Houston OTC Offers Glimpse into Industry Innovation

By: Jessica A. Valor

Earlier this month, I attended the 43rd annual Offshore Technology Conference held at Reliant Park in Houston, Texas, from April 30-May 3, 2012. This year’s conference was the third highest-ranking attendance in 30 years, and I definitely believe it.  Over 89,400 attendees flooded Reliant Park, Reliant Arena, and Reliant Center filling more than 641,000 square feet of exhibit space over four days. While the conference prides itself on bringing together offshore energy leaders from around the world, many of the special things about OTC come from our own backyard.

Many details stood out to me this year apart from previous years I have attended. Namely, the 13 new technologies that received the 2012 Spotlight on New Technology Award were showcased on massive big screen projectors, called OTC TV, that were scattered outside all over the conference area. This made it both enjoyable and informative to sit down with a turkey leg or other Texas fare and get to know more about the amazing new products being developed. One nomination that caught my eye was the Versabar, Inc., innovation, “The Claw.”

I had the opportunity to meet with members of their team, and found out just how special this project is. A very knowledgeable employee, Ms. Shoinagh Morris, informed me that after the Versabar Bottom Feeder revolutionized offshore lifting, “The Claw,” which is attached to the VB10, took it a step further with its greater lifting capabilities. The addition of The Claw to the VB10 has now made retrieval of sunken topsides from the bottom of the Gulf even easier and safer. Operating much like an arcade game, The Claw simply plunges down to the ocean floor and picks up the entire rig – similar to a stuffed animal from a machine – and places it onto a barge. This eliminates the need for divers to be put in harm’s way.  Versabar President John Khachaturian was also at the booth, and was absolutely beaming with pride.  And it’s no wonder why!

Two other events stood out on Day Two of the conference among the many programs to choose from, including the special technical program panel titled, “Year 2030—Visions of Worldwide Offshore Oil and Gas.” Panelists from ExxonMobil, Total, Woodside Energy, and Petrobras were highly engaging and provided excellent insight into the next 20 years of the marine and offshore industry. Although the industry has experienced a few setbacks the past few years, the panel was upbeat and excited about the changes and positive growth within the industry in the short and long term.  The big message to the rest of the energy markets, “don’t count us out.”

Later that day, The WISE event, Women in the Industry Sharing Experience, kicked off it’s relatively new networking event at OTC. This group brings together highly successful women executives from the industry to share their career experiences and lessons learned. In an industry that is typically considered a “man’s world,” it is definitely refreshing to be able to network and speak with women about their career obstacles and ambitions. Amy Myers Jaffe, Director of Energy Forum at the Baker Institute, Rice University, was the featured guest and did an outstanding job rousing the crowd before breaking. I hope OTC brings back the WISE event for next year, and I highly recommend women in the offshore industry stop by next year. The advice and moral support of this group is truly inspirational.

I look forward to seeing you all next year, May 6-9, 2013, as we try to break this year’s record-setting attendance!

The Selling Power of Pinterest: Can it Work in Your Industry?

By: Kim Hester

Last week I attended a very, ahem, “pinteresting” luncheon presentation on the new social media tool that’s proving to be very effective in marketing products and services.

The presentation, entitled “Pinterest for Business – Making the Most of Your Visual Content,” was organized by the Houston chapter of the International Association of Business Communicators (IABC Houston). Guest speakerKatie Laird Presenting on Pinterest at IABC Luncheon 2012Katie Laird, PR and Social Media Manager for Blinds.com, shared her insights on how businesses of all industries could potentially leverage this tool to sell their products or services to the public.

As Katie explained, Pinterest is the fastest growing social media tool IN THE HISTORY OF THE INTERNET and has only been in existence for two years! What makes this tool stand out from the rest is the sheer dollars it brings in for business. Statistics show that consumers are 10% more likely to buy something via Pinterest than through any other social platform.

For those that are unfamiliar with Pinterest, the concept is sort of like a visual Twitter. You create an account and start “following” people with common interests such as home décor, fashion, cooking, and travel. Those people “pin” images or videos related to your common interests that serve as pictorial hyperlinks to blogs, websites, or any number of web-based sources. In many cases, the pinned item is something that can be purchased, such as a throw pillow.

As Pinterest tends to be more conducive to selling products of an aesthetic nature, companies attempting to sell products that are more abstract or service-based must employ some creativity on Pinterest. In some cases, a company may not even be selling a product, but rather a brand or even a career opportunity.

