As featured on Pathfinder Group’s “A View from the Path”. Reference article HERE and as copied below.
Risk Management comes in many forms from insurance coverage intended to “cover” risks to governance intended to document policies and procedures expected to reduce risk within operations. The operational risk associated with capital projects is very specific to the project and it’s expert management of the process.
An Owner’s Representative (Owners’ Rep) focuses on risks associated with development and construction, while overseeing the overall process. Count on this person to manage time and finances and to add unique knowledge to an Owner’s leadership team with regards to planning and executing capital expansions. An Owner’s Rep is a trusted advisor with regards to best practices, risk evaluation, task execution (managing program and architects, visioning schedules, developing budgets, negotiating fees, overseeing construction, etc.) and day-to-day support for the complexities associated with the built environment. An Owner’s Representative sets high-level goals of a project, usually working outside the norms of a typical development process, understanding the fundamental motivations for all individuals and working hard to allow everyone to achieve their goals. They work to insure these impetuses are an integral part of the process and eventual realization at the conclusion of the endeavor. An Owner’s Rep tears down the barriers that plague construction and bridges between the Owner, design, engineering, political, jurisdictional, and construction teams.
While operating as an Owner’s advocate, an Owner’s Rep stresses the value of mutual success in reducing risk. This insures the entire team is working toward a common goal for the benefit of not only the Owner, but also all parties involved. This “win-win” philosophy allows the team to rally around a problem to solve for the mutual benefit of the project, not just the profitability of the party. Trust is a major factor in successful Owner’s Representation. All contributors must be empowered to succeed for any construction project. Tracking through accountability, reliance is a major motivator to meet short- and long-term goals. An Owner’s Representative occupies a unique position in a development team, bringing an unbiased knowledge to the Owner, a peer relationship with design and construction professionals, and an outside perspective governing a capital expansion.
Trends in development and construction are leading to leaner, faster models of delivery. An Owner’s Rep lubricates the process, bringing development experience and specialized management to an executive team. The ROI for this position is limitless in reducing risks associated with design and construction. An Owner’s Representative brings the knowledge to improve outcomes, increase the efficiency of communication and improved project finance-ability of a project with verifiable experience and a proven foundation of success.