News from the Hill

1. 2014 Outlook Depends on Where You Look 6. Hill Making Inroads in Elusive,

Emerging Asia

7. Hill’s Highway Works Takes Off

10. My LCM: New Software Makes Labor Compliance Easier

13. Charting New Territory: Hill Expands into South Africa

14. About Hill International, Inc.

14. Editorial/Acknowledgements

IN THIS ISSUE

Rising Sun Taipei City. Story page 6

WINTER/SPRING 2014

2014 Outlook Depends on Where You Look

The Global Leader in Managing Construction Risk

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I n the U.S., celebrating with champagne and a glittering ball atop Times Square is the norm. In many parts of Russia, Grandfather Frost comes bearing gifts. In Australia, it’s bonfires on the beach. China’s festivities are replete with Lion

dances and fireworks. France celebrates with dinner parties and presents. In Great Britain, it’s Big Ben’s chimes and “first footings.” India marks the occasion with a festival of lights. And, in South Africa, church bells and gunfire compete to be heard amidst the revelry.

The ways in which we celebrate a new year varies from region to region, country to country. Although the year is well under way, the global outlook for 2014 is still just as varied, depending largely on the location. We talked to Hill executives from different parts of the world to get their take on how 2014 is shaping up. Factors such as local and regional economies, politics and current events all play a role in their opinion. The keys to managing those variables and remaining successful are as varied as the countries themselves.

Robert L. Houser, vice president of Hill’s Asia-Pacific region, said that Asia remains a strong market--both for Hill International and in general--despite pundits who decry the region’s economic cool-down as a harbinger of future woes.

Metro Gold Line Foothill Extension Pictured: Metro Gold Line Foothill Extension, Pasadena, CA.

“2014 will be a year of organic growth.”

2014 Outlook Depends on Where You Look

developers in China are reluctant to utilize foreign PM/CM firms. Many prefer to perform those services in-house, or to utilize local firms that are significantly more competitive [in their pricing] than Hill,” Houser said. Hong Kong owners are likewise reluctant to hire foreign firms. “Hong Kong is currently a very closed and saturated market,” Houser said. “It is extremely difficult for a new company to penetrate, but the recent project management tenders by the West Kowloon Cultural District Authority represent a shift towards more PM firms’ involvement in Hong Kong government projects.” In India, the Hill team wants to grow beyond its existing client base of real estate and commercial building developers to include infrastructure and industrial projects as well.

Houser and his team have plans for tackling all of those challenges and more, during the coming year. “We will target selective projects that best match our local capabilities, ensure that we meet the established eligibility criteria, and plan for any complementary expertise that is required for our success,” he explained. “In China, that means pursuing major international developers and multinational industrial companies. In Hong Kong, we will develop

“Both 2013 and 2014’s growth figures for China have recently been revised down. However, 2014’s growth forecast is still 7.4 percent, with domestic demand for property and goods driving the growth,” Houser said. Hong Kong is experiencing a similar slow-down, but still expected to continue growing, Houser added. “Similar to mainland China, Hong Kong’s 2013 growth has been revised down, but 2014’s growth remains unchanged at 3.8 percent, with property market growth continuing at its existing level or at a slight increase,” he explained.

India, with national elections coming in May, is a mixed bag. “India is expected to continue its growth, albeit at a slower rate, with Rupee stability and inflation taming a major concern for all,” Houser said. “Construction and real estate development activity are expected to slow down,” he added. Whether the elections will foster or hinder growth is unclear, and this uncertainty could remain for weeks or months after the votes are tallied.

“The national elections of 2014 will define the course of the country for the next five years,” Houser said. Many who live and work in India—the world’s largest democracy—are hopeful that the elections will help dismantle what critics call crippling bureaucracy there, making vital infrastructure and other construction projects quicker and easier. Houser, who has more than 20 years of experience working in Asia, is far more circumspect. “A possible government change to a more pro-business attitude is widely anticipated among business leaders,” he said.

The market sectors in each country that are expected to see the most growth in 2014 also vary. In China, the still-surging middle class will drive construction of foreign-funded developments, entertainment and healthcare projects. Pharmaceuticals and oil and gas also are hot markets there, Houser added. In Hong Kong, projects involving public parks, museums, airports and a fourth cross-harbor rail tunnel will take center stage. In India, infrastructure projects will continue to rise, with the construction of highways, rail lines, airports and power plants.

While China, Hong Kong and India each present unique opportunities, each presents unique challenges as well. Securing work and building a reputation in China, for example, hasn’t been easy, and has required years of trust-building. “Local

Below: Midfield Terminal Complex, Abu Dhabi International Airport

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teaming agreements with well-established local partners. In India, we will be successful by teaming up with strong engineering firms, both international and local, for large project management infrastructure assignments.”

In the Middle East, where Hill International has been working for nearly three decades, establishing relationships may be easier, but no less important, said Middle East marketing manager Bedr Al-Rais. While growth varies from country to country, the Middle East has, overall, remained steady in its growth over past several years. Shortfalls in development in one country have been countered by surges in another. All in all, the Middle East, has so far remained unscathed by the economic woes faced elsewhere in the world.

“2014 will be a year of organic growth,” Al-Rais said. “Projects in the region are growing in variety, scope, schedule and complexity. We’re also seeing increasing demand from clients and prospective clients for all of our services,” Al-Rais said. Clients’ wish lists continue to evolve as well, he added. “In particular, our clients want to see greater cost efficiencies in their projects. They also want to build sustainable projects, and want their projects to include new levels of innovation.”

