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Other mixed-use projects include entire\nneighborhoods where different uses are mixed together in close\nproximity. In any event, mixed-use development remains extremely\ncomplicated. The developer must balance what may be conflicting uses\nand priorities. Before a developer considers tackling a mixed-use\ndevelopment, he or she should carefully consider the entirety of the\nproject.</p>\n<h2>The Challenges</h2>\n<p>Many challenges confront the developer of a mixed-use project,\nincluding added complexity due to the multiple uses, restrictive zoning\ncodes, increased construction costs, difficult-to-obtain financing and\na lack of suitable locations. The first step a developer needs to take\nis crafting a plan with the assistance of a development team. Members\nof the team will change throughout the process, but at any given time,\nthe team may include potential partners and investors, attorneys,\npublic agencies, architects, engineers, contractors, lenders and\ntenants.</p>\n<p>The developer must focus on finding the right location and gaining\ncontrol of the property. Uses must not only be internally compatible,\nbut must also be compatible with the surrounding area. Obtaining the\napprovals required for a mixed-use project will be challenging for the\ndeveloper. A change in zoning, which is a time consuming process, will\nbe required, and will most likely draw heated opposition from nearby\nand surrounding property owners. Purchase contracts must contemplate\nand provide sufficient time to satisfy the contingencies upon which the\ndevelopment is dependent. These contingencies include, without\nlimitation, acquisition of other parcels, zoning and site plan approval\nand financing. If the project requires an assemblage of multiple\nparcels and the developer contemplates using eminent domain to acquire\nany such parcels, it must be cognizant of the mandates and constraints\nimposed by applicable laws. The Missouri legislature recently amended\nMissouri\'s condemnation law to add premiums to the price to be paid for\ncondemned properties, which have been owned by the same family for more\nthan 50 years and/or constitute principal residences, and to increase\nrelocation benefits. Further, the use of eminent domain to acquire\nproperty for private use has come under scrutiny, and Missouri law now\nprohibits its use for \"solely economic development purposes.\" Eminent\ndomain is available to acquire blighted or conservation areas, but what\nconstitutes \"blight\" is subject to interpretation and if judicially\nchallenged, will significantly delay and increase the cost of the\nproject.</p>\n<h2>Finding the Funds</h2>\n<p>Mixed-use developments are costly to develop, and in all likelihood,\nwill require road and utility work and significant infrastructure\nexpenditures. Banks may be reluctant to accept the exposure inherent by\nthe size and scope of such developments, and financial incentives such\nas tax breaks and bond financing are often required. Public assistance\nfor mixed-use projects is often provided under one or more of the\nfollowing Missouri statutes: the Property Tax Increment Allocation\nRedevelopment Act (TIF), which authorizes the use of incremental real\nproperty and sales tax revenues to fund redevelopment project costs;\nthe Transportation Development District Act (TDD), which authorizes the\nimposition of sales taxes, property taxes and/or special assessments to\nfund transportation-related improvements; and the Community Improvement\nDistrict Act (CID), which authorizes the imposition of sales taxes,\nproperty taxes and/ or special assessments to fund community-related\npublic improvements and services. To get public assistance, the\ndeveloper will need to endure the administrative process, which entails\nparticipation in public hearings and encourages the expression of\npublic opinion and sentiment, which is often critical.</p>\n<p>Whether public or private financing is used, the availability of\nfunds will depend on there being sufficient presales and/or leasing. A\nmixed-use commercial lease is complex. It is the developer\'s job to\nlook at surrounding uses and determine what the market can withstand.\nThe developer must also consider what uses would be marketable and\nfinancially feasible. It is important to remember that although the\nlease is with the developer, the maintenance and governance of the\ncommon areas of the project may be turned over to a condominium or\nhomeowners association, and that not all users get along. Residential,\nretail, and office users compete for parking; retailers complain about\nsupport columns that are essential in multistory buildings, but\ninterfere with their open store formats; and residents complain about\nnoise from delivery trucks. For a mixed-use project to succeed,\narchitectural controls must be adopted, and the responsibility for\nmaintaining and operating the common areas of the development must be\nequitably allocated amongst the users. Each must pay their respective\nshare. Further, each user must be reasonably assured that its use will\nnot be interrupted or adversely affected by the use or change in use of\nother parcels in the development.</p>\n<p>As a result of such complexities and challenges, mixed-use\ndevelopments take time and have significant front-end costs for site\ncontrol, market and feasibility studies, planning, design, engineering,\nlegal and other professional fees, all of which are at risk if the\nproject is not ultimately approved. 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Other mixed-use projects include entire\nneighborhoods where different uses are mixed together in close\nproximity. In any event, mixed-use development remains extremely\ncomplicated. The developer must balance what may be conflicting uses\nand priorities. Before a developer considers tackling a mixed-use\ndevelopment, he or she should carefully consider the entirety of the\nproject.</p>\n<h2>The Challenges</h2>\n<p>Many challenges confront the developer of a mixed-use project,\nincluding added complexity due to the multiple uses, restrictive zoning\ncodes, increased construction costs, difficult-to-obtain financing and\na lack of suitable locations. The first step a developer needs to take\nis crafting a plan with the assistance of a development team. Members\nof the team will change throughout the process, but at any given time,\nthe team may include potential partners and investors, attorneys,\npublic agencies, architects, engineers, contractors, lenders and\ntenants.</p>\n<p>The developer must focus on finding the right location and gaining\ncontrol of the property. Uses must not only be internally compatible,\nbut must also be compatible with the surrounding area. Obtaining the\napprovals required for a mixed-use project will be challenging for the\ndeveloper. A change in zoning, which is a time consuming process, will\nbe required, and will most likely draw heated opposition from nearby\nand surrounding property owners. Purchase contracts must contemplate\nand provide sufficient time to satisfy the contingencies upon which the\ndevelopment is dependent. These contingencies include, without\nlimitation, acquisition of other parcels, zoning and site plan approval\nand financing. If the project requires an assemblage of multiple\nparcels and the developer contemplates using eminent domain to acquire\nany such parcels, it must be cognizant of the mandates and constraints\nimposed by applicable laws. The Missouri legislature recently amended\nMissouri\'s condemnation law to add premiums to the price to be paid for\ncondemned properties, which have been owned by the same family for more\nthan 50 years and/or constitute principal residences, and to increase\nrelocation benefits. Further, the use of eminent domain to acquire\nproperty for private use has come under scrutiny, and Missouri law now\nprohibits its use for \"solely economic development purposes.\" Eminent\ndomain is available to acquire blighted or conservation areas, but what\nconstitutes \"blight\" is subject to interpretation and if judicially\nchallenged, will significantly delay and increase the cost of the\nproject.</p>\n<h2>Finding the Funds</h2>\n<p>Mixed-use developments are costly to develop, and in all likelihood,\nwill require road and utility work and significant infrastructure\nexpenditures. Banks may be reluctant to accept the exposure inherent by\nthe size and scope of such developments, and financial incentives such\nas tax breaks and bond financing are often required. Public assistance\nfor mixed-use projects is often provided under one or more of the\nfollowing Missouri statutes: the Property Tax Increment Allocation\nRedevelopment Act (TIF), which authorizes the use of incremental real\nproperty and sales tax revenues to fund redevelopment project costs;\nthe Transportation Development District Act (TDD), which authorizes the\nimposition of sales taxes, property taxes and/or special assessments to\nfund transportation-related improvements; and the Community Improvement\nDistrict Act (CID), which authorizes the imposition of sales taxes,\nproperty taxes and/ or special assessments to fund community-related\npublic improvements and services. To get public assistance, the\ndeveloper will need to endure the administrative process, which entails\nparticipation in public hearings and encourages the expression of\npublic opinion and sentiment, which is often critical.</p>\n<p>Whether public or private financing is used, the availability of\nfunds will depend on there being sufficient presales and/or leasing. A\nmixed-use commercial lease is complex. It is the developer\'s job to\nlook at surrounding uses and determine what the market can withstand.\nThe developer must also consider what uses would be marketable and\nfinancially feasible. It is important to remember that although the\nlease is with the developer, the maintenance and governance of the\ncommon areas of the project may be turned over to a condominium or\nhomeowners association, and that not all users get along. 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Design\";s:9:\"url_title\";s:41:\"ssm_st_clare_hospital_different_by_design\";s:6:\"status\";s:4:\"open\";s:11:\"dst_enabled\";s:1:\"n\";s:14:\"view_count_one\";s:1:\"0\";s:14:\"view_count_two\";s:1:\"0\";s:16:\"view_count_three\";s:1:\"0\";s:15:\"view_count_four\";s:1:\"0\";s:14:\"allow_comments\";s:1:\"n\";s:23:\"comment_expiration_date\";s:1:\"0\";s:16:\"allow_trackbacks\";s:1:\"n\";s:6:\"sticky\";s:1:\"n\";s:10:\"entry_date\";s:10:\"1241281140\";s:4:\"year\";s:4:\"2009\";s:5:\"month\";s:2:\"05\";s:3:\"day\";s:2:\"02\";s:9:\"edit_date\";s:14:\"20090502114653\";s:15:\"expiration_date\";s:1:\"0\";s:19:\"recent_comment_date\";s:1:\"0\";s:13:\"comment_total\";s:1:\"0\";s:15:\"trackback_total\";s:1:\"0\";s:15:\"sent_trackbacks\";s:0:\"\";s:21:\"recent_trackback_date\";s:1:\"0\";s:13:\"entry_site_id\";s:1:\"1\";s:10:\"blog_title\";s:8:\"Features\";s:9:\"blog_name\";s:8:\"features\";s:8:\"blog_url\";s:19:\"{site_url}features/\";s:11:\"comment_url\";s:27:\"{site_url}features/article/\";s:13:\"tb_return_url\";s:27:\"{site_url}features/article/\";s:16:\"comment_moderate\";s:1:\"n\";s:22:\"weblog_html_formatting\";s:3:\"all\";s:21:\"weblog_allow_img_urls\";s:1:\"y\";s:21:\"weblog_auto_link_urls\";s:1:\"y\";s:17:\"enable_trackbacks\";s:1:\"n\";s:15:\"trackback_field\";s:1:\"5\";s:21:\"trackback_use_captcha\";s:1:\"n\";s:24:\"trackback_system_enabled\";s:1:\"n\";s:8:\"username\";s:9:\"publisher\";s:5:\"email\";s:16:\"pfinan@finan.com\";s:3:\"url\";s:0:\"\";s:11:\"screen_name\";s:9:\"Publisher\";s:8:\"location\";s:0:\"\";s:10:\"occupation\";s:0:\"\";s:9:\"interests\";s:0:\"\";s:6:\"aol_im\";s:0:\"\";s:8:\"yahoo_im\";s:0:\"\";s:6:\"msn_im\";s:0:\"\";s:3:\"icq\";s:0:\"\";s:9:\"signature\";s:0:\"\";s:16:\"sig_img_filename\";s:0:\"\";s:13:\"sig_img_width\";s:1:\"0\";s:14:\"sig_img_height\";s:1:\"0\";s:15:\"avatar_filename\";s:0:\"\";s:12:\"avatar_width\";s:1:\"0\";s:13:\"avatar_height\";s:1:\"0\";s:14:\"photo_filename\";s:0:\"\";s:11:\"photo_width\";s:1:\"0\";s:12:\"photo_height\";s:1:\"0\";s:8:\"group_id\";s:1:\"1\";s:9:\"member_id\";s:1:\"2\";s:6:\"bday_d\";s:1:\"0\";s:6:\"bday_m\";s:1:\"0\";s:6:\"bday_y\";s:1:\"0\";s:3:\"bio\";s:0:\"\";s:7:\"site_id\";s:1:\"1\";s:10:\"field_id_1\";s:0:\"\";s:10:\"field_ft_1\";s:4:\"none\";s:10:\"field_id_2\";s:0:\"\";s:10:\"field_ft_2\";s:4:\"none\";s:10:\"field_id_4\";s:0:\"\";s:10:\"field_ft_4\";s:4:\"none\";s:10:\"field_id_5\";s:43:\"SSM St. Clare Hospital: Different by Design\";s:10:\"field_ft_5\";s:4:\"none\";s:10:\"field_id_7\";s:32:\"St. Clare, design, SSM, Alberici\";s:10:\"field_ft_7\";s:4:\"none\";s:10:\"field_id_8\";s:17990:\"<p>Robert Porter, executive vice president, strategy and business development, SSM Health Care, can spend 45 minutes talking about what is new or different about patient rooms at SSM&rsquo;s new 154-bed St. Clare Hospital in Fenton, MO, and even then he won&rsquo;t have exhausted the subject. To Porter, the patient room at St. Clare Hospital is the architectural center of how SSM has re-envisioned hospital care. That re-envisioning led SSM to design the new hospital in a new way, build it in a new way, and ultimately operate it in a new way.<br /><br />With hospital costs nationally outpacing the ability of people to pay and hospitals errors making sick, SSM decided &ldquo;it was time to fundamentally rethink what we do,&rdquo; Porter said. The first &ldquo;visioning&rdquo; session for the new $230 million hospital was in April 2005. The goals were easily stated &ndash; improve the patient experience and reduce costs &ndash; but the processes of accomplishing them were very complex.<br /><strong><br />Changing the design process</strong><br /><br />Porter said SSM&rsquo;s approach to St. Clare Hospital differed in four fundamental ways from the typical hospital design process:</p>\n<ul>\n<li>&ldquo;We took months to understand the patient side: shadowing patients, using photojournalism to record their experiences, and using patient diaries, and from that we tried to determine what would an ideal patient experience look like.</li>\n<li>Separately we mapped the processes of how work was done, looking at things like nurse travel time.</li>\n<li>We also engaged in clinical visioning: trying to figure out how health care will change.</li>\n<li>And we looked at where communications and IT are going as tools of what we do.</li>\n</ul>\n<p><br /><img alt=\"St. Clare Hospital\" class=\"image-left\" height=\"303\" src=\"/images/uploads/st.-clare.jpg\" style=\"float: left;\" width=\"266\" />&ldquo;That gave us high level planning and then we went down into the details, functions, and spaces,&rdquo; he said.<br /><br />&ldquo;In the traditional design process, you go to the departments and ask them what volume of work they will have and what problems do they need fixed. But then you&rsquo;re just putting new building blocks on the same chassis. That is about how health care is produced, not how it is experienced,&rdquo; he said.<br /><br />Hummel, Green and Abrahamson, Inc.of Milwaukee, WI was the primary architect on the hospital, with Mackey Mitchell Associates serving as the local architect. Mackey Mitchell Associates was the primary architect on the connected medical office building and ambulatory surgery center.