The role of the Owners Representative (OR) is to act as an advocate for the Owners interests for any given construction project. Engaging an Owners Representative brings several benefits to Owners, including risk mitigation and greater control of their project's success. An Owners Representative can help facilitate communications between stakeholders, ensure that contracts are adhered to, coordinate and monitor delivery from contractors and suppliers, manage cost budgets, review reports, and provide Owners with an independent third-party perspective.
The Owners Representative is typically retained early in project development and provides independent advice to the owner throughout construction. Although the Owners Representative may be involved in pre-construction activities such as selection of the design team and contractors, their primary focus is on protecting the owner’s interests during construction. The Owners Representative is often the owner’s point of contact with the design team, contractors and other stakeholders during construction. The Owners Representative will ensure that all components are in accordance with the contract documents.
An effective Owners Representative will have a deep understanding of the construction process and contract documents, as well as strong relationships with key members of the project team. They will provide regular progress reports and recommendations to the owner based on their observations and analysis. In addition, the Owners Representative should be proactive in addressing potential problems and conflicts that could impact schedule or budget. By representing the owner’s interests throughout construction, an Owners Representative can play a critical role in ensuring a successful project outcome. The benefits of using an owners representative is:
Owners’ Interests: An Owners Representative will ensure that the owners' interests are protected throughout the life of a construction project. This includes making sure that all contracts, materials and services purchased for the project meet the guidelines set by their client and any necessary regulatory criteria. The Owners Representative also ensures that the value of these purchases is maximized for the owner.
Risk mitigation: An Owners Representative provides an extra layer of risk mitigation. Their expertise in the construction sector means they are able to identify potential issues before they arise, as well as provide advice and guidance in resolving any disputes that may occur during the project.
Sector relationships: Owners Representatives will also be able to utilize their relationships with key players in the construction sector. This helps Owners build trust and establish effective working relationships with stakeholders throughout all phases of a project, as well as providing access to resources that may not otherwise have been available. Owners Representatives have strong relationships with industry professionals which can be used to negotiate the best terms for their clients.
Additional Capacity: Owners Representatives also allow Owners to focus on their normal day-to-day operations while the Owners Representative handles all of the tasks associated with managing a construction project. This relieves Owners of some of the pressure, freeing them up to take care of other matters that may not be related to the build itself.
On the other hand, Owners Representatives can be costly, and there are certain challenges associated with engaging a third party. Owners may find they have limited access to real-time information on progress of the build, which can make it difficult to stay across the full scope and timeline of their project. Additionally, Owners must ensure they work closely with their Owners Representative to ensure their interests and goals for the project are properly communicated.
To over come the challenges of information and project visibility it is recommended that owners communicate frequently with Owners Representatives, this will ensure the Owners objectives are achieved. Early engagement of the Owners Representative also help Owners get the best value from their project and protect their interests. Ideally Owners Representatives have input on the capital budgets and are appointed on the project to assess the feasibility. Overall Owners Representatives provide Owners with an invaluable service, which greatly reduces risk and provides Owners with peace of mind throughout the entire process. It is important for Owners to clearly communicate the project goals and understand their role in the project. With the right Owners Representative on board, Owners can ensure their interests are properly represented throughout the build.
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