Infrastructure will continue to be a strong market sector throughout the Middle East, with the specific type of construction varying slightly from country to country. “We are seeing opportunities in the region driven by the demands of expanding markets such as Oman, which is looking at two new hospitals and universities,” Al-Rais said. “Iraq has mega-projects in Basra, a metro in Baghdad, and rail system across the country. Rail, aviation and healthcare will be the focus there. Saudi Arabia is looking at a railway systems in Mekkah, Madina and Jeddah.”

Construction of educational and sports facilities also is expected to grow throughout the region in 2014, Al-Rais added.

While the market sectors are similar, Hill’s approach to each client and each project is not, Al-Rais said. “Each market sector must be managed independently,” he said.

Growth in the Middle East has its cost, Al-Rais said. “While the Middle East is surging as a global market, competition is increasing as well,” he explained. “More competition means

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that the number of qualified people from which we can draw is reduced. There is a lack of qualified [human] resources.” However, Hill’s reputation in the region make it easier to attract the region’s best and brightest. “And, efficiency, flexibility and years of regional experience” help set Hill apart from its competitors, Al-Rais added.

In Europe, growth is expected to be more modest, said Toby Hunt, senior vice president at Hill’s London office. “The Euroconstruct network of European construction forecasters has revised its outlook for Europe’s construction output in 2014 from expected growth of 1 percent to an increase of just 0.5 percent,” Hunt explained. The prospects for 2015 look better, at 1.7 percent.

Like the rest of the world, expected growth varies from country to country. “In several of the 19 Euroconstruct countries, the Euro crisis is continuing to hold construction activity in check. This trend is exacerbated by the situation in the world economy, which remains difficult,” Hunt said. “The strongest forecast declines in construction output in 2014 are expected in Spain, expected to be down 7.7 percent, and in Portugal, expected to be down by 3.5 percent,” he continued. “Conversely, the largest increases are predicted for Norway, at 4.6 percent, and Sweden, at 3.5 percent.”

Residential construction will be up in Europe, Hunt said. “In terms of [market] sectors, residential construction shows the most promise for a recovery between now and 2015,” he explained. “The outlook for non-residential construction and civil engineering is weaker. Non-residential construction is expected to fall 0.3 percent in 2014, before recovering to a one-percent growth in 2015.”

Infrastructure projects also have slowed throughout much of Europe. “Civil engineering output is expected to show a 0.4 percent growth in 2014, and a 1.4 percent growth in 2015,” Hunt said. The Hill team already is preparing to capitalize on that slight upswing in infrastructure and heavy civil engineering projects expected a year from now, Hunt said. “We’ve already established a strong service offering in the heavy civil engineering and infrastructure market sectors. We’re also strong in buildings and transportation.”

Below: National Library of Latvia

The team’s strength in Europe is aided by its reputation as a global leader in construction claims consulting--a service line that maintains its competitive edge even as economies falter. “Throughout 2014, we expect to maintain our position as a market leader in claims, strategic advisory and expert services, particularly in the heavy civil engineering and infrastructure, process, oil and gas, and power generation market sectors,” Hunt said.

Until Europe regains its economic footing, Hunt said that Hill will maintain its competitive edge by focusing on seven inter-connected areas. “The first is our reputation, which we have worked very hard to establish over the years. The second is quality management, for which our ISO 9001:2008 Quality Assurance accreditation sets us apart from our competitors. The third

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“In terms of [market] sectors, residential construction shows the most promise for a recovery between now and 2015.”

is finance, where we continually monitor our performance to ensure that we maintain an effective business structure. Fourth is business development. We encourage all of our staff to be business development ‘aware’ through training and informal mentoring,” Hunt said. “The fifth is project execution, and trying to ensure that we employ best practices in all we do, both internally and for our clients. The sixth is communication. We try to ensure regular and effective internal and external communication with colleagues, peers, clients and their advisors. The seventh is staff recruitment and development. Each member of our staff should have an individual development plan that helps them chart how they can excel and progress in our business. All of these areas together help us maintain our success despite the economy,” Hunt said.

Frank J. Giunta, P.E., senior vice president and managing director (Americas) agreed that Hill’s strengths have helped the firm grow, despite the economy, politics, market focus and other variables. Giunta oversees Hill’s claims consulting operations throughout the United States, Canada and Latin America.

“We see great opportunities in the West and great opportunities in Latin America,” he said. California, for example, is planning or already building more significant infrastructure projects, Giunta said. In the Northeast it is more built out, and the infrastructure has been in place for decades, so you are seeing more upgrades, renovations and replacements like the Tappan Zee Bridge project.

“While I see great opportunities for 2014, I also see the need to find the right resources to meet those opportunities. Hill is the largest claims consulting firm in the world, and in the U.S. At the same time, the world is shrinking. There are only so many opportunities, so many big opportunities to go around, and we’re tailoring our business development to address that reality. We call it ‘Rising Prospects; Shrinking Planet.’

Above: United Nations Office Complex, Geneva

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“We’ve got to think internationally,” Giunta continued. “Everybody is a world player now.”

In addition to global competition, Hill’s sheer size and number of offices and employees present both opportunities and challenges in the year ahead. “We have a vibrant $100-plus million claims operation. As we get bigger, our relationships get more complicated. So, even something as simple as managing our contacts needs to change. Now, we’ve got to manage those contacts internationally to best serve our clients,” Giunta explained.

Hill’s size means that it’s easier than ever to put the right people in the right spots around the globe. “The resources are there, and we’re

ADNOC Rendering Pictured: ADNOC Headquarters, United Arab Emirates

2014 Outlook Depends on Where You Look

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stronger collectively than we are separately,” Giunta said. “Making the best use of global resources all starts with communication.”

