1 ECC/FMI Survey Results September 3, 2007 Research and Analysis by:

2 Demographics

3 Survey Participants 5 years or less 6-15 years More than 15 years Total Owner Engineer Engineer and Contractor Supplier or Vendor042 6 Other204 6 Total

4 Geographic Focus

5 How many more years do you expect to work in the E&C industry? 92% indicate that their departure will be the result of retirement

6 Compared to five years ago (2002), has your current (2007) engineering and construction program… The average increase was 122% (range: 10% to 700%) The average decline was 30% (range: 10% to 60%) (measured by volume)…

7 Five years from now (2012), do you expect your engineering and construction volume to… The average anticipated increase is 79% (range: 10% to 700%) The average anticipated decline is 29% (range: 15% to 50%)

8 Business Practices

9 To what extent are E&C business practices standardized within your company? No standardization exists Few business practices are standardized (little or no rationale as to which business practices are standardized and which are not) Several business practices are standardized (primary or core business practices are standardized) Most business practices are standardized (only a few business practices are not standardized for practical reasons or otherwise) All business practices are standardized

10 How quickly are E&C business practices at your company becoming more or less standardized? Standardization is generally increasing

11 To what extent are “lean” E&C practices utilized on your engineering and construction projects?

12 Are “lean” E&C practices becoming more or less utilized on your engineering and construction projects? “Lean” E&C practices are generally increasing

13 Over the next five years ( ), are the following functions becoming more centralized or more outsourced?

14 Please indicate the extent of your company’s experience in each of the following practices.

15 Do you expect your company’s utilization of the following to increase or decline over the next five years ( )?

16 Labor and Resource Organization

17 What is your company’s average percent of new hires (less than one year of employment) vs. total staff?

18 What is your company’s experience with the use of off shore craft labor vs. home-country craft labor?

19 How would you describe your company’s experience with the use of off-shore craft labor?

20 Do you expect to use more or less off-shore craft labor in the future ( )?

21 What is your company’s experience with the use of off- shore engineering labor vs. home-country engineering labor?

22 How would you describe your company’s experience with the use of off-shore engineering labor?

23 Do you expect to use more or less off-shore engineering labor in the future ( )?

24 Did your company have a well-defined technical ladder for career development in addition to managerial ladder five years ago? Now? What do you expect five years from now?

25 What is the average number of direct reports per Project Manager in your company?

26 What is the average number of direct reports per Project Manager in your company (if none, answer 0)?

27 Staff Development

28 What workforce renewal and retainage strategies does your company employ? (check all that apply)

29 The percent of our management team that will need to be replaced because of turnover and retirement by the end of 2012 will range from…

30 What is your total and expected training and management development spending per professional staff? Past (2002) Present (2007) Future (2012) Maximum $20,000 $50,000 $100,000 Minimum $200 $300 Average $4,852 $8,664 $12,957

31 What percent of your time is spent coaching and mentoring others within your company? What percent of your time is spent recruiting and hiring others?

32 Do you believe that the following skills of current new hires (2007) have improved or worsened compared to past new hires (2002)?

33 Do you believe that the following skills of your company’s current management team in 2007 are better or worse compared to 2002?

34 Innovation

35 How progressive or innovative do you feel your firm is vs. the industry (do you have well developed and effective practices) in this area? Area (8 Highest Rated) Average Rating (1=Not Innovative At All, 10=Very Innovative) Innovative integration of safety aspects in to E&C performance 7.5 Integration of new cultures (company, geographical, etc.) 7.1 Companies’ use of new and innovative technologies 7.1 Companies’ culture of collaboration 6.8 Collaboration practices for functions across sites and/or regions 6.8 Hiring the best new employees 6.8 Maintaining small project execution quality in periods of high workloads and/or mega project needs 6.6 Project lessons learned 6.6

36 How progressive or innovative do you feel your firm is vs. the industry (do you have well developed and effective practices) in this area? Area (Remaining 11) Average Rating (1=Not innovative at all, 10=Very innovative) Systematic risk management 6.5 Handling of cyclical or variable workload 6.5 Driving innovation and entrepreneurial behavior 6.5 Retaining the best new employees 6.4 Development of the next pool of organizational leaders 6.4 Organizational learning 6.3 Integrating new employees effectively 6.3 Development of the next pool of project managers 6.3 Collaboration with suppliers, partners, government, etc. 6.3 Links to academia beyond recruiting 5.9 Innovative positions in the organization (e.g. combination of functions, breaking down walls, etc.) 5.9

37 Perceptions Gap Analysis 5 years or less experience compared to Greater than 15 years experience 5 years or less experience compared to Greater than 15 years experience

38 In your opinion, what is the most likely reason for professional staff with 5 years or less experience to leave their current employer? (1=Not A Reason, 10=Primary Reason)

39 Relative to dealing with today's challenges, do you believe that the rate of corporate culture change is:

40 Is the amount of responsibility given to the employees with 5 years or less experience adequate to develop the technical and management skills that will be needed for the future and to retain the best of talent?

41 Are the corporate values communicated to the point they are understood and drive daily behavior?

42 What percentage of the 5 years or less experienced professional staff is likely to leave in the next 2 years?

43 What are the most likely reasons for 5 years or less experienced professional staff to leave the E&C industry? (1=Not A Reason, 10=Primary Reason)