Do I Need to Hire an Owner’s Rep for my Capital Campaign? 3 Reasons You Should

The following is guest post by Sanjeevanee Vidwans, an Independent Capital Project Management Consultant. She has more than 25 years of experience experience delivering capital projects in both public and private sectors.

If you are embarking on a capital project, you’ve surely thought about whether or not to hire an Owner’s Rep. You’ve probably researched the pros and cons, but maybe you’re still on the fence.

Hiring yet another consultant can seem daunting, but because you follow Capital Campaign Pro’s blog I know you already value the importance of engaging with the very best partners for the success of your project.

As you weigh your decision, consider these observations from my project experience as an Owner’s Rep.

Why Hire an Owner’s Rep? You Can’t Pay Attention to Everything

The following scenario happens a lot:

Your incredible design team has just completed the next phase of their design work.

This manifests in 200 pages of design drawings and specifications that are now sitting on your desk(top). The architect has allowed you and your team a week to provide feedback before they move on to the next phase of design.

Where do you start?

It’s likely that you simply do not have the time to pay attention to everything on those 200 pages, even if you have done the best you can to staff your office for your capital campaign.

That’s where an Owner’s Rep comes in. They will review them on your behalf, already knowing the aspects that are important to you (even if you yourself may not!) and bring the highlights to your attention to confirm.

An Owner’s Rep will likely attend key meetings throughout the design phase, distilling the important points for you during your weekly check-ins, and working with you to schedule dedicated meetings with other members of your team as necessary.

Keep in mind that the “200 pages of design drawings and specifications” I mentioned above won’t be the end of it. There will likely be more contracts, insurance paperwork and payment requisitions from the construction manager that need to be dealt with. An Owner’s Rep will boil things down for you so you can pay attention to only what you need to, when you need to.

Donor Opportunities Inevitably Intersect With the Design and Construction Process

I once managed an iconic project for a well-known institution of higher education. Their world-renowned architect designed an unforgettable design element that was integral to the building’s featured staircase. Implementing it would require committing to it from the start of the project because it connected directly to the concrete structure of the building.

But unfortunately it came with a hefty price tag.

The institution knew that a donor for this element was out there, but they needed some more time to find them. How could they buy some more time, and in the process get the most out of the donor’s investment?

The solution was to have the architect and construction manager work together to develop a simpler, but just-as-beautiful version of the design — which was a fraction of the cost but, more importantly, could be constructed separately from the structure of the stair. This allowed the college and its development team the time to showcase this exciting naming opportunity to their donor base.

Could the architect and construction manager have conceived of this idea and done this on their own? Maybe. But, in this case, having a trusted advisor by the owner’s side that saw the bigger picture, identified the issue, and spoke the necessary design and construction speak was what it took to prompt the exercise and ultimately shepherd it to an optimal solution.

You Need Overall Budget Management, Not Partial Budget Management

Most owners will recognize the value of an Owner’s Rep to establish a realistic project budget, along with a realistic scope and schedule.

But once that is approved by your board, who needs to see what parts of it, and when? Many owners might say:

“But I have an architect who will make sure we stay on budget, so why do I need an Owner’s Rep?”

An architect and an Owner’s Rep focus on different things. An architect’s role is to design a beautiful, functional, code compliant space that meets the needs of your organization and is within your design and construction budget.

But a capital project budget is more than just design and construction costs. There can be consultants and other aspects that have nothing to do with the architect such as legal fees, financing costs, fundraising costs, move costs, ongoing utility costs, and various types of contingencies; all of which need to be considered and tracked in the context of the total project budget.

Consider the chart below, outlining various budget line items and which parties should have visibility into them.

Chart: Capital Campaign Project Budget Line Items

For example, sharing the Overall Project Contingency with the Architect is not only unnecessary but can even be harmful if they consider these as funds as available for additional design rather than their intended purpose. Contingencies are necessary for sound budget management because they provide a mechanism to fund the unknown. If they are still available at certain milestones in the project they can be redistributed towards another line item that may need it, but it must be per the owner’s priorities, not the architect’s.

In fact, not just contingencies but each and every budget line item lives and breathes as a project progresses, requiring constant monitoring and guidance to maintain the overall capital budget’s bottom line.

A seasoned Owner’s Rep understands this, and can use their knowledge and experience to set up a structure and timeline for the board to make the needed line-to-line transfers and other decisions to keep the project on track.

Your Owner’s Rep Can Be Your Board Whisperer

You already know how to talk to your board about your mission, program goals and initiatives. But how do you communicate details about your capital project with the same confidence?

Your board can be your biggest advocate; they have chosen to step up and give their time to support your organization. But they need to stay engaged and informed throughout the project to do so.

Your Owner’s Rep can be your “Board Whisperer,” working with you to determine what and how information is presented. An Owner’s Rep will work to standardize these updates to aid understanding, highlight and track important issues before they become problematic, and help you assure your Board that your staff has the knowledge and confidence to move the project to a successful outcome.

Capital projects are not for the faint of heart! But if you have a good handle on your capabilities then, like many other organizations, you will likely come to the conclusion that hiring an Owner’s Rep will be a wise and ultimately fruitful decision.

And the beauty is that you can discuss various levels of engagement with a potential Owner’s Rep, to find the one that works best for your organization.