CE 401 Civil Engineering Seminar Introduction & Incident At Morales

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1 CE-401 Information Need to bring all substantive issues about CE-401 to me Reach me by or CANVAS IM Communications with me MUST be by for: Discussion Group Formation Essay Groups Formation Essay Submittals Group Leader Notifications of Group Consensus Posting For all other contacts, you may use or CANVAS IM Second Time around with Canvas Still learning how to make CANVAS work best for CE 401 Be sure to have your settings to get all notifications Changes Made For This Semester Need to bring all CANVAS issues to me or Suzy in CE office

2 CE-401 Information Class Schedule allocates 1:50 for each session Goal is for 60 to 70 minutes in class most weeks depending upon the focus of the discussion questions Exception: Conflict Resolution Workshop Weeks will require full time Only On Campus Friday, OHR 369 (Across from break area) Typical: Office 7:15 am to 7:45 am; Class 7:50 am to 9:10 +/-; Office 9:15 +/- to 10:45 am; In Class 10:50 am to 12:10 +/-; and Will stay after class as needed for course related purposes Power Points and other material available for download You will need this link to access this and future PowerPoints. Tons of additional Information that you may find useful during career

3 CE-401 Information Available via CANVAS Syllabus-Review. Key Important Issues: Use of electronic devices in class forbidden without my approval, and Attendance and tardiness are major issues; Be here on time! Essay Assignment-Essay Due Date March 8, no extensions; Watershed event for final grade in CE 401 Incident At Morales Essay Subject Material Need to Understand the assignment-bring questions to me Get your essay teams established before next class meeting by to me per the Assignment. If I don t respond to your , it is because I did not get the . Procedures for Weekly Group Discussions Become familiar with the procedures and follow them Get your discussion groups established by Monday by to me per the Procedures. If I don t respond to your , it is because I did not get the . Any questions about these documents?

4 CE-401 Information CE 401 Website: Select Adjunct Professor Navigation Button to left Front page contains information and links for course SPECIAL: Grades Area, accessed with User Name/Password Must click on enter button, not simply hit Enter key User Name: Spring_19 & Password: CE_401 Will Use last 4 digits of your SID#. If you object, provide me a 4 digit PIN for use instead Without a PIN from you, you agree to the use of the SID# Will Post All Grade Components at this website; Bring discrepancies to my attention ASAP for resolution. Do Not Wait Until End Of April To Resolve grade total issues Ignore Grades on CANVAS

5 Procedures for Each Week: Each Week Follow the Procedures in the Discussion Instructions Document to address the discussion questions. Discussion Procedures May need adjustments, and if necessary, I will amend the document and notify everyone with an Announcement. For Week 1, I set the six groups. Moving forward, we will have 6 standing groups of either 4 or 5 students each. Form your preferred groups over the weekend, and notify me of your group request by Monday by to: ce-401@windstream.net. Groups will sit at the same table each week to facilitate discussions. Most weeks there will be 6 questions, some weeks will have 3 questions and weekly directions will specify how many questions each group must answer. I will assign specific questions to each group for the week.

6 Procedures for Each Week: Goal for discussion groups: Multiple Groups per Question to generate debate and discussion in class on the question. Not necessarily a single correct answer to the open ended questions Each group is to discuss the question until the group arrives at a consensus answer (agreement) Consensus is NOT a report of various points of view, Consensus is NOT the Group Leader s Opinion Consensus Is AGREEMENT within the group! The group leader for the question is responsible for: Moving the group to the consensus (Agreement), Posting the consensus into the discussion thread, and Representing the group s position in-class on the question.

7 Procedures for Each Week: Grading for discussion groups: Weekly discussions worth a maximum of 15 points Each student who posts in the thread at least once per the schedule in the procedures gets credit for the question. Point deductions for members occur per the procedures document for late or no participation Point deductions for leaders occur per the procedures document for no consensus reached and posted

8 Procedures for Each Week: Quizzes 10 Quizzes Worth Total 120 Points 1 st and 10 th quizzes worth 20 points each, 2 nd through 9 th quizzes worth 10 points each Quizzes are timed, 1 minute per point Quizzes will be available each Thursday evening Quiz opens at 7 pm and closes at Midnight. Set up alternate times in advance if required.

9 Procedures for Each Week: Quizzes Quizzes ARE an Individual Activity Need measurement of individual work for ABET, and quizzes provide that In practice, many activities are collaborative with colleagues and some require individual effort. This emulates the individual aspect of that reality Do not collaborate, (CANVAS can reveal collaboration).

10 Procedures for Each Week: Quiz Questions Basis For Questions: Readings, videos, etc. since the last quiz, and In-class discussions since the previous quiz. Type of Questions: Most are multiple choice questions Some are T/F questions Value of Questions: Multiple Choice questions: T/F questions: 2 points each 1 point each

11 Discussion Question #2 Some engineers have noted that they can work "fast, good and cheap" and their "client may choose any two". In 2 or 3 sentences explain why this assertion that engineers cannot work "fast, good and cheap" at the same time is either right or wrong? Group A Fathergill Group C Goff Group F Harzerger

12 Discussion Question #2 Some engineers have noted that they work "fast, good and cheap" and their "client may choose any two". In 2 or 3 sentences explain why this assertion that engineers cannot work "fast, good and cheap" is either right or wrong? 1. What is the most important component required to give clients high quality (work good) in engineering design? 2. If an engineering company spends more for labor than all other expenses added together, what is the most effective way for that company to provide services at a low cost (work cheap)? 3. How does working fast, i.e. to finish a final design in 5 weeks instead of the usual 9 months (work fast) affect the company s operating cost and work quality?

13 Discussion Question #2 Some engineers have noted that they work "fast, good and cheap" and their "client may choose any two". In 2 or 3 sentences explain why this assertion that engineers cannot work "fast, good and cheap" is either right or wrong? 1. What is the most important component required to give clients high quality (work good) in engineering design? Experienced, talented engineers! 2. If an engineering company spends more for labor than all other expenses added together, what is the most effective way for that company to provide services at a low cost (work cheap)? 3. How does working fast, i.e. to finish a final design in 5 weeks instead of the usual 9 months (work fast) affect the company s operating cost and work quality?

14 Discussion Question #2 Some engineers have noted that they work "fast, good and cheap" and their "client may choose any two". In 2 or 3 sentences explain why this assertion that engineers cannot work "fast, good and cheap" is either right or wrong? 1. What is the most important component required to give clients high quality (work good) in engineering design? Experienced, talented engineers! 2. If an engineering company spends more for labor than all other expenses added together, what is the most effective way for that company to provide services at a low cost (work cheap)? Cheap Labor 3. How does working fast, i.e. to finish a final design in 5 weeks instead of the usual 9 months (work fast) affect the company s operating cost and work quality?

15 Discussion Question #1 Mark Zweig observes, The only strategy that really makes sense for a professional services firm is one of high quality and high price. Firms that are trying to be the lowest-cost providers in the market sectors are destined for failure. In 2 or 3 sentences, why is Zweig right or wrong that 'lowest cost' and 'high quality' are incompatible. Group A Group D Group F Adams Bawi Dearing

16 Discussion Question #1 Mark Zweig observes, The only strategy that really makes sense for a professional services firm is one of high quality and high price. Firms that are trying to be the lowest-cost providers in the market sectors are destined for failure. In 2 or 3 sentences, why is Zweig right or wrong that 'lowest cost' and 'high quality' are incompatible. 1. Is the answer the same for all professional services, whether engineering, architecture, medicine, law, nursing,, and why? 2. Is the answer the same for people who make and sell a product as opposed to people that provide a professional service, and why?