<br /><br />As it turned out, there was a lot of overlap between sources of patient dissatisfaction and inefficiency and waste. Patients hated being left in a hall somewhere to wait for the next thing to happen to them.&nbsp; And one of the things SSM learned from lean manufacturing was that anything that interrupts the flow of work increases waste and inefficiency.<br /><br />&ldquo;One of the biggest sources of frustration and waste is waiting time,&rdquo; Porter said. To improve flow, SSM decided to invest more capital up front to duplicate important technologies in different departments instead of funneling everyone through one place. So, the emergency department and the ambulatory center got their own radiology equipment, for example. &ldquo;Hospitals traditionally tried to save capital by investing in one radiology department. But having to take patients from all over the hospital to radiology and have them wait in the hallways until there is an opening backs up everyone else and causes tremendous waste. So we gave the departments that most use radiology their own equipment,&rdquo; he said.<br /><br />The theme of improving the patient experience runs from the campus sight plan and signs and cues to help visitors find their way to the artwork in patient rooms and public areas<br /><br />&ldquo;From our ring road, you have four choices: the emergency entrance, the public entrance, the medical office building, and the procedure center. In addition to signs, each has its own distinctive architectural markings. We&rsquo;ve distributed parking to correspond with services, and each entrance has its own reception area,&rdquo; Porter said.<br /><br />Spellman Brady selected the artwork. By coincidence, Diana Spellman was undergoing treatments for cancer while she was working on the St. Clare hospital project. &ldquo;I was coming from radiation treatments to go into high level meetings and I felt like I was glowing. I had to tell them,&rdquo; she said. &ldquo;I was able to bring experience and view as patient to selecting artwork. To really be patient centered it has to create positive, uplifting experience for patients&hellip; Some dated hospital rooms really make you sicker than you are sick because they are so depressing,&rdquo; she said.<br /><br />&ldquo;They let us push the envelope in choosing artwork that is uplifting and colorful, and in letting us use different media. We used glass, sculpture, custom photography, and more. It was very impressive that the administration put that kind of thought into it,&rdquo; she said.<br /><br />&ldquo;This hospital is designed to be more restful. We looked at noise, light, and d&eacute;cor all with an eye to accelerating patient recovery. By putting patients in a more healing environment we save dollars that would otherwise be spent on longer stays,&rdquo; Porter said.<br />&ldquo;We even have an open MRI to reduce stress on those patients who are claustrophobic or just don&rsquo;t like closed spaces,&rdquo; he said.<br /><br />SSM also put a lot of thought into alleviating another major source of patient dissatisfaction and waste: errors.<br /><br />The Institute of Medicine called medical errors &ldquo;a leading cause of death and injury&rdquo; in a report to Congress in 2006. The Institute of Medicine (IOM) estimated that nationwide, roughly two out of every 100 people admitted to a hospital would suffer an injury as a result of a medical error while in the hospital. The IOM estimated that between 44,000 and 98,000 people a year were killed by preventable errors in hospitals, more than died every year in car accidents and more than were killed by breast cancer or aids. Indeed, the IOM called hospital errors the eighth-leading cause of death in the United States. The IOM also estimated that the direct medical charges associated with treating hospital errors totaled between $9 billion and $15 billion.<br /><br />SSM and its designers made several design decisions in order to reduce medical errors and make sure the hospital provides &ldquo;the right care in the right place at the right time,&rdquo; said Porter. The most basic decision was standardization.<br /><br />&ldquo;All eight of the operating rooms are oriented the same. Everything in them is the same and equipment hangs from ceiling booms,&rdquo; Porter said. &ldquo;The standardization is to cut down on mistakes resulting from things not being where you expect them to be,&rdquo; he said. The operating rooms also are substantially larger than in the old hospital: 600 square feet compared to about 400; and the one cardiac operating room is 800 square feet in size. Plus, they are organized ergonomically and they all have advanced operating lights that do not cast any shadows.<br /><br />All patient rooms also have the same configuration and handedness in order to minimize errors. They all are private rooms and bathroom is in the same corner in every room, instead of neighboring rooms having bathrooms back-to-back. That meant twice as many stacks for plumbing. &ldquo;It cost $3 - 4,000 more per room to make each room the same instead of having bathrooms head to head,&rdquo; Porter said, or about $500,000 more for the whole hospital.&nbsp; How many mistakes do they have to avoid in order to make up that cost? &ldquo;I don&rsquo;t know,&rdquo; Porter said. &ldquo;In a high intensity environment, standardization unquestionably makes for greater reliability, but it is hotly debated, even within our own organization, on whether it makes a difference in patient rooms.&rdquo; Nevertheless, SSM spent the money, because, &ldquo;we wanted to make the optimum safe environment for our patients,&rdquo; he said.<br /><br />The bathrooms in the patient rooms are not rectangular boxes. Porter called the five-sided bathrooms, &ldquo;one of the more brilliant architectural decisions,&rdquo; in the hospital&rsquo;s design. Having a slanted wall nearer the patient bed, &ldquo;preserves the patient&rsquo;s view of the window and creates more space in the room,&rdquo; he said, and research has shown that the ability to see out a window speeds a patient&rsquo;s recovery.<br /><strong><br />Changing the construction process</strong><br /><br />Changing the design process was one piece of how SSM sought to reinvent the hospital; changing the construction process was another. <br /><br />&ldquo;The way the trades were engaged was different from traditional construction,&rdquo; said Timothy Gunn, project director Alberici Constructors, the general contractor. &ldquo;And their relationship with the design team was very different from the traditional [relationship],&rdquo; he said.<br /><br />SSM used a process called &ldquo;lean construction&rdquo; to build the new 430,000-square-foot hospital. Alberici, SSM, and the architect selected the main trade contractors early &ndash; Murphy Co. Mechanical Contractors, Guarantee Electrical Co., St. Louis Automatic Sprinkler Co., and Niehaus Construction Services. All of those contractors were on cost-plus-fee contracts. &ldquo;That let them be nimble in implementing change, and in a hospital, where you want to include the most modern equipment, there is a lot of change,&rdquo; said Gunn.<br /><br />The trades contractors worked together in &ldquo;the big room,&rdquo; as Gunn called it, a doublewide trailer full of computers and flat screen display panels. There, detailers from all the trades worked together to create a part of a building information model, in this case a three dimensional model of everything above the ceiling with descriptions &ndash;&ndash; all of the ductwork, conduit, and piping &ndash;&ndash; so that they could coordinate all of the above the ceiling work and maximize how much they made in the shop and trucked to the site. This effort was accomplished utilizing 3D modeling within a web-based server system that allowed real-time design-engineering coordination between the project design team.<br /><br />&ldquo;The electrical, mechanical, and fire protection systems were all virtually built in the 3-D model before we started installing them,&rdquo; said Mark Bengard, senior vice president of Murphy Co., which installed all the piping for medical gases, plumbing, and heating and cooling. &ldquo;SSM has a 3-D model now so if they need to track down a valve they can look in their electronic model instead of disturbing patients by lifting ceiling tiles or opening access doors in the walls to find it. That is a powerful tool and it is something almost no one else has,&rdquo; he says. <br /><br />Modeling all of the above the ceiling work electronically produced two other important results. &ldquo;We prefabbed in excess of what would be typical, due to the confidence everyone had that they would have the space to put their work,&rdquo; Gunn said. And all the planning helped the trades make up lost time. &ldquo;In 2008 we faced one of the wettest years in history. We had lost the planned number of weather days for the entire project by March, and being behind on the exterior put us behind on the interior finish,&rdquo; Gunn said. Having built the job electronically in 3-D, the trades contractors could see that they could get creative with sequencing the above the ceiling work to make up lost time. <br /><br />&ldquo;We didn&rsquo;t necessarily have to have mechanical contractor in first in all phases,&rdquo; said Steve Kellenberger, director of construction for Guarantee Electrical. &ldquo;As long as you followed the design and put your work where you were supposed to, you could go in and put your work out of the typical sequence. It eliminated conflicts between tradesmen,&rdquo; he said. <br /><br />With that kind of cooperation, said Gunn, &ldquo;we were able to make up time and maintain the scheduled opening date.&rdquo;<br /><br />Just as electronic records &ndash; the 3-D model &ndash; played a crucial role in the construction of St. Clare Hospital, they also will be a crucial part of what makes St. Clare Hospital different. &ldquo;Our data backbone is as big and complex as our electrical backbone. That is because the single most important variable in health care is information,&rdquo; Porter said.<br /><br />&ldquo;The low voltage work here was extraordinarily complicated. They included electronic records, VOIP (voice over internet protocol), nurse call systems, telemetry, security, and paging,&rdquo; Gunn said. Guarantee Electrical Co. was the single source electrical installation contractor installing the power, lighting, emergency, technology, data, fire alarm and security systems.<br /><br />Changing operations<br />&nbsp;&nbsp;&nbsp; <br />&ldquo;We made points of data entry ubiquitous,&rdquo; Porter said. &ldquo;No more paper charts,&rdquo; he said. To make sure that data is reliably and quickly entered, St. Clare Hospital has an electronic record portal in each patient room and also outside each room at a window at which a nurse can observe the patient and make notes.<br /><br />The electronic record also is designed to cut down on medication mistakes via its connection to a medical dispensing system in each room. According to the Institute of Medicine, medication errors alone kill more people annually than do workplace accidents.<br /><br />Porter explained how the medical dispensing system works: &ldquo;The pharmacist stocks the patient&rsquo;s drugs in the room in a secure drawer that can be opened only by entering the correct security code into the electronic record portal. Each prescription has a bar code for the drug and a bar code for the patient. This reduces the number of people handling the drug to three, which should reduce errors.&rdquo; And since the physician orders the prescription electronically, there should occur no handwriting deciphering errors.<br /><br />The same system data wiring backbone that supports electronic records and the medical dispensing system also lets the operations department at St. Clare Hospital remote control the temperature in every patient room, office, and surgery suite. &ldquo;We use a Trane Tracer Summit Automated Control System to control the heat in each room individually from the control room or the Internet, and we can give the room occupants control within a set band of temperatures,&rdquo; said Andy Gratton, team leader of plant operations. <br /><br />With the Trane Summit System, &ldquo;they have an ability they never had before to see hundreds of pressures and temperature in chiller. They can get data and keep track of issues as they&rsquo;re developing and schedule maintenance before issues become a problem,&rdquo; Bengard said. &ldquo;A good building management system can make a great difference in the time spend on a problem,&rdquo; Gratton added.<br /><br />Some of the equipment controlled via the Trane Summit System is new to the St. Louis area, but all of it &ldquo;is light years from where they were in their old building,&rdquo; Bengard said.<br /><br />The new steam boilers, for example, are much more efficient than the old ones. &ldquo;We went from a traditional, 692 horsepower boiler system to two, 200 hp and two 300 horsepower boilers.&rdquo; The new boilers can operate at two stages, 50 percent or 100 percent, and they can cycle on and off, whereas SSM had to keep the old boiler system idling. The new boilers &ldquo;can go from zero to 80 pounds of steam in five minutes, while with the traditional boilers we would take two days to do that so that we didn&rsquo;t crack the refractory wall. That makes the new ones more efficient, because we don&rsquo;t have to keep operating them when they aren&rsquo;t needed,&rdquo; Gratton said.<br /><br />&ldquo;We did a lot of research when selecting boilers and actually took [Gratton and other SSM representatives] on a trip to the closest ones in operation, which were in Chicago,&rdquo; said Bengard. The new boilers also have scale sensors on the inside to alert the operations team to any buildup of scale that might require cleaning.<br /><br />&ldquo;The new air systems also are fairly unique,&rdquo; Bengard said. &ldquo;They utilize a Hunt Air Fanwall system. A typical air-handling unit has one large centrifugal type fan. These have an array of nine or more, so if one fan fails the whole system isn&rsquo;t down. That redundancy aspect is fantastic for hospitals. It has the same performance as a centrifugal fan, but if one fan fails in a fanwall, you can block that off in minutes if you don&rsquo;t have a replacement and your system won&rsquo;t know its missing,&rdquo; he explained.<br /><br />SSM also invested in two, 850-ton chillers and a 125-ton chiller. &ldquo;We can operate just the smaller one in the winter to produce the chilled air we need for operating rooms,&rdquo; Gratton said.<br />&nbsp;&nbsp;&nbsp; <br />&ldquo;They selected the most efficient chillers they could. They are probably twice as efficient as what they had [in the old hospital] in Kirkwood,&rdquo; Bengard said&nbsp;&nbsp;&nbsp; <br /><br />&ldquo;We were very thoughtful in how we spent money to make health care more effective,&rdquo; said Porter. &ldquo;We&rsquo;re essentially retooling the hospital stock to increase efficiency and increase effectiveness. Our aim is to deliver the right care at the right time in the right place,&rdquo; he said.