Giunta agreed that, even in the Americas, hot market sectors vary from region to region. “In Houston and western Canada, it’s oil and gas. In Latin America, it’s oil and gas, energy, building and infrastructure. In Manhattan it’s financial institutions and international law firms.” That said, much of the U.S. will see a spike in infrastructure and transportation projects, Giunta said.

In Brazil, for example, which is hosting the highly anticipated World Cup this summer and the 2016 Summer Olympics, many capital projects are well underway. While opportunities to manage those projects may have passed, each presents opportunities to provide claims and consulting work. The same holds true for other mega projects elsewhere, Giunta added. “Even after project management decisions have been made, there are still opportunities for claims and consulting services,” he said. Latin America, and Brazil in particular, have embraced ICC (International) arbitration as a means of resolving disputes. Hill’s worldwide resources and experience in this area are unmatched, which provides tremendous opportunity as we go forward.”

Yet, even in flush Brazil, which has seen unprecedented construction over the past five years, more infrastructure and transportation projects are needed. While much has been built in and around Rio de Janeiro to support the World Cup and the 2016 Olympics, more infrastructure is needed in other parts of the country, Giunta explained. Brazil’s traffic problems are legendary,” Giunta said. “That can’t continue.”

Opportunities for claims consulting exist because even the most carefully planned and executed projects run into problems, Giunta explained. Being top-of-mind when problems arise is crucial. “We are a group based on contacts, and we are successful by introducing ourselves to new people and establishing relationships,” he said. “Our success relies upon making sure that the people interested in building the big projects know who we are,” he said.

Giunta sees more opportunities resulting from Hill’s ongoing consulting on the Panama Canal expansion. “We expect to continue to play a significant role on the Canal expansion, and in other parts of Latin America and Brazil as well,” he said.

Giunta sees management consulting as a service line with great potential in 2014 and beyond. Giunta tapped industry leader Peter J. Wallace to head that “pure consulting” side of the business. “Increasing numbers of clients are turning to Hill for auditing, project governance, integrity monitoring, efficiency and productivity consulting and related services” as a means to pinpoint weak spots and detect and deflect problems before they affect increasingly tight schedules and budgets, he said.

Like many across the U.S., is Giunta optimistic about 2014? Cautiously optimistic? He pauses. “Yes. Cautiously optimistic, yes,” he concedes. Giunta, however, is clearly cautious in confirming what some are heralding as a real and swelling West-to-East recovery in the U.S., one which is expected to jump across the pond and reverse Europe’s downturned fortunes very soon.

“I will say that our revenue has increased each year, and we expect that will continue,” he said. Giunta is sure about one thing: thinking--and acting—globally is key to Hill’s success in 2014 and beyond. “We have become a truly international firm in every respect and, as such, can offer our clients the resources that few other firms can.” Call it a New Year’s resolution, Giunta said. “As Hill continues to grow, it’s important to work together to manage and allocate those resources, recognizing that the planet isn’t so big after all.”

“We see great opportunities in the West and great opportunities in Latin America.”

Over the coming months, Kardous will continue to leverage Hill’s work on DLF City and other commercial projects, and simultaneously focus on projects that will improve India’s beleaguered infrastructure, including airports, roads, healthcare and power projects. Houser agreed. “Our challenge in India is to expand our client-base beyond real estate developers and building projects to infrastructure and industrial projects,” he said.

Hill’s first toe-hold in China was its construction management assignment for the $1.4 billion Rising Sun Taipei City, a ground-breaking mixed-use development in Chongqing, to include a shopping mall, exhibition center, residences, office space and retail. Hill’s five-year contract for with Rising Sun International Real Estate Venture Investment LLC is progressing well, and has led to other opportunities in the growing central China city and throughout the emerging nation. And, while Hill will continue to rely upon private developers to help win assignments there, the firm’s performance on privately funded projects hasn’t gone unnoticed by potential public and governmental clients, Kardous said. “China’s government is its leading investor, particularly in major infrastructure projects,” he said. Soon, China’s burgeoning middle class and need for modern infrastructure will overwhelm its locals-only hiring practices and force local, regional and national governments there to turn to outside firms--like Hill--for help.

Hill’s in-country efforts are aided by staff at outposts in London, Abu Dhabi and Washington, who have been tasked with forging relationships with NGOs and private firms that do large amounts of work in Asia. Such relationship-building is aided by Hill’s long presence in each place, said Raouf Ghali, pesident of Hill’s Project Management Group (International).

Kardous has nearly three decades of experience in managing complex projects. Many of those projects were in the Middle East, and Kardous was on the front lines of the explosive development there. Convincing clients to hire a foreign firm wasn’t always easy. But Kardous and the other Hill executives before him, including Ghali, relied upon well-planned strategies, the currency of their reputations, a little diplomacy and a lot of patience. Over time, Hill became the go-to construction consultant throughout the Middle East. Asia is a different continent, requiring different approaches. But, the basics are the same, all three executives said. Thanks to hard work and patience, “we have made historic inroads in China and India,” Kardous said. “I look forward to what the future holds, for the Asian countries, for their people, and for Hill.”

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Rising Sun Taipei City Pictured: Rising Sun, Taipei City

Hill Making Inroads in Elusive, Emerging Asia

T hanks to multi-faceted business development strategies, a global reputation for excellence and a lot of patience, Hill International is winning long-

sought work in both China and India, as well as other Asian outposts.

