The Role of A 3rd Party Owner s s Representative During Planning & Construction

Transcription

1 The Role of A 3rd Party Owner s s Representative During Planning & Construction Discussion by Andrew A. Burns of

2 Discussion Overview The Humorous Ice-Breaker Slides... Boston Globe Article: What's wrong with the $1.2 trillion US construction business? Why Do You Need An Owner s Rep? - Interacting / Interfacing - Organizing the TEAM - Design Team Selection & Management - Permitting - Bidding - Pre-Construction - Construction Contract Administration - The OR Cost Control Tools of the Trade Estimated OR Fees

3 Who Stops those Bad Decisions from Being Made? We saved some Money In the Foundations, but No-One Will EVER KNOW!

4 The Latest in Unlikely Headlines -

5 Change Orders Can be Good for Some..

6 August 12, 2007 The Big Dig was no fluke -- it was just another day at the office for the most wasteful, least productive industry in America. What's wrong with the $1 trillion construction business? a bastion of waste and inefficiency insulated from the costs of their own mistakes resisted innovation [The above are excerpts from an article that appeared in the Boston Globe, by Barry B. LePatner, a construction attorney in New York City and author of the forthcoming "Broken Buildings, Busted Budgets: How to Fix America's Trillion-Dollar Construction Industry, (University of Chicago Press)] Reprint available on our Web site. nobody can say in advance how much a project will really cost deeply fragmented wastes time and money for the developers and public agencies that depend on it the biggest players simply serve as overseers up to 50% of all money spent on construction labor is wasted.late deliveries and poor coordination leave workers idle

7 $1.2 TRILLION in annual revenues is 5% of US economic output $25 TRILLION in new construction needed by 2030 to build houses, schools, and offices 7 MILLION, 600 THOUSAND (1.2M automobiles; 1.7M Wal Mart) construction workers employed by some 700 THOUSAND different companies DECLINE OF 25 PERCENT in productivity per construction worker since 1964 according to the US Bureau of Labor Statistics

8 Why do you need an Owner s Rep? This is going to be a tight schedule The Owner Which GC can I really count on to deliver this on time? This is going to require special permitting This town has a tough zoning board. We ll need solid plans. The elevator needs some work too. Who is good at this? Which architect would be best for this project

9 Why do you need an Owner s Rep? Provide Reliable Information for Underwriting Navigate Complex Entitlements & Permitting Explore Alternative Project Delivery Methods - and Ensure Protective Agreements Are In Place Pro-Actively Pursue Efficiency in The Construction Process Pro-Actively Manage Schedules and Budgets Maintain Proper Documentation and Reporting Allow Owners to Focus On Core Business Save Money by Anticipating Issues in Advance

10 Can Anyone Do It? I don t t need an Owner s s Rep - I have a Brother-In In-Law..

11 Interacting / Interfacing Code Officials City Planners Appraisers & Lenders RE Professionals One Call Architects & Engineers Legal Team Owner Owner s Representative Construction Team End Users More

12 Organizing the TEAM Client - Asset Manager Client - Engineering Officer The Owner s Rep Constructor Leasing/PM Legal Team A/E Team End Users Testing & Support Permits

13 Design Team Selection & Management List Disciplines Required Based on Program Get Recommendations Pre-Qualify Firms Draft RFP for Services Receive RFP Responses & Analyze Make Recommendations to Owner Draft Agreements Along w/ The Owner s Legal Team Draft & Manage the Schedule for Deliverables

14 Permitting Organize All Zoning & Permitting Requirements Source Local Legal Representation Prepare Detailed Timelines w/ Milestones for the Entire Permitting Process Meet with Local Officials to Promote the Project Attend Meetings & Hearings Along w/ the Design Team Manage Delivery of all Required Documents Track Permit Dates & All Orders of Conditions Keep Owner & Team Up To Date on All Local Reporting Requirements & Restrictions

15 Bidding Source & Pre-Qualify Bidders Hold Scoping Meetings with the Design Team Analyze and Advise on Project Delivery Method Develop RFP Documents Hold Pre-Bid Conferences Receive and Analyze Bid Proposals Level the Bids - Provide Tabulations and Recommendations Draft & Negotiate Contracts

16 Pre-Construction Review Permitting Requirements Hold Scoping Meetings with the Design & Construction Team Hold Pre-Construction Conferences Develop the Contract Schedule of Values Develop Realistic Value Engineering Items and Delivery Schedules Review Manpower Proposals Review Work-Area and Phasing Plans Review Document Management Protocols Provide Property Rules of Conduct

17 Construction Contract Administration Ensure That All Permits Are Secured Proactively Manage the Schedule Identify the Hiccups Administer & Document RFIs, Addenda, CCDs, Change Orders Pro-Actively Pursue Efficiency In The Construction Process Through Open Discussions and Non-Confrontational Communications Review & Process Pay Requests Proactively Manage the Budget Resolve Disputes Before They Get Ugly

18 Who sees the Entire Cost Control Picture? I gave my Contractor an Unlimited Budget - and he EXCEEDED IT!

19 The OR Cost Control Tools of the Trade Detailed Budget Break-Downs Budget Projections & Options Proven Project Delivery Agreements & Document Protocols Budget and Contract Status Tracking Schedule Tracking and Management Project Close-Out Management

20 Detailed Budget Break-Downs

21 Budget Projections & Options

22 Proven Project Delivery Agreements & Document Protocol Submittal Log RFI Log Design Services Agreement Construction Contract

23 Budget Projection and Contract Status Tracking

24 Delivery Schedule -- Gantt Chart Form

25 Project Close Out Management Warranty Lien Waivers Punch List Certificate of Substantial Completion

26 Estimated OR Fees (not including entitlements & pre-construction) soft costs 8% Wastewater Facility OR 4% hard costs 88% The Owners Rep is 4% of the Total $2.1M Project Cost in This Example Retail Pad Site Preparation tenant costs 31% hard costs 54% contingency 4% soft costs 9% OR 2% The Owners Rep is 2% of the Total $5.7M Project Cost in This Example

27 Who offers Owner s Rep Services? A/E Firms, CM Firms, Construction Firms, DD Firms, Others, Including The Burns Companies Specialize in OR Services How much will it cost? Approximately 2 to 5% of Total Hard Cost (not including entitlements & preconstruction services) Will it add a lot to the Cost of my Project or will I Save Money? Properly Implemented, OR Services Will Save Money. We Participate in JV Development Projects - Can the OR Watch Over the Process For Us? Yes, the right OR Will Watch Over All Aspects of The Process and Protect Your Interests.

28 Thank you! Contact information: Offices in Massachusetts and New York Phone: Fax: