As the economies of Europe and North America, Japan and other long-industrializedregions continue to struggle to gain sure footing, executives at Hill International and otherglobal companies are turning their attentions — and marketing dollars — to areas of theworld whose economies are, conversely, breaking into a sprint. These nations and regions— pockets of growth in disparate areas of the globe — have been termed the world’s nextemerging markets, and are being both carefully watched and ardently courted.

These emerging markets — counties or regions of the world that are experiencing rapideconomic growth and, in many cases, historic societal shifts — are expected to make upwell more than half of the world’s economy by the middle of the 21st century. Whileeconomic experts differ on the specific nations or regions involved in this heady growth,all agree that the economies of the BRIC (Brazil, Russia, India and China) nations are thefastest growing.

“In Central and South America, we’re seeing economies with growth rates far in excess ofthat in the U.S.,” said Frank J. Giunta, P.E., Senior Vice President and Managing Director(Americas) of Hill’s Construction Claims Group. “Throughout both regions, you’re seeingrather significant growth, particularly in Brazil.”

The Republic of Brazil is, by far, the largest country in South America, and the fifth largestin the world in terms of its population and land mass. Brazil’s economic strength is equallyimpressive: its gross domestic product, at $2.3 trillion, ranks seventh in the world. Brazil’sstar is expected to continue rising. In June and July of 2014, it will host the renowned

The Global Leader in Managing Construction Risk

WINTER/SPRING 2012

Emerging Markets Take Center StageIN THIS ISSUE

1 Emerging Markets Take Center Stage

6 Groundswell of Economic Growth in

U.S. West Could Launch National

Recovery

9 Project Management Oversight:

A New Perspective

10 Hill Hires, Promotes Key Executives

12 About Hill

Editorial/Acknowledgements

West Coast projects gaining speed. Story page 6.

Construction in Brazil and other emerging countries is booming. Pictured: Atrium Faria Lima, Sao Paulo, Brazil.

continued on page 2

FIFA World Cup, held every four yearsand followed zealously by nearly everycountry in the world. Two years later,Brazil’s most famous city, Rio de Janeiro,will host the 2016 Olympic Games. Theseevents, coupled with the surgingcollective wealth and buying power ofBrazil’s 192 million citizens, are expectedto create a windfall of opportunity forboth in-country and global firms. The biggest area of opportunity?“Infrastructure,” Giunta said. “The amountof infrastructure needed to support theWorld Cup and the Olympics is amazing.”

Jose Manuel Albaladejo Canedo-Argüelles, Vice President and ManagingDirector at Hill’s Madrid-based subsidiary,Gerens Hill International S.A., agreed.“With both ongoing and funded largeindustrial and infrastructure projects, aswell as (planned) projects that have beenconfirmed, Brazil will continue growing,”Albaladejo Canedo-Argüelles said.“Likewise, if we take consumption andexports as leverage for growth, weexpect that Brazil will continue to grow.Every year, the population of Brazilincreases its capacity for consumption.The internal demand is real, and it’sgrowing.”

Demand for Brazilian products also hasrisen sharply, and is expected to continue,

Albaladejo Canedo-Argüelles added.“The external demand also is real. Theworldwide economic crisis affectingwestern countries does not change thefact that China and the rest of LatinAmerica are consuming and demandingmore,” he said. “Brazil has naturalresources that are in high demandelsewhere, such as soy, petroleum andvarious other minerals, just to name a few.And, infrastructure projects to improveexport-import platforms to support thisgrowth are also underway.”

Increased wealth and spending poweralso presents opportunities in othermarket sectors as well, AlbaladejoCanedo-Argüelles added. “The need forhouses and cars will explode, causing asimilarly explosive need for a greatersupply,” he said. “The industrial sectoralso is increasing and will further develop,as long as internal transportation costscontinue to decrease. I expect thosecosts to decrease as Brazil’sinfrastructure continues to improve andtransportation becomes more efficient.”

A growing industrial base also is drivingthe rise of economies in China andSoutheast Asia, said Abdo Kardous, a HillSenior Vice President and ManagingDirector responsible for projects in theAsia-Pacific region.

Economic escalation in China and Indiahas been well publicized over the pastcouple of years. “China and India accountfor nearly 40 percent of the world’spopulation, with more than 2.5 billionpeople,” Kardous said.

However, other parts of Asia, specificallySoutheast Asia, also are developingrapidly. Several tiny countries make upthe Association of Southeast AsianNations (ASEAN) region: Indonesia,Malaysia, the Philippines, Singapore,Thailand, Brunei, Burma (Myanmar),Cambodia, Laos and Vietnam. “Thesecountries, as a region, form together the

Emerging Markets continued from page 1

2 News from the Hill

Below: Rapidly expanding middle classes in China, India, Russia and Brazil are creating huge opportunities for retail growth.

These emergingmarkets…are expectedto make up well morethan half of the world’seconomy by the middleof the 21st century.

”

“

largest emerging market in the world.Indonesia alone, for example, already hasthe fourth largest population in theworld,” Kardous said. “The ASEAN regionis already experiencing a significantamount of growth; particularly in theindustrial sector. Realistically, thesecountries could not be growing without astrong industrial side.”