While the global economic cool-down hasn’t spared Asia, it has only dampened--not extinguished--expected growth there. Hill vice president Bob Houser has spent much of the last 20 years working in Asia. China, Hong, Kong, India and other parts of Asia will continue to grow over the next several years, he said. And Hill is poised to benefit from that growth.

China, for example, is expected to see growth of more than seven percent in 2014 and 2015, Houser said. “Similar to Mainland China, Hong Kong’s 2013 growth has been revised down, but remains at 3.8 percent, with the property market continuing at a its current level or at a slight increase,” he added.

India’s emergence as a world market has slowed a bit, but Houser remains optimistic. “India is expected to continue its growth, albeit at a slower rate, with Rupee stability and inflation-taming major concerns,” he said.

Economic considerations play only a part in a prospective client’s decision-making, Houser said. Relationships and reputation are just as important. In China, for example, local companies are favored over foreign ones. In India, bureaucracy and resultant “red tape” can be daunting.

Abdo E. Kardous, Hill senior vice president and managing director of Asia-Pacific Operations, said his team has avoided much of that red tape by targeting private developers and multi-national companies, as opposed to governments.

Hill currently is working with private property developer DLF Ltd. on two projects that are part of the massive DLF City, located in Gurgaon, near New Delhi, in India’s northern region. Gurgaon is one of India’s most prosperous cities, and the super-luxury DLF Development will take full advantage of that wealth, with the construction of high-end residences, retail properties, entertainment venues and office buildings.

Kardous said his group also is targeting international funding agencies already supporting a variety of projects in India.

“China’s government is its leading investor, particularly in major infrastructure projects.”

Above: Tappan Zee Bridge, Tarrytown, NY

Hill’s Roads and Bridges Work Takes Off

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W inter weather may have slowed things down a bit, but Hill International’s highway and bridge work is in the fast lane.

Hill International is providing a variety of consulting services for highway and bridge work in four contiguous states, from the Ohio-Indiana border, through Pennsylvania, New Jersey and across the Hudson River in New York.

Hill is providing construction management services to the Ohio Turnpike and Infrastructure Commission for multiple pavement replacement projects along the 241-mile-long roadway. Hill project director Toby S. Fritz, P.E., CCM, LEED AP, has been working with the Ohio Turnpike and Infrastructure Commission (OTIC) since 1997. Then, the OTIC was widening the turnpike from two to three lanes in each direction, widening bridges, and making other improvements to handle increased traffic. During lulls in that work, Fritz, along with Hill project director Todd Cooper, P.E., managed the reconstruction of service plazas along the busy highway, which runs east-west and is the primary corridor between Pittsburgh and Chicago. In 2008, Fritz and his project team again were tapped to help the OTIC, this time as subconsultants during the pre-construction phase of the massive pavement replacement program. Then, in 2013, Hill was selected by the OTIC for the current Program Management assignment.

Fritz credits the team’s past efforts for OTIC as a primary factor in winning the new work. Hill project executive Vic Spinabelli, Jr., P.E., agrees. “We started as a subconsultant on the first five sections of the pavement program, and our performance and leadership helped us to be selected as the prime firm to help manage the program,” Spinabelli said. “We knew our way around from working previously on the main line. We gained a lot of experience on that third-lane project.”

The pavement replacement program is divided into individual projects that entail replacement of five miles of roadway. Dividing the work into five-mile lengths and staggering locations keeps both the projects and traffic moving.

Spinabelli also is overseeing Hill’s work on the adjacent Pennsylvania Turnpike, which connects with the Ohio Turnpike west of Pittsburgh and also has seen huge surges in traffic since its construction nearly 75 years ago. Dubbed “America’s First Superhighway,” the Pennsylvania Turnpike opened its first lanes in 1940, built to improve transportation over the Appalachian Mountains in central Pennsylvania. Now 360 miles long, the Pennsylvania Turnpike connects Ohio and Pittsburgh in the west with Philadelphia, New Jersey and the I-95 corridor to the east.

Hill is providing construction management and related services to the Pennsylvania Turnpike Commission for several sections of its massive reconstruction program that will widen and improve

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“Right now, we are working on projects that reach from the Ohio-Indiana state line to the Atlantic coast. It’s great to see all of that work going on.”

1947 and 1957, runs north to south along New Jersey’s storied coastline, roughly parallel with the New Jersey Turnpike. It is a primary route that connects the southeastern part of the state with North Jersey, New York City, and parts north.

Michael V. Griffin, P.E., Hill senior vice president and regional manager, said Hill was chosen to manage the Facilities Improvement Program because of its prior experience with the NJTA and other area highway projects. “This program is an important part of the overall improvement of New Jersey’s highway system, and we are honored that the NJTA, a long-term client, selected us to oversee it,” he said.

Hill’s travels don’t stop there, however. The firm recently was selected by the New York State Thruway Authority to administer a Project Labor Agreement for long-planned improvements to the Tappan Zee Bridge.

the roadway all along its length. Like the Ohio program, the Pennsylvania Turnpike work is divided into separate projects. Unlike their neighbors to the west, work on the Pennsylvania Turnpike involves early-action bridge widening, followed by the roadway widening.

“The difference is that the Ohio Turnpike is doing five-mile segments, in one direction, at a time. They’re not doing any widening or adding capacity now; this was done previously,” Spinabelli explained. “In Pennsylvania, they have it sequenced so that they’re doing larger segments in both directions at the same time, and widening it as well.”

In New Jersey, Hill is providing program management services to the New Jersey Turnpike Authority for multiple projects, part of a $500-million Facilities Improvement Program. The program involves the improvement of aging facilities along the New Jersey Turnpike and Garden State Parkway.

