Little Associates

Is An Owner’s Representative Really Necessary For Your Real Estate Construction Project?

Author: The Little & Associates Inc. Team

As a real estate investor or private residential estate owner, you may wonder if it is worthwhile to hire an Owner’s Representative to oversee your construction project. After all, you have professionals like designers, contractors and financial experts on the job, and as a sophisticated owner you may have done this before. So why go through the expense of hiring an Owner’s Representative?

The fact is that there is every reason to have an Owner’s Representative work to bring your project to a successful and cost-effective outcome, whether you have a commercial investment property or a high end private estate. Here are some things to consider as you begin your real estate construction project so you understand what an Owner’s Representative can do for you.

Start the Project off Right

An experienced Owner’s Representative can get your project off to a good start by addressing critical issues right from the beginning. Through in-depth due diligence and needs assessment, your Owner’s Representative can head off problems before they arise by researching companies, individuals and organizations in preparation for real estate investment and business transactions.

Due diligence provides investigation into such issues as contracts, licenses, policies, as-built surveys, appraisal, zoning, masterplan designation, economic environment, site visits, physical conditions assessment and anything else that is needed. The Owner’s Representative will perform a comprehensive needs assessment to compare how things are currently and how they should be upon completion to address gaps in desired conditions for all development types.

Guidance Every Step along the Way

Unless you have unlimited time, experience and skill in managing similar real estate projects, you can benefit from an expert Owner’s Representative. Your Owner’s Rep will handle the day-to-day work of all the entities involved in a project, while the owner retains contractual relationships and decision-making authority. The Owner’s Representative brings extensive experience to the construction project and provides support by offering professional advice at every step to allow you to focus on their core business. The Owner’s Rep is at your side to perform the following tasks from inception to completion for a successful outcome:

• Review contracts and maintain professional relationships for design services and construction
• Secure testing services, telecommunications, data and networking systems, signage, furnishings, and anything else that is needed
• Manage relationships with local and state regulatory boards and agencies and follow guidelines while protecting the owner’s interests during the building project

Controlling Costs

In the long run, hiring an experienced Owner’s Representative is a decision that is likely to pay for itself. According to the Journal of Construction Engineering & Management, a poorly managed construction project can cost over-runs of 11 percent, amounting to a whopping $110,000 on a million dollar project. The expert knowledge base, skill and management experience of a professional Owner’s Representative can protect you from costly errors and maximize your ROI.

Depend on your Owner’s Rep to apply sound principles of construction management by tracking the project timeline, selecting contractors and subcontractors, conducting reviews to make sure billing is accurate and overseeing property management. In addition, the Owner’s Representative will stay on top of materials to make sure they are ordered correctly in a timely manner. You will receive a photographic and written record of the weekly meetings that take place on the site, and any changes in the work orders will be approved by you, the owner. As the project draws to completion, your Owner’s Rep will inspect the property and complete the punch list to provide a high quality outcome without mushrooming costs.

The Bottom Line

So is it worth it to hire an Owner’s Representative for your construction project? The answer is a resounding yes, if you want the peace of mind that comes from knowing that your development project is in the hands of a skilled professional who can optimize the return on your investment and ensure a high quality result.

To contact Little & Associates, Inc. for your real estate development needs, register online or call Thomas W. Little, 561.743.9909 in Jupiter; or Fred Lott, 914.292.0300 in New York City.