Kardous sees growth in other markets as well. “The service sector is another sector that is booming and has a lot of potential, primarily because of thepopulation growing in the ASEAN region.The service sector incorporates a broad range of markets, includingbanking, infrastructure, shipping andtransportation,” he said.

“To a large extent, all of the Asia-Pacificcountries we’re pursuing, including Chinaand India, all need development andinfrastructure, primarily transportationand power, to support their alreadygrowing industrial sectors,” Kardouscontinued. “The larger the industrialsector, the higher the need for power tofuel these industries and for atransportation system—whether it’sroads or railroads or ports—to supportthese industries. So, I would say thatmost of these countries need to makesignificant investment in infrastructure,primarily in power.”

Big capital investments can equal bigopportunities, Giunta said. “But, biggerprojects also can equal bigger problems.”

Often, in-country expertise in managingconstruction and its myriad risks lagsbehind development. As a result,emerging markets often have to relyupon international firms such as Hill to fillthe void. Owners and clients often alsolack experience with large capitalprojects and the internationalconsortiums that are now tasked withconstructing them.

“Better economies and more projects willattract global players, but many clientsaren’t used to working with firms on sucha global or international scale,” Giuntasaid. “From our perspective, thatinexperience can create opportunities inclaims consulting, expert witnessopportunities and overall consultingservices.”

Hill’s claims consulting services can runthe gamut from claims analysis, expertwitness services and litigation support tomore up-front risk management servicessuch as project auditing and oversight toensure that project funds are being spentwisely. “Public owners are now

embarking on projects of a size, natureand complexity that they’ve never seenbefore, so they’re interested in consultingthat helps manage their risk.”

Hill’s client roster in South America, forexample, is becoming increasingly full ofbanks and other lending institutions thatare funding construction throughout theglobe. “Hill’s consulting services provideclients such as the World Bank and theInternational Monetary Fund, forexample, with the oversight they need toknow where the money’s going, and thatit’s going where it’s supposed to go.”

Albaladejo Canedo-Argüelles agreed.“One of the challenges Brazil is alreadyfacing is access to qualified andaffordable professionals. Right now, thecost for experienced technical andmanagement staff can, in many cases, be higher than in Europe or the United States.”

In addition, South America now has onlya handful of attorneys who specialize inconstruction law. And, firms like HillInternational, which provide constructionclaims consulting and related services“simply don’t exist,” Giunta added. Hill isable to provide a mix of both highly

experienced, mid-level and support staffto provide services that are bothcomprehensive and cost-effective. Teamsalso are multi-national, comprised of stafffrom the U.S. as well as South America.

Many of those team members come fromEngineering S.A., a subsidiary of HillInternational. Based in Sao Paulo and Riode Janeiro, Brazil, most of EngineeringS.A.’s professionals are either nativeBrazilians or long-time residents.

3

continued on page 4

“In Central and SouthAmerica, we’re seeingeconomies with growthrates far in excess ofthat in the U.S.

”

Above: Happyland Vietnam is one of several destination projects planned to boost tourism in theemerging country.

“Engineering S.A. gives Hill an advantage.We have a presence there that speaks the language and understands theculture and is part of the community,”Guinta said.

“We rely on people that know the(clients), are highly experienced, andhave a good understanding of thecountries in which they are working. Weare truly thinking globally and actinglocally,” Albaladejo Canedo-Argüellesadded. “If we were to act as a purelyinternational firm, we would not havemuch of a chance in this region.”

Hill’s claims consulting teams arecomprised of internationally recognizedexperts who oversee projects and mid-and entry-level staff that can handlemuch of the legwork. “Engineering S.A.staff in-country can identify and gatherdocuments and our people here in theU.S. can do the delay analysis and expertsupport, as well as manage the entireeffort,” Giunta said.

“Identifying suitable, qualified individualswho have the experience and also thetechnical knowledge to be able to handlethe projects is paramount,” Kardous said.“Recruiting and hiring highly qualifiedpeople can help us not only break into amarket but also be successful indelivering our services to the client.”

Kardous agreed that having a localpresence is key to landing work—anddelivering successful projects—in Asiaand other parts of the world as well.Experience also must be accompanied byfluency in the country’s language andknowledge of its culture, laws andtraditions.

Not understanding how business worksin each country also can make businessdevelopment difficult. “It can appear that

4 News from the Hill

“

”

The opportunities are

tremendous, and there is

great potential for many

years to come...

Above: The expansion of the Panama Canal will help Latin American keep pace with increased manufacturing and shipping demand.

Below: Mumbai Monorail, Mumbai, India

there is a lack of transparency,” Kardoussaid. Many private and public clientswould rather hire a local firm, rather thanone headquartered on the other side ofthe world. “We’re bidding against localfirms that are used to local ways and localbusiness dealings. That is one of thechallenges we face.”

