How an Owner’s Representative save you money
You may think that hiring a structural engineer for your next construction project is going to cost you more money. It will! Hiring an owner’s rep in South Florida starts from $175 an hour which can accumulate over the timeline of your project. So how can you save money by hiring a professional engineer to oversee your next construction project? In this article, we will go over how it is possible to not only save thousands of dollars on your next construction project by hiring an owner’s rep but also how it will put you on the track to success and help you manage your budget efficiently.
If you have been involved in any construction project or real estate development in South Florida for any number of years then you know that managing a project efficiently while staying within budget is often easier said than done. An Owner’s Representative can not only streamline your project but also save you money in the process.
Structural Engineer as an owners Rep
Structural Engineers have a comprehensive understanding of how buildings are constructed including the cost of materials, when and where to use a specific material, as well as how everything comes together. Hiring an owner’s representative, also referred to as an owner’s agent will add a crucial member to your team that understands the construction project and can get your project done efficianetly. How does this save you money? Well, as we all know time is money and the longer it takes to get your project completed the more workers required on site and the longer it will take to start to gain income from renting out the units of the property. The owners rep oversees the entire project and can be used at any stage of your construction project. Whether you hire an owners rep at the start of your project or towards the end of your project, they will ensure the project goes smoothly.
What are change orders
Change orders are common in construction projects. A Change order is when an area that is completed needs to be removed or changed to something different. Construction projects are dynamic and are always changing based on the owner’s or developers’ requirements. This can be due to style changes recommended by an architect or engineer or due to a mistake created by the contractor. Not all contractors are created equal and you might find that what was originally designed was not what you receive. These change orders can be a couple of thousand dollars or can cost millions of dollars depending on the size of the project and the scope of the change order.
If the contractor does not follow the engineering plans to the tee then when the city building inspector arrives to check your project they may pause your project and require you to get new plans or in a worst-case scenario require you to redo the area in question completely. As you can see having an Owners Representative overlooking your project will keep change orders to a minimum and potentially save you thousands of dollars or millions if it is a larger scale project.
Strategic Planning and Budgeting
Budget management is crucial to any construction project if you want to stay within a current cost. When you have investors or additional stakeholders on larger projects budget projections are even more essential to calculating the return on investment and scheduled time frame for completion. Owners’ representatives work in conjunction with the project managers and general contractors to figure out budgets, track expenses, and implement cost-saving measures without compromising quality or safety.
One of the primary roles of an Owner’s Representative is to develop a comprehensive project plan and budget. By leveraging their expertise in construction and project management, they can accurately forecast costs, identify potential risks, and establish realistic budgets from the outset. This proactive approach minimizes the likelihood of budget overruns and unexpected expenses down the line such as the change orders we discussed above
Selecting VENDORS and Negotiating costs
Having an owner’s representative on your construction project brings incredible value to the owner in several ways. For example one of the roles of the Owners Rep is to select which vendors will work on your project and negotiate pricing on your behalf. An experienced Owners Representative will bring with him a host of knowledge such as what vendors are credible and what the cost of hiring these vendors will be.
Our team has several Owners Reps in-house who have a wealth of knowledge and most importantly experience working with many vendors across South Florida. This will save you from hiring Vendors who are not qualified to handle your construction project leading to delays in completion as well as costing you money. We have worked with many vendors across South Florida and can recommend some of Florida’s best teams to work on your project.
Risk Management and Problem Solving
Despite careful planning of a project, unexpected challenges can arise during a construction project. Many problems can affect a construction project that is out of the control of the building owners or even the Owner’s Representative. The difference is that when you hire an Owners Representative they have experience with these issues and are well-equipped to handle these unforeseen circumstances, employing their problem-solving skills and industry experience to minimize your risks and find creative solutions that will save you money.
Whether it’s navigating City regulations, resolving conflicts with permits, changing materials used, or addressing construction delays, they are invaluable in minimizing disruptions which will save you money and keep the project on track. With an owner’s rep by your side, you will minimize your risk and have a technical expert who can find you the best alternatives to keep your project going.
Optimizing Efficiency
Everyone in the construction industry knows that a well optimized plans will save you money. By implementing best practices and leveraging technology, an Owner’s Representative can optimize efficiency and streamline processes throughout the lifecycle of your construction project. From project scheduling and resource allocation to procurement and logistics management, they identify opportunities for improvement and implement strategies to enhance productivity and minimize waste. This focus on efficiency not only accelerates project timelines but also reduces costs associated with inefficiencies and delays.
Final thoughts
As you can see hiring an Owners Representative will add an additional expense to your pay role but will also save you time and money on your next project. Their construction experience and expertise will allow you to complete your project on time and within your budget. From managing and negotiating with your vendors to reviewing plans and minimizing change orders you will save a ton of money when you hire a qualified Owners Representative.
We would be happy to serve as your Owners Rep and bring a wealth of knowledge to your next construction endeavor. Our team is standing by to help you manage your project and ensure everything goes according to plan. We have served as owner representatives for many South Florida building owners and will be happy to help you too.