17 Discussion Question #1 Mark Zweig observes, The only strategy that really makes sense for a professional services firm is one of high quality and high price. Firms that are trying to be the lowest-cost providers in the market sectors are destined for failure. In 2 or 3 sentences, why is Zweig right or wrong that 'lowest cost' and 'high quality' are incompatible. 3. Consider an engineering company with 10 total employees and costs on $2,000,000 Gross Revenue. Payroll (including all payroll burden cost): $1,000,000 Insurance (Facilities, CGL, PLI, Key Man, Autos): $240,000 Supplies (Office and Field): $160,000 Facilities (Rent, Utilities, Repair/Maintenance): $120,000 Equipment (Purchase, Repair/Maintenance): $100,000 Training and Recruiting: $50,000 Business Development, Marketing: $30,000 Project Direct Costs (travel, equipment, etc.): $100,000 to $200,000 Profit (Is Not A Dirty Word): $100,000 to $200,000 To be lowest-cost provider, it must cut cost by $200,000. What is the most effective way for this company to cut its cost in order to be the lowest cost engineering company in its market?

18 Discussion Question #1 Mark Zweig observes, The only strategy that really makes sense for a professional services firm is one of high quality and high price. Firms that are trying to be the lowest-cost providers in the market sectors are destined for failure. In 2 or 3 sentences, why is Zweig right or wrong that 'lowest cost' and 'high quality' are incompatible. 3. Consider an engineering company with 10 total employees and costs on $2,000,000 Gross Revenue. Payroll (including all payroll burden cost): $1,000,000 Insurance (Facilities, CGL, PLI, Key Man, Autos): $240,000 Supplies (Office and Field): $160,000 Facilities (Rent, Utilities, Repair/Maintenance): $120,000 Equipment (Purchase, Repair/Maintenance): $100,000 Training and Recruiting: $50,000 Business Development, Marketing: $30,000 Project Direct Costs (travel, equipment, etc.): $100,000 to $200,000 Profit (Is Not A Dirty Word): $100,000 to $200,000 If it increases prices to increase gross revenues by $200,000, it will be the highest-cost provider. What is the most effective way for this company to use the additional revenue it generates from this pricing decision, and why?

19 Discussion Question #3 ASCE's Aspirational vision places Civil Engineers and our profession as leaders in the public debate on environmental and infrastructure policy. In 2-3 sentences, explain how having Civil Engineers leading the public debate on environmental and infrastructure policy would affect the United States, either positively or negatively. Group A Group C Group E Hildabrand Kachelhoffe Moore

20 Discussion Question #3 ASCE's Aspirational vision places Civil Engineers and our profession as leaders in the public debate on environmental and infrastructure policy. In 2-3 sentences, explain how having Civil Engineers leading the public debate on environmental and infrastructure policy would affect the United States, either positively or negatively. 1. How are environmental and infrastructure policy established in our country, and by whom? 2. Should environmental and infrastructure policies be governed by technical needs and requirements or political preferences? 3. Who would be more competent to address the nation s environmental and infrastructure issues; lawyers, politicians, Civil Engineers, or the public?

21 Discussion Question #4 When a client hires an engineer to perform services, he can do so based on the experience and qualifications of the engineers he considers or he can do so based on the fee these engineers charge for their services. The first method is called QBS and the second is called competitive bidding. Which of these methods does the engineering profession support for the procurement of design professional services in the public and private sectors? In 2 or 3 sentences, explain why. Group B Group C Group E Zimmerman Renfro Smith

22 Discussion Question #4 When a client hires an engineer to perform services, he can do so based on the experience and qualifications of the engineers he considers or he can do so based on the fee these engineers charge for their services. The first method is called QBS and the second is called competitive bidding. Which of these methods does the engineering profession support for the procurement of design professional services in the public and private sectors? In 2 or 3 sentences, explain why. 1. What does QBS stand for and whose interest does QBS protect? 2. With QBS, who determines what defines the most qualified engineer during the selection process? 3. Which type of client is most likely, likely, and least likely to use QBS to hire a design professionals, and why? Client Type Least Likely Most Sophisticated Private Sector Owners Unsophisticated Private Sector Owners The Federal Government