The challenges are much the same forGerens Hill, Albaladejo Canedo-Argüellessaid. “Breaking into the Latin Americanmarket requires understanding andrespect. When we try to open a newmarket, it is because we are interested indoing so, not because we are beingcalled in to do it. There is a largedifference between the two. In LatinAmerican countries, there is a lot tounderstand and to learn,” he explained.“But also, there are risks that need to bewell understood and measured. Notevery country is suitable for everycompany. Being able to identify this assoon as possible is important to avoidspending too much time and money onbusiness development, or to avoidrunning into unexpected risks.”

Still, Brazil and other Latin Americancountries have been largely welcoming,Albaladejo Canedo-Argüelles said.“Brazil, in particular, is a larger marketand is very developed in many ways.They know that they are a most attractivebusiness destination. So, on one hand,Brazil truly welcomes you. On the other, itis also made clear that you should“tropicalize” (localize) to be able to workthere. This is true in most of LatinAmerica, but probably more in Brazil.”

Targeting law firms, large contractors andother “ex-pat” clients already working inan emerging market can be another wayto build a roster of experience, forgeprecious relationships and get to knoweach country’s unique characteristics, allthree executives said.

“Some of the largest corporationsinvesting in Latin America, such asTelefonica, BBVA, Santander, Repsol orENDESA, are clients of ours back inEurope, and now, also in Latin America,”Albaladejo Canedo-Argüelles continued.“Gerens provides a sense of confidenceto these Spanish and European clients.We are the largest Project Managementfirm in Spain and have a solidunderstanding of the Latin Americanmarket. We also are one of the largestfirms working on the subcontinent.”

Kardous agreed. “Our strategy, when wefirst began aggressively pursuing work inthe Asia-Pacific market in 2008, was totarget North American companies

already working here, because they arealready familiar with our services. NorthAmerican companies also are morecomfortable paying sometimes higherinternational fees, and are morecomfortable (than in-country clients)hiring an international company,”Kardous said.

When the worldwide economic crisis thatbegan in 2007 slowed North Americaninvestment in the Asia-Pacific region,Kardous and his team shifted focus toinclude more in-country clients. “Westarted by identifying and targeting localdevelopers from the private sector. Wehad to change gears, and change our

5

Emerging Markets continued from page 4

Below: Economies of the ASEAN nations, including Malaysia, are reaching unprecedented heights.

5

continued on page 12

6 News from the Hill

Today’s struggling economy has caused ahunkering down of sorts. Many investors,buffeted by stock market squalls and a less-than-sunny economic outlook, are taking await-and-see approach to spending. As aresult, in many parts of the U.S., pipelines ofboth public and private-sector capitalprojects have become alarmingly close todrying up.

Hunkering down and waiting out the stormisn’t in Max Shoura’s forecast. He and otherbusiness development executives andregional directors at Hill International areinstead working harder than ever–and ininnovative new ways—to land contracts onpublic and private construction projects.

Shoura, a Hill Vice President, is based in Hill’sPhoenix, Arizona office and is responsible for

business development in the southwesternUnited States. True, Shoura admits, the Westand Southwest were nearly sunk by whatpundits are now calling the “great recession”that began in 2007. Unlike the GreatDepression in 1929 and subsequent recessionsthat have occurred nearly every decade since,the current economic downtown touched offby the lending crisis four years ago started inthe western United States. Previous economictempests usually always began in the East,and swept westward, Shoura said. Recoveriesalso flowed westward. But, this time wasdifferent, Shoura said. The downturn began inthe West, and he predicts, economic recoverywill begin there as well.

Michael B. Smith, a Hill Senior Vice Presidentand Western Region Manager, said the West’smammoth role in both the downturn andpending recovery is due to its sheer size, andthe size of its economy. “California has theeighth largest economy in the world, andmakes up 13 percent of the United States’gross domestic product,” Smith said. Shouraagreed. “California could be considered acountry in terms of its size and the scale of itseconomy.”

Despite widely publicized reports of itsimpending bankruptcy and other moneywoes, California isn’t washed up, Shoura andSmith said. “The west is recovering nicely. Thespeed is steady, and that’s what we want—asteady, consistent recovery. We didn’t expect(the economy) to come roaring back,” Shoura

said. “It’s almost as if we’re rebuilding thefoundation with certain market sectors. Therewas so much chaos in some sectors, and theirrecovery has to be slow and systematic.” Realestate and the public sector were hardest hitin the western United States, particularly inCalifornia. Recovery in those sectors shouldbe slow and systematic to ensure that it takesroot, Shoura said.

Smith and Shoura are seeing more and morework in several West Coast market sectors,including infrastructure, healthcare, andprimary and secondary educational facilities.“Infrastructure—transportation, water andwastewater, power, roads, bridges and ports—is already growing and is, in fact, the singlelargest sector in terms of growth,” Smith said.“California, for example, with all of itsbudgetary challenges, is still spending oninfrastructure.”

Transportation — in all forms — is a big marketfocus for us right now,” Smith continued. “In California, for example, we’re working on two of the largest transportation projectsin the state right now, the Gold Line FoothillRail Extension Project and the San FranciscoMTA Central Subway Project. And, the U.S. Department of Transportation haspledged another $928 million towardimproving California’s transportation with aHigh Speed Rail.”