</p>\";s:10:\"field_ft_8\";s:4:\"none\";s:10:\"field_id_9\";s:206:\"To Robert Porter, executive vice president, strategy and business development, SSM Health Care, the patient room at St. Clare Hospital is the architectural center of how SSM has re-envisioned hospital 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St. Clare Hospital: Different by Design\";s:10:\"field_ft_5\";s:4:\"none\";s:10:\"field_id_7\";s:32:\"St. Clare, design, SSM, Alberici\";s:10:\"field_ft_7\";s:4:\"none\";s:10:\"field_id_8\";s:17990:\"<p>Robert Porter, executive vice president, strategy and business development, SSM Health Care, can spend 45 minutes talking about what is new or different about patient rooms at SSM&rsquo;s new 154-bed St. Clare Hospital in Fenton, MO, and even then he won&rsquo;t have exhausted the subject. To Porter, the patient room at St. Clare Hospital is the architectural center of how SSM has re-envisioned hospital care. That re-envisioning led SSM to design the new hospital in a new way, build it in a new way, and ultimately operate it in a new way.<br /><br />With hospital costs nationally outpacing the ability of people to pay and hospitals errors making sick, SSM decided &ldquo;it was time to fundamentally rethink what we do,&rdquo; Porter said. The first &ldquo;visioning&rdquo; session for the new $230 million hospital was in April 2005. The goals were easily stated &ndash; improve the patient experience and reduce costs &ndash; but the processes of accomplishing them were very complex.<br /><strong><br />Changing the design process</strong><br /><br />Porter said SSM&rsquo;s approach to St. Clare Hospital differed in four fundamental ways from the typical hospital design process:</p>\n<ul>\n<li>&ldquo;We took months to understand the patient side: shadowing patients, using photojournalism to record their experiences, and using patient diaries, and from that we tried to determine what would an ideal patient experience look like.</li>\n<li>Separately we mapped the processes of how work was done, looking at things like nurse travel time.</li>\n<li>We also engaged in clinical visioning: trying to figure out how health care will change.</li>\n<li>And we looked at where communications and IT are going as tools of what we do.</li>\n</ul>\n<p><br /><img alt=\"St. Clare Hospital\" class=\"image-left\" height=\"303\" src=\"/images/uploads/st.-clare.jpg\" style=\"float: left;\" width=\"266\" />&ldquo;That gave us high level planning and then we went down into the details, functions, and spaces,&rdquo; he said.<br /><br />&ldquo;In the traditional design process, you go to the departments and ask them what volume of work they will have and what problems do they need fixed. But then you&rsquo;re just putting new building blocks on the same chassis. That is about how health care is produced, not how it is experienced,&rdquo; he said.<br /><br />Hummel, Green and Abrahamson, Inc.of Milwaukee, WI was the primary architect on the hospital, with Mackey Mitchell Associates serving as the local architect. Mackey Mitchell Associates was the primary architect on the connected medical office building and ambulatory surgery center.<br /><br />As it turned out, there was a lot of overlap between sources of patient dissatisfaction and inefficiency and waste. Patients hated being left in a hall somewhere to wait for the next thing to happen to them.&nbsp; And one of the things SSM learned from lean manufacturing was that anything that interrupts the flow of work increases waste and inefficiency.<br /><br />&ldquo;One of the biggest sources of frustration and waste is waiting time,&rdquo; Porter said. To improve flow, SSM decided to invest more capital up front to duplicate important technologies in different departments instead of funneling everyone through one place. So, the emergency department and the ambulatory center got their own radiology equipment, for example. &ldquo;Hospitals traditionally tried to save capital by investing in one radiology department. But having to take patients from all over the hospital to radiology and have them wait in the hallways until there is an opening backs up everyone else and causes tremendous waste. So we gave the departments that most use radiology their own equipment,&rdquo; he said.<br /><br />The theme of improving the patient experience runs from the campus sight plan and signs and cues to help visitors find their way to the artwork in patient rooms and public areas<br /><br />&ldquo;From our ring road, you have four choices: the emergency entrance, the public entrance, the medical office building, and the procedure center. In addition to signs, each has its own distinctive architectural markings. We&rsquo;ve distributed parking to correspond with services, and each entrance has its own reception area,&rdquo; Porter said.<br /><br />Spellman Brady selected the artwork. By coincidence, Diana Spellman was undergoing treatments for cancer while she was working on the St. Clare hospital project. &ldquo;I was coming from radiation treatments to go into high level meetings and I felt like I was glowing. I had to tell them,&rdquo; she said. &ldquo;I was able to bring experience and view as patient to selecting artwork. To really be patient centered it has to create positive, uplifting experience for patients&hellip; Some dated hospital rooms really make you sicker than you are sick because they are so depressing,&rdquo; she said.<br /><br />&ldquo;They let us push the envelope in choosing artwork that is uplifting and colorful, and in letting us use different media. We used glass, sculpture, custom photography, and more. It was very impressive that the administration put that kind of thought into it,&rdquo; she said.<br /><br />&ldquo;This hospital is designed to be more restful. We looked at noise, light, and d&eacute;cor all with an eye to accelerating patient recovery. By putting patients in a more healing environment we save dollars that would otherwise be spent on longer stays,&rdquo; Porter said.<br />&ldquo;We even have an open MRI to reduce stress on those patients who are claustrophobic or just don&rsquo;t like closed spaces,&rdquo; he said.<br /><br />SSM also put a lot of thought into alleviating another major source of patient dissatisfaction and waste: errors.<br /><br />The Institute of Medicine called medical errors &ldquo;a leading cause of death and injury&rdquo; in a report to Congress in 2006. The Institute of Medicine (IOM) estimated that nationwide, roughly two out of every 100 people admitted to a hospital would suffer an injury as a result of a medical error while in the hospital. The IOM estimated that between 44,000 and 98,000 people a year were killed by preventable errors in hospitals, more than died every year in car accidents and more than were killed by breast cancer or aids. Indeed, the IOM called hospital errors the eighth-leading cause of death in the United States. The IOM also estimated that the direct medical charges associated with treating hospital errors totaled between $9 billion and $15 billion.<br /><br />SSM and its designers made several design decisions in order to reduce medical errors and make sure the hospital provides &ldquo;the right care in the right place at the right time,&rdquo; said Porter. The most basic decision was standardization.<br /><br />&ldquo;All eight of the operating rooms are oriented the same. Everything in them is the same and equipment hangs from ceiling booms,&rdquo; Porter said. &ldquo;The standardization is to cut down on mistakes resulting from things not being where you expect them to be,&rdquo; he said. The operating rooms also are substantially larger than in the old hospital: 600 square feet compared to about 400; and the one cardiac operating room is 800 square feet in size. Plus, they are organized ergonomically and they all have advanced operating lights that do not cast any shadows.<br /><br />All patient rooms also have the same configuration and handedness in order to minimize errors. They all are private rooms and bathroom is in the same corner in every room, instead of neighboring rooms having bathrooms back-to-back. That meant twice as many stacks for plumbing. &ldquo;It cost $3 - 4,000 more per room to make each room the same instead of having bathrooms head to head,&rdquo; Porter said, or about $500,000 more for the whole hospital.&nbsp; How many mistakes do they have to avoid in order to make up that cost? &ldquo;I don&rsquo;t know,&rdquo; Porter said. &ldquo;In a high intensity environment, standardization unquestionably makes for greater reliability, but it is hotly debated, even within our own organization, on whether it makes a difference in patient rooms.&rdquo; Nevertheless, SSM spent the money, because, &ldquo;we wanted to make the optimum safe environment for our patients,&rdquo; he said.<br /><br />The bathrooms in the patient rooms are not rectangular boxes. Porter called the five-sided bathrooms, &ldquo;one of the more brilliant architectural decisions,&rdquo; in the hospital&rsquo;s design. Having a slanted wall nearer the patient bed, &ldquo;preserves the patient&rsquo;s view of the window and creates more space in the room,&rdquo; he said, and research has shown that the ability to see out a window speeds a patient&rsquo;s recovery.<br /><strong><br />Changing the construction process</strong><br /><br />Changing the design process was one piece of how SSM sought to reinvent the hospital; changing the construction process was another. <br /><br />&ldquo;The way the trades were engaged was different from traditional construction,&rdquo; said Timothy Gunn, project director Alberici Constructors, the general contractor. &ldquo;And their relationship with the design team was very different from the traditional [relationship],&rdquo; he said.<br /><br />SSM used a process called &ldquo;lean construction&rdquo; to build the new 430,000-square-foot hospital. Alberici, SSM, and the architect selected the main trade contractors early &ndash; Murphy Co. Mechanical Contractors, Guarantee Electrical Co., St. Louis Automatic Sprinkler Co., and Niehaus Construction Services. All of those contractors were on cost-plus-fee contracts. &ldquo;That let them be nimble in implementing change, and in a hospital, where you want to include the most modern equipment, there is a lot of change,&rdquo; said Gunn.<br /><br />The trades contractors worked together in &ldquo;the big room,&rdquo; as Gunn called it, a doublewide trailer full of computers and flat screen display panels. There, detailers from all the trades worked together to create a part of a building information model, in this case a three dimensional model of everything above the ceiling with descriptions &ndash;&ndash; all of the ductwork, conduit, and piping &ndash;&ndash; so that they could coordinate all of the above the ceiling work and maximize how much they made in the shop and trucked to the site. This effort was accomplished utilizing 3D modeling within a web-based server system that allowed real-time design-engineering coordination between the project design team.<br /><br />&ldquo;The electrical, mechanical, and fire protection systems were all virtually built in the 3-D model before we started installing them,&rdquo; said Mark Bengard, senior vice president of Murphy Co., which installed all the piping for medical gases, plumbing, and heating and cooling. &ldquo;SSM has a 3-D model now so if they need to track down a valve they can look in their electronic model instead of disturbing patients by lifting ceiling tiles or opening access doors in the walls to find it. That is a powerful tool and it is something almost no one else has,&rdquo; he says. <br /><br />Modeling all of the above the ceiling work electronically produced two other important results. &ldquo;We prefabbed in excess of what would be typical, due to the confidence everyone had that they would have the space to put their work,&rdquo; Gunn said. And all the planning helped the trades make up lost time. &ldquo;In 2008 we faced one of the wettest years in history. We had lost the planned number of weather days for the entire project by March, and being behind on the exterior put us behind on the interior finish,&rdquo; Gunn said. Having built the job electronically in 3-D, the trades contractors could see that they could get creative with sequencing the above the ceiling work to make up lost time. <br /><br />&ldquo;We didn&rsquo;t necessarily have to have mechanical contractor in first in all phases,&rdquo; said Steve Kellenberger, director of construction for Guarantee Electrical. &ldquo;As long as you followed the design and put your work where you were supposed to, you could go in and put your work out of the typical sequence. It eliminated conflicts between tradesmen,&rdquo; he said. <br /><br />With that kind of cooperation, said Gunn, &ldquo;we were able to make up time and maintain the scheduled opening date.&rdquo;<br /><br />Just as electronic records &ndash; the 3-D model &ndash; played a crucial role in the construction of St. Clare Hospital, they also will be a crucial part of what makes St. Clare Hospital different. &ldquo;Our data backbone is as big and complex as our electrical backbone. That is because the single most important variable in health care is information,&rdquo; Porter said.<br /><br />&ldquo;The low voltage work here was extraordinarily complicated. They included electronic records, VOIP (voice over internet protocol), nurse call systems, telemetry, security, and paging,&rdquo; Gunn said. Guarantee Electrical Co. was the single source electrical installation contractor installing the power, lighting, emergency, technology, data, fire alarm and security systems.<br /><br />Changing operations<br />&nbsp;&nbsp;&nbsp; <br />&ldquo;We made points of data entry ubiquitous,&rdquo; Porter said. &ldquo;No more paper charts,&rdquo; he said. To make sure that data is reliably and quickly entered, St. Clare Hospital has an electronic record portal in each patient room and also outside each room at a window at which a nurse can observe the patient and make notes.<br /><br />The electronic record also is designed to cut down on medication mistakes via its connection to a medical dispensing system in each room. According to the Institute of Medicine, medication errors alone kill more people annually than do workplace accidents.<br /><br />Porter explained how the medical dispensing system works: &ldquo;The pharmacist stocks the patient&rsquo;s drugs in the room in a secure drawer that can be opened only by entering the correct security code into the electronic record portal. Each prescription has a bar code for the drug and a bar code for the patient. This reduces the number of people handling the drug to three, which should reduce errors.&rdquo; And since the physician orders the prescription electronically, there should occur no handwriting deciphering errors.