23 Discussion Question #4 Does the engineering profession support the use of QBS or competitive bidding for the procurement of design professional services in the public and private sectors? Explain why or why not. 1. What does QBS stand for and whose interest does QBS protect? 2. With QBS, who determines what defines the most qualified engineer during the selection process? 3. Which type of client is most likely, likely, and least likely to use QBS to hire a design professionals, and why? Client Type Least Likely Most Sophisticated Private Sector Owners X Unsophisticated Private Sector Owners _X The Federal Government _X_

24 Discussion Question #5 In 2-3 sentences, explain whether the use of QBS allows clients to consider the cost of A/E services before hiring an architect or engineer for a project? Group B Powell Group D Mattingly Group E Hatfield

25 Discussion Question #5 In 2-3 sentences, explain whether the use of QBS allows clients to consider the cost of A/E services before hiring an architect or engineer for a project? 1. You are the owner who needs to hire an engineering company to design your project. Engineer A has never completed a similar project and Engineer B has successfully completed several similar projects. How will these experience factors affect your decision? 2. How does an engineer s experience with a type of project affect construction and life cycle costs for the project? 3. If Design costs 6% to 8% of construction cost, and life cycle costs are 5 to 8 times construction cost, how does an owner decide which engineer s design proposal will be least expensive for the owner?

26 Discussion Question #5 In 2-3 sentences, explain whether the use of QBS allows clients to consider the cost of A/E services before hiring an architect or engineer for a project? 1. You are the owner who needs to hire an engineering company to design your project. Engineer A has never completed a similar project and requests a fee of 6% of construction cost. Engineer B has successfully completed several similar projects and requests a fee of 8% of construction costs. How does your knowledge of the engineers fees affect your decision? How will you balance the fee and experience factors in making your decision? 2. How does an engineer s experience with a type of project affect construction and life cycle costs for the project? 3. If Design costs 6% to 8% of construction cost, and life cycle costs are 5 to 8 times construction cost, how does an owner decide which engineer s design proposal will be least expensive for the owner?

27 Discussion Question #5 In 2-3 sentences, explain whether the use of QBS allows clients to consider the cost of A/E services before hiring an architect or engineer for a project? 1. You are the owner who needs to hire an engineering company to design your project. Engineer A has never completed a similar project and requests a fee of 6% of construction cost. Engineer B has successfully completed several similar projects and requests a fee of 7% of construction costs. How does your knowledge of the engineers fees affect your decision? How will you balance the fee and experience factors in making your decision? 2. How does an engineer s experience with a type of project affect construction and life cycle costs for the project? 3. If Design costs 6% to 8% of construction cost, and life cycle costs are 5 to 8 times construction cost, how does an owner decide which engineer s design proposal will be least expensive for the owner?

28 Discussion Question #5 In 2-3 sentences, explain whether the use of QBS allows clients to consider the cost of A/E services before hiring an architect or engineer for a project? 1. You are the owner who needs to hire an engineering company to design your project. Engineer A has never completed a similar project and requests a fee of 6% of construction cost. Engineer B has successfully completed several similar projects and requests a fee of 7% of construction costs. How does your knowledge of the engineers fees affect your decision? How will you balance the fee and experience factors in making your decision? 2. How does an engineer s experience with a type of project affect construction and life cycle costs for the project? 3. If Design costs 6% to 8% of construction cost, and life cycle costs (maintenance and personnel) are up to 3 to 4 times construction cost, how does an owner decide which engineer s design proposal will be least expensive? Note: At the extreme, Life Cycle Costs can be as high as 50 times construction costs. See

29 Discussion Question #5 Design & CM: 15% Construction: 100% Life Cycle: 385% my/mark%20gardner%20total%20cost%20of%20ownership.pdf