Power is another part of the infrastructuresector that already is heating up in Californiaand other parts of the West. “A quarter of ourrevenue right now is coming from power,

Above: Transportation and infrastructure projects in the U.S. West are gaining speed, experts say.

“

”

California, with all of itsbudgetary challenges,is still spending oninfrastructure.

Groundswell of Economic Growth in U.S. West Could LaunchNational Recovery

Below: Tribal nations’ resort and casino projects areon the rise in the U.S. Southwest.

7

including power generation, transmission anddistribution,” Smith said. In addition, focus isreturning to the renewable energy market.“The problem in the past has been the cost.It’s expensive to create, and expensive to rollout renewable energy programs. Now, we’refinding ways to make it more affordable.”

Transportation, from highways and bridges toports and high speed rail, has also seen steadygrowth, Smith said. “Ports, the Port of LosAngeles, and the Port of Long Beach, haveseen increases in activity. Last year, ports hada 19 percent increase in activity from theprevious year,” Smith said. That increasemeans that manufacturers around the worldare experiencing growth in their orders. They,in turn, are producing more and shippingmore, which means more traffic at our ports.”The Ports of Los Angeles and Long Beachcombined are the busiest in the nation, andthe major gateways for goods to be shippedto and from the East, including China. Growththere could be a harbinger for recovery inother sectors as well, Smith said.

“Transportation and transit is another growingmarket. There are a lot of great plans forregional rail—high-speed rail--as well as localtransit projects. Several projects have alreadysecured funding for construction, and othershave secured funding through their planningand design phases. So, we expect a lot ofinvestment in transit and, potentially,highways as well,” Shoura said.

Highway work includes both newconstruction and much-needed rehabilitation

of aging roads and bridges. Cash-strappedgovernments may look to public-privatepartnerships (PPPs) to help keep highwayprojects in gear. “We’re hearing a lot aboutPPPs for highways work, and they maybecome a big factor in highway work here in Arizona,” Shoura said. “We’re talking aboutnew construction, as well as the rehabilitationof existing highways, repairs of the numerousbridges along existing highways, andexpansion and elevation of existing roads to relieve traffic congestion, which is almost like building a brand new highway,”Shoura explained.

Hospitals and other healthcare facilities alsoare beginning to look at new projects.“Healthcare work slowed a little, yes, but it isstarting to pick up. In fact, we expect this tobe a major area of growth here in thesouthwest. Healthcare in our region will begrowing for the next 15 years, because a lot ofbaby boomers are aging, with inherenthealthcare needs. They also are retiring andwant to live in the southwest because of theattractive climate and other advantages wehave here.

“For us, healthcare has been a good market,”Shoura continued. “We have picked up acouple of projects in the past few months.Currently we have four clients in healthcare,and will be working on securing three moreover the next couple of quarters.”

In general, healthcare and other private-sector owners are spending, albeit cautiously,while public-sector clients are holding back,

Smith said. “Not too long ago, 90 percent ofour business was in the public sector. Whenthat work dried up, we had to change focusand direct more attention to the privatesector. Healthcare is one private sector thatseems to be spending again, and will continueto spend, both in the near term and over thenext several years.”

The lack of work in some sectors is beingbalanced by growing work in others. “InArizona and other parts of the West, we’reseeing more opportunity in the NativeAmerican market,” Shoura said. “NativeAmerican tribes are, in many cases, largeproperty owners with consistent revenuestreams from the casinos that they’ve built.That revenue now is being used to fundinfrastructure on tribal lands, healthcare andeducational facilities on tribal lands, and othercapital improvements.”

“”

Clients are asking formore value for whatthey’re paying.

7

Above: Housing projects in the West and Southwest are on the upswing. Pictured: Cerro Pueblo, San Diego, California.

continued on page 8

Smith agreed. “It’s a niche market that hasproven to be very successful for us. Ourrelationship with the Native American marketstarted in the Pacific Northwest, and now hasexpanded to include projects in Arizona.”Keys to success with landing Native Americanwork are good working relationships onprevious projects, integrity, prudentmanagement, and putting the client’sinterests first. Hill’s experience in doingprojects in the Pacific Northwest—theNorthern Quest Resort & Casino in AirwayHeights, Washington, near Spokane, and theWildhorse Resort & Casino in Pendleton,Oregon— coupled with a major baseballfacility in Arizona, all has helped open thedoor to work for other tribes in the area.

Regardless of the market, the economy andhistorically tight budgets have led clients tospend cautiously. “Clients now are asking formore for less.” Smith said. “Our staff has towear many hats, and almost do two or threejobs at once.”

Many clients, especially public ones, haverequired that staffing rates remain constantthroughout the life of the project. Merit-basedraises and other pay increases an employeereceives cannot, then, be passed on to theclient. Smith said that while some clients may

ease pay freezes after a few years,

most are holding the line. He expects thatclients will start reversing this trend as the economy improves.

