CONSTRUCTION FINANCIAL MANAGEMENT …



CONSTRUCTION FINANCIAL MANAGEMENT ASSOCIATION

CHAPTER OPERATIONS HANDBOOK

The Guide for Chapter Success

TABLE OF CONTENTS

Page

Preface……………………………………………………………………….ii

INTRODUCTION CFMA

Mission, Core Purpose, & Core Values 1

Overview 2

CFMA Headquarters Staff Directory 3

2009/2010 CFMA National Officers 5

2009/2010 CFMA At-Large Directors 6

SECTION 1 MEMBERSHIP DEVELOPMENT

Recruit Members 7

SECTION 2 CHAPTER ADMINISTRATION

Chapter Formation Criteria 9

Chapter Guidelines 10

How to Develop and Maintain Your Chapter’s Board of Directors 11

Life Cycle Chart 14

SECTION 3 CHAPTER FINANCES

Chapter Finances 15

Determining Chapter Dues 16

SECTION 4 MOTIVATE AND MAINTAIN YOUR CHAPTER

Schedule Regular Meetings 17

Retain Members 18

Special Meetings 18

Successful Meeting Topics 19

SECTION 5 CHAPTER COMMUNICATIONS

Chapter Newsletter and/or Web Site 21

“Chap Chats” E-Newsletter 21

Chapter-by-Size Teleconferences 21

Publicity/Press Releases for Your Local Press 22

SECTION 6 CHAPTER AFFILIATION AGREEMENT………………………………..23

SECTION 7 CFMA NATIONAL BOARD OF DIRECTORS AND BYLAWS

CFMA Board of Directors and Committees 33

CFMA Bylaws 35

PREFACE

This Handbook has been written to provide chapters with a central source of information about the organization of CFMA Headquarters and its resources, along with the vital components of the chapters of CFMA.

It is designed to be particularly helpful to chapter leaders as they plan and implement programs for their members. The Handbook identifies the assistance available to chapters from Headquarters, and indicates the types of input that Headquarters periodically requests from the chapters.

For more information about anything in this Handbook, please visit .

CFMA

May 2009

CONSTRUCTION FINANCIAL MANAGEMENT ASSOCIATION

CFMA – “The Source and Resource for Construction Financial Professionals”

Mission

• To unite individuals having financial responsibilities in the construction industry

• To provide a forum through which the Association's members can meet to

exchange ideas;

• To develop and coordinate education programs dedicated to the purpose of improving the professional standards of construction financial managers;

• To enhance the role and promote the image of the construction financial manager;

• To be a recognized authority on construction financial management.

Big Audacious Goal

To be essential to success and professional growth in construction financial management.

CFMA's Core Purpose

To provide resources to meet the challenges of construction financial professionals.

CFMA's Core Values

Integrity, Competency, Relationships & Friendships,

Leadership, Innovation, and Member Responsiveness

CFMA Headquarters Overview

History of Headquarters

The Construction Financial Management Association (CFMA) is “The Source and Resource for Construction Financial Professionals” and the only non-profit organization dedicated to serving the construction financial professional. Established in 1981, CFMA’s General Members represent all types of contractors – including general and subcontractors – as well as developers, construction managers, architects, engineers, principals, and material and equipment suppliers. Associate members include the accounting, insurance, surety, software, legal, and banking specialists who serve the construction industry.

Headquartered in Princeton, N.J., CFMA began as an informal gathering of construction financial executives and has since grown into a vital industry participant, currently having more than 7,000 members and 89 chapters throughout the U.S.

The business of the Association is conducted through a Board of Directors and officers including a Chairman, Vice Chairman, Secretary, and Treasurer. The respective duties and responsibilities of these individuals are outlined in the Association Bylaws, located in Section 9 of this Handbook.