30 Discussion Question #5 Consider a 3,000,000 Project Assuming Engineers A and B designs cost the same to build and operate Function Engineer A Engineer B Difference Design Fee 6%; $180,000 8%; $240,000 $60,000 or 33% Construction Cost Life Cycle Cost $3,000,000 = $3,180,000 $3,000,000 = $3,240,000 $60,000, or 5% $9,000,000=$12,180,000 $9,000,000 = $12,240,000 $60,000 or 0.5%

31 Discussion Question #5 What if Engineer B s Design Reduces Construction Cost by 3%? Function Engineer A Engineer B Difference Design Fee 6%; $180,000 8%; $240,000 $60,000 or 33% Construction Cost Life Cycle Cost $3,000,000 = $3,180,000 $2,910,000 = $3,150,000 $-30,000, or -0.9% $9,000,000=$12,180,000 $9,000,000 = $12,150,000 $-30,000 or -0.24%

32 Discussion Question #5 What if Engineer B s Design Reduces Life Cycle Cost by 3%? Function Engineer A Engineer B Difference Design Fee 6%; $180,000 8%; $240,000 $60,000 or 33% Construction Cost Life Cycle Cost $3,000,000 = $3,180,000 $2,910,000 = $3,150,000 $-30,000, or -0.9% $9,000,000=$12,180,000 $8,730,000 = $11,880,000 $-300,000 or -2.4%

33 Discussion Question #5 This is why QBS is protects the financial interests of the owner by allowing the owner to focus first on the experience and qualifications of the designers under consideration. Quality during design usually translates into lower construction and life cycle costs. The design cost is highly leveraged against construction and life cycle costs, which minimizes the significance of design fee differences Therefore, engineers should emphasize how they have saved clients in the past because their designs have reduced construction and life cycle costs during selection process

34 Discussion Question #6 Ernest Greenwood wrote over 60 years ago that a profession is distinguished from non-professional occupations by five attributes, all of which exist with the professions while non-professional occupations may satisfy some, but not all of these professional attributes. In 2 or 3 sentences, please explain why nonprofessional occupations seek professional status from the government. Group B Group D Group F Hurley Harned Stanula

35 Discussion Question #6 Ernest Greenwood wrote over 60 years ago that a profession is distinguished from nonprofessional occupations by five attributes, all of which exist with the professions while nonprofessional occupations may satisfy some, but not all of these professional attributes. In 2 or 3 sentences, please explain why non-professional occupations seek professional status from the government. 1. If a profession has legal authority to self regulate its entry requirements, its membership, and its members conduct, how is the public health, safety and welfare protected? 2. Why does government treat professions differently than it treats other occupations? 3. Does calling one s occupation a profession, e.g. Professional Baseball Player, make that occupation a profession? Why?

36 Discussion Question #1 Mark Zweig observes, The only strategy that really makes sense for a professional services firm is one of high quality and high price. Firms that are trying to be the lowest-cost providers in the market sectors are destined for failure. In 2 or 3 sentences, why is Zweig right or wrong that 'lowest cost' and 'high quality' are incompatible. Zweig is right that a professional services company that strives to be the lowest cost providers are destined to fail. High quality is necessary for long term business success, and lowest cost is incompatible with high quality. The quality of the professional service is determined by the experience and expertise of the service providers. Service providers with the greatest experience and expertise command higher compensation in the market. For an engineering company, labor cost is the largest single cost paid by the company, consuming 50% more or less of all business income. The only way the engineering company can be the lowest cost provider is to reduce labor costs, which requires hiring lesser qualified people, which is contrary to maintaining high quality. There is a difference between operating costs and fee for service. The fee for service is the product of cost and profit applied to a scope of work. When engineering companies quote drastically different fees for a project, the contribution of cost and profit factors are dwarfed by the impact of scope variations on the fee quotes.