<br /><br />The same system data wiring backbone that supports electronic records and the medical dispensing system also lets the operations department at St. Clare Hospital remote control the temperature in every patient room, office, and surgery suite. &ldquo;We use a Trane Tracer Summit Automated Control System to control the heat in each room individually from the control room or the Internet, and we can give the room occupants control within a set band of temperatures,&rdquo; said Andy Gratton, team leader of plant operations. <br /><br />With the Trane Summit System, &ldquo;they have an ability they never had before to see hundreds of pressures and temperature in chiller. They can get data and keep track of issues as they&rsquo;re developing and schedule maintenance before issues become a problem,&rdquo; Bengard said. &ldquo;A good building management system can make a great difference in the time spend on a problem,&rdquo; Gratton added.<br /><br />Some of the equipment controlled via the Trane Summit System is new to the St. Louis area, but all of it &ldquo;is light years from where they were in their old building,&rdquo; Bengard said.<br /><br />The new steam boilers, for example, are much more efficient than the old ones. &ldquo;We went from a traditional, 692 horsepower boiler system to two, 200 hp and two 300 horsepower boilers.&rdquo; The new boilers can operate at two stages, 50 percent or 100 percent, and they can cycle on and off, whereas SSM had to keep the old boiler system idling. The new boilers &ldquo;can go from zero to 80 pounds of steam in five minutes, while with the traditional boilers we would take two days to do that so that we didn&rsquo;t crack the refractory wall. That makes the new ones more efficient, because we don&rsquo;t have to keep operating them when they aren&rsquo;t needed,&rdquo; Gratton said.<br /><br />&ldquo;We did a lot of research when selecting boilers and actually took [Gratton and other SSM representatives] on a trip to the closest ones in operation, which were in Chicago,&rdquo; said Bengard. The new boilers also have scale sensors on the inside to alert the operations team to any buildup of scale that might require cleaning.<br /><br />&ldquo;The new air systems also are fairly unique,&rdquo; Bengard said. &ldquo;They utilize a Hunt Air Fanwall system. A typical air-handling unit has one large centrifugal type fan. These have an array of nine or more, so if one fan fails the whole system isn&rsquo;t down. That redundancy aspect is fantastic for hospitals. It has the same performance as a centrifugal fan, but if one fan fails in a fanwall, you can block that off in minutes if you don&rsquo;t have a replacement and your system won&rsquo;t know its missing,&rdquo; he explained.<br /><br />SSM also invested in two, 850-ton chillers and a 125-ton chiller. &ldquo;We can operate just the smaller one in the winter to produce the chilled air we need for operating rooms,&rdquo; Gratton said.<br />&nbsp;&nbsp;&nbsp; <br />&ldquo;They selected the most efficient chillers they could. They are probably twice as efficient as what they had [in the old hospital] in Kirkwood,&rdquo; Bengard said&nbsp;&nbsp;&nbsp; <br /><br />&ldquo;We were very thoughtful in how we spent money to make health care more effective,&rdquo; said Porter. &ldquo;We&rsquo;re essentially retooling the hospital stock to increase efficiency and increase effectiveness. 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Ambiguous\";s:9:\"url_title\";s:34:\"pay_if_paid_clause_found_ambiguous\";s:6:\"status\";s:4:\"open\";s:11:\"dst_enabled\";s:1:\"n\";s:14:\"view_count_one\";s:1:\"0\";s:14:\"view_count_two\";s:1:\"0\";s:16:\"view_count_three\";s:1:\"0\";s:15:\"view_count_four\";s:1:\"0\";s:14:\"allow_comments\";s:1:\"n\";s:23:\"comment_expiration_date\";s:1:\"0\";s:16:\"allow_trackbacks\";s:1:\"n\";s:6:\"sticky\";s:1:\"n\";s:10:\"entry_date\";s:10:\"1206826620\";s:4:\"year\";s:4:\"2008\";s:5:\"month\";s:2:\"03\";s:3:\"day\";s:2:\"29\";s:9:\"edit_date\";s:14:\"20080329145931\";s:15:\"expiration_date\";s:1:\"0\";s:19:\"recent_comment_date\";s:1:\"0\";s:13:\"comment_total\";s:1:\"0\";s:15:\"trackback_total\";s:1:\"0\";s:15:\"sent_trackbacks\";s:0:\"\";s:21:\"recent_trackback_date\";s:1:\"0\";s:13:\"entry_site_id\";s:1:\"1\";s:10:\"blog_title\";s:7:\"Columns\";s:9:\"blog_name\";s:7:\"columns\";s:8:\"blog_url\";s:18:\"{site_url}columns/\";s:11:\"comment_url\";s:26:\"{site_url}columns/article/\";s:13:\"tb_return_url\";s:18:\"{site_url}columns/\";s:16:\"comment_moderate\";s:1:\"n\";s:22:\"weblog_html_formatting\";s:3:\"all\";s:21:\"weblog_allow_img_urls\";s:1:\"y\";s:21:\"weblog_auto_link_urls\";s:1:\"y\";s:17:\"enable_trackbacks\";s:1:\"n\";s:15:\"trackback_field\";s:2:\"20\";s:21:\"trackback_use_captcha\";s:1:\"n\";s:24:\"trackback_system_enabled\";s:1:\"n\";s:8:\"username\";s:5:\"admin\";s:5:\"email\";s:18:\"jerry@gennaria.com\";s:3:\"url\";s:0:\"\";s:11:\"screen_name\";s:5:\"admin\";s:8:\"location\";s:0:\"\";s:10:\"occupation\";s:0:\"\";s:9:\"interests\";s:0:\"\";s:6:\"aol_im\";s:0:\"\";s:8:\"yahoo_im\";s:0:\"\";s:6:\"msn_im\";s:0:\"\";s:3:\"icq\";s:0:\"\";s:9:\"signature\";s:0:\"\";s:16:\"sig_img_filename\";s:0:\"\";s:13:\"sig_img_width\";s:1:\"0\";s:14:\"sig_img_height\";s:1:\"0\";s:15:\"avatar_filename\";s:0:\"\";s:12:\"avatar_width\";s:1:\"0\";s:13:\"avatar_height\";s:1:\"0\";s:14:\"photo_filename\";s:0:\"\";s:11:\"photo_width\";s:1:\"0\";s:12:\"photo_height\";s:1:\"0\";s:8:\"group_id\";s:1:\"1\";s:9:\"member_id\";s:1:\"1\";s:6:\"bday_d\";s:1:\"0\";s:6:\"bday_m\";s:1:\"0\";s:6:\"bday_y\";s:1:\"0\";s:3:\"bio\";s:0:\"\";s:7:\"site_id\";s:1:\"1\";s:10:\"field_id_1\";s:0:\"\";s:10:\"field_ft_1\";s:4:\"none\";s:10:\"field_id_2\";s:0:\"\";s:10:\"field_ft_2\";s:4:\"none\";s:10:\"field_id_4\";s:0:\"\";s:10:\"field_ft_4\";s:4:\"none\";s:10:\"field_id_5\";s:0:\"\";s:10:\"field_ft_5\";s:4:\"none\";s:10:\"field_id_7\";s:0:\"\";s:10:\"field_ft_7\";s:4:\"none\";s:10:\"field_id_8\";s:0:\"\";s:10:\"field_ft_8\";s:4:\"none\";s:10:\"field_id_9\";s:0:\"\";s:10:\"field_ft_9\";s:4:\"none\";s:11:\"field_id_10\";s:0:\"\";s:11:\"field_ft_10\";s:4:\"none\";s:11:\"field_id_11\";s:0:\"\";s:11:\"field_ft_11\";s:4:\"none\";s:11:\"field_id_12\";s:0:\"\";s:11:\"field_ft_12\";s:4:\"none\";s:11:\"field_id_13\";s:1:\"0\";s:11:\"field_ft_13\";s:4:\"none\";s:11:\"field_id_20\";s:34:\"Pay-if-Paid Clause Found Ambiguous\";s:11:\"field_ft_20\";s:4:\"none\";s:11:\"field_id_22\";s:0:\"\";s:11:\"field_ft_22\";s:4:\"none\";s:11:\"field_id_23\";s:5307:\"<p>A pay-if-paid clause in a subcontract must be very clear to be enforced\nwithout the need for testimony from the contractor and the\nsubcontractor about their intent, the Eastern District Court of Appeals\ndecided recently. The case is Lobo Painting, Inc. v. Lamb Construction\nCompany, 231 S.W.3d 256 (Mo. App. E.D. 2007).</p>\n<p>In reaching this result, a Missouri appellate court once again has\nemphasized that <a href=\"/test\">pay-if-paid clauses</a> may be enforceable, but they must\nbe clearly worded and unambiguous. Otherwise, the parties to the\ncontract can offer their competing interpretations about whether\npayment is due and ultimately will have to rely on a judge or jury to\ndecide who should prevail.</p>\n<p>Pay-if-paid clauses are common in construction subcontracts. They\nprovide in some fashion that the contractor is not required to pay the\nsubcontractor until the owner has paid the contractor. The assumption\nis that if the owner does not pay, then the contractor does not have to\npay out of its own pocket.</p>\n<p>In this case, Lamb Construction Company as the contractor, had a\npainting subcontract with Lobo Painting. The project was at a building\nfor West County EMS. Lamb Construction paid everything except for the\nretainage of $2,441, because the owner was withholding final payment\nfrom Lamb.</p>\n<p>At trial Lamb Construction\'s representative and sole member Kevin\nLamb testified that he did not know why the owner was withholding final\npayment. Lamb further testified that he believed under the subcontract\nthat he could withhold payment to his subcontractor until he received\nthe money from the owner.</p>\n<p>The subcontract provision in question read: Final payment,\nconstituting the entire unpaid balance of the Subcontract Sum, shall be\nmade by the Contractor to the Subcontractor when the Subcontractor\'s\nWork is fully performed in accordance with the requirements of the\nSubcontract Documents, the Architect has issued a certificate for\npayment covering the Subcontractor\'s completed Work and the Contractor\nhas received payment from the Owner. If, for any cause which is not the\nfault of the Subcontractor, a certificate for payment is not issued or\nthe Contractor does not receive timely payment or does not pay the\nSubcontractor within three working days after receipt of payment from\nthe Owner, final payment to the Subcontractor shall be made upon\ndemand.</p>\n<p>The Eastern District, contrary to the trial court, found this\nprovision to be ambiguous. Ambiguity exists where the words in the\ncontract \"are susceptible of more than one meaning so that reasonable\npersons may fairly and honestly differ in their construction of the\nterms.\"</p>\n<p>The second sentence, the appellate court found, can be read\ndifferent ways. On the one hand, it could be read that the clause \"for\nany cause which is not the fault of the Subcontractor\" only applies to\nthe next part of the sentence that a \"certificate for payment is not\nissued.\" In this case, if the reason for not issuing a certificate for\npayment was other than subcontractor fault, payment would be due three\ndays after a demand from the subcontractor, regardless of whether the\nowner had paid.</p>\n<p>On the other hand, the second sentence could condition the\ncontractor\'s payment on receiving the money from the owner. In that\ncase, if subcontractor fault caused the owner not to pay, then the\ncontractor would have a contractual reason to withhold payment from the\nsubcontractor.</p>\n<p>Naturally, at trial Lamb and Lobo had different understandings about\nwhat the contract meant and what was their true intent. \"The ambiguity\nin the contract cannot be resolved without first resolving the\nconflicting testimony, which requires determining the witnesses\'\ncredibility,\" the appellate court held. Credibility is decided by the\ntrial judge or jury, not the appellate court.</p>\n<p>The appellate court sent the case back to the trial court for it to\n\"determine the party\'s intent,\" meaning who is more believable. That\ncan be difficult when neither party may have actually read the\nprovision at the time they entered into the contract.</p>\n<p>Prior to this case, the Southern District Court of Appeals in\nMissouri held that a pay-if-paid provision is enforceable if clearly\nwritten and unambiguous. The case is Meco Systems, Inc. v. Dancing Bear\nEntertainment, Inc., 42 S.W.3d 794 (Mo. App. S.D. 2001).</p>\n<p>In Meco, the Southern District found a reasonably clear pay-if-paid\nprovision in a subcontract became much more unclear and ambiguous\nbecause the subcontract incorporated the main contract between owner\nand contractor. The main contract was a cost-plus fee arrangement and\nrequired, as they often do, the contractor to pay its subcontractors\nbefore seeking reimbursement from the owner. The court found this to be\nin conflict with the subcontract language, thereby making the\nsubcontract ambiguous.</p>\n<p>These cases reinforce the importance of having clearly worded\ncontracts on how payment is to take place. Ambiguity invites\nconflicting testimony at trial, leaving the outcome up in the air.</p>\n<p><em>James R. Keller is a partner at Herzog Crebs LLP where he\nconcentrates his practice on construction law, complex business\ndisputes, real estate and ADR. 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Ambiguous\";s:9:\"url_title\";s:34:\"pay_if_paid_clause_found_ambiguous\";s:6:\"status\";s:4:\"open\";s:11:\"dst_enabled\";s:1:\"n\";s:14:\"view_count_one\";s:1:\"0\";s:14:\"view_count_two\";s:1:\"0\";s:16:\"view_count_three\";s:1:\"0\";s:15:\"view_count_four\";s:1:\"0\";s:14:\"allow_comments\";s:1:\"n\";s:23:\"comment_expiration_date\";s:1:\"0\";s:16:\"allow_trackbacks\";s:1:\"n\";s:6:\"sticky\";s:1:\"n\";s:10:\"entry_date\";s:10:\"1206826620\";s:4:\"year\";s:4:\"2008\";s:5:\"month\";s:2:\"03\";s:3:\"day\";s:2:\"29\";s:9:\"edit_date\";s:14:\"20080329145931\";s:15:\"expiration_date\";s:1:\"0\";s:19:\"recent_comment_date\";s:1:\"0\";s:13:\"comment_total\";s:1:\"0\";s:15:\"trackback_total\";s:1:\"0\";s:15:\"sent_trackbacks\";s:0:\"\";s:21:\"recent_trackback_date\";s:1:\"0\";s:13:\"entry_site_id\";s:1:\"1\";s:10:\"blog_title\";s:7:\"Columns\";s:9:\"blog_name\";s:7:\"columns\";s:8:\"blog_url\";s:18:\"{site_url}columns/\";s:11:\"comment_url\";s:26:\"{site_url}columns/article/\";s:13:\"tb_return_url\";s:18:\"{site_url}columns/\";s:16:\"comment_moderate\";s:1:\"n\";s:22:\"weblog_html_formatting\";s:3:\"all\";s:21:\"weblog_allow_img_urls\";s:1:\"y\";s:21:\"weblog_auto_link_urls\";s:1:\"y\";s:17:\"enable_trackbacks\";s:1:\"n\";s:15:\"trackback_field\";s:2:\"20\";s:21:\"trackback_use_captcha\";s:1:\"n\";s:24:\"trackback_system_enabled\";s:1:\"n\";s:8:\"username\";s:5:\"admin\";s:5:\"email\";s:18:\"jerry@gennaria.com\";s:3:\"url\";s:0:\"\";s:11:\"screen_name\";s:5:\"admin\";s:8:\"location\";s:0:\"\";s:10:\"occupation\";s:0:\"\";s:9:\"interests\";s:0:\"\";s:6:\"aol_im\";s:0:\"\";s:8:\"yahoo_im\";s:0:\"\";s:6:\"msn_im\";s:0:\"\";s:3:\"icq\";s:0:\"\";s:9:\"signature\";s:0:\"\";s:16:\"sig_img_filename\";s:0:\"\";s:13:\"sig_img_width\";s:1:\"0\";s:14:\"sig_img_height\";s:1:\"0\";s:15:\"avatar_filename\";s:0:\"\";s:12:\"avatar_width\";s:1:\"0\";s:13:\"avatar_height\";s:1:\"0\";s:14:\"photo_filename\";s:0:\"\";s:11:\"photo_width\";s:1:\"0\";s:12:\"photo_height\";s:1:\"0\";s:8:\"group_id\";s:1:\"1\";s:9:\"member_id\";s:1:\"1\";s:6:\"bday_d\";s:1:\"0\";s:6:\"bday_m\";s:1:\"0\";s:6:\"bday_y\";s:1:\"0\";s:3:\"bio\";s:0:\"\";s:7:\"site_id\";s:1:\"1\";s:10:\"field_id_1\";s:0:\"\";s:10:\"field_ft_1\";s:4:\"none\";s:10:\"field_id_2\";s:0:\"\";s:10:\"field_ft_2\";s:4:\"none\";s:10:\"field_id_4\";s:0:\"\";s:10:\"field_ft_4\";s:4:\"none\";s:10:\"field_id_5\";s:0:\"\";s:10:\"field_ft_5\";s:4:\"none\";s:10:\"field_id_7\";s:0:\"\";s:10:\"field_ft_7\";s:4:\"none\";s:10:\"field_id_8\";s:0:\"\";s:10:\"field_ft_8\";s:4:\"none\";s:10:\"field_id_9\";s:0:\"\";s:10:\"field_ft_9\";s:4:\"none\";s:11:\"field_id_10\";s:0:\"\";s:11:\"field_ft_10\";s:4:\"none\";s:11:\"field_id_11\";s:0:\"\";s:11:\"field_ft_11\";s:4:\"none\";s:11:\"field_id_12\";s:0:\"\";s:11:\"field_ft_12\";s:4:\"none\";s:11:\"field_id_13\";s:1:\"0\";s:11:\"field_ft_13\";s:4:\"none\";s:11:\"field_id_20\";s:34:\"Pay-if-Paid Clause Found Ambiguous\";s:11:\"field_ft_20\";s:4:\"none\";s:11:\"field_id_22\";s:0:\"\";s:11:\"field_ft_22\";s:4:\"none\";s:11:\"field_id_23\";s:5307:\"<p>A pay-if-paid clause in a subcontract must be very clear to be enforced\nwithout the need for testimony from the contractor and the\nsubcontractor about their intent, the Eastern District Court of Appeals\ndecided recently. The case is Lobo Painting, Inc. v. Lamb Construction\nCompany, 231 S.W.3d 256 (Mo. App. E.D. 2007).</p>\n<p>In reaching this result, a Missouri appellate court once again has\nemphasized that <a href=\"/test\">pay-if-paid clauses</a> may be enforceable, but they must\nbe clearly worded and unambiguous. Otherwise, the parties to the\ncontract can offer their competing interpretations about whether\npayment is due and ultimately will have to rely on a judge or jury to\ndecide who should prevail.