Dues

New Members - A member joins the National Association and is then affiliated with a local chapter. Annual membership in CFMA (April 1 – March 31) is $330 for General Members and $430 for Associate members. Some chapters also have local dues that are collected through CFMA Headquarters. A quarterly check or quarterly electronic payment is then disbursed to the Chapter.

Renewals - Annual renewal notices are sent from CFMA Headquarters to all members in mid-December with monthly reminders through March. Correspondence and follow-up calls by chapter presidents are conducted in April, as necessary. Members that have not paid dues are notified and sent a letter from the current CFMA Chairman explaining that their membership has expired and they will not be renewed if payment is not sent. A listing of specific chapter non-renewals will be sent to each chapter president, who should contact each non-renewing member to make sure they are aware their membership is terminating and, hopefully, determine why they aren’t renewing.

CFMA Local Chapters

CFMA Chapters from Maine to Hawaii also present workshops, programs, and seminars in conjunction with other professional organizations that complement the extensive member services provided by Headquarters. The purposes of local CFMA chapters are:

1) To provide a forum through which individuals having financial responsibilities in the construction industry can conveniently meet and exchange ideas on a regular basis.

2) To enhance the professional standards of financial management in the construction industry through educational programs, seminars, conferences, conventions, publications, and other member services.

3) To support and cooperate with organizations and professional groups that

are committed to objectives similar to those of CFMA.

The organization of local CFMA chapters is outlined in Article XII, Section 2(A-D), of the CFMA Bylaws, located in Section 9 of this Handbook.

CFMA Headquarters Staff Directory

29 Emmons Drive, Suite F-50, Princeton, NJ 08540

Phone 609-452-8000, Fax 609-452-0474, E-mail info@

EXECUTIVE

Peter W. Schwartz

President & CEO x223 ( E-mail pschwartz@

Danielle Christensen

Executive Assistant x239 ( E-mail dchristensen@

Brian K. Summers, CAE Chief Operations Officer, x227 ( E-mail bsummers@

Glenda Fitzpatrick Administrative Assistant, x 247 ( E-mail gfitzpatrick@

ACCOUNTING

Robert Rubin

Controller x269 ( E-mail rrubin@

CHAPTER SERVICES

Michael P. Molaro

Director, Chapter Services x232 ( E-mail mmolaro@

EDUCATION

Nancy E. Lambertson Director, Education Services x224 ( E-mail nlambertson@

Ariel Sanchirico

Education Product Coordinator x235 ( E-mail asanchirico@

ICCIFP

Erica L. O’Grady, CAE

Executive Director x231 ( E-mail eogrady@ / eogrady@

Laurel Seymour

Executive Assistant x222 ( E-mail lseymour@ / lseymour@

MARKETING

Michael T. Verbanic

Director, Marketing Services x226 ( E-mail mverbanic@

MEETING SERVICES

Dina O’Rourke

Director, Event Services x241 ( E-mail dorourke@

Kimberly I. Crowell

Operations and Meeting Services Assistant x252 ( E mail kcrowell@

MEMBERSHIP

Dean D’Dambrosi

Director, Member Services x230 ( E-mail ddambrosi@

Stacy Bromley Cheetham

Associate Director of Membership, x221 ( E-mail scheetham@

Karen Gifford

Membership Assistant x251 ( E-mail kgifford@

Stacy Williams

Membership Assistant x221 ( E-mail swilliams@

ON LINE SERVICES

Marc Durling

Director, IT and Online Services x248 ( E-mail mdurling@

Gabe Kerkuska

Network Administrator x237 ( E-mail gkerkuska@

PUBLICATIONS

Paula A. Wristen

Director, Editorial Services x228 ( E-mail pwristen@

Joseph J. Grosso

Director, Graphic Design Services x225 ( E-mail jgrosso@

Susan Flood

Graphic Designer/Production Artist x250 ( E-mail sflood@

Kristy Domboski

Managing Editor x240 ( E-mail kdomboski@

Kirby Waldinger

Editorial Assistant x236 ( E-mail kwaldinger@

RESEARCH & ANALYSIS

James L. Bartsch

Director, Research & Analysis x246 ( E-mail jbartsch@

SALES & ADVERTISING

Ronald C. Kress

Director, Sales & Advertising x229 ( E-mail rkress@

2009/2010 CFMA National Officers

Chairman

Jason W. Henley, CCIFP

CFO

D.F. Chase, Inc.

