issues with water resources in Wisconsin, ethanol and biofuels, and the latest in factory automation.

WSPE thanks the following sponsors and exhibitors for their support of this conference: CH2M HILL, Davy Engineering, Foth, Lafarge North America, Marquette University College of Engineering, Milwaukee School of Engineering, R.A. Smith & Associates, Ruekert/Mielke, TN & Associates, UW-Madison College of Engineering, UW-Milwaukee College of Engineering, UW-Platteville, and Yaggy Colby.

Special thanks go to R.A. Smith for printing the conference program and providing A/V support, Ruekert/Mielke for printing the sponsor and EFW display boards, and Yaggy Colby for providing A/V support. I would also like to thank the conference committee for all their efforts: Chris Stamborski, Ryan Amtmann, Brian Pehl, Andy Schultz, Andy Petersen, Len Roecker, Dave Hanley, Joel Jurss, and Nancy Short. Thanks also to Christopher Roper for all his help on the day of the conference.

It's never too early to start planning, so please let me know if you have any thoughts or ideas for the next Discovery Conference or if you would like to be involved in planning it. Helping to put together a conference is a fun way to meet people and share all your great ideas. Thank you to all of our speakers and to everyone who took the time to participate in this worthwhile event.

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6.

Welcome New WSPE Members!

The WSPE board of directors would like to extend a heartfelt welcome to the following new WSPE member:

Charles J. Gervasi, P.E.
Design Engineer
Prosoft Technology
Southwest Chapter

New members contribute to the growth, strength and leadership of the WSPE in enhancing its recognition as a leading voice for Professional Engineers throughout Wisconsin and promoting excellence in engineering.

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7.

Cost Estimates by Design Professionals
By Robert J. Kay

For many years now we have experienced continuously rising costs in real estate improvements. The owners of real estate improvement projects are continuously coping with the need to reconsider the scope of projects as costs increase and in many instances have had to totally abandon project plans.

Design professionals are frequently requested to express opinions regarding probable construction costs. When it comes to contracting for the providing of professional design services, engineers and architects do not usually guaranty that proposals, bids or actual construction costs will not vary from their opinions of probable costs. However, such guarantees may be made when the owner demands it and the design professional agrees to provide such a guaranty. Even in those instances, the design professional will require the contract for professional services to contain specific provisions giving the design professional avenues of release from the obligation.

Article 5 of EJCDC E-500, the Standard Form of Agreement Between Owner and Engineer for Professional Services copyrighted by the National Society of Professional Engineers for EJCDC, expressly states that the engineer’s opinion of probable construction costs does not guaranty the construction cost. That Article expressly provides for a construction cost limit that would be binding on the owner and engineer through the use of a separate exhibit known as Exhibit F and entitled “Construction Cost Limit.”

Exhibit F to EJCDC E-500 reads as follows:

Construction Cost Limit

Paragraph 5.02 of the Agreement is amended and supplemented to include the following agreement of the parties:

F5.02 Designing to Construction Cost Limit

A. Owner and Engineer hereby agree to a Construction Cost limit in the amount of Dollars ($________).

B. A bidding or negotiating contingency of ____ percent will be added to any Construction Cost limit established.

C. The acceptance by Owner at any time during Basic Services of a revised opinion of probable Construction Cost in excess of the then established Construction Cost limit will constitute a corresponding increase in the Construction Cost limit.

D. Engineer will be permitted to determine what types and quality of materials, equipment and component systems are to be included in the Drawings and Specifications. Engineer may make reasonable adjustments in the scope, extent, and character of the Project to the extent consistent with the Project requirements and sound engineering practices, to bring the Project within the Construction Cost limit.

E. If the Bidding or Negotiating Phase has not commenced within three months after completion of the Final Design Phase, or if industry wide prices are changed because of unusual or unanticipated events affecting the general level of prices or times of delivery in the construction industry, the established Construction Cost limit will not be binding on Engineer. In such cases, Owner shall consent to an adjustment in the Construction Cost limit commensurate with any applicable change in the general level of prices in the construction industry between the date of completion of the Final Design Phase and the date on which proposals or Bids are sought.

F. If the lowest bona fide proposal or Bid exceeds the established Construction Cost limit, Owner shall (1) give written approval to increase such Construction Cost limit, or (2) authorize negotiating or rebidding the Project within a reasonable time, or (3) cooperate in revising the Project's scope, extent, or character to the extent consistent with the Project's requirements and with sound engineering practices. In the case of (3), Engineer shall modify the Contract Documents as necessary to bring the Construction Cost within the Construction Cost Limit. Owner shall pay Engineer's cost to provide such modification services, including the costs of the services of Engineer's Consultants, all overhead expenses reasonably related thereto, and Reimbursable Expenses, but without profit to Engineer on account of such services. The providing of such services will be the limit of Engineer's responsibility in this regard and, having done so, Engineer shall be entitled to payment for services and expenses in accordance with this Agreement and will not otherwise be liable for damages attributable to the lowest bona fide proposal or Bid exceeding the established Construction Cost limit.

AIA Document B141-1997 contains similar provisions to those appearing in EJCDC E-500. Under Article 2.1.7.2 of AIA Document B141-1997, a provision states...“the architect cannot and does not warrant or represent that bids or negotiated prices will not vary from the owner’s budget for the project or from any estimate of the cost of work or evaluation prepared or agreed to by the architect.” Although the architect gives the owner estimates of the cost of the work through the end of the preparation of the construction documents, updating and refining the estimates of the cost of the work, when such opinions indicate that the estimates exceed the owner’s budget, the architect is required to make appropriate recommendations to the owner to adjust the project’s size, quality or budget.

Owners continue to rely heavily upon the opinions of design professionals regarding probable project costs, but if owners wish greater assurances than simply the best opinion of the professional designer, the owner should employ an independent cost estimator who is independently contractually obligated to the owner and whose work efforts should be communicated to the professional designer.

There should be no reluctance on the part of design professionals to discuss probable construction costs with the owner before, during and upon the completion of a project, but the time for the design professional to clarify the legal significance of such opinions is in the written contract between the owner and the design professional. Care should be taken by the design professional not to expand the obligations regarding opinions of cost as the project proceeds.

Robert J. Kay is the senior partner in the law firm of Kay & Andersen, S.C. and devotes his time to representing professional engineers, architects, contractors, material suppliers and owners of construction projects. Please feel free to contact him at (608) 833-0077 or at rjkay@kayandandersen.com.

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8.

2007 Dates to Remember

May 10-13 - The Lockheed Martin MATHCOUNTS National Competition will be held in Fort Worth, TX

2006-2007 Executive Committee/Board Meetings

Board of Directors:

Friday, June 22, 2007 8:30AM–12:00PM Leadership Conference - TBD

Executive Committee:

Wednesday, May 9, 2007 2:00 PM – 3:30 PM Conference Call

For a complete listing of local and national events please go to:
http://www.wspe.org/calendar.html.

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