</p>\n<p>Pay-if-paid clauses are common in construction subcontracts. They\nprovide in some fashion that the contractor is not required to pay the\nsubcontractor until the owner has paid the contractor. The assumption\nis that if the owner does not pay, then the contractor does not have to\npay out of its own pocket.</p>\n<p>In this case, Lamb Construction Company as the contractor, had a\npainting subcontract with Lobo Painting. The project was at a building\nfor West County EMS. Lamb Construction paid everything except for the\nretainage of $2,441, because the owner was withholding final payment\nfrom Lamb.</p>\n<p>At trial Lamb Construction\'s representative and sole member Kevin\nLamb testified that he did not know why the owner was withholding final\npayment. Lamb further testified that he believed under the subcontract\nthat he could withhold payment to his subcontractor until he received\nthe money from the owner.</p>\n<p>The subcontract provision in question read: Final payment,\nconstituting the entire unpaid balance of the Subcontract Sum, shall be\nmade by the Contractor to the Subcontractor when the Subcontractor\'s\nWork is fully performed in accordance with the requirements of the\nSubcontract Documents, the Architect has issued a certificate for\npayment covering the Subcontractor\'s completed Work and the Contractor\nhas received payment from the Owner. If, for any cause which is not the\nfault of the Subcontractor, a certificate for payment is not issued or\nthe Contractor does not receive timely payment or does not pay the\nSubcontractor within three working days after receipt of payment from\nthe Owner, final payment to the Subcontractor shall be made upon\ndemand.</p>\n<p>The Eastern District, contrary to the trial court, found this\nprovision to be ambiguous. Ambiguity exists where the words in the\ncontract \"are susceptible of more than one meaning so that reasonable\npersons may fairly and honestly differ in their construction of the\nterms.\"</p>\n<p>The second sentence, the appellate court found, can be read\ndifferent ways. On the one hand, it could be read that the clause \"for\nany cause which is not the fault of the Subcontractor\" only applies to\nthe next part of the sentence that a \"certificate for payment is not\nissued.\" In this case, if the reason for not issuing a certificate for\npayment was other than subcontractor fault, payment would be due three\ndays after a demand from the subcontractor, regardless of whether the\nowner had paid.</p>\n<p>On the other hand, the second sentence could condition the\ncontractor\'s payment on receiving the money from the owner. In that\ncase, if subcontractor fault caused the owner not to pay, then the\ncontractor would have a contractual reason to withhold payment from the\nsubcontractor.</p>\n<p>Naturally, at trial Lamb and Lobo had different understandings about\nwhat the contract meant and what was their true intent. \"The ambiguity\nin the contract cannot be resolved without first resolving the\nconflicting testimony, which requires determining the witnesses\'\ncredibility,\" the appellate court held. Credibility is decided by the\ntrial judge or jury, not the appellate court.</p>\n<p>The appellate court sent the case back to the trial court for it to\n\"determine the party\'s intent,\" meaning who is more believable. That\ncan be difficult when neither party may have actually read the\nprovision at the time they entered into the contract.</p>\n<p>Prior to this case, the Southern District Court of Appeals in\nMissouri held that a pay-if-paid provision is enforceable if clearly\nwritten and unambiguous. The case is Meco Systems, Inc. v. Dancing Bear\nEntertainment, Inc., 42 S.W.3d 794 (Mo. App. S.D. 2001).</p>\n<p>In Meco, the Southern District found a reasonably clear pay-if-paid\nprovision in a subcontract became much more unclear and ambiguous\nbecause the subcontract incorporated the main contract between owner\nand contractor. The main contract was a cost-plus fee arrangement and\nrequired, as they often do, the contractor to pay its subcontractors\nbefore seeking reimbursement from the owner. The court found this to be\nin conflict with the subcontract language, thereby making the\nsubcontract ambiguous.</p>\n<p>These cases reinforce the importance of having clearly worded\ncontracts on how payment is to take place. Ambiguity invites\nconflicting testimony at trial, leaving the outcome up in the air.</p>\n<p><em>James R. Keller is a partner at Herzog Crebs LLP where he\nconcentrates his practice on construction law, complex business\ndisputes, real estate and ADR. 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\";s:10:\"field_ft_7\";s:4:\"none\";s:10:\"field_id_8\";s:4481:\"<p><em>by Tom Finan, Publisher, CNR</em></p>\n<p>Inscribed over the door of the ancient Greek temple at Delphi was the aphorism \"Know yourself.\"</p>\n<p>I\'m thinking of having decals made with that message - maybe in Greek so it won\'t be so obvious - and handing them out folks in our industry to post over the doors of their businesses.</p>\n<p><img alt=\"Who are you\" class=\"image-left\" height=\"303\" src=\"/images/uploads/who-are-you.jpg\" style=\"float: left;\" width=\"266\" />In mid-January I sat in by conference call on the regular meeting of the Associated General Contractors of America marketing committee, on which I serve.  The discussion ranged from how to present a contractor\'s sustainability practices to emerging markets such as wind power.</p>\n<p>A bigger question that arose out of those discussions is, \"Why?\" Why are we discussing LEED, BIM, or IPD with buyers of construction services? Is it because they truly understand the benefits they can derive from such approaches or is it because in the biggest buyers\' market in half a century they want to pile everything they can into their shopping cart?</p>\n<p>In our meeting Hoyt Lowder, senior vice president of FMI Corporation, the construction management and investment banking consultant, suggested that asking good questions and helping customers to understand what they really want is can lead to being able to our industry eventually charge for those services, as happened with such approaches as program management in the past.</p>\n<p>I had lunch a couple days before the AGC meeting with the chief purchasing agent for an educational institution. 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The important thing to understand how those new markets and services align with who our business is.  Think of the relationship with buyers of construction as a marriage. In every marriage there is always a need for accommodation and change. 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I am skeptical of this stance only\nbecause the current scenario has a lot of significant disconnects\ninvolved.</p>\n<h2>There are disconnects with the truth:</h2>\n<p><img alt=\"Tom Finan, Publisher\" src=\"/tinymce/uploaded/tom-nd07.jpg\" />There have been allegations that the stop work orders on the project\nwere nothing more than thinly-veiled eff orts by the (union member)\nelectrical inspectors to carve out jurisdictional turf for their fellow\nunion brothers. The other side of the story says that the work\nstoppages were for clear code violations, one of them flagrant.\nAccording to some of our sources the motorized blinds are mandated by\nthe electrical code for installation by licensed electricians. An\nattempt by the carpenters to have the units modified at the factory did\nnot change that requirement. According to some sources, the furniture\nlighting fixtures were clearly marked with red labels stating that they\nwere not suitable for contact with wood. The installers were apprised\nof that fact, our sources said, but installed the light fixtures\nanyway, resulting in the stop work order. What is the truth?</p>\n<p>Terry Nelson of the Carpenters\' District Council told the IEC\ncontractors that he had the blessing and funding of his international\nunion. Representatives of the international have told some of our\nsources that Nelson had applied for a training grant and that the union\nhad not sanctioned the formation of a new carpenters\' local devoted to\nelectrical work. What is the truth?</p>\n<p>Is this an effort to modify the licensing requirements for certain\ntypes of work? If that effort is in the best interests of public safety\nand consumer value, wouldn\'t a straightforward, truthful approach be a\nbetter way to go?</p>\n<h2>There are disconnects with longstanding relationships:</h2>\n<p>The day I wrote this column I attended my 30th Electrical Board\nAnnual Christmas Mixer. In the room at the Chase Hotel were over 1,000\npersons &mdash; contractors, union representatives, designers, association\nexecutives, manufacturers\' reps &mdash; all connected by their working\npartnerships in an industry that dates in this town to the 1904 World\'s\nFair.</p>\n<p>Ours is an industry based on relationships. Our industry works\nbecause team members cover one another\'s backs. To suggest, as one\nassociation executive did, that what Terry Nelson has proposed is\nsimply one more alternative to IBEW and non-union electrical\ncontractors totally ignores the collateral damage that these sorts of\nturf grabs inflict.</p>\n<p>When I was growing up in the \'50s and \'60s my dad, the founder of\nthis magazine, was a subcontractor who installed and maintained powered\nentrance doors and parking gates. From almost the beginning of the\nbusiness in 1951 he ran composite crews of electricians and carpenters\nwho literally worked side by side with one another. Remember that these\nwere the \"bad old days\" of St. Louis unions. The guys who worked for my\ndad realized that having electricians and carpenters working\nside-by-side (frequently one of each would ride out on service calls in\nthe same truck. They worked that way because it was the only way that\nthe company could get the job done profitably and protect their future\nemployment. 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Below the light display hung a banner several stories high\nreading \"Lighting Up the St. Louis Night\". The hotel is a showplace of\nthe electrical industry\'s skill and technology.</p>\n<p>How\nironic that the hotel/casino project, also the subject of a cover story\nin this issue was Ground Zero in the current acrimonious battle between\nthe Carpenters and the Electricians unions. The motorized blinds and\nfurniture lighting at the hotel were only the stalking horse for a\nlarger question: How will the turf be divided on this area\'s major\nprojects going forward?</p>\n<p>Both CNR Editor Peter Downs and I have spent a lot of time speaking\nwith all of the parties involved. To the credit of those involved this\nconfl ict has not played out in the media. Some in the industry believe\nthe issue will \"resolve itself\". I am skeptical of this stance only\nbecause the current scenario has a lot of significant disconnects\ninvolved.</p>\n<h2>There are disconnects with the truth:</h2>\n<p><img alt=\"Tom Finan, Publisher\" src=\"/tinymce/uploaded/tom-nd07.jpg\" />There have been allegations that the stop work orders on the project\nwere nothing more than thinly-veiled eff orts by the (union member)\nelectrical inspectors to carve out jurisdictional turf for their fellow\nunion brothers. The other side of the story says that the work\nstoppages were for clear code violations, one of them flagrant.\nAccording to some of our sources the motorized blinds are mandated by\nthe electrical code for installation by licensed electricians. An\nattempt by the carpenters to have the units modified at the factory did\nnot change that requirement. According to some sources, the furniture\nlighting fixtures were clearly marked with red labels stating that they\nwere not suitable for contact with wood. The installers were apprised\nof that fact, our sources said, but installed the light fixtures\nanyway, resulting in the stop work order. What is the truth?</p>\n<p>Terry Nelson of the Carpenters\' District Council told the IEC\ncontractors that he had the blessing and funding of his international\nunion. Representatives of the international have told some of our\nsources that Nelson had applied for a training grant and that the union\nhad not sanctioned the formation of a new carpenters\' local devoted to\nelectrical work. What is the truth?</p>\n<p>Is this an effort to modify the licensing requirements for certain\ntypes of work? If that effort is in the best interests of public safety\nand consumer value, wouldn\'t a straightforward, truthful approach be a\nbetter way to go?</p>\n<h2>There are disconnects with longstanding relationships:</h2>\n<p>The day I wrote this column I attended my 30th Electrical Board\nAnnual Christmas Mixer. In the room at the Chase Hotel were over 1,000\npersons &mdash; contractors, union representatives, designers, association\nexecutives, manufacturers\' reps &mdash; all connected by their working\npartnerships in an industry that dates in this town to the 1904 World\'s\nFair.</p>\n<p>Ours is an industry based on relationships. Our industry works\nbecause team members cover one another\'s backs. To suggest, as one\nassociation executive did, that what Terry Nelson has proposed is\nsimply one more alternative to IBEW and non-union electrical\ncontractors totally ignores the collateral damage that these sorts of\nturf grabs inflict.</p>\n<p>When I was growing up in the \'50s and \'60s my dad, the founder of\nthis magazine, was a subcontractor who installed and maintained powered\nentrance doors and parking gates. From almost the beginning of the\nbusiness in 1951 he ran composite crews of electricians and carpenters\nwho literally worked side by side with one another. Remember that these\nwere the \"bad old days\" of St. Louis unions. The guys who worked for my\ndad realized that having electricians and carpenters working\nside-by-side (frequently one of each would ride out on service calls in\nthe same truck. They worked that way because it was the only way that\nthe company could get the job done profitably and protect their future\nemployment. Our industry needs to resolve the current disconnects that\ndisregard truth and devalue relationships and reconnect with honoring\nthe common good and delivering value to the 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An abundance of newly constructed speculative\nwarehouse space and developers with significant land positions stand\nready, and eager to introduce prospects to the positive factors of the\nSt. Louis market for their operations.</p>\n<p>The key factors that make St. Louis attractive mirror many of the\nideals recited by logistics executives and site selection consultants\nacross the business spectrum &mdash; availability of quality labor, proximity\nto population centers and quality transportation infrastructure.\nNational and local developers have sought to capitalize on these\nfactors in recent years, building and planning on a scale unprecedented\nin St. Louis.</p>\n<p>Year to date in 2007, 1.6 million square feet of space has been\ndelivered here, with another 1 million square feet under construction.