Why More Organizations Are Turning to Owner’s Representatives for Complex Development Projects

The starting point of any construction project is a simple vision of what is to be created. The owner’s vision for the new affordable housing project, a new healthcare facility, a new municipal building or a new commercial development. The owner’s vision is that it be delivered on time and within budget with minimal unexpected events. That’s the promise that every construction project holds. However, the reality of delivering construction projects over the last several years has been far from ideal.

A myriad of challenges that have become more pronounced over recent years.

Costs for construction continue to fluctuate between boom and bust. Permitting takes longer than usual. Financing is more complicated than in the past and includes a large number of different consultants, contractors, public agencies and community stakeholders. Even experienced developers, builders and owners find themselves struggling to keep up in today’s development environment.

These are some of the reasons more owners are now hiring an owner’s representative from the start of a project.

Projects Are More Complicated Than Ever

The process of development can involve a huge number of factors that are all interrelated. Decisions regarding the budget can have implications for the completion of a project on time. Design choices can in turn have an impact on the various stages of the permitting process. The number of consultants and contractors that are engaged on a project can lead to increased coordination with a number of different public agencies and stakeholders from the local community. Even experienced development organizations can require additional assistance when dealing with unfamiliar aspects of the development process.

Unless the whole project is viewed from start to finish, small problems can become very expensive mistakes before one even realizes what is happening.

An owner’s representative serves as an independent advisor whose only responsibility is protecting the owner’s interests throughout the entire development process. Unlike architects, engineers, or contractors, whose work focuses on specific aspects of a project, an owner’s representative is focused on helping the owner make informed decisions from start to finish.

Bringing Clarity to Every Stage

The fact is that problems always arise on any given project. However, a well managed project does not fail because of problems; they fail because problems are not identified in a timely fashion and thus allowed to get out of control.

An experienced owner’s representative can provide guidance to an owner in all phases of development including:

• Project planning and feasibility analysis
• Budget development and cost management
• Consultant and contractor selection
• Contract review and negotiation
• Schedule management
• Risk identification and mitigation
• Stakeholder coordination
• Quality oversight during design and construction

There is much to be gained from having one experienced project manager oversee all of the different project processes and keep all of the parties involved focused on the goals of the project.

A Valuable Resource for Organizations Without In-House Development Teams

Many non-profits, municipalities, housing authorities, private companies and other organizations develop few major construction projects and thus do not maintain full-time in-house development staff.

BC Group provides organizations with a highly valuable resource for major projects – an experienced, permanent, owner’s representative for the project.

This is as opposed to a non-profit, for example, hiring their own in-house development staff to manage one major capital construction project. There is tremendous value in having a single very experienced owner’s representative instead.

Protecting More Than the Budget

Cost control is important, but it is only one piece of a successful project.

In addition to protecting an owner’s budget, an owner’s representative provides significant value to owners in regards to the protection of an owner’s time and the successful completion of a project’s goals and objectives during the construction phase of a project. When an unexpected condition is discovered during construction, a design change is required, or other construction-related priorities arise during the construction of a project, an owner’s time is often consumed in an attempt to make a determination as to the best alternative for the completion of the affected portion of the project. If an owner doesn’t have an experienced advocate on their behalf, such determinations can often result in additional costs or delays in the completion of the affected portion of a project. An owner’s representative assists owners in the evaluation of potential construction alternatives, identifies potential problems that may impact an owner’s objectives for a project, and works with an owner to reach a decision that meets the needs of the owner for a particular aspect of a project while also ensuring that the alternative(s) chosen will not negatively impact the remaining aspects of a project.

Providing the necessary oversight on a project can have the added benefit of preventing delays and getting a project back on track in the shortest time possible.

Experience Makes the Difference

While every project is unique there is always a need for strong leadership in the development of a project.

BC Group acts as the owner’s representative / development advisor on projects across the West Coast including: affordable housing, senior living, hospitality, healthcare, commercial, municipal, mixed-use and projects developed by and for nonprofits.

BC Group’s experience serving as an owner’s representative and development advisor spans projects in numerous development types, geographies and stages from due diligence through project completion. The firm is well-positioned to provide each client with the information required to make the best decisions regarding a project to maximize returns while reducing risk and improving communication among project team members.

In an ever increasing complex development environment, having an experienced owner’s representative as a strategic advantage to an organization becomes less of a luxury and more of a necessity.

Read the full press release/publication here: BC Group Confirms that Demand for Owner’s Representation Is Rising as Development Projects Become More Complex

Organizations making significant capital investments deserve an advocate who is focused solely on protecting their interests every step of the way.