Shoura agreed that winning work now oftentakes both pencil-sharpening and flexibility instaffing. “Clients are asking for more value forwhat they’re paying. Many of the clients areasking for our staff to be integrated with theirstaffs. We’re seeing that more and morefrequently,” Shoura said. “The other challengeis that clients want us to lower our cost. InPhoenix, we’re able to do that because of ourgreat mix of senior project staff and juniorstaff. So, we can offer 20 percent less for ourservices by providing a mix of staff. And, weare able to offer the in-depth experience ofour senior-level staff along with the energyand innovations that the younger staff brings.”

A stronger sense of regionalization andsharing the workload among offices alsohelps reduce each office’s costs and also canprovide clients with a broader mix ofexpertise, Smith and Shoura said. Staff inShoura’s office can end up having a variety ofbosses. “We sell our services directly toproject owners, to other types of clientsemployed by a project owner, such ascontractors, and to project managers righthere at Hill who need our services. We provide

services to our Irvine office or to our San

Francisco office, for example, to fill positionsthey need. So, these opportunities haveexpanded services out of our Phoenix Office.”Staffing projects with a mix of peoplethroughout a geographic region not onlyprovides a breadth of expertise but also canprovide such expertise at a lower cost, Shourasaid. “The cost of doing business is lower inArizona than it is in places like California,” heexplained.

“One of the advantages of having a regionalapproach to doing business is that clients getthe best possible level of expertise for themoney, regardless of geography,” Smith said.“From Arizona, to Bellevue, Washington, toSan Francisco to Irvine, to San Diego, we canfill slots pretty quickly.”

Kenneth R. Baker, a Hill Senior Vice Presidentand Western Region Manager of ConstructionClaims and Consulting, directs operationsfrom Hill’s San Diego office. When businesstightened up over the past few years, Baker’sgroup increased its focus on, andcommitment to, strategic planning. Hebelieves that effort paid great dividends andhelped his group grow revenue and buildbacklog while other competitors of Hillcontracted during some pretty lean times.“One important result was increasedcollaboration among Hill’s people and officeswithin our western region. By asking ourselves‘how can we do more with less?’ we began tomore routinely share project opportunitiesand staff resources across offices within Hill’swestern region to increase the utilization andbenefit all of us.”

Baker said that his Claims and ConsultingGroup is very entrepreneurial in its approachto finding and securing new business. “We’reusing our existing staff expertise in new ways,and selling to new clients in new markets.”One example is Hill’s “efforts to provide moreup-front consulting services to help publicagency clients create ‘smart constructionprograms’ that are ‘claims resistant.’ We’realso offering more technical areas ofconsulting and expert services, includingproject performance and financial audits, riskassessments, real estate and consulting

“

”

We’re using ourexisting staff expertisein new ways, andselling to new clientsin new markets.

Growth in U.S.West continued from page 7

Below: Wildhorse Resort and Casino, Pendleton, Oregon.

8 News from the Hill

developer services, and specialty experts. Allof these services require very seasoned staffwith highest levels of professional expertise.”

Baker explained that to deliver the veryhighest levels of staff expertise, he employs “ahealthy mix of full-time and part-time staff.Our full-time testifying experts are senior-level, battle-tested professionals, who providea level of expertise that I think is unmatched inour industry.”

Hill supplements this group with a roster ofpart-time professionals, some of whom haveretired after decades of full-time work in theirparticular areas of construction orconstruction claims expertise. “By providingthese part-time opportunities, we’ve beenable to attract very high levels of expertise ina variety of market sectors,” Baker said. “Thisstaffing mix gives us the advantage of quicklyoffering exactly the type of expertise theclient needs at attractive rates. So, whetherit’s a wastewater or health-care project, abridge, a financially distressed project, orcountless other project types, we’ve built theindustry’s best bench of experts andprofessional staff who are ready to go onshort notice.”

The struggling economy also has predicatedthe need for specialized services. Clients aremore concerned than ever with containingboth cost and risk from their projects’ earlieststages. Their budgets, however, may notaccommodate traditional program or projectmanagement. To meet this need, Hill hascreated a highly specialized technical servicesgroup. The group includes staff with variousareas of expertise, including estimating, costmanagement and design review. Staff isassigned intra-regionally as needed, workingeither directly for a client, working as anintegrated member of a client’s staff, orworking for a project director or other seniorlevel Hill executive whose project requires aspecific skill set. Making the most of Hill’sdepth of experience, and being flexible in howthose resources are applied, has provensuccessful, Shoura said. “Because of the sizeand experience of our organization at Hill, wecan use resources very efficiently.” Thefledgling technical services group has been insuch demand that it already is growing.“We’re driving hard to sell the group’sservices, and clients are clearly recognizingthe niche they fill,” Shoura said. “We’ve addedthree new people in the last few months, andsee a steady rate of expansion over the nextseveral months.”

