Posted: November 19, 2007
Who's protecting the owner? Owner reps. make the process from concept to completion smoother
The "owner" of a project can be an institution, a tenant, a developer, or any end user of a construction project. The project is usually made up of many facets, including program design, equipment, resources, timing, quality, budget and authority. The team required to produce the project is a triumvirate consisting of the owner, the architect, and the builder. Whether the owner is an institution that has a facilities department, or a CFO that has the responsibility of handling a new site, the need to have an expert manage the project is real. In today's construction industry, this need is best fulfilled by the engagement of an owner's representative.
HE2 Project Development, LLC is a full-service owner's representative firm whose trademark is "Total Project Leadership." An owner is not in the business of construction and is often in a disadvantaged position within the triumvirate described above. By hiring an owner's representative early on in the project, the playing field is leveled. The owner's representative can translate and report the project activities and requirements to the owner in a way that is more productive than if the owner were to "fend for himself" with the architect and builder. The owner's representative allows for more productive project meetings and enables the proactive resolution of any potential construction hurdles.
The total staff of the owner's representative is at the discretion of the owner. This provides the client with a full estimating, scheduling, project management and field services staff, with the benefit of per-project allocation. This greatly improves the efficiency of the project. The owner's representative also brings specialized knowledge to the team, such as processing "small e" designation (DEP), MTA review or DOT approvals. Managing these processes can shave months off of a project's critical path. The owner's representative team is uniquely qualified to handle certain pieces of the work, including meetings with the community board, interfacing with the board of trustees or the financing group. The owner's representative stands side by side with the owner on all important issues that might arise during the project. Included with our services, HE2 Project Development generates a concise report for the owner, which offers an overview of the entire project and assembles information from all team participants. Our clients feel that this report is not only a valuable record of project status, but also affords them a level of comfort and control during the construction process.
When doing a cost analysis for the services performed by an owner's representative, the cost is usually minimal with respect to the total project budget and is often recouped from the savings derived from the same. Even if an in-house facilities department is in place, the owner's rep can provide "peak" services when that department might not have the resources to take on any additional work.
With construction means and methods changing on a daily basis, it is difficult at best for industry professionals to keep up with current trends. For the novice owner/developer, it is almost impossible. The engagement of an owner's representative allows an owner to make a smooth transition from project concept through completion, and can offer an invaluable resource along the way.
Jeffry Wengroff is executive vice president of HE2 Project Development, LLC, Rockville Center, N.Y.
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