A prime example of a company that is creatively leveraging the power of Pinterest is GE. Nerdy, engineering types can pin to their brain’s content on GE’s Badass Machines board, or be inspired by quotes from Thomas Edison on the That’s Genius! board. For recruiters that want to help candidates envision the possibilities of a new career, the Jobgram board helps communicate career opportunities through key graphics. GE, BHP Billiton, and Waste Management are all large corporations that have all taken advantage of this literal sense of the term “job board.”

Katie explained a few good best practices and tips for marketing products or concepts that may not be as pictorial as throw pillows:

  • Pin behind-the-scenes images. For example, a construction firm could show pinners a sneak peek of a new sports stadium that is about to be unveiled.
  • Pin images that showcase your company culture. If employees travel often for business, create a board with images from their travels.
  • Pin how-to videos. For example, an engineering firm could show the development process of a new technology.
  • Pin graphical quotes to represent concepts, such as GE did on its “That’s Genius!” board.

It will be interesting to see how Pinterest evolves as a social media marketing tool over time. As a Pinterest addict myself, I am glad to have attended this presentation and hope others can realize the opportunities to be had and ideas to be inspired through Pinterest.

Coal and Natural Gas Involved In ‘Power’ Struggle over Energy Market Share

The April 2012 issue of Construction Headline News focuses on the escalating US natural gas production and waning domestic demand. As prices continue to fall to the lowest levels in over a decade, utility companies are forecasted to turn to natural gas as their power source of choice. Meanwhile, coal has become a less formidable domestic option due to increasingly harsher emissions regulations and higher market prices. However, elsewhere around the world the demand for coal is swelling, providing an outlet for US coal exports. Read on to discover more about this worldwide power market power struggle.

Also in this month’s issue, Rush Medical University is suing the architect of its new $677 million hospital for alleged design defects that led to over $8 million in cost overruns. An Arizona Indian tribe and a developer are atodds over a $30 million constructed skywalk that may have been built over ancestral land in the “Construction Disputes” section. The World Cup 2014 in Brazil may be facing delays as only two stadiums are more than 50% complete and funding has increased by $900 million. The State of Alaska has reached an agreement to lease the Point Thomson gas fields and make way for a major pipeline project as another means to supply much-need energy to the state and domestically.

Improving the Odds of Success

Interface Consulting was proud to participate in the American Bar Association Forum on the Construction Industry 2012 Annual Meeting in Las Vegas, Nevada, from April 26 through April 28. The annual conference had an impressive attendee list, touting more than 500 attorneys and consultants in attendance. Frank Adams, Philip Barnard, Chris Sullivan, Lisa Heard, and Jennifer Hatten all attended the conference on behalf of Interface Consulting. The meeting’s topics were based on “Advance Project Delivery: Improving the Odds of Success.” The various sessions during the conference discussed the pros and cons of using an advance project delivery systemBali Hai Golf Club, Las Vegas - ABA Golf Tournament 2012 (PDS) and whether using an advanced PDS had a significant impact on the success of a project. The conference offered many exciting breakout sessions that discussed in more detail the nuances of specific systems.

On the final day of the conference, senior consultant Jennifer Hatten assisted with the golf tournament that took place at Bali Hai Golf Club, located on the Las Vegas Strip, where approximately 40 golfers participated. The golf tournament was followed by an awards ceremony with trophies for the top teams, longest drive, and closest to the pin, as well as a raffle with gift certificates that could be used at the Bellagio Hotel and Casino.

Please join Interface Consulting at the ABA Forum on the Construction Industry’s Fall Meeting in Boston on October 18-19, 2012. Details are still to be determined. For more information on the ABA Forum on the Construction Industry, please visit: http://www.americanbar.org/groups/construction_industry.html.

Local, Federal Government Paves the Way for US Bridge Construction

Local and federal authorities are pushing for major bridge construction and rehabilitation in the March 2012 issue of Construction Headline News. As infrastructure ages and the US population continues to grow, monies are being invested in order to accommodate the rising traffic on these thoroughfares. Across the US, these projects are in all stages of planning and financing, from strategizing construction management to applying for state and federal government grants and loans. To learn more about the different avenues being explored to fund much-needed bridge construction and renovation, read on in this month’s issue.

