Undertaking a significant capital project comes with numerous inherent risks. Many moving parts are involved, a lot of money is at stake and construction projects are becoming increasingly more complex and demanding of time and resources from the Owner.
This complexity requires a high learning curve, rendering it challenging for the Owner—even one with construction project experience—to successfully execute their goals and objectives while overseeing the requirements of the local jurisdiction, architects, engineers, and contractors, each with their own ideas and sometimes conflicting interests. In addition to that, the Owner already has a full set of responsibilities outside the undertaking of a project.
As the Owner of a new residential home or facility project, how can you overcome these challenges, reduce your risk and successfully turn your vision into reality? One way to considerably mitigate your level of risk is by hiring an advocate, or an owner’s representative, (also called an owner’s rep) with the specific set of skills, knowledge and expertise to look out for your best interests and efficiently guide you through the overall development process from planning, design, construction to occupancy.
What Is An Owner’s Representative?
The owner’s representative serves as the liaison between architects, engineers, contractors, testing agencies, utility providers, municipal authorities, financial institutions, FF&E (Furniture, Fixtures and Equipment) vendors, other specialty consultants and third-party vendors.
The specific services provided by an owner’s representative vary based on a project’s scope and the Owner’s requirements. Typically, the owner’s representative provides project management oversight throughout all phases of a construction project.
Our Owner’s Representative Scope of Services Include:
- Translation of ideas, general requirements, and technical specifications into a statement of work to obtain initial bids
Contractor Selection & Procurement:
- Advisory guidance on contractor/sub-contractor bid evaluation, selection criteria and procurement
- Manage Requests for Proposals and Bids
- Formulate Delivery Expectations – Budget, Schedule, and Quality
- Coordinate Legal Review & Revisions of Contractor/Sub-contractor Terms & Conditions
- Non-legal review and negotiations of contracts and construction documents
- Lead planning activities and oversee schedule review sessions to monitor design/build activities
- Establish the Project Communication Plan to include, progress meetings, meeting minutes, and resolution of outstanding action items
- Identify and Document Project Risks and Risk Mitigation Actions
- Conduct Visual On-site Inspections to assess quality, workmanship, and performance to contract terms & conditions – contract enforcement
- Review Contractor pay requests/draws to current progress of construction, installed materials, stored materials, and work quality
- Prepare Progress Reports with photos to establish point in time progress baselines & deficiencies based on Visual On-site Inspections
- Analyze changed conditions and delays, and evaluate their impact on the project completion to include the facilitation of change order approvals and payment schedules
- Assess the project life cycle, risks, costs, performance and quality to determine required actions
- Facilitate project close-out and monitor the resolution of final walk-thru items, (i.e., punch list items)
- Ensure contractor and/or manufacturer warranties are activated
- Ensure Contractor 30, 60, 90 day and 11-month warranty inspections are scheduled and completed
Construction Risk Management
The success of any project is dependent on the critical attention to management of the project budget, schedule, quality and communication. To help mitigate risk and deliver a successful project outcome, many Owners are seeking out the guidance and expertise of an Owner’s representative.
Engaging the services of an owner’s representative is the safest way to appropriately manage and mitigate the inherent risks involved in the project development process. Working together with the Owner, the owner representative acts as its advocate, representing its interests with the sole purpose of executing its goals and objectives, providing accountability among team members and ensuring the project stays on track, by adhering to the project schedule, budget and quality goals and objectives.
For more information on owner’s representation services and how our owner’s representative firm can help support your vision and accomplish your goals, contact Biller & Associates.