3002 Armory Drive, #200

Nashville, TN 37204

Phone: (615) 777-5900, x222

E-mail: j.henley@

Vice Chairman

Melvin E. BurgEs, CCIFP

CFO

Harcon, Inc.

1121 Alderman Drive, #101

Alpharetta, GA 30005-5470

Phone: (404) 867-5738

E-mail: mburges@

Treasurer

Joseph Burkett, CCIFP

CFO

Cafco Construction Management

77 Charles Street South

Boston, MA 02116-5431

Phone: (617) 426-7600, x105

E-mail: jburkett@

Secretary

Calvin Beyer

VP, Risk Control Solutions

Arch Insurance Group

30 East 7th Street, #2270

St. Paul, MN 55101

Phone: (651) 855-7165

E-mail: cbeyer@

Immediate Past Chairman

Vickie L. Spotts, CCIFP

CFO

Zartman Construction Inc.

3000 Point Township Drive (Route 11)

Northumberland, PA 17857-9748

Phone: (570) 275-4400, x142

E-mail: vickie@

2009/2010 CFMA Associate Member At-Large Directors

|Rick Ciullo |Michael M. Feigin |Todd Friedman |

|Chubb |Marsh |Deloitte & Touche |

|Warren, NJ |New York, NY |New York, NY |

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|Kent Goetjen |Jon Halloran |Geoffrey Heekin |

|PriceWaterhouse/Coopers |Zurich |Aon |

|Hartford, CT |Chicago, IL |Chicago, IL |

| | | |

|Pierre LePostollec |Jim Schmid |Jeff Segall |

|Travelers |Grant Thornton |CNA |

|St. Paul, MN |Southfield, MI |Chicago, IL |

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|Tony Slalmeh |Charlie Woodman | |

|Ernst & Young |Willis | |

|New York, NY |Kennesaw, GA | |

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MEMBERSHIP DEVELOPMENT

Recruit Members

Ideas for recruiting members:

( Keep a “prospective member” list at all times and make contact with the individuals on a regular basis. Requests received by Headquarters for membership information are

forwarded to respective chapters on a weekly basis.

( Sources of prospective members’ names are: city and industry directories, telephone books, trade and technical publications, university lists (majors, graduates), commercial lists, rosters of industry counterparts to related organizations, business journals, other construction industry associations, and most certainly, existing members. ( Keep meeting attendance records, including members and guests. Contact members who do not attend meetings and follow-up with guests to encourage joining.

( Acknowledge new members and guests at every meeting.

• Personally address mailings to prospective members, as it is superior to a blind notice to a company, if not available use a title like “Chief Financial Officer” or “Controller.”

( Make “Membership” your #1 priority in recruiting and retention.

( Develop a simple guest packet that includes information about CFMA, your chapter, and chapter key members they may wish to talk to for information. Order Membership Recruiting Portfolios by contacting Dean D’Dambrosi (ddambrosi@) ( Communicate exactly what you expect from volunteers and what they can expect in

return--assign one task to spark interest then as their interest grows they can move up

in roles possibly into leadership (i.e. hand out flyers at meetings, take roll, obtain speaker, find meeting place, update Web site, etc.).

( Participate in CFMA Awareness Month.

( Encourage your Membership Committee and/or Board of Directors to call members for meetings and special events to encourage inactive or lapsed members to activate.

( Have Board or Membership Committee members follow-up with calls after meetings to all guests and possible all attending. Have Board or Membership Committee members

be responsible for a small group of members, such as 8-10.