Smith, Shoura, Baker, and their staffs haveoffset a potential fall-off in backlog throughincreased initiative and “spending more timeon business development and marketing thanin the ‘good old days.’” That’s not necessarilybad,” Shoura said. “We’ve come up with newways of doing things that are really paying off.We’re interacting with our clients in new, non-traditional ways. We used to submit technicaland cost proposals to clients and have very

Dave Boggs remembers when ProjectManagement Oversight was little more than anidea. Boggs already had more than 20 years ofpublic and private management experiencewhen he was hired to turn around the troubledSacramento Regional Transit District in northernCalifornia in 1983. The agency had been plaguedwith numerous labor, performance andaccountability issues. The public, the businesscommunity, and state and local government officials had lost faith in the agency and itsmission. Boggs was the fifth general manager in as many years at the agency.

Boggs had his work cut out for him. “There was no community support for either bus orrail, the board of directors didn’t get along, the board didn’t respect the staff, and theDistrict had a poor record of operational performance,” Boggs remembers.

He began by getting involved in the community and building a consensus of 25-plusorganizations about the need for better public transit. He also got to know his employees,and their strengths and weaknesses, and matched people up with the jobs to which theywere best suited. He delegated authority and held his managers accountable. And, his“open door” and “management by walking around” initiatives let employees know that hewas never too busy to hear their opinions, concerns and questions.

By 1985, after two years of re-tooling and down-to-earth, hands-on management, theagency was on its way to becoming a model for other transit agencies. And Boggs wasgiven another, even more momentous job. Plans were already under way for a new light railsystem in the growing city. But the project, being built by the Sacramento TransitDevelopment Agency, had become mired in politics and community doubt in itsimportance, and already was delayed and over budget. As a result, the TransitDevelopment Agency was disbanded, and responsibility for constructing the 18.3-mile lightrail line was handed over to Boggs and the Sacramento Regional Transit District. Boggs andhis staff immediately set to work untangling the problems. “The project was under-funded,and the original budget of $132 million, or $7 million per mile, was unrealistic. Also, havingCaltrans build the project meant that we had very little control over the budget, or theconstruction process,” he said. Boggs tapped the skills of a light rail project manager hehad brought on board earlier, lobbied for a more realistic budget, and established a projectcontrol system to help manage the project’s schedule, cost and quality.

It was at about this time, during the summer of 1985, that Boggs was introduced to theconcept of Project Management Oversight. The Urban Mass Transit Administration, a majorfunder of the project, had hired Hill International, Inc. as an independent third party tooversee and report on the progress of the Sacramento project. It was Hill’s first PMOassignment, and Boggs’ first experience with the innovative service.

Instead of viewing the relationship as adversarial, Boggs recalls that his team, HillInternational, and UMTA worked together very well. Each complemented and supportedthe other from the get-go, Boggs said. Key to the team’s success were a mutual, steadfastcommitment and open communication.

Those qualities are hallmarks of PMO, said William J. Doyle, a Hill executive consultant who was in charge of Hill’s PMO assignment in Sacramento. “Hill’s Project ManagementOversight services are designed to give clients timely, objective information that allowsthem to make the best, most informed decisions possible,” Doyle said. “We anticipateproblems, quickly identify setbacks and recommend timely solutions to keep projectsmoving forward.”

Rather than using its position as overseer to divide the project team, Hill supported theentire team and its united goal of project success. “It works because PMO services are notadversarial. We’re there to help, and we do,” Doyle said.

Like Boggs, Doyle also remembers a strong cohesiveness among the project team. Thatteam spirit was applied to every one of Hill’s PMO assignments, for UMTA, now the FederalTransit Administration, and other public and private clients. “It normally is a goodrelationship. It works because we make it known, from the start of our assignments, thatwe’re there as an advisor to our client but are just as committed as the other members ofthe project team to ensuring that the project is a success.”

Project ManagementOversight: A New Perspective

continued on page 11continued on page 12

9

Dave Boggs,Executive Director,

Retired,Valley Metro

David Brodie-Stedman, of Hill’s Abu Dhabi, UAE office, hasbeen promoted to Senior Vice President and Managing Director.

Leslie Butterfield, of Hill’s Australian subsidiary McLaughlinLister, has been promoted to Senior Vice President andManaging Director.

David Merritt, of Hill’s Abu Dhabi, UAE office, has beenpromoted to Senior Vice President and Regional ManagingDirector of the Middle East and Africa region.

Russell Lister, of Hill’s Australiansubsidiary McLaughlin Lister, has beenpromoted to Senior Vice President andGroup Practice Leader, ManagingConsulting.

John Milano, P.E., of Hill’s New York Cityoffice, has been promoted to Senior VicePresident and Deputy Regional Manager.

John K. Skoury, P.E., of Hill’s Irvine,California office, has been promoted toSenior Vice President

Sidney Scott III, P.E., has joined Hill’sConstruction Claims Group as a SeniorVice President, based in the firm’sPhiladelphia, Pennsylvania office.

Vic Spinabelli, P.E., of Hill’s Pittsburgh,Pennsylvania office, has been promotedto Senior Vice President.

Peter J. Wallace has rejoined thecompany’s Construction Claims Group asa Senior Vice President

Kent Bolson, of Hill’s Marlton, New Jerseyoffice, has been promoted to VicePresident of Financial Systems.

Stephen C. Briggs, of Hill’s London office,has joined the firm’s Construction ClaimsGroup as Vice President and ManagingDirector of the combined Asia, Middle East and Africa regions.

