Executive Summary
Commercial construction projects are complex endeavors that require meticulous planning, coordination, and execution to ensure success. As an owner of a project like this, you will face numerous challenges, including managing budgets, timelines, selecting vendors, reviewing work scope, monitoring the quality of work and approving draw requests. Owners often do not have the capacity, personnel, or the expertise to navigate these challenges effectively. As a result, many owners are turning to Owner's Representatives (ORs) to act as their trusted advocates throughout the project's lifecycle. By hiring an OR before you start, you will have a skilled expert with only your best interests in mind and will advocate on your behalf to positively impact your project cost, schedule, and quality by utilizing their extensive industry experience and knowledge to your project.
STR Consulting, Inc has emerged as a valuable partner in commercial construction projects throughout the nation offering specialized expertise and a proven track record in delivering successful outcomes. We act as an amplification of you to manage your project from start to finish. We manage the review and entire oversight of the project. We put together a team of vendors and contractors, handle all the communication and coordination with them and provide reporting at a frequency that you prefer. By starting this work in the pre-construction phase, we help minimize financial pitfalls and scheduling risks by assisting with contract negotiations.
Table of Contents Introduction
The Role of an Owner's Representative
STR Consulting, Inc: An Overview
The Benefits of Hiring STR Consulting, Inc
Key services
4.1 Cost Control and Budget Management
4.2 Design Oversight and review
4.3 Constuction Coordination and Monitoring
4.4 Project Schedule Management
4.5 Quality Assurance
4.6 Risk Mitigation
4.7 Communication and Coordination
4.8 FF&E Move Management
4.9 Punch List and Closeout Management
Case Studies
Common Owner’s Representative Myths
Conclusion
1. Introduction
Commercial construction projects are significant investments that involve complex processes and diverse stakeholders. Owners face the challenge of ensuring that their projects are completed on time, within budget, and to the highest quality standards. In the face of these challenges, Owner's Representatives (ORs) play a crucial role in advocating for the owner's interests and ensuring the project's success and are an asset to any project owner. ORs operate as part of the project team but work under a separate contract held with the owner. An OR reports directly to the owner and always acts in the owner's best interest. With expertise in all areas of design and construction, they offer valuable and unbiased advice.
More often than not, an owner’s first move after securing financing and some of the necessary approvals on their project is to hire design firms to continue the pre-construction process. Once the designs and documents are completed, the owner will then reach out to general contractors, receive proposals, and award the contract. Between the design and contracting firms, the owner is nearly complete with the hiring of the project team. An owner may think these firms will be more than capable of managing the entire project on their behalf.
But will they manage effectively with your best interests in mind, or will they put themselves and their interests at the top of that priority list?
This is where an OR will be of great benefit to you and your project. Depending on your specific project type, there are still more vendors/firms the owner typically hires directly that do not work for the design firms or contractors. Included in that list are:
Real Estate Attorney
Testing & Inspections (soils, concrete, steel, roofing)
Furniture
Information Technology
Low voltage (phone & data)
Audio Visual
Security
Acoustical Consultants
Lighting Consultants
Kitchen Consultants
Signage
Logistics
And this only represents a portion of the list. The bottom line is the owner needs to identify the additional required firms and services early in the process, hire, and integrate their work into the GC and design work to ensure minimal schedule and cost overrun issues.
2. The Role of an Owner's Representative
An Owner's Representative is a trusted advisor hired by the project owner to oversee and manage all aspects of a construction project. Their primary role is to act as the owner's advocate, ensuring that the project aligns with the owner's goals and objectives. By providing a range of essential services, including managing the project's budget, schedule, quality, and overall performance while providing expertise in construction and project management, throughout all stages of your project to ensure your project runs smoothly and that complex goals are more easily met.
3. STR Consulting, Inc: An Overview
STR Consulting, Inc is a leading firm specializing in Owner's Representation (OR) services for commercial construction projects. With a team of experienced professionals that have years of experience and a proven track record, we specialize in providing expert guidance and top-notch owner representation. Our team of seasoned professionals brings a wealth of knowledge and expertise to every undertaking, ensuring seamless execution and unparalleled results. Our services encompass all phases of construction, from pre-construction planning through project closeout.
When we are involved as your OR, we ensure your vision is executed, we protect your interests, and we manage the daily operations. We are here to explain complex issues, manage conflicts, provide advice, and help you make informed decisions that will keep the project on time and within budget. With our understanding of industry standards, code, and regulatory requirements, we are your skilled “boots on the ground” ensuring the quality of your project. Additionally, we have a broad network of other professionals and vendors we can turn to help solve problems or delays.
Best of all, you can feel confident knowing your project is getting the attention it deserves.
4. The Benefits of Hiring STR Consulting
If you already have a qualified team working on your project, you may wonder why you need to hire a separate owner’s representative. ORs are different from the rest of the team in one particularly important way – they work for you, the owner. Everything we do will be in your interests alone.
This means we offer impartial advice with no conflicting interests. We help to expertly navigate any issues that may arise, as well as prevent problems from occurring in the first place. There are many things that can go wrong in a construction project, which will impact schedules or cause budget overruns. Having an OR oversee your project can mitigate those risks. Our goal at STR Consulting, Inc, is to reduce costs, maximize value, ensure construction quality, and keep your project on budget and on time.
Our key services include:
4.1. Cost Control and Budget Management
One of the most significant challenges in commercial construction is staying within budget. STR Consulting, Inc excels in cost control and budget management, diligently tracking expenses, and identifying cost-saving opportunities. By closely monitoring the project's financial aspects, we help owners avoid costly overruns and ensure that their investments are well-protected. For example, when building your project budget, we understand how to budget for soft costs that are often overlooked but have an impact on your bottom line.