( Encourage members to bring a guest to meetings and introduce guests at meeting. Have “Guest Registration Forms” at all regular chapter meetings to facilitate introductions and, better yet, “a ready made prospect target list”

( Have CFMA Application Forms (with How to Join and self-addressed return envelope attached) at ALL Chapter functions.

( Sponsor local “Basics of Construction Accounting” or “Beyond the Basics” to attract new

members.

( Consider joint seminars with other professional associations

*At all times, new members, renewals, and terminations should be tracked and contacted*

Sample Cover Letter to Recruit Members for CFMA:

Dear (First Name):

There is some great news I’d like to share with you about a professional organization which should prove extremely useful in your work and which receives my full endorsement and support.

The Construction Financial Management Association (CFMA) is the only professional association dedicated to serving today’s financial professional in the construction industry. Founded in 1981, CFMA now has 89 chapters across the country and a membership of approximately 7,000.

When you join CFMA, you will have access to your local, regional, and national professional community to exchange ideas, solves problems, and network, network, network! When you join CFMA you access its information network and gain opportunities for an educational experience not available elsewhere.

The enclosed membership portfolio and application highlight the outstanding benefits of membership in CFMA – everything from receiving the latest tax and accounting information via CFMA’s outstanding publications to the opportunity to exchange ideas and know-how with like- minded colleagues in our highly specialized field.

The construction business is tough and extremely competitive. We need all the help we can get as its financial managers. The information and experience you will gain through membership in CFMA should provide both you and your company with a significant competitive edge. I strongly encourage you to join this excellent professional organization. I’ll be calling to follow-up and answer any of your questions.

Sincerely,

(Your Name)

CHAPTER ADMINISTRATION

Chapter Formation Criteria

1) Written commitment for 1-year term from President, Vice President, Treasurer, and

Secretary.

1) Written commitment for 1-year term from Membership and Program Chairpersons.

2) Written commitment for 1-year term from Board of Directors.

3) Membership and Program Chairpersons, if possible, should be officers other than the president. (i.e. vice president, etc.)

4) Board of Directors in place. Minimum of 6 Board Members; minimum of 4 General Members and 2 Associate Members.

5) Chapter must have 20 members, 60-40% General to Associate ratio. A ladder of growth will be implemented.

If a chapter request comes in with 20 members and all requirements met, Headquarters will forward request for approval directly to the Executive Committee.

6) One-year plan for programs and operations with a minimum of four meetings.

7) A brief marketing plan that indicates the potential members in the area and explains their plans to contact them.

8) Strongly encourage the Chapter President to attend CFMA at Spring Creek. It is suggested that the Chapter pay the entire cost of Spring Creek, including airfare, If this is not feasible, a chapter is encouraged to pay for half the cost of Spring Creek (not including air fare.)

9) Each Chapter must have a Federal Tax ID number, Bylaws, Articles of Incorporation, and be incorporated.

10) Each Chapter must sign the Chapter Affiliation Agreement.

11) CFMA CHAPTER GUIDELINES

1) All persons who choose to affiliate themselves with a local chapter must be members of CFMA nationally.

2) A chapter may charge local dues, which will be collected by the Headquarters Office and disbursed to chapters within 30 days.

3) A chapter is required to comply with the applicable sections of the CFMA bylaws and to incorporate in its state.

4) Chapter officers should consist of a President, a Vice President, a Secretary and a Treasurer. These officers must be elected by vote of the affiliated members. It is strongly recommended that the President and Vice President are General Members.

5) Chapter officers may establish committees, as they deem necessary. It is strongly recommended that chapters establish, at a minimum, a Program Committee and Membership Committee to ensure a strong chapter “lifeblood.”

6) The chapter is solely responsible for its financial obligations and is responsible for any state or other regulatory requirements resulting from its activity.

7) The Chapter Designated Director should be a General Member.