37 Discussion Question #2 Some engineers have noted that they work "fast, good and cheap" and their "client may choose any two". In 2 or 3 sentences explain why this assertion that engineers cannot work "fast, good and cheap" is either right or wrong? A local engineering company displayed this truism on a plaque in their lobby for many years. It is correct that engineering work cannot be performed in a manner that is fast, good, and cheap at the same time. 1. As we see in Discussion Question #1, if a client wants high quality, it cannot be provided at a cheap price, regardless of the speed of delivery. This is a natural tension that exists in all business, but for professional services like engineering, the tension is amplified. 2. When a client needs work performed fast, either the quality of the work or the cost of the work, and perhaps both will be negatively impacted

38 Discussion Question #3 ASCE's Aspirational vision places Civil Engineers and our profession as leaders in the public debate on environmental and infrastructure policy. In 2-3 sentences, explain how having Civil Engineers leading the public debate on environmental and infrastructure policy would affect the United States, either positively or negatively. Civil Engineers have the expertise required to address and find viable solutions for environmental and infrastructure needs and issues facing the nation. Bringing that expertise to bear in the public policy debate about such matters would benefit the nation because engineers are not only trained problem solvers, that training and experience are essential ingredients to identify the best, long term solutions for the nation. Many understand that a better tomorrow cannot be achieved without Civil Engineers contributions. Some have observed that our Profession has abdicated its responsibility in this regard. Regardless, the nation will benefit most when Civil Engineers are active in the public policy debates

39 Discussion Question #4 When a client hires an engineer to perform services, he can do so based on the experience and qualifications of the engineers he considers or he can do so based on the fee these engineers charge for their services. The first method is called QBS and the second is called competitive bidding. Which of these methods does the engineering profession support for the procurement of design professional services in the public and private sectors? In 2 or 3 sentences, explain why. The profession supports the use of QBS for the procurement of design professional services in the public and private sectors because QBS produces the most value for clients and society by minimizing long term, life cycle project costs. Design services typically represent about 5 to 10% of total project construction cost and a tiny fraction of life cycle costs, but the quality of the design service determines how much money must be spent for both construction and O&M costs for a facility. A client seeking to save money during design, may save 2 or 3 % of construction costs at the most between the highest quality and cheapest design company s services, but saving that money likely will cost that client 10% or even much more on increased construction costs. This leveraging makes selection of the design professional based on qualifications the only wise business decision for the client.

40 Discussion Question #5 In 2-3 sentences, explain whether the use of QBS allows clients to consider the cost of A/E services before hiring an architect or engineer for a project? The QBS procedure calls for a client to evaluate the qualifications of potential design professionals, and rank them based on the client s assessment of their qualifications. Then the client enters negotiations with the highest ranked (most qualified) professional at which time the scope of work, the schedule for the work, and the cost of the service are all discussed and negotiated, usually to an agreement. However, if they are unable to successfully conclude negotiations with a contract, the client moves to the second ranked professional and negotiates with them, until the client reaches an agreement on scope, schedule and cost with a designer. If cost is a factor in the initial evaluation of qualifications, most clients become overwhelmed by the cost facts, and QBS forces the client to only consider cost after ranking the candidates based on qualification factors.

41 Discussion Question #6 Ernest Greenwood wrote over 60 years ago that a profession is distinguished from non-professional occupations by five attributes, all of which exist with the professions while non-professional occupations may satisfy some, but not all of these professional attributes. In 2 or 3 sentences, please explain why non-professional occupations seek professional status from the government. A profession addresses matters that impact the public health, safety or welfare such that only those properly trained and qualified should be allowed to engage in the work. Therefore, society gives a profession a social contract whereby the profession promises to hold paramount the public interest/public safety and society grants monopolistic police powers to the profession. The profession controls: The requirements for training and entry into the profession; The standards of conduct for members of the Profession; and The discipline of its members if a member violates standards of conduct; Non-professional occupations want these monopolistic police powers that the professions have to restrict competition and for personal gain. However, society should not grant that status to non-professional occupations because these occupation do not impact the public interest/public safety as Professions do.