Key Responsibilities of an Owner’s Representative During Design and Construction
The path of a commercial real estate project is rarely linear and can include design changes, budget updates, permit issues, material lead times and site specific construction challenges, to name a few. It’s how these issues are managed that will determine if a project is successful or not.
That’s where an owner’s representative provides tremendous value.
An owner’s representative works with everyone associated with the project on behalf of the owner/developer, supplying them with the right information, and creating a schedule and budget for them to meet while striving to reach the owner’s objectives. An experienced owner’s representative identifies problems before they become major issues and works through issues to bring a project to a successful close.
A Phase-by-Phase Guide
Phase 1: Establishing the Foundation During Early Design
The design phase of a project is when the majority of the decisions are made that determine the project’s ultimate cost, schedule, function and long term success. Because the actual construction of a project is typically months away from the start of the design phase, it’s an ideal time to set the project on the right course to achieve the owner’s objectives.
An owner’s representative helps by:
- Confirming the project scope and owner’s objectives
- Reviewing budgets against design expectations
- Coordinating communication between architects, engineers, consultants, and ownership
- Evaluating project schedules and major milestones
- Identifying potential risks before design progresses too far
While an owner’s representative doesn’t dictate the design by the architect, they must remain completely focused on maintaining the design within the boundaries of the owner’s financial, operational and strategic project objectives and support the goals that accomplish the owner’s vision.
It’s the sum of small decisions throughout the design phase that have big effects later on. An owner’s representative with previous design experience can ensure that the owners are making the optimal design decisions to achieve project goals and objectives prior to those decisions becoming too expensive to change.
Phase 2: Managing Design Development
As the design of a project becomes more detailed the involvement of an owner’s representative increases. The role of an owner’s representative in design development is to coordinate information between members of the project team and to help ensure that the design is remaining consistent with project objectives.
Responsibilities often include:
- Reviewing design progress for consistency with project goals
- Monitoring budget updates and cost estimates
- Facilitating meetings between design consultants and ownership
- Helping evaluate constructability and value engineering opportunities
- Tracking schedule impacts related to design changes
The owner’s representative works in a way that allows the owner the ability to make decisions in design development that balance cost, quality, functionality and schedule. This means that the owner’s representative is responsible for working with the designers, contractors and the owner to assist in making decisions that have the right trade-offs for the owner’s prior stated goals and objectives.
This objective guidance allows the owner to make building decisions with the long term value in mind rather than making reactive decisions to short term problems.
Phase 3: Supporting Procurement and Contractor Selection
Phase 3 begins the process of contractor selection and the start of construction.
The owner’s representative can organize the construction procurement process and support the owner in a transparent and goal-oriented manner.
Typical responsibilities include:
- Creating contractor RFP/RFQ request
- Coordinating contractor questions during the proposal process
- Reviewing contractor qualifications and proposals
- Comparing bid scopes as well as fee comparisons
- Helping negotiate contracts
- Verifying that all scopes of work are fully complete and clearly defined.
Choosing the contractor for a project is not based solely on price. As important are a contractor’s experience, financial status, ability to meet a fast-track schedule, their method of approach to a project and their understanding of the owner’s objectives for the project.
Phase 4: Oversight During Construction
Construction is where the Owner’s Representative serves as the main coordinator for all project stakeholders.
While the contractors and the architect are busy building the project and checking it for design compliance respectively, the owner’s representative is busy ensuring that the owner’s interests are being protected.
Responsibilities during construction often include:
- Monitoring construction progress against schedule
- Reviewing monthly pay applications
- Tracking project budgets
- Evaluating change orders
- Coordinating communication among project stakeholders
- Identifying potential delays before they become significant
- Monitoring project documentation and reporting
- Helping resolve issues before they escalate
Monitoring and controlling a project on an owner’s behalf consistently provides the owner with information on the status of their project. This information is provided on an ongoing basis without the owner having to manage the day-to-day construction of the project.
Perhaps most importantly, the owner’s representative maintains focus on all the stakeholders’ objectives. He or she ensures that all important decisions are made with all relevant information on hand.
Phase 5: Managing Cost and Schedule Throughout the Project
Cost control is more than just one task in the design and construction of a project. It’s an ongoing process for the owner’s representative throughout design and construction.
An owner’s representative continually monitors:
- Budget performance
- Schedule updates
- Cash flow projections
- Contingency usage
- Prioritizing the potential for added scope if under budget
- Potential risks affecting cost or completion dates
Even with the unexpected, an owner’s representative will identify potential solutions and work with the project team to resolve the issue, anticipating any effects to the cost or the completion date of the project.
An experienced owner’s representative helps the owner understand the implications of a decision and guides the owner to the best course of action to achieve the project’s objectives.
Phase 6: Quality Assurance and Project Closeout
An owner’s representative helps coordinate:
- Punch list development and completion
- Final inspections
- Testing and commissioning
- Closeout documentation
- Warranty information
- Owner training
- Final financial reconciliation
A complete closeout ensures that the owner has received and reviewed all required documentation; has a good working knowledge of the various building systems; and is made aware of any and all outstanding items or issues that the contractors may have encountered during the construction process. This is the owner’s final opportunity to review the work that has been performed and to address any remaining outstanding items prior to the contractor’s departure from the project.
A Trusted Advocate From Start to Finish
A large commercial development can have hundreds, if not thousands, of decisions to be made by architects, engineers, contractors, lenders, consultants and public agencies, all performing their duties to ensure the successful completion of a project. It is the role of the owner’s representative to pull all of these parties together, acting solely in the best interest of the owner.
The role of an owner’s representative extends far beyond that of a project administrator. An effective owner’s representative must have experience, communicate well, have financial acumen, have a strategic plan, and be able to anticipate problems before they become issues on the project.
Whether the project is a healthcare facility, affordable housing, a non-profit campus, educational institution, commercial office building or mixed-use development, we believe the successful project is created through better coordination, cost control, and decision making. We work tirelessly as a trusted advisor to help our clients get the best results from their development project.
At BC Group we believe that to develop a successful project it takes more than just being good at building. It takes good planning, good project management, good leadership and the discipline to protect the owners’ best interests from conception through to completion. Our team at BC Group acts as an extension of the owner’s team, and brings many years of experience to the table in navigating complex construction projects through to their successful completion.
