4 Reasons Capital Improvement Projects (of Any Size) Benefit from an Owner’s Representative

Imagine an orchestra without a conductor. Musicians may play their individual parts well, but without cohesion. The result? Chaos. Managing capital improvement projects can be just as complex—without the right leadership, even small projects can easily go off track. That’s where an owner’s representative comes in. Acting as the project’s conductor, they represent the owner’s interests, allowing clients to focus on their day-to-day responsibilities and engage more meaningfully as a stakeholder in the project.

It’s clear why large projects benefit from an owner’s rep. Multiple contractors, complex requirements, and tight timelines make coordination especially crucial. But for smaller projects, it may not always seem as necessary. With rising costs, many owners think skipping an owner’s rep is a smart way to save. After all, many organizations have capable project managers on staff. The question is: Can the organization’s internal staff juggle project facilitation and oversight alongside their primary duties without compromising quality and the ability to manage risks for both?

The reality is that there are no truly “small” projects. Even modest ones involve the steps of choosing the right consultants, managing budgets and schedules, and navigating the design and construction phases. Smaller projects often have similar complexities as larger ones, such as coordinating with multiple stakeholders or managing challenging logistics. In fact, larger projects can sometimes be more straightforward thanks to broader teams and experienced partners!

In this article, we dive into the role of an owner’s representative on capital improvement projects, with an eye on four key ways it adds value, even to “small” projects.

1. Aligning Clear, Attainable Goals with the Client’s Vision

Hiring an owner’s rep on capital improvement projects ensures that the finer details are managed while the owner’s vision remains front and center. They help define priorities and ensure that the project stays true to those goals. For instance, if an owner wants to prioritize local contractors or work with historically underrepresented firms, an owner’s rep can guide those outcomes.

With a focus on budget and schedule management, the owner’s rep allows the client to stay focused on their mission while maintaining transparency. This accountability is invaluable for both private organizations and taxpayer-funded entities, as it demonstrates fiscal responsibility. Plus, a well-planned master budget provides confidence as owners better understand their financial exposure for the total project costs, not just direct construction, and make informed decisions when changes arise.

Engaging an owner’s rep early can also offer guidance on project delivery methods, like when to choose design-build over CM/GC or design-bid-build. Their expertise helps streamline the process, ensuring the right partners are involved at the right time.

2. Expanding Resources and Building Relationships for Future Projects

If you foresee more capital projects on the horizon, working with an owner’s rep on a smaller project is an excellent way to “test drive” the relationship. It allows owners an opportunity to assess their approach, communication style, and fit, setting the stage for future collaboration. This effort can lead to establishing a trusted, lasting partnership that grows with an organization’s capital program.

Owner’s reps also offer a seamless way to bring specialized resources into a project. For public agencies, which often face long hiring timelines and competitive searches for qualified candidates, an owner’s rep contract provides instant access to essential expertise and staff augmentation. Rather than managing multiple RFPs or contracts for inspections, commissioning, or early due diligence, an owner’s rep can efficiently subcontract these services, saving time and streamlining the process. In smaller projects, where time is money, this efficiency is particularly beneficial and supports timely outcomes.

3. Enhancing Communication and Coordination with Stakeholders

Bringing the right team together at the right time can make or break a project. A skilled owner’s rep fosters open communication, innovation, problem solving, conflict resolution, and keeps everyone aligned.

For example, on the Vancouver Clinic expansion projects, Otak as owner’s rep led a collaborative project team environment, resulting in a project delivered three weeks early and $3 million under budget—even during the challenges of the pandemic.

Make no mistake, challenges occur on every project. Having the right combination of leadership, collaboration and engagement determines whether these challenges add to or detract from project outcomes.

4. Finding Efficiencies in Project Processes

With their experience managing multiple projects, owner’s reps often spot efficiencies that save time and money. This can be especially important when managing public funds such as school bonds.

An owner’s rep can anticipate supply chain issues or regional labor shortages and adjust the project plan accordingly. For instance, during the Medford School District’s Oakdale Middle School project, utilization of an owner’s rep expedited the procurement of long-lead items like window systems to avoid delays.

A Partner That Fits the Project

With capital improvement projects covering a wide range of objectives, Otak’s owner representation services are scalable to fit each project’s unique needs. The group has helped clients with everything from drafting RFPs for an HOA’s paving contractor to offering design phase management on a county health services project until the agency felt comfortable taking over to manage in-house. Using a tailored approach means clients get the expertise they need when they need it, whether that’s for a single phase or the entire project.

Capital improvement projects—large or small—can be complicated but incredibly rewarding. By partnering with an owner’s representative, a project gains an advocate who understands it’s overarching vision and manages the details necessary to reach it. An owner’s representative orchestrates complexities at any scale so project owners can stay focused on the primary mission, giving confidence in completing projects with lasting impact.