As program manager, Hill is overseeing and managing all aspects of the Facilities Improvement Program, including the inspection, assessment and implementation of remedial measures to bring toll plaza buildings, maintenance buildings and State Police buildings into compliance with current building codes and operational standards. The program includes the replacement of two State Police barracks on the New Jersey Turnpike, at Newark in northern New Jersey and Moorestown in the southern part of the state, as well as two on the Garden State Parkway, in Galloway in South Jersey, and in Bloomfield to the north.

The Facilities Management Program is an integral part of a massive $7-billion capital program that will widen, improve and relieve congestion on both the New Jersey Turnpike and Garden State Parkway. The capital program is one of the most ambitious in the Authority’s history, and will add a total of 235 new miles of roadway to both the Turnpike and the Parkway.

The iconic New Jersey Turnpike, constructed in 1951, is part of the busy interstate system that traverses the U.S.’s eastern seaboard. At 152 miles in length, the turnpike also is the primary link between New Jersey and points south with Manhattan and surrounding boroughs. The Garden State Parkway, built between

Below: New Jersey Turnpike Facilities

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The new, twin-span Tappan Zee Hudson River Crossing will replace the existing, 60-year-old bridge, which spans the Hudson River at one of its widest points. The existing bridge is New York State’s longest bridge, and serves is a primary link between New Jersey, New York City, Connecticut and New England. The new, $3.9-billion bridge will carry busy interstates I-87 and I-287 over the Hudson, and simultaneously service the states of New York, New Jersey and Connecticut.

Hill vice president James M. O’Neill, a pioneer in the field of Project Labor Agreements, said Hill’s earlier work on a PLA for Tappan Zee Bridge improvements nearly two decades ago, as well as the extensive experience with New York PLA projects since then, was a primary reason the firm was selected for the new work.

“The PLA negotiated with the New York State, Westchester County and Rockland County building and construction trades provides for standardized work rules and dispute resolution procedures for all trades involved in the construction, and guarantees that there will be no strikes or labor disruption during that construction,” O’Neill explained. “The PLA assures overall labor-management harmony, and results in a cost savings to the taxpayer of an estimated $450 million, or 25.7 percent of labor costs.”

“This project is an important part of overall improvements to our highway systems in the northeastern United States,” O’Neill added.

Spinabelli said that his projects in Ohio and Pennsylvania are equally vital to improving the region’s aging infrastructure. “The Ohio Turnpike and the Pennsylvania Turnpike both were built about 50 years ago. They’re main east-west corridors that get a lot of traffic. The original pavements on both of these highways have seen their useful life,” Spinabelli explained. “Over the years, improvements were made, but, now, both turnpikes are undergoing reconstruction from the ground up. They’re basically going all the way down to grade and then building them back up.”

Bernard H. Rohe, P.E., CCM, a Hill senior Project Manager who has worked on four projects for the Pennsylvania Turnpike Commission since 1996, said highway projects benefit more than just drivers. Rohe currently is managing two Commission projects, one of which is under construction and one of which is in the design phase. “The roads are needed for driving, yes,

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but also to move commerce. You’ve got to have good roads to get trucks where they need to go. And, businesses are built along those corridors, and rely upon the roads to thrive. In turn, those businesses help sustain local economies,” Rohe said. “But, none of that can happen without the funds to build or improve the roads.”

That same truck traffic comes at a price, Rohe added. “Truck traffic takes a toll on roads; not just the [Ohio and Pennsylvania] turnpikes, but also I-95, I-80, I-78, and other roads up and down the eastern seaboard,” he explained. As a result, highways need a lot of maintenance.

“The condition of the infrastructure and the roadways needs to be addressed, not just in Pennsylvania, but everywhere,” Rohe said. “Pennsylvania isn’t unique in its need to improve its infrastructure. But, the state is taking the steps, and coming up with the funding, to address its transportation needs.”

Griffin agreed. “All of Hill’s highway work, throughout the Mid-Atlantic region, represents a commitment by the states to making roads better, safer and more efficient. We’re glad to be able to play a part in that.”

Together, Hill’s work includes hundreds of miles of some of the most-traveled roadways in the nation. It is a distinction not lost on Rohe and his fellow Hill professionals.

“Right now, we are working on projects that reach from the Ohio-Indiana state line to the Atlantic coast. It’s great to see all of that work going on,” he said. “Everyone wins.”

Below: New Jersey Turnpike Pile Driving Project

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Above: Newly Designed MyLCM Website – www.MyLCM.com

MyLCM: Hill to Offer Industry-Changing Software

A Hill International subsidiary has debuted a software package and ancillary lines of services that can help everyone in the construction industry to better manage their payrolls and,

as a result, their bottom lines.

“To put it simply, for the construction industry, this will be like going from a bicycle to a car,” said Jonathan Liebe, vice president and chief operating officer at MyLCM Solutions, Inc., a fast-growing Hill subsidiary. “This” Liebe explains, is MyLCM.

Borderless Solutions

MyLCM is a web-based labor compliance management software platform that can be used to collect, monitor and manage certified payrolls according to increasingly complex local, state and federal prevailing wage laws. “Payrolls are required to be certified on every project that uses public dollars,” explained Hill vice president James M. O’Neill. O’Neill, a national expert on project labor agreements and labor issues, said that ensuring such certification isn’t always easy. Prevailing wage rates can vary drastically, from the federal level to individual states and counties. MyLCM provides for easy monitoring and compliance regardless of location, allowing users to access federal and

local prevailing wages and get the most up-to-date rates, all electronically.

