Owner's Representative: What Do They Do and When Do You Need One?

An owner's representative acts for the client on a construction project. In Finland the role is known as a rakennuttajakonsultti. The representative manages the project on the client's behalf, from the needs assessment through design management, tendering and construction to handover.

Put simply, an owner's representative does what the client would do if they had the time, the technical expertise and experience of large construction projects. A housing company board or a private owner rarely has all of these.

Client, contractor and consultant

The client commissions the work and the contractor carries it out. The owner's representative takes on the client's role or supports the client in it. They do not build anything themselves; they make sure the building is done correctly, on time and at the agreed price.

What does an owner's representative do?

Needs assessment and project planning

Much of a project's success is decided before a single designer has been appointed. The representative helps define a realistic scope, estimate costs and choose the delivery method and contract model.

Design management

The representative tenders the design team, manages the design process and makes sure the designs meet the project's objectives and are buildable and cost-effective. Poor designs lead to poor bids, additional works and disputes.

Tendering and the construction contract

The representative prepares the tender documents, evaluates the bids and prepares the construction contract. This is often where the client needs the most help, because comparing bids is not straightforward and the contract terms shape the entire project.

Choosing the cheapest bid is not always wise. An experienced consultant also sees what a bid leaves unsaid.

Managing construction

During construction the representative chairs site meetings, monitors the schedule and costs, and handles additional and variation works, assessing whether each request is justified, correctly priced and in line with the contract.

Handover and the warranty period

The representative leads the handover inspection, records defects and follows up on their repair. At the end of the warranty period, usually two years after handover, a warranty inspection is held.

When should you hire an owner's representative?

• The project is large. Contracts worth more than half a million euros call for professional management.
• Technical expertise is lacking. The board or owner cannot assess designs, bids and contracts.
• The project is technically demanding. For example major renovations, pipe renovations, façades and roofs.
• The schedule matters. Disruption to building users needs to be kept as short as possible.
• The previous project went wrong. Unexpected additional works or quality that fell short.

What does it cost?

The fee depends on the scope and duration of the project and on the representative's role. The cost of owner's representation is typically between one and five per cent of the contract value. A fixed fee is often the best option for the client, as the cost is known in advance. The investment pays for itself through avoided additional works, better tender results and higher quality.

Owner's representative or site supervisor?

The owner's representative manages the whole project; the site supervisor monitors the quality of the work. Large projects often need both. On smaller projects the same expert can handle both roles, as we often do. Ask us more.