\nIn 2006, 3.1 million square feet was brought to the market. This\ncompares to the region\'s five-year market average of 1.3 million square\nfeet. The average building size for this new supply for 2006-2007 is 76\npercent larger than the five-year average. Measure these statistics\nagainst average annual net absorption (the amount of vacant or\navailable space consumed by the market after accounting for new\nconstruction deliveries) of 950,000 square feet over the last five\nyears, and it becomes clear that the supply stakes have been raised to\ncompete with other major distribution hubs.</p>\n<p>Some of the best known names in the industrial development business\nare betting on St. Louis in this competition &mdash; Duke Realty, Trammell\nCrow Co., Panattoni and First Industrial, to name a few. Duke has begun\ndevelopment of its 500-acre Premier 370 development in suburban St.\nCharles County and just completed Lindbergh Distribution Center, a\n528,000-square-foot speculative building in St. Louis County. Trammell\nCrow completed Westway I and Westway III in 2006-2007, speculative\nbuildings of 479,220 and 579,204 square feet, respectively, within the\nGateway Commerce Center development in Madison County. They control a\ntotal of 1,200 acres for development there. Panattoni completed\nLakeview Commerce Center II, a 540,000-square-foot building in Lakeview\nCommerce Center in Madison County, where they control a total of 600\nacres. First Industrial closed in August 2006 on 122 acres at Howard\nBend, a St. Louis County development.</p>\n<p>Expanding the user base necessary to support this scale of\ndevelopment brings formidable challenges, as evidenced by below average\nnet absorption for 2007 year-to-date. 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An abundance of newly constructed speculative\nwarehouse space and developers with significant land positions stand\nready, and eager to introduce prospects to the positive factors of the\nSt. Louis market for their operations.</p>\n<p>The key factors that make St. Louis attractive mirror many of the\nideals recited by logistics executives and site selection consultants\nacross the business spectrum &mdash; availability of quality labor, proximity\nto population centers and quality transportation infrastructure.\nNational and local developers have sought to capitalize on these\nfactors in recent years, building and planning on a scale unprecedented\nin St. Louis.</p>\n<p>Year to date in 2007, 1.6 million square feet of space has been\ndelivered here, with another 1 million square feet under construction.\nIn 2006, 3.1 million square feet was brought to the market. This\ncompares to the region\'s five-year market average of 1.3 million square\nfeet. The average building size for this new supply for 2006-2007 is 76\npercent larger than the five-year average. Measure these statistics\nagainst average annual net absorption (the amount of vacant or\navailable space consumed by the market after accounting for new\nconstruction deliveries) of 950,000 square feet over the last five\nyears, and it becomes clear that the supply stakes have been raised to\ncompete with other major distribution hubs.</p>\n<p>Some of the best known names in the industrial development business\nare betting on St. Louis in this competition &mdash; Duke Realty, Trammell\nCrow Co., Panattoni and First Industrial, to name a few. Duke has begun\ndevelopment of its 500-acre Premier 370 development in suburban St.\nCharles County and just completed Lindbergh Distribution Center, a\n528,000-square-foot speculative building in St. Louis County. Trammell\nCrow completed Westway I and Westway III in 2006-2007, speculative\nbuildings of 479,220 and 579,204 square feet, respectively, within the\nGateway Commerce Center development in Madison County. They control a\ntotal of 1,200 acres for development there. Panattoni completed\nLakeview Commerce Center II, a 540,000-square-foot building in Lakeview\nCommerce Center in Madison County, where they control a total of 600\nacres. First Industrial closed in August 2006 on 122 acres at Howard\nBend, a St. Louis County development.</p>\n<p>Expanding the user base necessary to support this scale of\ndevelopment brings formidable challenges, as evidenced by below average\nnet absorption for 2007 year-to-date. 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Leaders Reject Ban on Affirmative Action\";s:11:\"field_ft_26\";s:4:\"none\";s:11:\"field_id_28\";s:0:\"\";s:11:\"field_ft_28\";s:4:\"none\";s:11:\"field_id_29\";s:7352:\"<p>St. Louis area construction industry leaders are distancing themselves\nfrom a controversial state ballot initiative in the wake of charges\nthat contractors are behind the effort to ban affirmative action in\nMissouri.</p>\n<p>\"That is not what we are about,\" AGC (Associated General\nContractors) of St. Louis Chairperson Tracy Hart said, referring the\nself-styled \"Missouri Civil Rights Initiative,\" an affirmative action\nban promoted by Californian Ward Connerly. \"We have to continue\ndiversity efforts,\" she said. \"We need more people in our industry.\"\nHart also is president of Tarlton Corp., one of the largest general\ncontracting companies in St. Louis.</p>\n<p>An expose in the winter issue of <em>Ms.</em> magazine alleged that\nlarge contracting companies are the driving force behind Connerly\'s\nefforts to ban affirmative action in Missouri, Arizona, Colorado,\nNebraska, and Oklahoma. The magazine\'s press release stated that\nConnerly has ties to \"the good ole boys network of big contractors that\nwant to shut out women- and minority-owned businesses from competing\nfor government contracts.\"</p>\n<p>Connerly first managed a successful state ballot initiative against\naffirmative action in California in 1996, and later followed that up\nwith successful campaigns in Washington state and Michigan. According\nto <em>Ms.</em> Executive Editor Katherine Spillar, early significant seed money for\nthe California campaign came from such construction-industry\norganizations as the Construction Industry Advancement Fund of the AGC\nof California and the California Construction Advancement Program.\nIndeed, at the time, Connerly actually administered those funds, said\nSpillar. Contractors and their organizations ended up contributing\nabout one-sixth of the money Connerly raised for the ballot initiative\nin California, Spillar said, \"but they were the big, early boosters.\"</p>\n<p>According to <em>Ms.</em>, California\'s passage of an affirmative\naction ban was devastating for women- and minority-owned contracting\ncompanies in that state. The article cites a study by the Thelton E.\nHenderson Center for Social Justice at the University of California,\nBerkeley School of Law that concluded that the affirmative action ban\nchopped the caused women- and minority-owned contractor\'s share of\nstate department of transportation contracts to fall from 27.7 percent\nto 8.2 percent. Spillar noted that Sacramento-based Granite\nConstruction Inc., which is the largest partner in the joint venture\nteam rebuilding I-64 in St. Louis, long has been active on the AGC\'s\nliaison committee with Caltrans, as California\'s transportation\ndepartment is called. She added that Granite Construction has ties to\nConnerly through the industry funds he used to run. A call to the\ncorporate communications director at Granite\'s Sacramento headquarters\ndid not net a response.</p>\n<p>It is the California experience that forms the basis for the\nmagazine\'s allegation that big contractors are behind the push to ban\naffirmative action in Missouri in order to shut out women- and\nminority-owned contractors. Spillar said that Connerly and his American\nCivil Rights Coalition corporation have not yet had to release the\nnames of any of the contributors the Missouri Civil Rights Initiative.\nThe honorary chairman of the Missouri Civil Rights Initiative, however,\nis John Uhlmann, a resident of Shawnee Mission, KS. Uhlmann owns a\ngrocery products company that is based in Kansas City, MO, and an\nadvertising company that specializes in producing ads for conservative\ncauses.</p>\n<p>Local construction leaders say Missouri in 2008 is not California in 1996.</p>\n<p>\"We are not involved\" in Connerly\'s petition, said Jay\nSchultehenrich, executive director of the SITE Improvement Association.\nSITE has a highway and bridge division that represents most of the\nmajor road and bridge contractors in eastern Missouri.</p>\n<p>\"We are not for that initiative at all,\" said Jim LaMantia,\nexecutive director of PRIDE of St. Louis, a tripartite group that\nincludes representatives of major construction companies, construction\nworker unions, and major users of construction services. The last group\nincludes public agencies and large corporations such as Anheuser-Busch\nand Monsanto. \"We know affirmative action is needed,\" he added. \"We\ndon\'t have a meeting without talking about it.\"</p>\n<p>LaMantia pointed out that PRIDE is in the second year of a four-year\ncontract with the Missouri Department of Transportation to provide a\ntraining and employment program for minorities in conjunction with the\nrebuilding of I-64. Spillar said such a program could become illegal if\nthe ban on affirmative action passed. The ban in California, she said,\nhas been interpreted to mean that government agencies may not even\nreport statistics by race and gender. \"Wherever this petition is coming\nfrom, it is not from any group in PRIDE,\" LaMantia said.</p>\n<p>Labor and corporate groups in general are lining up against the\nballot initiative to ban affirmation action. The Kansas City Chamber of\nCommerce issued a condemnation of the petition on February 11, 2008.\nTwo days later, the St. Louis Regional Chamber and Growth Association\nand the Greater St. Louis Building and Construction Trades Council both\nannounced their membership in a statewide effort to defeat the\ninitiative petition and protect diversity, called the We Can Coalition</p>\n<p>Richard Fleming, president and CEO of the Regional Chamber and\nGrowth Association, said, \"The region\'s business leadership opposes\nattempts to weaken or ban proven policies that promote diversity.\" A\nban on affirmative action, he said, would weaken economic development\nefforts by sending the message to corporations and young workers that\n\"we do not welcome talent.\"</p>\n<p>Jerry Feldhaus, executive secretary-treasurer of the Building and\nConstruction Trades Council, said passage of the initiative petition\n\"would destroy all the efforts the building trades and contractors are\nmaking to create opportunities for minorities and women in the\nconstruction industry.\" He acknowledged that in the past the industry\nhad problems accepting women and minorities -- 40 years ago,\nconstruction unions went on strike against the federal government\'s\nfirst affirmative action order, which applied to the construction of\nthe Arch monument -- but those problems a re \"long gone,\" he said.\n\"With the dramatic need we face for construction workers in the future,\nall efforts to recruit workers are helpful, and affirmative action is\nan important part of that,\" he said. Terry Nelson, executive\nsecretary-treasurer of the Carpenters District Council of Greater St.\nLouis, which is not part of the AFL-CIO, also opposes the proposed ban.\n\"It is not good for our industry or for minorities or for women,\" he\nsaid.</p>\n<p>According to LaMantia, the widespread opposition to the ban is\nunderstandable. At a time when unions and contractors \"are bending over\nbackwards to do the right thing\" in order to attract women and\nminorities to an industry that desperately needs people, the proposal\nto ban affirmative action \"is not helpful,\" he said.</p>\n<p>\"Personally, I think this (the proposed ban) is really unfortunate,\"\nHart added, but she is hopeful that it will fail. \"I can\'t imagine this\ncommunity not wanting to stay the course (for diversity),\" she 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Leaders Reject Ban on Affirmative Action\";s:11:\"field_ft_26\";s:4:\"none\";s:11:\"field_id_28\";s:0:\"\";s:11:\"field_ft_28\";s:4:\"none\";s:11:\"field_id_29\";s:7352:\"<p>St. Louis area construction industry leaders are distancing themselves\nfrom a controversial state ballot initiative in the wake of charges\nthat contractors are behind the effort to ban affirmative action in\nMissouri.</p>\n<p>\"That is not what we are about,\" AGC (Associated General\nContractors) of St. Louis Chairperson Tracy Hart said, referring the\nself-styled \"Missouri Civil Rights Initiative,\" an affirmative action\nban promoted by Californian Ward Connerly. \"We have to continue\ndiversity efforts,\" she said. \"We need more people in our industry.\"\nHart also is president of Tarlton Corp., one of the largest general\ncontracting companies in St. Louis.</p>\n<p>An expose in the winter issue of <em>Ms.</em> magazine alleged that\nlarge contracting companies are the driving force behind Connerly\'s\nefforts to ban affirmative action in Missouri, Arizona, Colorado,\nNebraska, and Oklahoma. The magazine\'s press release stated that\nConnerly has ties to \"the good ole boys network of big contractors that\nwant to shut out women- and minority-owned businesses from competing\nfor government contracts.\"</p>\n<p>Connerly first managed a successful state ballot initiative against\naffirmative action in California in 1996, and later followed that up\nwith successful campaigns in Washington state and Michigan. According\nto <em>Ms.</em> Executive Editor Katherine Spillar, early significant seed money for\nthe California campaign came from such construction-industry\norganizations as the Construction Industry Advancement Fund of the AGC\nof California and the California Construction Advancement Program.\nIndeed, at the time, Connerly actually administered those funds, said\nSpillar. Contractors and their organizations ended up contributing\nabout one-sixth of the money Connerly raised for the ballot initiative\nin California, Spillar said, \"but they were the big, early boosters.\"</p>\n<p>According to <em>Ms.</em>, California\'s passage of an affirmative\naction ban was devastating for women- and minority-owned contracting\ncompanies in that state. The article cites a study by the Thelton E.\nHenderson Center for Social Justice at the University of California,\nBerkeley School of Law that concluded that the affirmative action ban\nchopped the caused women- and minority-owned contractor\'s share of\nstate department of transportation contracts to fall from 27.7 percent\nto 8.2 percent. Spillar noted that Sacramento-based Granite\nConstruction Inc., which is the largest partner in the joint venture\nteam rebuilding I-64 in St. Louis, long has been active on the AGC\'s\nliaison committee with Caltrans, as California\'s transportation\ndepartment is called. She added that Granite Construction has ties to\nConnerly through the industry funds he used to run. A call to the\ncorporate communications director at Granite\'s Sacramento headquarters\ndid not net a response.</p>\n<p>It is the California experience that forms the basis for the\nmagazine\'s allegation that big contractors are behind the push to ban\naffirmative action in Missouri in order to shut out women- and\nminority-owned contractors. Spillar said that Connerly and his American\nCivil Rights Coalition corporation have not yet had to release the\nnames of any of the contributors the Missouri Civil Rights Initiative.