Solutions for Every Stakeholder

Whatever the level--whether federal, state, or local--the success of a capital project often turns on who’s being paid what. “Everything revolves around the certified payroll. On most projects, there will be several contractors, including subcontractors, each of whom must maintain a payroll that covers many workers. On a ‘mega project,’ there could be dozens of contractors and hundreds of workers,” O’Neill said. Using MyLCM to monitor certified payrolls could result in substantial savings of both time and money for all stakeholders.

MyLCM also keeps track of compliance with minority, women-owned and disadvantaged business (M/W/DBE) participation, integral to most public projects and an ever-increasing number of private projects as well.

The software has been tested by public owners and private contractors alike, and has far-reaching benefits for both. “The system also works cross-agency, so that different state agencies

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don’t get billed for the same work on the same project,” added Huey Siah, vice president and chief technology officer at MyLCM Solutions.

“And contractors love it because it speeds up the review process and helps them get paid faster,” Liebe added. “It makes sure they’re in compliance. Most contractors want to do the right thing. They want to stay on track, and MyLCM gives them vast insight into whether they’re doing things properly, and helps ensure that they’re on the straight and narrow.”

MyLCM helps make the entire payroll process more transparent, and helps ensure that contractors and subcontractors are being paid fairly and to the letter of the law.

Solutions for Every Budget

Until recently, all payroll review and certification had to be done manually, requiring countless hours of work throughout the life of the project. Problems, complaints or outright non-compliance had to also be investigated manually, with staff poring over months—or years—worth of documentation, a process that is both slow and costly. “Most public agencies are working with limited budgets, and can’t afford the time and cost of really comprehensive audits,” Liebe said. “MyLCM gives them a full, 100-percent look into all of the payrolls at a fraction of the cost, and a fraction of the time.”

Federal and state departments of labor, faced with dwindling budgets and staff amidst mandates for increased oversight, would vastly benefit from this software, O’Neill said. A lot of departments of labor have had to steadily increase their oversight and enforcement over the past several years. MyLCM can help make the DOLs’ investigative work more thorough and efficient. “People are being increasingly required to do more for less, and there are never going to be fewer requirements, fewer hoops to jump

through; less oversight,” Liebe added. “MyLCM allows the agencies to free up their auditors and do more actual audits than they were able to do before.”

Reporting Solutions

In addition to affording a higher level of oversight, MyLCM also elevates reporting capabilities to new heights. “Once the data to certify payroll compliance is entered, all of those artifacts become very useful for other needs, most of which is reporting,” Siah explained. “For example, MyLCM can be used to monitor and report on compliance with Project Labor Agreements and other labor agreements. You’re able to easily track demographics, employee job titles and job descriptions, their training and certifications, and you’re able to produce very sophisticated reports on the specific regions in which you’re working. Manually, it takes months to create these kinds of reports.”

Reports also can track and help clients adhere to ARRA funding compliance and other complicated federal and state funding mechanisms. A limitless number of highly distinct reports become possible.

Proprietary Solutions that Dig Deep

MyLCM also has a proprietary and exclusive feature, called the Footnotes Engine®, a patent-pending tool that checks compliance in more depth than ever before. In addition to checks of prevailing wages, MyLCM’s patent-pending Footnotes Engine® allows clients to perform additional checks of information contained in the often-overlooked footnotes sections of prevailing wage determination schedules. My LCM’s Footnote Engine® helps pinpoint information routine manual checks may miss, and also is able to store and retrieve feedback on why previous checks have passed or failed.

“Footnotes are additional rules about what you need to do,” Siah explained. “For example, a prevailing wage schedule may contain an hourly rate for a specific tradesperson, but a special overtime rate for that person, if he or she works more than six hours in a day, is contained in a footnote.”

My LCM’s Footnotes Engine® electronically stores and easily retrieves footnoted wage information from all 50 U.S. states, and provides tools for easily calculating and applying those footnotes. Such depth isn’t available in competitors’ software, Siah said.

“Other software packages can compare the numbers, but labor laws or prevailing wage laws are not just about those numbers. Footnotes are a big part as well.” Siah said. “What really sets us apart is our Footnotes Engine®, which not only handles all of the footnotes, but allows for complete transparency in how those footnotes are calculated.”

Such transparency is vital to reducing ambiguity or conflict among differing rules, and to pinpointing and fixing potential areas of non-compliance. “Let’s use a car analogy. A prevailing wage is like a car that that carries specific passengers. When the car breaks down, it’s not always easy to determine why. With our competitors’ software, using the same analogy, you’d have to see a mechanic to determine what went wrong and get it fixed,” Siah explained. “But, MyLCM and its Footnotes Engine® is designed in such a way that the driver can see and figure out the problem himself. That’s what we mean by transparency.”

Preventative and Remedial Solutions

MyLCM also can help be invaluable to forecasting--being able to predict future outcomes,” Liebe added. “You can create lists that show historical performance of

“People are being increasingly required to do more for less, and there are never going to be fewer requirements, fewer hoops to jump through; less oversight.”

continued on page 12

12 News from the Hilll

“Other software packages can compare the numbers, but labor laws or prevailing wage laws are not just about those numbers.”

said. “And the system allows you to sign the payroll report, which makes if official. No more incomplete payroll reports!”

Solutions from a Proven Leader

Liebe and Siah head the MyLCM practice, and are responsible for marketing it. O’Neill and other Hill executives see it not just as an innovative “stand-alone” service, but as a great addition to Hill’s already comprehensive line of services, each designed to reduce the risks inherent in construction projects.