8) Chapters in formation seeking official chapter status are required to consist of a minimum of 20 affiliates and a 60/40 general to associate ratio.

9) Effective April 1, 2007, all new chapters must be in compliance with the Chapter Affiliation Agreement before receiving legal CFMA chapter status.

How to Develop and Maintain Your Chapter’s Board of Directors

To create a healthy and dynamic CFMA chapter, the Chapter Board of Directors sets specific chapter goals and objectives, prioritizes them, and then organizes committees to study, develop, and implement the established goals and objectives. Working agendas and an environment for accomplishment are very important to making membership on the Chapter Board a rewarding and fulfilling experience.

Objectives:

1) Develop policy

2) Establish goals and objectives – short- and long-range

3) Advise and give consent

4) Communicate a compelling and inspired vision or sense of core purpose

5) Have a positive outlook and be a good leader

6) Inspire and motivate

7) Be proactive – Plan for the future

8) Look at the “big picture” – Don’t micromanage

9) Think STRATEGICALLY!

A Successful Board:

1) Recognizes the need for energetic and devoted leadership, then provides it.

2) Utilizes the resources and guidance of other chapters and CFMA Headquarters.

3) Encourages new ideas to find better methods to achieve its goals.

4) Faces fears of thinking strategically; focuses less on detail, more on the future;

MAKES CHANGE HAPPEN!

5) Establishes an orderly procedure (Succession Plan) for the selection of new Board members, their orientation, and training. Automatic rotation systems ensure infusion of "new blood" and the dropping of inactive members.

6) Organizes for optimum production. To cite a few methods:

a) Selects officers with key leadership characteristics;

i.e. emotional intelligence – the ability to sense, understand, and effectively apply the power and the acumen of emotions as a source of human energy, information, trust, creativity, and influence.

b) Holds Board Meetings regularly;

c) Prepares and follows meeting agendas;

d) Establishes an annual budget to translate program plans into financial

terms;

e) Appoints Committees with appropriate assignments and DELEGATES the “small stuff.”

Recruiting Board Members

Objective: To assemble a team with a variety of skills, talents, and abilities, having the common interest of the chapter at its core, while maintaining a fresh, lively, and productive

group.

Qualifications for Board Membership:

1) Experience and/or knowledge in at least one of the following: technical knowledge and expertise, problem-solving and decision-making abilities, “people” and interpersonal skills, program and membership development, finance.

2) Available time and willingness to participate in chapter operations.

Orientation of New Board Members

Objective: Make them aware, informed, and comfortable with your chapter’s activities.

How to: Provide them with a copy of the Chapter Operations Handbook and specific information about the chapter essential to the individual's performance as a Board member. Include the following:

1) A description of Board member responsibilities, along with a schedule of Board meeting dates for the coming year

2) The chapter budget

3) A description of the chapter's goals and objectives

4) A list of Board members, including addresses and telephone numbers, etc

5) A set of minutes from the previous year

6) Special reports or studies completed in the previous year

7) A list of committees and their objectives

8) A list of established chapter meeting dates

Planning for Board Meetings

Board meetings are an important part of the total operation of the chapter. To obtain maximum productivity, plan each meeting in advance with the following objectives in mind:

1) Separate the administrative matters that can and should be handled at the officer level from those issues that involve organization policy, for which the Board is responsible.

2) Develop an agenda that clearly distinguishes between information items and those that require Board action by vote.

3) Assemble and circulate clear and concise material in advance of the Board meeting so that:

a) Board members have an opportunity to be informed and to study action items prior to their attendance at the meeting;

b) Board meetings can be conducted in an efficient manner (within a time frame that does not exceed two hours).