\nThe honorary chairman of the Missouri Civil Rights Initiative, however,\nis John Uhlmann, a resident of Shawnee Mission, KS. Uhlmann owns a\ngrocery products company that is based in Kansas City, MO, and an\nadvertising company that specializes in producing ads for conservative\ncauses.</p>\n<p>Local construction leaders say Missouri in 2008 is not California in 1996.</p>\n<p>\"We are not involved\" in Connerly\'s petition, said Jay\nSchultehenrich, executive director of the SITE Improvement Association.\nSITE has a highway and bridge division that represents most of the\nmajor road and bridge contractors in eastern Missouri.</p>\n<p>\"We are not for that initiative at all,\" said Jim LaMantia,\nexecutive director of PRIDE of St. Louis, a tripartite group that\nincludes representatives of major construction companies, construction\nworker unions, and major users of construction services. The last group\nincludes public agencies and large corporations such as Anheuser-Busch\nand Monsanto. \"We know affirmative action is needed,\" he added. \"We\ndon\'t have a meeting without talking about it.\"</p>\n<p>LaMantia pointed out that PRIDE is in the second year of a four-year\ncontract with the Missouri Department of Transportation to provide a\ntraining and employment program for minorities in conjunction with the\nrebuilding of I-64. Spillar said such a program could become illegal if\nthe ban on affirmative action passed. The ban in California, she said,\nhas been interpreted to mean that government agencies may not even\nreport statistics by race and gender. \"Wherever this petition is coming\nfrom, it is not from any group in PRIDE,\" LaMantia said.</p>\n<p>Labor and corporate groups in general are lining up against the\nballot initiative to ban affirmation action. The Kansas City Chamber of\nCommerce issued a condemnation of the petition on February 11, 2008.\nTwo days later, the St. Louis Regional Chamber and Growth Association\nand the Greater St. Louis Building and Construction Trades Council both\nannounced their membership in a statewide effort to defeat the\ninitiative petition and protect diversity, called the We Can Coalition</p>\n<p>Richard Fleming, president and CEO of the Regional Chamber and\nGrowth Association, said, \"The region\'s business leadership opposes\nattempts to weaken or ban proven policies that promote diversity.\" A\nban on affirmative action, he said, would weaken economic development\nefforts by sending the message to corporations and young workers that\n\"we do not welcome talent.\"</p>\n<p>Jerry Feldhaus, executive secretary-treasurer of the Building and\nConstruction Trades Council, said passage of the initiative petition\n\"would destroy all the efforts the building trades and contractors are\nmaking to create opportunities for minorities and women in the\nconstruction industry.\" He acknowledged that in the past the industry\nhad problems accepting women and minorities -- 40 years ago,\nconstruction unions went on strike against the federal government\'s\nfirst affirmative action order, which applied to the construction of\nthe Arch monument -- but those problems a re \"long gone,\" he said.\n\"With the dramatic need we face for construction workers in the future,\nall efforts to recruit workers are helpful, and affirmative action is\nan important part of that,\" he said. Terry Nelson, executive\nsecretary-treasurer of the Carpenters District Council of Greater St.\nLouis, which is not part of the AFL-CIO, also opposes the proposed ban.\n\"It is not good for our industry or for minorities or for women,\" he\nsaid.</p>\n<p>According to LaMantia, the widespread opposition to the ban is\nunderstandable. At a time when unions and contractors \"are bending over\nbackwards to do the right thing\" in order to attract women and\nminorities to an industry that desperately needs people, the proposal\nto ban affirmative action \"is not helpful,\" he said.</p>\n<p>\"Personally, I think this (the proposed ban) is really unfortunate,\"\nHart added, but she is hopeful that it will fail. \"I can\'t imagine this\ncommunity not wanting to stay the course (for diversity),\" she 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Monthly starts totals have been ebbing since October of\nlast year, although starts increased 10.6 percent in full-year 2007\nversus full-year 2006.</p>\n<p>Reed Construction Data expects starts to be slightly lower into the\nsummer and then recover to keep the 2008 total close to the 2007 total.\nCommercial building starts will be the most impacted by the abrupt\nslowdown in Gross Domestic Product (GDP) in the first half of 2008.</p>\n<p>The starts estimates are a summary from Reed Construction Data\'s\nproject database. Unreported contract values were estimated using\nRSMeans\' building cost models.</p>\n<p>The only significant increases in January were for military\nfacilities, parking garages and hotels. These are not expected to be\npersistent trends. Monthly starts are quite volatile in these three\nsmall markets. The surge in hotel starts follows three weak monthly\nstarts totals which are more indicative of 2008 trends. Both leisure\nand business travel are extremely sensitive to income and are expected\nto weaken more than the balance of the economy in the coming months.</p>\n<p>Commercial starts decreased 15 percent versus December, offsetting a\nlarge gain the previous month. January starts were marginally below the\nOctober-January average. However, office starts fell 34 percent from\nDecember to the lowest total in nearly two years. Developers have\nbecome nervous about 2008 space demand. The financial industry,\nentirely office-based, has shed 100,000 jobs since employment peaked in\nDecember 2006.</p>\n<p>Institutional building starts dropped 3 percent month to month in\nJanuary, but remained 8 percent above last January. However, the year\nto year change is 6 percent, ignoring the volatile military facilities\nmarket. The large education and health care sectors are both weakening.\nStarts of public safety buildings and cultural/religious facilities\nhave not declined.</p>\n<p>Construction starts for heavy/engineering projects declined 13\npercent from last January, including the 2 percent decline from\nDecember. An $800 million decline in miscellaneous projects was offset\nby a similar rise in new highway projects.</p>\";s:11:\"field_ft_29\";s:0:\"\";s:11:\"field_id_31\";s:2:\"18\";s:11:\"field_ft_31\";s:4:\"none\";s:11:\"field_id_32\";s:0:\"\";s:11:\"field_ft_32\";s:0:\"\";s:11:\"field_id_34\";s:0:\"\";s:11:\"field_ft_34\";s:0:\"\";s:11:\"field_id_35\";s:0:\"\";s:11:\"field_ft_35\";s:0:\"\";s:11:\"field_id_36\";s:0:\"\";s:11:\"field_ft_36\";s:0:\"\";s:11:\"field_id_37\";s:0:\"\";s:11:\"field_ft_37\";s:0:\"\";s:11:\"field_id_41\";s:0:\"\";s:11:\"field_ft_41\";s:4:\"none\";s:11:\"field_id_42\";s:0:\"\";s:11:\"field_ft_42\";s:4:\"none\";s:11:\"field_id_43\";s:0:\"\";s:11:\"field_ft_43\";s:4:\"none\";s:11:\"field_id_44\";s:221:\"Reed Construction Data announced today that the value of construction starts in January 2008, excluding residential contracts, totaled $21.347 billion, down 13.1 percent from January 2007 and 8.0 percent below 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Monthly starts totals have been ebbing since October of\nlast year, although starts increased 10.6 percent in full-year 2007\nversus full-year 2006.</p>\n<p>Reed Construction Data expects starts to be slightly lower into the\nsummer and then recover to keep the 2008 total close to the 2007 total.\nCommercial building starts will be the most impacted by the abrupt\nslowdown in Gross Domestic Product (GDP) in the first half of 2008.</p>\n<p>The starts estimates are a summary from Reed Construction Data\'s\nproject database. Unreported contract values were estimated using\nRSMeans\' building cost models.</p>\n<p>The only significant increases in January were for military\nfacilities, parking garages and hotels. These are not expected to be\npersistent trends. Monthly starts are quite volatile in these three\nsmall markets. The surge in hotel starts follows three weak monthly\nstarts totals which are more indicative of 2008 trends. Both leisure\nand business travel are extremely sensitive to income and are expected\nto weaken more than the balance of the economy in the coming months.</p>\n<p>Commercial starts decreased 15 percent versus December, offsetting a\nlarge gain the previous month. January starts were marginally below the\nOctober-January average. However, office starts fell 34 percent from\nDecember to the lowest total in nearly two years. Developers have\nbecome nervous about 2008 space demand. The financial industry,\nentirely office-based, has shed 100,000 jobs since employment peaked in\nDecember 2006.</p>\n<p>Institutional building starts dropped 3 percent month to month in\nJanuary, but remained 8 percent above last January. However, the year\nto year change is 6 percent, ignoring the volatile military facilities\nmarket. The large education and health care sectors are both weakening.\nStarts of public safety buildings and cultural/religious facilities\nhave not declined.</p>\n<p>Construction starts for heavy/engineering projects declined 13\npercent from last January, including the 2 percent decline from\nDecember. 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Corporations that differentiate themselves with sustainable, integrated organizational strategies will realize competitive advantage in today\'s marketplace.&nbsp; More than just a passing fad, sustainable facilities are now an imperative for business success.<br /><br />The built environment has a profound impact on our natural environment, economy, health, and productivity. Buildings in the United States annually account for 39% of total energy consumption, 71% of electricity consumption, 39% of greenhouse gas (CO2) emissions, 30% of raw materials use, 30% of waste output, 12% of potable water consumption. Worldwide, buildings account for 17% of fresh water withdrawals, 25% of total wood harvest, 33% of greenhouse gas (CO2) emissions, and 40% of material and energy use (45% in China).<br /><br />The concept of sustainability and green building emerged more than twenty years ago and is today regarded as one of the leading drivers of building design and construction. 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A study by the United States Green Building Council&nbsp; (USGBC) states that 89% of the next generation of consumers will choose brands aligned with social cause, 74% listen to brands aligned with social cause, 69% shop for brands aligned with social cause, and 66% of consumers recommend brands aligned with social cause.<br /><br />Furthering the research into social cause and consumer trends, leading global consulting firm McKinsey &amp; Company conducted a worldwide survey of business executives and consumers aimed at quantifying the relationship between organizational strategy and consumer behavior.&nbsp; The survey identified that business executives now consider the environment as the leading sociopolitical issue that will attract the most attention from the public and politicians for at least the next five years. It also implicitly concluded results similar to those of the USGBC study linking corporate social responsibility to consumer buying habits and trends. 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Corporations that differentiate themselves with sustainable, integrated organizational strategies will realize competitive advantage in today\'s marketplace.&nbsp; More than just a passing fad, sustainable facilities are now an imperative for business success.<br /><br />The built environment has a profound impact on our natural environment, economy, health, and productivity. Buildings in the United States annually account for 39% of total energy consumption, 71% of electricity consumption, 39% of greenhouse gas (CO2) emissions, 30% of raw materials use, 30% of waste output, 12% of potable water consumption. Worldwide, buildings account for 17% of fresh water withdrawals, 25% of total wood harvest, 33% of greenhouse gas (CO2) emissions, and 40% of material and energy use (45% in China).<br /><br />The concept of sustainability and green building emerged more than twenty years ago and is today regarded as one of the leading drivers of building design and construction. 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A study by the United States Green Building Council&nbsp; (USGBC) states that 89% of the next generation of consumers will choose brands aligned with social cause, 74% listen to brands aligned with social cause, 69% shop for brands aligned with social cause, and 66% of consumers recommend brands aligned with social cause.<br /><br />Furthering the research into social cause and consumer trends, leading global consulting firm McKinsey &amp; Company conducted a worldwide survey of business executives and consumers aimed at quantifying the relationship between organizational strategy and consumer behavior.&nbsp; The survey identified that business executives now consider the environment as the leading sociopolitical issue that will attract the most attention from the public and politicians for at least the next five years. It also implicitly concluded results similar to those of the USGBC study linking corporate social responsibility to consumer buying habits and trends. 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Most customers think they&rsquo;re generating the best financial opportunity for their own companies. In reality they are backing themselves into a dangerous corner.&nbsp; We have the responsibility to inform them of the negative consequences of taking an inferior bid or sub standard contractor.&nbsp; We worry that we&rsquo;ll anger them or make them uncomfortable so we give in and perform pricing contortions to try and win the bid.&nbsp; Estimators are turning into mathematical acrobats as opposed to trained bidding experts.<br /><br />I&rsquo;ve sat through so many seminars that instruct you not to &ldquo;negative&rdquo; sell, but to sing your own praise and virtues as a supplier. Are you nuts? You need to educate your customer on the failings, pricing schemes, and cost cutting techniques used by inferior bidders. 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The sweetness of a low bid quickly disappears when the change orders start flying or a delay occurs on the project due to poor workmanship.&nbsp; This goes back to the old snake oil salesman days.&nbsp; Pulling the old &ldquo;switcheroo&rdquo;.&nbsp; Us sales guys have known this technique for decades. Contractors fall into the trap so easily because they&rsquo;re not traditional sales people and don&rsquo;t always know how to convey these truths. <br /><br />If you are allowing the customer to dictate what is a good value in your trade you&rsquo;re not doing your job very well. Being aggressive in this fashion takes some guts, but usually gains respect. Your motive is having your client properly informed. Then if they decide to go with what will probably be a nightmare of a low bid, it lies in their lap when the first change order comes that&rsquo;s equal to the difference between the first and second bids.