4.2 Design Oversight and Review:
The best time to hire an owner’s representative is before the design phase even begins. Acting as the owner’s advocate during the planning and design stages of the process, we will oversee and review designs to ensure the owner’s needs are being met. We also ensure that applicable codes and regulations are being followed and considered from the very beginning of a project.
4.3 Construction Coordination and Monitoring:
An owner’s representative is also involved throughout the entire construction phase of the project. We often manage contractor procurement and pre-qualification. We also closely observe construction through all stages to make sure everything is completed on time and according to the designs.
4.4 Project Schedule Management
Time is of the essence in construction projects, and any delays can have cascading effects on costs and profitability. STR Consulting has a proven track record of effectively managing project schedules, ensuring that milestones are met, and potential delays are proactively addressed. Our expertise in schedule management helps owners achieve timely project completion. From making sure insurance is obtained to reviewing draw requests to cost escalations, we will advocate for you and keep your project moving. It may be difficult to notice material issues until it affects your budget and schedule. We will anticipate these issues and handle them before they cause significant delays or costs. An owner cannot rely on your design firm or contractor to manage all aspects of your project, you need an advocate whose ONLY job is to protect your interests from the beginning.
4.5 Quality Assurance
Maintaining high-quality construction standards is essential to protect the owner's long-term interests. STR Consulting, Inc implements rigorous quality assurance processes, including inspections, testing, and adherence to industry standards. Our commitment to quality ensures that the final product meets or exceeds the owner's expectations. This means we are frequently onsite and in constant communication with all project stakeholders, such as the construction manager, contractors, and commissioning agents.
4.6 Risk Mitigation
Construction projects inherently involve risks, ranging from unforeseen challenges to regulatory compliance issues. STR Consulting identifies and mitigates these risks through careful planning, proactive problem-solving, and compliance management. Their risk management strategies protect the owner's investment and reduce the likelihood of costly disputes. Plans and specs can be difficult to understand without a construction background. We review all documentation, making sure
4.7 Communication and Coordination
Effective communication and coordination among all project stakeholders are critical for success. STR Consulting serves as the central point of contact, facilitating communication between the owner, contractors, architects, and other parties involved. This seamless coordination streamlines decision-making processes and minimizes misunderstandings, leading to smoother project execution.
4.8 FF&E Move Management
Once construction is complete, the owner’s representative can oversee the building occupancy process. This includes managing and coordinating tenants moving into the facility and the installation of furniture, fixtures, and equipment (FF&E).
4.9 Punch List and Closeout Management:
Finally, the owner’s representative makes sure that the project is closed out properly. We verify that all contractual obligations have been met and create a punch list: a summary of all tasks that were not completed during the project.
5. Case Studies
To illustrate the tangible benefits of hiring STR Consulting, Inc as an Owner's Representative, consider the following case studies:
Project A (Ritz Carlton, Wolfgang Puck): A 54 story hotel with multiple restaurants was completed within budget and several months ahead of schedule, thanks to STR Consulting's expert project management and cost control.
Project B (Rushford, MN School District): In a highly regulated environment, STR Consulting ensured that all compliance requirements were met, avoiding costly penalties for the owner.
Project C (Sunrider Office, Manufacturing and Warehouse Facility): STR Consulting's risk mitigation strategies prevented multiple potential construction disputes and arbitrations. As well as saving the owner both critical timelines and over 20 million dollars of construction costs through general contractor and subcontractor validation and verification.
6. Common Owner’s Representative Myths
Myth #1 – The Owner’s Representative is an additional, unnecessary expense to my project
The owner’s representative should not increase overall project costs. As with every project, budget management is paramount. The advantage of the owner’s representative’s presence early in the process is by managing the entire project team, from design through move-in, costs are reduced because of close coordination. Therefore, the additional fee is typically not additional, as costs are redistributed with reduced project budgets resulting from a more focused and efficient process.
Myth #2 – The other project team members view the Owner’s Representative as a “roadblock”
The Owner’s Representative is hired for one reason – to assist the owner in delivering a project that is within budget and on schedule, while creating a harmonious experience for all the project team members.
Many of the team members (architects, contractors, consultants, and vendors), have aggressive profit margins, especially in these challenging times. While assembling their proposals, they are also assuming a certain number of hours dedicated to each project. These team members rely on the owner to deliver information to them in a timely manner to keep pace with their own internal budgets. Part of the owner’s representative’s role is to help all project team members by extracting this information from the owner and communicating back to them. In the absence of an owner’s representative, many project team members can lose money if an owner is not on time with responses to inquiries.
Myth #3 – I don’t need an Owner’s Representative managing the entire project, I have internal support
The beauty of an Owner’s Representative is they are consultants, i.e., part-time or temporary help. ORs should be flexible with the client’s needs regarding the project team. Owners may have previous relationships with architects and contractors, have internal IT support, and/or already contracted with various firms prior to bringing in representation. An OR can be hired to manage any number of firms and concentrate on specific areas, complimenting the client’s requirements.
6. Conclusion
Commercial construction projects are substantial undertakings that require careful management and expert guidance. Hiring STR Consulting, Inc as your Owner's Representative offers many benefits, including cost control, schedule management, quality assurance, risk mitigation, and improved communication and coordination.Our track record of success in diverse projects demonstratesour ability to deliver tangible results for you, the owner. By partnering with STR Consulting, Inc owners can confidently navigate the complexities of commercial construction projects, ensuring their investments are well-protected and their goals are achieved.
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