Sessions

Led by Alex Nellos, Assoc. AIA, and Alex Solorzano, Assoc. AIA, Session 3 explored contract types and components, contract negotiations, dispute resolution methods, and typical elements of projects that can lead to claims. The foundation for a successful project is a well-written contract and Gerrie Becker, James Lyons, and Kevin Sexton provided a well-rounded group of perspectives on the dos and don’ts of contract negotiation. In addition to the guest speakers, the class viewed case studies of historical events that helped shaped the specific clauses in the AIA contract documents. Participants were also received a code to access three AIAU courses on contracts and business management for additional knowledge and HSW credit.

Understanding local procurement processes, procedures, and standards are paramount to a successful submission and winning bid. Gerrie Becker, Sr. Director and Chief Procurement Officer at Central New Mexico Community College (CNM) offered detail insight into the state procurement process. This included RFQs and RFPs, how local public bodies like CNM are affected by state legislation, capital funds for projects, and advantages of the CMAR method for procurement officials.

In their first presentation, James Lyons (R.J. Dean and Associates) and Kevin Sexton, Esq. (Resnick and Louis, P.C.M.) will be discussing contract components and how these components can be used to leverage negotiations. This presentation helped the participants understand the importance of having well written contracts. The two also shared how professional liability insurance works when faced with a potential claim. In their second presentation, Mr. Lyons and Mr. Sexton explored the best
practices for writing well-crafted e-mails along that align with ethics and law.

Case Study: Unites States vs. Spearin (1918)

The United States vs. Spearin, the oldest construction law case, was a dispute centered on the Brooklyn Old Navy Yard. It involved an existing sewer line that was under the dry dock yard. This case involved the plans and specifications which the owner provided the general contractor. The general contractor was not held liable to the owner for any loss or damages which resulted from insufficiencies or defects in the owner-provided documents to the contractor. 

Case Study: Perini Corporation vs. Greate Bay Hotel and Casino (1992)

This case addressed consequential damages related to the former Sands Casino in Atlantic city also called Brighton Atlantic City. The construction manager, Perini, knew and agreed to the substantial completion date and understood the ramifications on why owner needed to have the project completed before the summer months. Perini was ordered to pay $1.5 million in consequential damages to the owner for money loss due to not having the casino fully opened by the agreed upon substantial completion date.  It’s important to understand the limit of terms that a contractor and architect can negotiate; a waiver of claims for consequential damages should be looked at not just by contractors, but by architects as well. In 1997, the AIA documents included a clause for consequential damages in the documents (A201-2017, General Conditions and B101-2017, Owner/Architect Agreement).

Case Study: Beacon Residential Community vs. SOM (2014)

At the time architects had a duty of standard of care to only the architect’s client, but the California Supreme Court ruled that this also applied to homeowners associations. The architects were hired by the developers who intended to rent out the units for two years and then sale them as condos. A value engineering decision resulted in deficiencies for the condo owners, who then sued the architects. Although the architect’s contract was with the developer and not the HOA, Beacon HOA referenced product liability law and argued that the condos are like that of a manufacturer. The California Supreme Court found that the architect does have a duty of standard of care to 3^rd party homeowners.

Led by Tamarah Begay, AIA and Laura Anderson, AIA the Professional Practice session of the Christopher Kelley Leadership Development Program featured a wide range of speakers on highly relevant topics. The session focused on the underlying themes that are fundamental to firm productivity, culture, collaboration, and leadership.

The session began with Katie Kangas, AIA (RSP Architects – Minneapolis), presenting on firm culture. Scholars participated in an exercise to help discover their ideal office culture, centered on themes of work-life balance, accountability, collaboration, independence and teamwork. The scholars then scored their current firms on the same scale, to see where alignments or discrepancies were found. By discovering their ideal firm culture, scholars can learn to advocate for values that are important to their lives with their current firm.

Mike Pettengale and Ali Wagner (REDW) presented next on helping participants understand the three main financial statements, in Financial Statement Basics. This presentation introduced important ratios derived from these financial statements so that participants can analyze them in order to understand their business better. Overall, we aim to increase the participants’ understanding of the information in the financial statements and use it more effectively to evaluate financial performance.

Next, Bret Hamilton (Northwestern Mutual) shared thoughts on transition and financial planning. His presentation identified strategies for risk management, employee benefits, exit planning and personal financial security needs.Gary Oppedahl, a serial entrepreneur, spoke about entrepreneurship and his 30+ years of experience with startups, transitions, turnarounds, and acquisitions.

Finally, Sarah Lindenfeld (Payette, Boston) delivered a keynote address on Practice Management. A University of New Mexico graduate, Lindenfeld shared more about her career path and current role as a managing principal at Payette, recipient of the the 2019 AIA Firm Award. While touching on firm culture, risk management, employee relations, finance, and operations, Lindenfeld notes that firm management is “not magic markers and tracing paper,” but instead “doing one’s best to ensure that the firm is around in the next year, in the next decade, and in the next generation.”

This session was sponsored by Cherry/See/Reames and Northwestern Mutual.

The Christopher Kelley Leadership Development Program (CKLDP) launched in New Mexico on Friday, September 13 at the UNM School of Architecture and Planning in Albuquerque. Co-Chair’s John Clark, AIA and Ashley Hartshorn, AIA, led the session and were joined by 2019 AIA New Mexico President, Steve Alano, and other local architectural leaders including Roger Schluntz, FAIA, Glenn Fellows, FAIA, John Padilla, AIA, and Roy Hertweck, AIA.

CKLDP co-founder Sean Stadler, AIA LEED AP, Managing Principal of WDG Architecture in Washington, D.C., spoke to the program’s creation in 2012 and about its namesake, Christopher Kelley. His keynote address inspired the participants to become leaders within the changing profession of architecture and within their respective communities.

The group was able to hear from each scholar through Pechakucha style presentations. Each was asked to present an image that describes them, to describe the type of leader they are now, and to describe the type of leader which they aspire to become.

Following the scholar presentations, the group began its first breakout exercise – strategically planning the eight individual sessions of the program. With the topics ranging from ‘Working Together and Teambuilding’ to ‘The Future of Architectural Practice,’ ideas were generated by groups of four scholars and a more senior facilitator. This exercise allowed the scholars to describe exactly what they would like to get out of the program in order to benefit themselves, their firms, and their communities.

The smaller groups then reconvened to discuss with the larger class, bringing about additional ideas for the sessions. Then, a pair of scholars was assigned to each of the 8 sessions to further refine the topic and begin to plan its agenda, location, and speakers.

The closing keynote address was given by Patrick Panetta, FAIA, the 2018-19 AIA National Treasurer and Director of Project Management for Arizona State University’s Real Estate Development Department. Patrick spoke to his leadership path within the AIA and through civic leadership in the city of Phoenix. By knowing when to say ‘yes’ (and sometimes knowing when to say ‘no’) one can help to find solutions to problems and set up those around them for success.