&nbsp; <br /><br />Project owners are learning everyday that a price that&rsquo;s too good to be true is just that.&nbsp; It amazes me how some clients throw common sense out the window due to their insane focus on price, price, price.&nbsp; Really, is this an intelligent way to buy?&nbsp; Then why would you not convey the negative that could occur? If you get an inferior roof, it leaks. If you get inferior plumbing, it floods. If you get inferior electrical work, it could catch fire! Why risk this at all? <br /><br />I&rsquo;d be incredibly suspicious in this economic climate of anyone having a ridiculously low bid. There are so many potential pitfalls. The company could go under during the project as they&rsquo;re just trying to make payroll or they&rsquo;re hiring sub standard labor.&nbsp; Just pick one. Sanity must prevail. <br /><br />A good, fair bid with a complete scope and a desire for partnership with a reputable supplier should prevail.&nbsp; Unfortunately, some just don&rsquo;t get it. Your job is to make sure they do. Do so tactfully but firmly. Don&rsquo;t wimp out! You probably wouldn&rsquo;t get the project anyway if you didn&rsquo;t ask if they understood the risks of the sub standard bid. <br /><br />When you lower your price from your original bid, what was the first price? Let me tell you: a lie! Is that who they want to do business with? Someone who would lie about the bid price it would take to do the project. Doesn&rsquo;t really evoke trust now does it?&nbsp; Build the value, educate the customer and be persistent in your approach. Don&rsquo;t fear the client&rsquo;s reaction. Be brave and steadfast in what you know is true.&nbsp; Soft selling is for a booming economy. Uuh, we don&rsquo;t have one currently.&nbsp; So go for broke and sell the existing value of your company. Stop shaking your head and telling your customers you&rsquo;ll sharpen your pencil next time. 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Louis Architecture Firm Growing With China\";s:10:\"field_ft_5\";s:4:\"none\";s:10:\"field_id_7\";s:0:\"\";s:10:\"field_ft_7\";s:4:\"none\";s:10:\"field_id_8\";s:5595:\"<p><img alt=\"Glenn Wing, vice president and director of interior design of HOK Hong Kong\" class=\"image-left\" height=\"303\" src=\"/images/uploads/features/china_feature_photo.jpg\" style=\"float: left;\" width=\"266\" />The Olympics this year are expected to showcase the &ldquo;new China&rdquo; that is fairly vibrating with innovation and energy. Many companies in mature Western markets want in on that sizzling economy, and one Western design company that is well placed to the sizzle is St. Louis-based HOK.<br /><br />China&rsquo;s government, as reported in the China Daily News, says that its economy grew 65 percent in the last five years, for an average annual growth rate of 10.6 percent. The United States Central Intelligence Agency ranks the Chinese economy as the second largest national economy in the world, and The Economist magazine projects that China will move ahead of the United States into first place within 12 years.<br /><br />&ldquo;It is amazing how fast things move,&rdquo; said Glenn Wing, vice president and director of interior design of HOK Hong Kong, and president of the Hong Kong chapter of the American Institute of Architects. He recently stopped in St. Louis for a couple of days and spoke to CNR about working in China. Wing spent 20 years working in New York City after getting his graduate degree from Columbia University, and then he was recruited by a Chinese company and moved to Hong Kong in 2002.<br /><br />&ldquo;I thought Manhattan was as fast as life gets, but it is faster in Hong Kong. Clients come at you faster, they want the property faster, and they want the product faster,&rdquo; he said. It is not that regulation is any less &ndash; it actually is similar, he said &ndash; &ldquo;there is just a vibe and an energy there to get things done.&rdquo;<br /><br />Wing joined HOK in 2005, shortly after the company had begun what would turn into a major growth spurt in Asia. HOK opened its office in Hong Kong in 1984 when it was designing the Hong Kong stadium and master planning the new airport. In 2003 HOK opened a second Asian office in Beijing, following that with new offices in Shanghai in 2005, Singapore in 2006 and Ho Chi Minh City in 2007. The last office puts the company in a good position to enjoy Vietnam&rsquo;s economic ascent, which some analysts predict will be the world&rsquo;s fastest over the next decade.<br /><br />&ldquo;We have 5 offices and 150 people, offering full planning and design services in all locations,&rdquo; he said.<br /><br />Although many of HOK&rsquo;s clients in Asia are multinational corporations with global standards for all their offices, there still are cultural differences that anyone practicing design in Asia has to be aware of, he said.<br /><br />&nbsp;&ldquo;Whether you are in Hong Kong, Taipei, or Singapore, you have to pay attention to feng shui, which literally means wind and water,&rdquo; Wing said. &ldquo;It is a form of geomancy. The idea is to balance out energy, called &ldquo;chi,&rdquo; which has to flow smoothly through the building interior or your company&rsquo;s fortunes will fall. This comes into play even with multinational companies because the locals strongly believe in it. Even if you are designing for solar orientation, you have to take feng shui into account. <br /><br />&ldquo;You call in a feng shui priest. Taking into account personal details of the company director and the company business, he will say things like, &lsquo;the financial person has to sit in this corner,&rsquo; and you can&rsquo;t fight it,&rdquo; he said.<br /><br />One US-based financial reporting company, for example, has a fish tank in most of its offices in Asia, he said, because &ldquo; a fish tank brings good feng shui.&rdquo;<br /><br />Another difference is in the use of &ldquo;green&rdquo; or sustainable products.<br /><br />&ldquo;One sustainable product we use in America is bamboo. In Hong Kong it has a bad reputation. Hong Kong is one of the last places where construction scaffolding is built out of bamboo. You&rsquo;ll see 60-story scaffolding built of bamboo and what are basically zip strips tying it together. So, bamboo there has a connotation of being a construction material. At first I couldn&rsquo;t get it, and then I realized that asking a Chinese company to put bamboo on their floors or walls was like asking a corporate client here to cover their board room walls with strand board.&rdquo;<br /><br />Even global standards for workplace planning have to bend a little for Asia. <br /><br />&ldquo;Real estate is much, much more expensive in Asia, so work stations, offices, etc., are all smaller,&rdquo; he said, but at the same time hoteling, which is a popular space-saver with many western corporations, &ldquo;is not easily transferred to Asia because people don&rsquo;t have the space to work at home,&rdquo; he said.<br /><br />In addition to corporate work, HOK was involved in the master planning for the Olympics and the company&rsquo;s Sports Group consults with the Olympic committee and the Hong Kong Jockey Club on the games&rsquo; equestrian events. <br /><br />&ldquo;Some of our biggest interiors projects are the interior design of government offices in Hong Kong and for Beijing offices for the fourth largest insurance company in the world,&rdquo; Wing added. &ldquo;A large portion of our projects are in India right now, and we also approached for projects in the Philippines, Malaysia, Indonesia, and Vietnam.&rdquo;<br /><br />Wing&rsquo;s advice to anyone going to work in Asia: &ldquo;fasten your seat belt.&rdquo;</p>\";s:10:\"field_ft_8\";s:4:\"none\";s:10:\"field_id_9\";s:280:\"The Olympics this year are expected to showcase the \"new China\" that is fairly vibrating with innovation and energy. Many companies in mature Western markets want in on that sizzling economy, and one Western design company that is well placed to the sizzle is St. Louis-based HOK.\";s:10:\"field_ft_9\";s:4:\"none\";s:11:\"field_id_10\";s:0:\"\";s:11:\"field_ft_10\";s:4:\"none\";s:11:\"field_id_11\";s:0:\"\";s:11:\"field_ft_11\";s:4:\"none\";s:11:\"field_id_12\";s:0:\"\";s:11:\"field_ft_12\";s:4:\"none\";s:11:\"field_id_13\";s:2:\"24\";s:11:\"field_ft_13\";s:4:\"none\";s:11:\"field_id_20\";s:0:\"\";s:11:\"field_ft_20\";s:0:\"\";s:11:\"field_id_22\";s:0:\"\";s:11:\"field_ft_22\";s:0:\"\";s:11:\"field_id_23\";s:0:\"\";s:11:\"field_ft_23\";s:0:\"\";s:11:\"field_id_25\";s:0:\"\";s:11:\"field_ft_25\";s:0:\"\";s:11:\"field_id_26\";s:0:\"\";s:11:\"field_ft_26\";s:0:\"\";s:11:\"field_id_28\";s:0:\"\";s:11:\"field_ft_28\";s:0:\"\";s:11:\"field_id_29\";s:0:\"\";s:11:\"field_ft_29\";s:0:\"\";s:11:\"field_id_31\";s:0:\"\";s:11:\"field_ft_31\";s:0:\"\";s:11:\"field_id_32\";s:0:\"\";s:11:\"field_ft_32\";s:0:\"\";s:11:\"field_id_34\";s:0:\"\";s:11:\"field_ft_34\";s:0:\"\";s:11:\"field_id_35\";s:0:\"\";s:11:\"field_ft_35\";s:0:\"\";s:11:\"field_id_36\";s:0:\"\";s:11:\"field_ft_36\";s:4:\"none\";s:11:\"field_id_37\";s:0:\"\";s:11:\"field_ft_37\";s:0:\"\";s:11:\"field_id_41\";s:0:\"\";s:11:\"field_ft_41\";s:4:\"none\";s:11:\"field_id_42\";s:48:\"/images/uploads/features/china_feature_photo.jpg\";s:11:\"field_ft_42\";s:4:\"none\";s:11:\"field_id_43\";s:76:\"Glenn 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Louis Architecture Firm Growing With China\";s:10:\"field_ft_5\";s:4:\"none\";s:10:\"field_id_7\";s:0:\"\";s:10:\"field_ft_7\";s:4:\"none\";s:10:\"field_id_8\";s:5595:\"<p><img alt=\"Glenn Wing, vice president and director of interior design of HOK Hong Kong\" class=\"image-left\" height=\"303\" src=\"/images/uploads/features/china_feature_photo.jpg\" style=\"float: left;\" width=\"266\" />The Olympics this year are expected to showcase the &ldquo;new China&rdquo; that is fairly vibrating with innovation and energy. Many companies in mature Western markets want in on that sizzling economy, and one Western design company that is well placed to the sizzle is St. Louis-based HOK.<br /><br />China&rsquo;s government, as reported in the China Daily News, says that its economy grew 65 percent in the last five years, for an average annual growth rate of 10.6 percent. The United States Central Intelligence Agency ranks the Chinese economy as the second largest national economy in the world, and The Economist magazine projects that China will move ahead of the United States into first place within 12 years.<br /><br />&ldquo;It is amazing how fast things move,&rdquo; said Glenn Wing, vice president and director of interior design of HOK Hong Kong, and president of the Hong Kong chapter of the American Institute of Architects. He recently stopped in St. Louis for a couple of days and spoke to CNR about working in China. Wing spent 20 years working in New York City after getting his graduate degree from Columbia University, and then he was recruited by a Chinese company and moved to Hong Kong in 2002.<br /><br />&ldquo;I thought Manhattan was as fast as life gets, but it is faster in Hong Kong. Clients come at you faster, they want the property faster, and they want the product faster,&rdquo; he said. It is not that regulation is any less &ndash; it actually is similar, he said &ndash; &ldquo;there is just a vibe and an energy there to get things done.&rdquo;<br /><br />Wing joined HOK in 2005, shortly after the company had begun what would turn into a major growth spurt in Asia. HOK opened its office in Hong Kong in 1984 when it was designing the Hong Kong stadium and master planning the new airport. In 2003 HOK opened a second Asian office in Beijing, following that with new offices in Shanghai in 2005, Singapore in 2006 and Ho Chi Minh City in 2007. The last office puts the company in a good position to enjoy Vietnam&rsquo;s economic ascent, which some analysts predict will be the world&rsquo;s fastest over the next decade.<br /><br />&ldquo;We have 5 offices and 150 people, offering full planning and design services in all locations,&rdquo; he said.<br /><br />Although many of HOK&rsquo;s clients in Asia are multinational corporations with global standards for all their offices, there still are cultural differences that anyone practicing design in Asia has to be aware of, he said.<br /><br />&nbsp;&ldquo;Whether you are in Hong Kong, Taipei, or Singapore, you have to pay attention to feng shui, which literally means wind and water,&rdquo; Wing said. &ldquo;It is a form of geomancy. The idea is to balance out energy, called &ldquo;chi,&rdquo; which has to flow smoothly through the building interior or your company&rsquo;s fortunes will fall. This comes into play even with multinational companies because the locals strongly believe in it. Even if you are designing for solar orientation, you have to take feng shui into account. <br /><br />&ldquo;You call in a feng shui priest. Taking into account personal details of the company director and the company business, he will say things like, &lsquo;the financial person has to sit in this corner,&rsquo; and you can&rsquo;t fight it,&rdquo; he said.<br /><br />One US-based financial reporting company, for example, has a fish tank in most of its offices in Asia, he said, because &ldquo; a fish tank brings good feng shui.&rdquo;<br /><br />Another difference is in the use of &ldquo;green&rdquo; or sustainable products.<br /><br />&ldquo;One sustainable product we use in America is bamboo. In Hong Kong it has a bad reputation. Hong Kong is one of the last places where construction scaffolding is built out of bamboo. You&rsquo;ll see 60-story scaffolding built of bamboo and what are basically zip strips tying it together. So, bamboo there has a connotation of being a construction material. At first I couldn&rsquo;t get it, and then I realized that asking a Chinese company to put bamboo on their floors or walls was like asking a corporate client here to cover their board room walls with strand board.&rdquo;<br /><br />Even global standards for workplace planning have to bend a little for Asia. <br /><br />&ldquo;Real estate is much, much more expensive in Asia, so work stations, offices, etc., are all smaller,&rdquo; he said, but at the same time hoteling, which is a popular space-saver with many western corporations, &ldquo;is not easily transferred to Asia because people don&rsquo;t have the space to work at home,&rdquo; he said.<br /><br />In addition to corporate work, HOK was involved in the master planning for the Olympics and the company&rsquo;s Sports Group consults with the Olympic committee and the Hong Kong Jockey Club on the games&rsquo; equestrian events. <br /><br />&ldquo;Some of our biggest interiors projects are the interior design of government offices in Hong Kong and for Beijing offices for the fourth largest insurance company in the world,&rdquo; Wing added. &ldquo;A large portion of our projects are in India right now, and we also approached for projects in the Philippines, Malaysia, Indonesia, and Vietnam.&rdquo;<br /><br />Wing&rsquo;s advice to anyone going to work in Asia: &ldquo;fasten your seat belt.&rdquo;</p>\";s:10:\"field_ft_8\";s:4:\"none\";s:10:\"field_id_9\";s:280:\"The Olympics this year are expected to showcase the \"new China\" that is fairly vibrating with innovation and energy. 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