Tonya L. Compton, of Hill’s Irvine, California office, has beenpromoted to Vice President of Development.

Mark D. Dickinson, P.M.P., of Hill’s Philadelphia, Pennsylvaniaoffice, has been promoted to Vice President.

James E. Koch, Ph.D., P.E., LEED AP, F.SAME, has rejoined thefirm as Senior Vice President and Director-Federal ServicesGroup.

Robert J. McDonough, of Hill’s Marlton, New Jersey office, hasjoined the firm’s Project Management Group as VicePresident.

William A. Mocsan, of Hill’s Mississauga, Ontario office, hasbeen promoted to Vice President and Managing Director forHill’s Canadian subsidiary, Knowles Consultancy Services, Inc.

Keith Strutt, of Hill’s London office, has been promoted toVice President and Executive Director with the company’sConstruction Claims Group.

David A. Stewart, C.P.A., of Hill’s Marlton, New Jersey office,has been promoted to Vice President of Taxation.

Peter B. Turton, P.E., of Hill’s San Ramon, California office, hasjoined the firm’s Project Management Group as VicePresident.

Barry Wicks, of Hill’s Daresbury, U.K. office, has beenpromoted to Vice President.

Scott A. Wivell, P.E., of Hill’s Pittsburgh,

Pennsylvania office, has been promoted

to Vice President.

Recent Awards

Hill received two Quality Awards fromMEED Magazine for the company'smanagement of the Sheikh Zayed BinSultan Al Nahyan Grand Mosque in AbuDhabi, United Arab Emirates, for theGrand Hyatt Resort in Doha, Qatar, andfor the American School of Doha in Doha,Qatar. (March 25, 2011)

Hill received two "Project AchievementAward" from the Mid-Atlantic Chapter of the Construction ManagementAssociation of America (CMAA) for thecompany's management of the StoneBridge Middle School project in UpperFreehold, New Jersey and for theCalhoun Street Bridge rehabilitationproject in Trenton, New Jersey. (June 9, 2011)

Hill received the "Best Green Building of2011" award from ENR Southeastmagazine for the company'smanagement of the NASA LangleyResearch Center Headquarters Buildingin Hampton, Virginia. (September 8, 2011)

Hill received the "Best Landscape/Hardscape/UrbanDevelopment Project of 2011" award from ENR New Yorkmagazine for the company's management of the UnionSquare North Pavilion, Plaza and Playground Reconstructionproject in New York City. (September 9, 2011)

Hill received the "Gold Vision" award from Constructechmagazine for the company's management of the renovationof New York City Hall. (September 14, 2011)

Hill received the "GCC Tower Project of the Year" award fromConstruction Week magazine for the company's managementof Etihad Towers in Abu Dhabi, UAE. (November 14, 2011)

Hill was named "Employer of the Year" from the OrangeCounty Chapter of the Women's Transportation Seminar(WTS). (December 6, 2011)

Hill was awarded the Rosa Parks Diversity Leadership Awardfrom the Metropolitan Phoenix Chapter of the Women’sTransportation Seminar (WTS) for its promotion of diversity,inclusiveness and multi-cultural awareness. (February 4, 2012)

Hill Hires, Promotes Key Executives

10 News from the Hill

Etihad TowersAbu Dhabi, UAE

11

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

Hill International, Inc. Attn: John P. Paolin, Executive Editor, News from the Hill303 Lippincott Centre Marlton, New Jersey 08053 or via e-mail at info@hillintl.com

Tricia M. McCunneyEditor and Senior Writer

John P. PaolinExecutive Editor

Contact Hill International at:

303 Lippincott CentreMarlton, New Jersey 08053800-283-4088856-810-6200

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Please direct correspondence to: John P. Paolin, Vice President of Marketingand Corporate Communications

“Hill really helped usthrough some toughissues. It was a greatpartnership for us.

”

The team’s commitment and diligence paid off, Boggs said. The Sacramento Light Railopened to much fanfare in March 1987. The line, which later was extended to serve otherparts of California’s capital city, quickly became a local favorite. It helped rejuvenate abeleaguered business district, and became a model for successful transit projectsnationwide. More than 20 years later, the light rail still transports thousands of Sacramentansa day to work, home, shopping or recreation.

True to his empowering management style, Boggs is quick to point out that Hill Internationalplayed a large part in the project’s success.

“Hill really helped us through some tough issues. It was a great partnership for us,” he said.“Looking back, UMTA, Hill and the SRTD faced tremendous hurdles. It is a dedication to eachthat the light rail line was not just completed, but competed on time and within budget,” hesaid. “Hill International’s insight, professionalism, top quality staff and significant abilitiescontributed to the project’s success.

Twenty-plus years haven’t dulled the memory of those challenging days when he was firstasked to helm the troubled project. “The obstacles and challenges seemed almostinsurmountable, but UMTA, Hill and the SRTD took a project that had been burdensome tothe community and heavily criticized all over the country, and turned it into a triumph. Tothis day, it continues to be a respected transit system,” Boggs said.