Liebe and Siah, likewise, feel that Hill International’s three decades of construction and claims consulting and international reputation add tremendous value to the MyLCM product line. “Our competitors are software companies. We’re a CM/PM. We have the people with the experience in labor compliance to back up this incredible software,” Liebe said. “Our competitors are not project or construction managers, they’re not claims experts, they’re not labor and PLA experts.”

In addition, MyLCM is backed by a publicly traded firm with 37 years of history and experience.

“We’re not just a software provider,” Liebe continued. “We have the people—the professional services—to back up the software and provide a depth that our competitors can’t match.”

various contractors and easily pinpoint which contractors are right for the project and which aren’t.”

In addition, MyLCM’s data can be used to avoid costly claims and disputes, and in mediation or litigation.

Proven Solutions

Clients large and small who use the software are amazed at its capabilities and effectiveness. “Clients who are using it say that there’s no way they can go back to the old way of doing things; that this software has changed their lives,” Liebe said. “Everyone asks the same basic question. They all ask ‘Where has this been all of our lives? We can finally see where the issues are’.”

Existing clients include the Port of Oakland, the Wisconsin Department of Transportation, Dragados, a leading contractor, the Seattle Housing Authority, and the New York City School Construction Authority. The School Construction Authority, which oversees and manages all K-12 construction and renovation projects throughout the city’ five boroughs, has been helping Hill test and refine MyLCM for the past couple of years. “It would take a seven-story building to store all of the records that the SCA has put into the software,” Liebe said.

Dragados, an international contractor and construction manager based in Madrid, has been using MyLCM on one of its U.S. projects in south Florida. Dragados USA, Inc. uses the software to easily monitor and report on certified payrolls of more than 100 contractors. My LCM has saved time by pinpointing mathematical errors, underpayment by classification and other errors. “Not having to manually calculate rates is a huge factor,” said Ruth Robinson, DBE/OJT Coordinator at Dragados, USA. “Payroll is a time-sensitive matter and, without this software, additional staff would be required to manage the reporting of payrolls.”

Dragados also likes that MyLCM automates the process. “The fact that the system prompts the contractor to complete each column is beneficial,” Robinson

continued from page 11

MyLCM Spreadsheet Pictured: MyLCM Prevailing Wage Determination Comparison

Hill Expands Presence in South Africa

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part of the client’s team, its ability to quickly understand complex technical and contractual situations, and its ability to constantly be at the forefront of legal and commercial developments in construction law. Those strengths won’t change. In fact, teaming with Hill will make us even stronger.”

“Key areas that we intend to develop in conjunction with Hill include expert witness services and forensic planning. There is a shortage of those specific resources in this country,” Binnington continued. “By joining with Hill, we’ll enhance our ability to find experts in any discipline, and extend our service to clients wherever in the world they may be working.”

Teaming with a firm of Hill’s size will make breaking into new markets easier, Binnington added. “South African companies have been exporting their skills beyond our borders more and more, but have to compete with established international organizations that have been working in the global arena far longer,” he explained. “Hill’s unmatched global footprint means that we can offer our clients the best of both worlds; local knowledge and international expertise. Quite a winning combination.”

In addition to construction contract consulting, Binnington Copeland provides training in a variety of construction and risk-related topics, including contract law, FIDIC, construction adjudication, construction claims, insurance and liability, project delays and disruptions, and project planning, scheduling and control.

Sue Rule, administration manager at Binnington Copeland’s Johannesburg office, said the firm’s training often leads to other assignments. “We are well known for our training, and it opens the door to other opportunities,” she said. “Teaming with Hill International will allow us to offer an even greater breadth of knowledge.”

Samelian agreed. “Binnington Copeland’s specialist subsidiary, BCA Training, will enjoy the benefit of access to Hill International’s pool of resources and trainers,” he said.

Both Binnington Copeland & Associates and BCA Training will retain their identity but operate under the joint BCA/Hill International brand.

Medupi Power Station Pictured: Medupi Power Station, South Africa

H ill International has strengthened its foothold in the world’s second-largest continent with the acquisition of a well-regarded South African firm.

Binnington Copeland & Associates provides construction contract consulting and training services to clients throughout Africa and abroad. The firm, with offices in Cape Town and Johannesburg, has forged a reputation for excellence in the resource-rich, emerging country since its founding more than 25 years ago. In fact, it was Binnington Copeland’s long-standing, stellar performance as a subconsultant to another Hill subsidiary, Knowles Ltd., that got Hill’s attention.

“We had been considering an expanded presence in South Africa for some time to better serve our growing list of clients there and throughout Sub-Saharan Africa,” said Frederic Z. Samelian, PMP, MCIArb, president of Hill’s Construction Claims Group. “Binnington Copeland proved to be the most natural fit.”

Samelian added that, while the acquisition will aid Hill’s growth throughout the more than 51 countries that comprise sub-Saharan Africa, it will also be a boon to long-time Binnington Copeland clients as well. “Our local clients in South Africa, along with foreign companies with projects in South Africa, will benefit by having immediate access to all of Hill’s worldwide capabilities as a result of this acquisition,” he said.

Chris Binnington, Pr.Eng., managing director of Binnington Copeland agreed. “BCA will continue to offer its traditional services to clients, including commercial and contractual advisory services, construction claims support and all forms of alternative dispute resolution, including adjudication and arbitration,” he said.