Highlighted in this month’s “InCHN - US Bridge Constructionterface Consulting Publications” section is the article, “Strategic Management of Human Capital,” by project consultant Eric K. Rodriguez, PE. The article, featured in STRUCTURE Magazine, focuses on the retirement of the baby boomers and the effect it will have on the engineering workforce. In the “Construction Litigation” section, KPMB Architects goes against the City of Vaughn as they try to sort out over $15 million in cost overruns for the new city civic center. Another city in the news, the City of Alameda, had a construction claim dismissed for over $100 million in lost potential profits by the contractor on the redevelopment of the former Alameda Naval Station. The once thriving military construction economy in Texas seems to have come to a standstill as the Pentagon reevaluates billions in spending for the 2013 fiscal year.

A Hole-in-One Tournament

Interface Consulting was proud to volunteer at the Associated Builders and Contractors of Greater Houston’s Spring Golf Tournament this past week. Consultants Danielle Sims and Sarah Spurgeon were on site at The Clubs of Kingwood photographing teams, spotting hole in ones, and encouraging the participants.ABC Golf Tournament 2012

The tournament was a great success this year in registering 230 golfers and exceeding the fundraising goal for ABC’s various scholarships. Not to mention the event provided the participants with delicious BBQ stations, dozens of give-a-ways, competitions and a day full of valuable networking.

Please view tournament photos here.

Finding a Cure at the Houston 5K Lymphomathon

Interface Consulting is proud to have a corporate team walking in the Houston 5K Lymphomathon on March 24, 2012, to support one of our colleagues who was diagnosed with lymphoma late last year. Many of us know friends, family, or colleagues that have been diagnosed with lymphoma, as over 600,000 people are currently living with this disease. Lymphoma is the most common blood cancer in adults and the third most common cancer overall among children. Thanks to the advances in medical research, however, chances for recovery are better than ever.Lymphomathon

The Lymphoma Research Foundation (LRF) is the nation’s largest non-profit organization devoted exclusively to funding innovative research and providing up-to-date information about this type of cancer. The LRF’s Scientific Advisory Board consists of the world’s leading lymphoma researchers, oncologists, and hematologists, and is unrelentingly committed to finding a cure.

We are honored to support the LRF and its mission to eradicate lymphoma and serve those touched by this disease. Cancer impacts everyone. Together, we can make a difference.

Brazilian Economy Remains Robust with Energy, Infrastructure Investments

Things are heating up for South America’s largest country, Brazil, in the February 2012 issue of Construction Headline News. This month’s issue delves into one of the world’s largest and fastest growing economies as Brazilians invest heavily in new projects to keep up the pace with growing demand from all construction sectors. As crude production hits record highs, other projects in renewable energy, infrastructure, and housing are also aiming to be a part of this growing economic powerhouse.

Also featured in this month’s issue, the Massachusetts attorney general recently announced a lawsuit against an insurance company for refusing to compensate the state over a faulty bridge that collapsed in 2007. Across the US, state lawmakers in Nevada ask their attorney general to defend over $6 million in attorney fees to defend against a freeway construction dispute that has yet to go to arbitration. The “Construction Delays” section digs into over 34 stalled construction projects in Dayton, Ohio, with over $2 billion in combined price tags, and 21 of those projects are to be pushed back over 10 years. Also in this section, the stalled multi-million dollar Louvre and Guggenheim museums are now set to open in 2015 and 2017, respectively, on Abu Dhabi’s Saadiyat Island.

New 2012 ICC Rules of Arbitration

The International Chamber of Commerce (ICC) International Court of Arbitration is one of the world’s leading forums for resolving international commercial, business, and construction disputes. As of January 1, 2012, The ICC International Court of Arbitration has implemented revised Rules of Arbitration that govern how arbitral tribunals conduct hearings.

The new ICC Rules of Arbitration will affect all new cases filed via the International Court of Arbitration on or after the first of the year. The new rules reinforce the efficiency and cost effectiveness of the arbitration process. Key changes to the rules include:

- Defined provisions to address disputes involving multiple contracts and parties;
- Updated case management procedures;
- New provisions for the appointment of an emergency arbitrator to order urgent measures;
- New changes that facilitate how disputes arising under investment treaties and free trade agreements are handled.

Some specific changes include the following:

- The arbitral tribunal will directly decide decisions allowing arbitrations to proceed regarding jurisdictional objections, unless the Secretary General refers the matter to the Court for its decision (Article 6.3).