Planning Agendas

Objective: Focus on Strategic Planning, a process of collective and informed decision- making that a) helps management/leadership teams position their enterprise for lasting competitive success and b) helps these teams intelligently implement changes to their processes, systems, and structure. (Thomas W. Emison, “The Art & Science of Strategic Planning,” CFMA Building Profits, Jan/Feb 1999, p. 8)

Factors that influence agenda planning include: items covered at previous Board meeting(s) that must be continued at the next Board meeting; the number of action items requiring Board consideration; and the minimum number of information items which might be presented to the Board.

As participants usually have more energy at the start of a meeting, priority in selecting agenda items must be given to the larger tasks that involve strategic thinking, as opposed to the smaller details of chapter operations. In general, the agenda for a Board meeting can be divided into two major categories: action items (which culminate in a vote by the Board) and information items (not requiring specific action by the Board).

Maximizing Board Participation

A major objective at Board meetings is to maximize member participation. To achieve this, wherever and whenever possible, agenda items should be presented by a Board member. This will usually involve the chairs of standing committees, or if a special subject is being presented, the Board member most knowledgeable in that particular area (as opposed to an officer).

| |Chapter Mtg. |Membership |Retention |Leadership |Chapter |Types of |

|STAGES |Attendance |Growth | | |Structure |Support |

|1. Birth – Core group organizes; | | | |(Seek out and elect officers |(Small Steering Committee |(Great Chapter! Day |

|meeting topics set; enthusiasm is high; |>40% |>20% |>90% |to serve and create the new |(President |(Spring Creek |

|actively seeking members. | | | |chapter. |(Program Chair |(Life Cycle |

| | | | | |(Membership Chair |Subcommittee |

|2. Growth –Membership & Program | | | |(Succession plan is |(All officers | (Chapter Operations |

|Committees in place; succession plan |>40% |>20% |>85% |created and in place, |(Membership Chair/Committee |Handbook |

|established; officer & Board of Director| | | |enabling chapter to |(Program Chair/Committee |(Chapter Recognition |

|slots filled. | | | |target, groom, and have |(Terms established for Board of |Program |

| | | | |a consistent pool of new |Directors |-Achievement Category |

| | | | |potential leaders. | |-Showcase Category |

|3. Maturity – Meetings held regularly; | | | |(Succession plan is in |(All officers |- Outline as strategic |

|attendance is still good; meeting topics|30% - 40% |-10% - +10% |70% - 85% |place and functioning |(Past Presidents |planning tool |

|are beginning to be recycled; false | | | |within reasonable |(Membership Chair/Committee |(National Participation |

|sense of security may come over chapter;| | | |expectations. |(Program Chair/Committee |(Chapter Formation Kit |

|committee chairs/ chapter leaders not | | | |(Much enthusiasm and |(Standing committees such as: |(Educational Seminars |

|needing to put in as much effort. | | | |support from chapter |-Publicity, Service, Social, |(Basics/Beyond) |

| | | | |leaders both past & |Nomination, and CRP. |(CFMA Store to recognize |

| | | | |present. | |Volunteers |

|4. Stagnation – Succession plan “dries | | | |(Same people are taking |(Fewer committees and committee |(“Chapter Interest” section |

|up;” Board/officers begin to feel burned|20% - 30% |-20% - +10% |60% - 70% |leadership roles year |members. |of CFMA Web site (Best |

|out; “Same people do everything;” | | | |after year, and/or |(Board in decline. |Meeting Topics, Timeline, |

|chapter is “going through the motions” | | | |chapter leadership falls | |etc.) |

|w/mtgs., speakers, & topics; Board mtgs.| | | |to Associate members. | |(Chapter Ambassador |

|held less frequently with less | | | |(The Board is becoming | |Program |

|attendance; no new ideas; interest is | | | |less sufficient and active. | |(Chapter Mentoring |

|waning. | | | |(No new blood. | |(Call Program |

|5. Decline – Membership and interest | | | |(No consistent general |(Leadership is dwindling | (Mike Molaro and/or Bill |

|declines significantly; number of mtgs. | ................
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