Binnington Copeland provides its services to a variety of clients. Two of its most notable projects involved the provision of strategic procurement advice and contract drafting services to the national oil company, PetroSA, for its proposed 450,000 barrel-per-day crude oil refinery at the new port of Coega, near Port Elizabeth, and two major expansions of the Richards Bay Coal Terminal on South Africa’s northeast coast. While the services vary, they collectively help clients avoid risk from the earliest stages of their capital projects.

“Binnington Copeland’s principal strengths are a commitment to providing excellent client service with particular emphasis on problem-solving by becoming

“Binnington Copeland proved to be the most natural fit.”

H ill International has acquired Collaborative Partners, Inc. (CPI), a Boston-based project management firm that provides project management, strategic planning and regulatory services.

“The acquisition and the 20 outstanding construction professionals that it added to our team gives Hill its first presence in the New England market, and opens up a tremendous opportunity to grow operations throughout the region,” said David L. Richter, Hill’s president and chief operating officer.

CPI will operate under the Hill International brand with offices in Boston, Massachusetts and Providence, Rhode Island. Both of these operations will report directly to D. Clarke Pile, senior vice president and New York regional manager.

Jack C. Hobbs, FAIA, CPI co-founder and CEO will serve as Hill’s senior vice president and New England regional manager. “Donna Camiolo and Joseph Naughton have been with CPI for more than a decade, and have both been key contributors to CPI’s success,” Hobbs said. “They will now be vice presidents.”

Becoming part of Hill won’t change the way Hobbs and his staff services their clients. “We have very strong relationships with our many long-standing clients. It is important for them to know that nothing about our team, our service or commitment to their projects will change,” Hobbs said. “We are now part of a global company with a vast array of construction services and expertise, but we are still a New England operation that understands how to deliver successful projects in the New England market.”

“With a strong reputation in the healthcare, life sciences and education markets, the CPI acquisition will only strengthen Hill’s already impressive portfolio in these growing sectors. Hill and CPI have both demonstrated excellence in the healthcare sector,” Richter said. CPI’s healthcare clients include Steward Healthcare, Massachusetts General Hospital, Partners Healthcare, Boston Medical Center, Mt. Auburn Hospital, and Hebrew Senior Life. CPI also has several high-profile education-sector projects, including five projects on four campuses for the University of Massachusetts Building Authority, and the Massachusetts State College Building Authority’s Bridgewater State University Live Learning Center. Notably, the $40 million Live Learning Center is a LEED Gold-certified project that recently was nominated for a project achievement award from the Construction Management Association of America.

“Having worked with some of New England’s most prestigious universities, which also include Northeastern University, Boston University, and Suffolk

University, CPI will help Hill’s initiatives in a booming higher education market,” Hobbs said.

The opportunities within complimentary sectors are very exciting, but this acquisition also paves the way to introduce Hill’s experience in other sectors that were not part of CPI’s portfolio, Richter added. “There are abundant opportunities for infrastructure construction throughout New England. CPI’s market knowledge and reputation will help Hill grow in previously untapped market sectors. Airports, rail/transit and roads/highways markets in which CPI has little experience, are now attainable sectors with the addition of Hill’s vast experience in these markets,” he said.

Such diverse and in-depth experience also will mean that Hill will be well positioned to take advantage of expected growth in New England as its economy continues to waken from its recessional slumber, Richter said. New England fared relatively well during the recent recession, thanks to already low unemployment rates, a diversified economy and a low tax burden. Massachusetts in particular has seen a notable amount of growth over the past 18 to 24 months, and is expected to lead the region in construction starts. Gains in healthcare, education, technology and residential construction made over the past two years are expected to bolster other market sectors as well.

“We’re now in a unique position in New England, Richter said. “The region is full of opportunities and, thanks to the depth and breadth of our services and the expertise of our professionals, we’re ready to work with Jack and his staff to make the most of those opportunities.”

14 News from the Hilll

Hill Acquires Boston Firm, Strengthens Ties to New England

“With a strong reputation in the healthcare, life sciences and education markets, the CPI acquisition will only strengthen Hill’s already impressive portfolio in these growing sectors”

About Hill International, Inc. Hill International, with 4,000 employees in more than 100 offices worldwide, provides program management, project management, construction management and construction claims consulting services primarily to the buildings, transportation, environmental, energy and industrial; markets. Engineering News-Record magazine recently ranked Hill as the 9th largest construction management firm in the United States.

Hill International is proud to be a publicly traded company listed on the New York Stock Exchange (NYSE: HIL).

We gratefully acknowledge the following Hill personnel for their contributions to this edition of News from the Hill:

Bedr Al-Rais, Frank Giunta, Bob Houser and Toby Hunt, for their assistance with the article on Hill’s global outlook for 2014. Abdo Kardous, Bob Houser and Ashok Dutta, for their assistance with the article on growth in Asia. Mike Griffin, Berne Rowe, Toby Fritz, Jim O’Neill and Vic Spinabelli, for their assistance with the article on Hill’s highway work. Jonathan Liebe, Jim O’Neill and Huey Siah, for their assistance with the article on MyLCM. Chris Binnington and Sue Rule, for their assistance with the article on Hill’s expanded presence in South Africa.

News from the HillThe editorial board of News from the Hill welcomes your suggestions and comments.

Call us at 856-810-6210, or write to us at:

Hill International, Inc.

Attn: John P. Paolin, Executive Editor, News from the Hill

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or via e-mail at info@hillintl.com.

John P. PaolinExecutive Editor

Tricia M. McCunneyEditor and Senior Writer

News from the Hill is not intended to provide legal or business advice. Always consult with an attorney or other professional advisor prior to implementing any general suggestions or recommendations reported in News from the Hill.

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