- Existing parties may “join” new parties to the arbitration until any arbitrator is appointed or confirmed. This will allow respondents to join new parties to the arbitration, in contrast with the former practice that only allowed claimants to join new parties (Article 7).

- Claims between multiple parties are addressed in Article 8 and 9, and include these rules:

- In an arbitration with multiple parties, claims may be made by any party against any other party, until the Terms of Reference are signed (Article 8.1).

- Claims arising out of more than one contract may be made in a single arbitration, even if claims are made under more than one arbitration agreement (Article 9).

- The ICC Court is now allowed to set time limits for national committees to nominate arbitrators (Article 13.3), and may appoint an arbitrator directly (Article 13.4).

- Arbitrators must hold a case management conference to discuss procedural matters to be adopted with the parties (Article 24.1), and include examples of case management techniques that could be applied by the tribunal and parties (Appendix IV).

- Arbitrators are required to inform the Secretariat and the parties of the date by which they expect to submit the draft aware to the Court for approval. (Article 27)

- Provisions for an emergency arbitrator are made in Article 29:

- Parties are allowed to apply for an emergency arbitrator to decide on measures that cannot await the constitution of a tribunal (Article 29.1).

- The arbitral tribunal may modify, terminate, or annul an order made by the emergency arbitrator (Article 29.3).

- The emergency arbitrator rules apply only to parties that are signatories or successors of signatories of the arbitration agreement (Article 29.5).

- Minor changes to the syntax of some rules have been made.

For attorneys and experts that participate in the ICC forums, these changes could bring greater efficiency to arbitration proceedings, as well as provide more structure and flexibility. More discussion on the new rules is available from the international law firms of Reed Smith, here, and at White & Case, here. The 2012 ICC International Court of Arbitration Rules of Arbitration is available for download from the ICC website, in seven languages.

Interface Consulting’s construction experts have testified in numerous ICC arbitration cases, as well as in other major international forums such as the London Court of Arbitration (LCIA), International Centre for Dispute Resolution (ICDR), and the United Nations Commission on International Trade Law (UNCITRAL). For more information on Interface Consulting, and our role in litigation and arbitration support, please visit our website.

Certifying Cost Engineering Skills and Techniques

By: Jennifer Hatten

The Association for the Advancement of Cost Engineering International (AACEI) is dedicated to furthering the concepts of Total Cost Management (TCM) and cost engineering by offering opportunities for individuals to verify their knowledge and skills by providing Certified Cost Engineer (CCE) and Certified Cost Consultant (CCC) certifications, among others. TCM is a systematic approach to managing costs throughout the life cycle of any enterprise, program, facility, project, product, or service, by applying cost engineering and cost engineering principles. In December 2011, I sat for the CCE/CCC certification exam and tested my knowledge of cost engineering skills, economic analysis of problems, project management theories and techniques, and cost estimating and control.

During the course of any project, it is necessary to see beyond the physical design and construction of a project and realize that other resources, such as time and money, are invested. The additional time and money invested in a project are referred to as cost. AACEI is dedicated to furthering the concept of using a systematic approach to managing costs throughout the life cycle of any project through the application of cost engineering and cost engineering principles.

A cost engineer must be knowledgeable about various topics such as estimating, scheduling, activity-based costs, fixed and variable costs, life cycle costs, statistics and probability, and various tools to analyze labor-cost performance. In addition, a cost engineer must know how to manage people and understand how people and organizations work together.

For example, a company wants to build a pipeline. Beyond the design and construction of the pipeline, it is important to have an individual who is trained to estimate what the project might cost, determine the activities need in order to design and build the pipeline, estimate how long it will take to build the pipeline, and so on. In addition, it is critical that an individual continually monitors the budget and schedule to ensure the project comes in on time and under budget. A cost engineer is responsible for carrying out these tasks.

The exam required me to have a working knowledge of cost and schedule performance indices by using schedule variance, schedule performance index, cost variance, cost performance index, credit work hours, and productivity indices equations. In addition, the exam required me to compare and evaluate cash flows for projects using present value and future value formulas. In terms of theory, AACEI acknowledges that leadership is an important aspect of project management and therefore tests on various leadership and motivational styles, and conflict resolution techniques.

I am proud to announce that on December 30, 2011, the certification board informed me that I had passed the CCE/CCC exam. As a claims consultant, this certification shows that I have sufficient knowledge and skills to analyze project costs, schedules, and risks in order to understand why a project did, or did not, come together as a whole to meet an owner’s needs and expectations.