The ACEC Research Institute invited BST Global Chief Executive Officer Javier A. Baldor to provide a foreword for its report on the use and benefits of lump sum contracting in the engineering industry. Based on original data collected from state and federal client organization representatives and senior leaders from engineering firms of various sizes, the report aims to help clients and firms understand how and why a value-based model could ultimately replace the engineering industry’s traditional cost plus fixed fee approach.
In his foreword, Javier addresses one of the main themes the study revealed — that emerging technologies such as AI are and will continue to be the driving force in transforming the industry’s foundational business model. He points to the efficiencies these technologies can unlock for the industry’s best and brightest as a catalyst for this change.
“You see, if a consulting engineering firm can deliver the same work product 30% to 50% more efficiently in the future but still charges for its services by the hour, it is fundamentally in a race to the bottom. This is a business model that is unequivocally unsustainable.”
– Javier A. Baldor, Chief Executive Officer, BST Global
Visit ACEC Research Institute’s website to read Javier’s contribution and the full report. BST Global is proud to support and collaborate with the ACEC Research Institute to help the AEC industry evolve. Read more about our involvement here.