Boggs left Sacramento for the warmer climes of Nevada and Arizona, where he used thesame personable, hands-on management style to significantly improve operations andpublic buy-in at the ATC in Las Vegas and the Regional Public Transportation Authority,popularly known as Valley Metro, in Phoenix. Along the way, he’s been awarded for hisleadership and business acumen, championed public transit through both flush and leantimes, and mentored and empowered countless young professionals.

Boggs retired from Valley Metro, his “home” since 2005, in December 2011. He’s lookingforward to 2102, and a whole new set of challenges as he navigates the yet-unchartedwaters of retirement. And, Boggs has as much confidence in the need for and importanceof public transit as he did when starting out more than 40 years ago. The need to efficientlytransport our nation’s citizens will continue to move transit projects ahead. “Rail is here tostay, and has a spectacular future,” he said.

The success of the Sacramento Light Rail played a role in the U.S’s continued commitmentto public transit in general and light rail in particular. When asked shortly after theSacramento project was completed if PMO should be used on future projects, Boggs’answer was short and emphatic. “Absolutely,” he said.

That early success provided lessons that still aptly apply today, Boggs said. Teamwork andcommunication remain vital. “Hill and its PMO services were instrumental. When we started,the project was very troubled. Thanks to a great partnership, it ended up being a greatsuccess story.”

Editor’s Note: We at Hill International salute David A. Boggs for his lasting accomplishmentsin the transportation industry. His dedication to his job, his staff, and to mentoringtomorrow’s leaders, is truly inspirational. We wish him and his family all the best as he beginsthis next chapter in a life filled with selfless contribution to a better tomorrow. ■

Project Management Oversight: A New Perspective continued from page 9

initial strategy, but we have beensuccessful,” he said.

The road hasn’t always been easy.“Breaking into the government sectors inthis region has been difficult,” he said. “Inmany countries, including China, thegovernments are very protective of theirown local companies.”

Patience is key, Kardous added,especially in breaking into China,arguably the world’s largest — and mostelusive — market. “We’ve adopted thesame approach we did in the Middle Eastand Eastern Europe. We moved in andstrengthened our presence in onegeographic location before moving to a

new one. That’s how we got into thePhilippines. We are doing the same inChina and gaining some traction,” heexplained. “Patience is very important. Inmany cases, you meet with the clientonce, twice, three or four times until theyget comfortable with you. You build acomfort level, and that pays off. Once youbuild a good relationship and provide ahigh level of service, it opens up a portalto even more opportunities. You’re thenasked to handle a number of projects, oreven all of a client’s projects.”

Opportunity far outweighs the challenges,all three executives said. ■

The Global Leader in Managing Construction Risk

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Emerging Markets continued from page 5

little interaction before or after. Now, we’reconstantly trying to meet and interact withclients at industry conferences, seminars, andmeetings of professional organizations.”

One such concept, the ‘lunch and learn’ hasbeen expanded by the Phoenix office toeducate potential clients about Hill and itsservices. Potential clients or potential teamingpartners are invited to Hill’s office or othervenues to discuss industry trends, emergingmarket segments, new technologies, andother topics of interest. The sessions also giveShoura a chance to showcase Hill’s level ifexpertise within the industry. “We’re using thelunch and learns to create partnerships,”Shoura said.

All three executives are optimistic about thefuture. “Over the next three years,infrastructure spending throughout the Westwill continue to grow. You’ll see a lot moretransportation projects, and a lot more waterand power projects. Hill is strategically

positioned to play an expanded role in thisgrowth. Beyond that, over the next three tofive years, we expect home prices to turnupward and the residential constructionmarket will start to bounce back.”

Smith, Shoura, and Baker don’t believe clients’high expectations will diminish as theeconomy rises. They fully expect clients tokeep asking us ‘can you give me more for lessmoney?’ All three believe the smartcompanies, like Hill and some others, will findor create new, more efficient ways to dobusiness. Baker said “The good consultantscarefully analyze their client’s needs, assesstheir challenges, and then develop innovativesolutions to overcome those challenges.”Shoura said. “At Hill, to date, we’ve met theseclient challenges, and we’ve also grown ourrevenue and profitability. So, we’ve not onlysuccessfully addressed our clients’ changingneeds, but improved our financialperformance as well.” ■

About Hill International, Inc.

Hill International, with 3,200employees in 110 officesworldwide, provides programmanagement, projectmanagement, construction

management, and construction claimsconsulting services. Engineering News-Recordmagazine recently ranked Hill as the 8thlargest construction management firm in theUnited States.

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.

© 2012 Hill International, Inc. All rights reserved.

Hill International is proud to be a publicly traded companylisted 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:

Dave Boggs, for his assistance with the article onhis career and his perspective on Hill and ProjectManagement Oversight.

Ken Baker, Mike Smith and Max Shoura, for their assistance with the article on growth inthe U.S. West.

Frank Giunta, Abdo Kardous and Jose ManuelAlbaladejo Canedo-Argüelles for their assistancewith the article on Emerging Markets.

Growth in U.S.West continued from page 8