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Research Institute Study: Lump Sum Contracting Benefits Firms, Clients

To the ACEC Community,

 

Important news from the ACEC Research Institute, which yesterday released its much-anticipated report on lump sum contracting. Conducted in conjunction with researchers at Virginia Tech, the report found that these contracts carry significant benefits to clients and firms alike. Long a practice in construction, ACEC has encouraged client organizations – particularly state DOTs – to consider lump sum arrangements for engineering services. On the client side, lump sum contracts bring cost savings, a lower administrative burden, and more effective cost management, while affording firms greater flexibility in staffing. It also enables firms to better leverage technologies like AI in service of client delivery.

 

Technological advancements are reshaping our industry, changing the ways in which engineering firms serve their clients and the ways in which they are paid for that service. The report finds that a shift to lump sum contracting will enable firms to better navigate this changed landscape. This is valuable research on a topic of real importance to our industry. I would encourage everyone to read it. The Report can be found here.

 

Later this month, for the 21st year in a row, ACEC will hold our Annual Forums. Slated to begin on September 22 in Denver, these Forums are a unique opportunity for professionals who work within the A/E space – but who are not engineers themselves – to network, share best practices, and discuss emerging trends. These sessions are a chance for employees with specific functional responsibilities or demographics to talk with peers about the issues they face that are specific to engineering firms.

 

This year’s gathering will include the first-ever meetings of the Women’s Leadership Forum and the Business Development and Marketing Forum. For the former, I am slated to moderate a panel of women leaders of A/E firms, during which we will discuss their professional journeys and gain their perspectives on where the engineering industry is headed in the coming years. As its name implies, the Business Development and Marketing Forum will provide an opportunity for BD and marketing professionals in the A/E space to hear insights from industry experts and peers on prevailing market trends and how those trends could affect their work.

 

In addition to these two new sessions, we also will have Forums aimed at professionals in Finance, Human Resources, and Information Technology. Each Forum has its own dedicated agenda created by a volunteer planning committee. This is intentional. Like so much of ACEC’s programming, the topics and direction are significantly informed by what is top of mind among our members.

 

Spaces are still available, but they are filling up fast. The IT Forum is at capacity, but if you would like to register to attend one of our other Forums, more information can be found here. We look forward to seeing you in the Mile High City.


Have a great week,



Linda Bauer Darr

President & CEO

American Council of Engineering Companies | ACEC

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