Owner’s Representation

Our Owner’s Representation assignments typically cover every phase of a project from business plan development and pre-construction to project closeout. At initial engagement in the business plan phase, Albers Management assists clients in defining, vetting, and validating their requirements and developing a program budget and schedule. In the pre-construction phase, Albers Management assists clients with project definition; Architect/Engineer selection; budget; contractor selection; value engineering; and schedule milestones. During the construction phase, Albers Management manages the contract administration process to ensure all parties perform contractual duties relating to safety, quality, schedule, and overall contract compliance.

What is Owner’s Representation?

 

An Owner’s Representative, is the company who represents the owner of a building through the development and execution of a construction project. The Owner’s Representative advises the owner to ensure their project needs are met and that the project comes in on time and under budget. In addition, the Owner’s Representative supports clients that don’t have this capability or enhance a company’s current in-house program or project team.

The Owner’s Representative has technical expertise in construction, real estate, and architecture. The role manages relationships with general contractors, architects, construction companies, municipal authorities, insurance providers, and financial institutions involved in the project.

An owner’s representative can work across all or any stage of a project including:

  • Conception

  • Feasibility

  • Design

  • Procurement

  • Construction

  • Post-Construction

  • Close out

  • Asset Planning & Strategy

What does an Owner’s Representative do?

 

The Owner’s Representative is an advocate for the owner. We work to ensure that the owner’s goals are achieved and that the project is successful through delivery. Our work varies in scope and is dependent upon the project and the needs of the owner. As the Owner’s Representative, we can be involved in the early stages of concept and requirements development or later in the delivery phase of a project.

Many owners do not possess the expertise or have the time to navigate through the nuances and technicalities of a project or many times are resource-constrained. No matter the need as the Owner’s Representative we can help with any project element:

  • Requirements and Business Plan Development

  • Project feasibility and analysis

  • Securing land, permits, and financial incentives for the project

  • Overseeing project design and scoping activities

  • Managing requests for proposals, bids, and procuring vendors such as designers, engineers, and contractors

  • Securing the best pricing and implementing methods to manage cost risk throughout the project

  • Managing the project budget and schedules, including all sub-budgets and sub-project schedules

  • Overseeing construction through project completion and turnover

Why should you hire an Owner’s Representative?

 

As the owner, your focus is on receiving the benefits of the project as soon as possible. As the Owner’s Representative, we deliver to your goals and objectives and manage project risk on your behalf to ensure your desired outcome is achieved on time and within budget.

In most cases, the owner’s core business is something other than developing a project and delivering construction projects, as your Owner’s Representative we provide you the technical support, time, and dedication required to successfully complete your project.

When evaluating your Owner’s Representative, you should not only consider the firm’s past experience but how you will work together. Projects vary widely in scope, goals, budgets, and schedules so it is important that who you choose to represent you has experience doing similar kinds of projects. Moreover, since you’ll be interacting with this person or team on a daily basis, you should make sure that they make you feel comfortable and confident in their work. Transparency and mutual communication are important for this relationship to work effectively.

Benefits of hiring an Owner’s Representative include:

  • Providing technical support and knowledge

  • Providing a team of experts

  • Saving time and money across the project

  • Managing and supervising budgets and project schedules

  • Managing conflicts within project entities and teams

When hiring an owner’s representative, there are two main characteristics that should be considered: experience and relationships. Take a look at the scope of your project and inquire about whether the candidate has similar or greater past experience in that kind of project. Obtaining candidates’ resumes, project portfolios, and problem-solving and success stories, are effective ways to identify if a candidate’s experiences match your individual requirements for your project to be carried through successfully. Additionally, as the project owner, you will be interacting on a daily basis with an Owner’s Representative and his/her team. For this reason, it is crucial that you hold a good relationship with this individual. Team communication and trust are key components to building a strong relationship with your Owner’s Representative.

Why is Owner’s Representation necessary?

 

Industry Facts:

  • Nine out of Ten projects experience cost overruns

  • Only 10% of projects come within 10% of their original budget

  • Large projects take 20% longer to finish than expected

  • Construction material cost has risen by more than 10% in the last year

  • 65% of owners report spending more time than expected engaged on a project

The probability of going over budget and schedule is very high. From first engagement, Designers, Architects, Engineers, Suppliers, and General Contractors offer the best proposals they can to win projects, these proposals are often attractive but often are unrealistic in order to win business. In addition, throughout all projects, legitimate project delays and disputes occur and can result in serious conflicts and legal challenges.

As an Owner’s Representative, we can help identify and mitigate potential issues before they arise and help owners receive a project that is within the desired budget and schedule. Many of the potential risks and project delays, disputes, and problems arise from outputs before the project even starts:

  • Inaccurate requirements development

  • Inaccurate or incomplete scope

  • Inaccurate project estimates (cost and schedule)

  • Project design errors

  • Administration errors

  • Poor contract vehicle selection

  • Poor communication

  • Underestimating risk, cost, and schedule

Engaging an Owner’s Representative early in the concept, requirements, and project development process will pay dividends in the long run. It not only avoids avoidable cost overruns and delays but also ensures you have a realistic understanding of the project upfront and that your business case objectives are delivered.

When don’t you need an Owner’s Representative?

 

Owner’s Representation may not be useful for smaller projects that can be managed by in-house maintenance or operations staff. Sometimes projects and budgets aren’t a good fit for comprehensive Owner’s Representation support and services.

We would always suggest evaluating the need of an Owner’s Representative against project risk, size, and complexity.

What is the difference between an Owner’s Representative and other project roles?

 

An Owner’s Representative, a construction manager, and a project manager could all work on the same project, so what’s the difference? The fundamental difference is who they represent and the interest they are protecting.

A construction manager and an Owner Representative are similar in their tasks; they all oversee a project’s budget, schedule, workers, and make decisions when issues arise. The difference between an Owner’s Representative and a project or construction manager is to whom they represent.

As the Owner’s Representative, we work for the owner and represent and advocate for the owner’s interest, goals, and objectives. Construction managers are delivering a service to the owner however represent their respective firms and their firm’s interest.

The owner of a project must interact with the different entities that make the project possible: government agencies, lawyers, engineers, contractors, architects, occupants, etc. As the Owner’s Representative, we are hired to assist with managing these interactions for the benefit of the owner and project. A construction manager is solely responsible for their portion of the project and their firm’s interest.

Program Manager:

  • Establishes project standards for the owner

  • Gathers the owner’s requirements and develops project business cases for the owner’s approval

  • Manages conflicts within the stakeholders

  • Someone who manages the design, construction, and rollout of several projects for the owner.

  • Usually an employee of the owner or an Owner’s Representative.

Tenant Representative:

  • More commonly seen in real estate negotiations.

  • Hired by the development company or owner of the project.

  • Look for the ideal location.

  • Short-term management and engagement through the closure of the transaction.

Construction Manager:

  • Oversees project delivery.

  • Coordinates with contractors, suppliers, and vendors through project execution.

  • Manages the project budget and schedule and oversees quality assurance.

  • Represents their respective firm.