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Project Management

How an owner's representative can help with project management.

When embarking on a project, having an owner’s representative by your side can prove invaluable in saving both time and money. Their expertise spans across all project phases, but engaging them right from the start can provide unparalleled guidance in various critical areas. From setting a budget to estimating expenses, selecting contractors to negotiating contracts, an owner’s representative plays a pivotal role in ensuring project success. Moreover, they excel in assisting you with choosing the appropriate tools and vendors, setting your project on a path toward seamless execution.

Learn how an OR can help during each phase of a project:

Pre-Construction

How can an OR save you time and money in the beginning of your project?

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Save money and time from the beginning.

Set your project up for success!

The pre-construction phase is the most important phase. This phase sets the budget, the location is selected, the design team is selected, the contractor is chosen, and the contract is negotiated that will be used. This is the most vital phase of any project because this is where the most cost savings can happen. If the budget is not calculated correctly, if the location isn’t a fit for the overall project, if the contractor isn’t qualified, or the contract has clauses that adversely affect the end result, the client could be looking at excessive budget increases and long project delays.

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Budget Expert

Set your project up for success!

The owner's representative (OR) can assist in creating the overall budget based on loan requirements and what is feasible. The OR brings together all the pieces of the project including third party testing, general contractor quotes and owner-furnished equipment (OFE) to create an overall budget.
A general contractor (GC) would not be involved in the overall project's budget but would simply quote and contract for the work shown in the drawings and specifications.

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Property Advisor

Set your project up for success!

An OR can assist with the selection of the property that will fit your overall plan.

A GC makes improvements only to an existing space or builds the building on the land purchased.

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Design Team Selection

Set your project up for success!

The OR can guide the owner on the design drawing process (there are 3-4 drawings phases that take place prior to the final 100% permit set of drawings is issued). The OR will also assist with value engineering, which takes the design plans and finds alternative products, for cost savings and keeping the project within budget.
The GC would give you a quote per the drawings presented. However, they would not necessarily be in communication with the designers and due to this lack of communication and information, change orders can become more frequent during the build. A change order during the project typically results in an increase in the contract amount.

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Contractor Selection

Set your project up for success!

The OR can assist with the request for qualifications/proposal (RFQ/RFP) to ensure that the contractor selected is the right fit for the project.
Since this is the selection of a GC, the owner would normally get price quotes and make a determination without expert guidance on the overall contract and terms.

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Contract Negotiation

Set your project up for success!

The OR will analyze the contract and offer recommendations on the terms and conditions to ensure that the Owner executes a contract that will be the most advantageous for the overall project.
Without an OR, the owner would typically sign the agreement presented by the GC and may miss pertinent clauses for payment terms and liabilities that may increase the cost of the project over time.

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Construction

How can an OR keep your project on track?

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Save money and time during the project.

Keep Your Project On Track

The construction phase requires a lot of the owner’s participation even with a general contractor. The owner will have to sign off on payment requests and keep track of waivers in order to ensure payment is being made to all subcontractors. Not to mention, the owner is responsible for certain testing requirements and actual procurement and coordination on the businesses furnishings and equipment. This coordination and tracking in this phase is vital to ensure protection from liability claims and keeping the project moving to meet deadlines.

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Verify GC Pay and Releases

Keep Your Project On Track

The OR can assist in verifying and approving GC pay requests and lien releases. A lien release, often referred to as a lien waiver, is a legal document that waives a party's ability to assert a lien against real estate. Lien releases are frequently utilized in the context of building projects to settle payment disagreements between the property owner and the general contractor.
The GC is responsible for managing and paying subcontractors, suppliers, and their associated pay requests. However, if lien releases are not in place between the GC and these vendors or if the GC does not submit a waiver to the owner with their pay request, the owner will be liable in the event a lien is filed against the property.

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Third-Party Testing

Keep Your Project On Track

The owner is required to do the third-party testing of concrete and steel (ASTM American Society for Testing and Materials), and stormwater monitoring(NPDES National Pollution Discharge Elimination Systems on certain size projects ). The OR can help to coordinate these 3rd party testing companies and solicit the most competitive rates

Note- It is common for a GC quote to not include these testing fees which can add 1-3% to the project costs.

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Owner-Furnished Equipment (OFE) Procurement

Keep Your Project On Track

It is the owner's responsibility to procure any equipment for their specific industry (furniture, x-ray equipment, dental chairs, massage tables, IT equipment, etc.). An OR can procure these items and coordinate them into the GC’s construction schedule.
The GC may have specific equipment in their contract documents like kitchen equipment, lockers, etc., but otherwise, it is the owner's responsibility to procure any other items.

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Owner-Furnished Equipment (OFE) Installation Coordination

Keep Your Project On Track

It is the owner's responsibility to coordinate and schedule the installation of the owner-furnished equipment (OFE). The OR can help facilitate the installation and coordination of the items into the GC's overall timeline and schedule.

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Post- Construction

How can an OR protect your future interests and verify your project completion?

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Let an expert ensure your interests.

Protect your future interests.

The post-construction phase is what protects the owner in the future from any issues that may arise. Closing out a project and finishing strong in the post-construction phase is documents and material warranties are submitted and in proper order for the vital to ensure that the owner has what is needed to operate and maintain the building going forward. The owner’s representative confirms that the close-out end user, that the staff is trained on all systems, and that all punch list items are complete prior to any retainage being released to the GC for final payment. This ensures that the owner will optimize all of the benefits of the 1-year warranty period.

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Punch List Verification

Protect your future interests.

The OR will assist in creating the punch list. The OR will walk with the architect and GC to ensure all items are generated and completed.

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Close-Out Documents

Protect your future interests.

The OR will assist in approving the close-out documents and as-built drawings. With this approval, it ensures the owner gets all the correct warranties for the infrastructure and systems and the end user has what they need to operate going forward.
Note- The GC will generate these documents, but the owner would have to approve everything with the possible help of the architects and engineers.

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Training of Systems

Protect your future interests.

The OR will coordinate the training of the end users on any building systems. This piece becomes really important for large facilities.
Note- typically the GC will give you the contact information and the owner would then coordinate with the subcontractor and end users.

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1-Year Warranty Inspection

Protect your future interests.

After the project is complete, the GC will warranty the project for up to 1 year. At the end of the 1 year period, an OR will walk the building and see if anything needs to be fixed or reviewed. This walk-through ensures you get the most out of your 1 year warranty period.
Note- typically the GC does not relay the ending of your warranty window. It is up to the owner to request this walk-through.

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