Construction Management

A New Model

The Construction Manager/Owner’s Representative in the New Construction Management Model should be engaged at concept inception, before design professionals are brought on board, and help in the visualization of the desired end result through:

Project definition, requirements and expectations with respect to:
- overall cost
- overall time to complete
- financing
- ownership of project at completion versus disposition of the asset
Design team selection either using a very selective, specific, head-to-head concept submission process by a group of design teams or through a negotiated contract with a proven firm
Involvement at every stage of the design phase from schematic design through construction documents and construction contract award
- These phases should adhere to a very specific, detailed, design submission criteria with well-articulated ramifications for noncompliance, similar to performance bonds for contractors
Code reviews to ensure compliance
Constant and accurate up-to-date involvement in the construction process by:
- enforcing the design documents – drawings and specifications
- witnessing of installations
- participation of required job observations by code officials, design professionals, etc.
- receipt and understanding of job observation reports and punchlists
- ensuring project adherence to construction schedule
- leading the regular O/A/C meetings
- attendance at mandatory construction meetings
- final walk-throughs
- job observations
- punchlists from the owner, the contractors, the design team, and the code officials
- final acceptance by owner that expectations have been met or exceeded
- issuance of certificate of occupancy
- responsible for final project closeout including:
  - financial reconciliation
  - payment of all bills and retainages
  - collection and distribution of closeout documents
  - as-builts
  - O and M manuals
  - warranties
  - guarantees
  - handling post move-in warranty issues
  - modifications desired by the owner

Choosing The Right Representative

In some projects the Construction Manager/Owner’s Representative or the Construction Management team will stay engaged through move-in, leading the logistics of the move, or handling the leasing or disposition. The Construction Manager/Owner’s Representative may then move right into Property Management.

By engaging the services of a qualified Construction Manager/Owner’s Representative or Construction Management team adhering to a mutually acceptable standard of practice, letting the Construction Manager/Owner’s Representative actually provide that representation and management through constant contact and by demanding accountability, an owner can dramatically increase a project success and ultimately the return on investment.

The right Construction Manager/Owner’s Representative will bring expertise, involvement, expectations, and a passion for building, in which the value will far exceed their fee.

The wrong Construction Manager/Owner’s Representative can undermine an entire project causing:

huge cost overruns
time delays
substandard, unacceptable construction
non-code compliant and unsafe building projects

Any of these may require investment of large resources in order to salvage.

Building owners, developers, and lenders across the country and world have saw events occur in the last decade and then saw the financial collapse of the building industry, followed by a massive government bailout, where in the end, nobody came out ahead.

The right Construction Manager/Owner’s Representative will assist building owners, developers, lenders, and property managers increase:

building operation
operating efficiencies
current and perspective tenants overall impression of suitability to their business expectations and requirements

These ultimately translate into a higher valued property and an increase in return on investment.

The right Construction Manager/Owner’s Representative or Construction Management team will help make your real estate asset more valuable.

Additional Resources