Rebuilding Is a Second Crisis
The devastation of a house from a fire, flood, hurricane or tornado is just the beginning of the tragedy. The second starts once the dust has settled and the owner actually has become the developer of a construction project. They have to make decisions about who will build the new house, who needs to apply for the new house, how to spend the insurance money, and who is reliable when it comes to contractors – and they are grieving what they've lost while they are living in temporary housing.
A build is something that most homeowners haven't managed at home. Even those who have done a kitchen renovation will find that they have to undertake the task of rebuilding a whole house after a disaster is a different matter. The amount of applications is overwhelming at the local offices, supplies get depleted and so do skilled manpower and prices rise at a rapid rate, while the presence of unscrupulous operators is noticed within a couple of weeks of each major event. This is where it can be helpful to have someone from the owner's side. This article will tell you what it is and what it does on a daily basis and why it is important to have if you are going through a rebuild to secure your time, money and peace of mind.
What Is an Owner's Representative?
An owner's representative is a professional that runs a building project on behalf of the owner. Imagine it as being a project manager, consultant and monitor. Each of the architect, engineer and contractors has an individual contract and their individual interests. The owner's representative has only one person and that is YOU! Owner's representative construction services ensure a seasoned ally for the homeowner, during each stage of planning, from start to finish. The representative isn't a cement mixer nor is he or she a bricklayer. Rather, those who do those things are doing so properly, on time and at the agreed-upon cost.
Typical responsibilities include:
- Establishing a scope of work, budget and timeline prior to spending any money.
- Helping you to choose a designer/architect Permitting & approving projects with local government authorities
- Writing bid packages, reviewing contractors' bids.
- This involves checking on contracts, change orders and payment requests.
- The site visits, quality checks and progress reports include the following:
- Scheduling appointments with insurance and mortgage companies to discuss the organization of insurance and mortgage Handling closeout (inspections, warranties and punch lists)
A representative has seen a lot of projects, and can therefore tell you where troubles lie. This is a first time experience you can't outsmart.
Why Disaster Rebuilds Are Different
It is already a tough task to build a standard new one. Professional representation will be more critical after the disaster, when there is an additional layer of stress in the process of rebuilding.
Emotional exhaustion. At the same time, survivors are likely to be dealing with trauma, displacement and insurance claims. Tired makes for a bad signature and decision fatigue is a reality. You can let a representative handle the technical aspects and concentrate on family.
Crowded markets. Following a regional disaster, 1,000s of owners are bidding for the same architects, engineers, inspectors and builders. Quality companies tend to be booked up quickly. Having a familiar local market representative who knows the market can assist you in finding qualified teams in advance of the top ones being snapped up.
Contractor fraud. Unlicensed, they are the ones who regularly follow disasters, taking in huge deposits after which they vanish. A representative checks licenses, insurance, references and past work and sets up payment to ensure that you're never ahead of your work.
Insurance complexity. Depreciations and code-upgrade requirements are complicated by policies, as is documentation requirements, even for careful readers. A representative keeps your costs, receipts organized, and creates your costs in insurer-friendly order which can help get you paid faster and avoid conflicts.
Changing rules. Both governments and NGO's tend to implement new building codes, rebuilding programs and accelerated rebuilding processes after disasters. With some rules, knowing when and what they are, is the key to saving months.
Navigating Permits and Approvals
Your project will need to have a legal approval prior to any work being undertaken. These approvals are lumped together and collectively referred to as construction entitlements, and can be a lengthy, technical and confusing exercise for construction teams. The types of approvals can vary from zoning approval, setbacks and heights, environmental, hillside, floodplain, historic overlays, utility connections, fire and building department signings. If your house is different than the one that you lost in both size, footprint or location on the lot, it may require additional review.
There are four ways that a representative assists:
- Research. They validate your property's capability prior to you spending the design that will not be authorized.
- Sequencing. They schedule the submission of their papers so as not to impose delays on the other reviews.
- Communication. They have a record of all the conversations, follow-up with plan checkers and answer correction notices.
- Expectation setting. They provide you with reasonable expectations for time frames and allow you to make plans for temporary housing and finances.
Many jurisdictions postpone the time required to finalize a plan for a disaster when one is needed, provide pre-approved plans, or offer a fast-track program, or waive fees. These can add months to a schedule, if they're filled out and properly submitted. One missing paper could cause a paper to fall to the end of the line.
Controlling Budget, Contractors, and Schedule
When approvals are on the move, the greatest threats become those of money and time.
Budget. A representative makes a realistic cost estimate taking into account contingencies for unexpected factors like soil conditions, code changes, and price changes. They take the estimate and adjust it with your insurance pay-out, savings and financing so you know as early as possible if the plan is affordable. They also check all change order and payment requests during the construction process prior to payment.
Contractor selection. A representative clearly defines the scope and then solicits bids from various builders.Instead of simply hiring the next builder available, a representative creates a clear scope and asks for bids from a variety of builders. When you make multiple offers and then compare them line by line, you will see the shortcomings in one of them, the excess in another and the items that are completely omitted in another. They also review licensing and insurance, safety and references, as well as assist in negotiating a contract that will protect you, have defined milestones, retainage and warranty terms, and has remedies available in case of delay.
Schedule. A representative monitors progress and reports delays promptly and takes proactive action, rather than taking a reactive stance, for solutions rather than excuses. As they attend meetings, and walk the site, they can detect good quality issues before they get hidden behind drywall or plumbing covered by concrete.
Documentation. Having complete records of invoices, inspections, photos and approvals are important to insurers, lenders, future buyers and warranty claims. They're maintained in an organized manner by a representative, so that nothing is lost when you need it the most.
Choosing the Right Representative
They charge different rates and typically they are based on a percentage of the construction cost, fixed fee, or hourly/monthly fee. You'll see that it is worth weighing the possibilities of what can be avoided within the role: a missed approval adds months, a change order adds tens of thousands, or a defect found after you move in. A lot of owners discover that they are more going to make mistakes which they can sidestep than they are to be subjected to a fee.
In order to interview candidates, seek out:
- Exposure to the work of residential rebuilds, preferably as a result of disasters in your area
- Knowledge of the relevant rebuilding programs and permitting offices in the area.
- Independence, in that they are free of financial relationships with the contractors and/or designers that they recommend.
- If you can call several past homeowners to ask for referrals, you will certainly get them.
- A written scope of services that defines services, reporting and costs
- Effective communication practices (including weekly updates, project files, etc.)
Discuss how they would settle a conflict with a contractor, how they keep track of budget vs actual and what they will need from you throughout the process.
The Bottom Line
After a disaster is a time when ordinary people are called upon to do extraordinary work, and do it when they are under extraordinary stress. It's not something that has to be done by yourself and it shouldn't be done without the presence of someone whose job is to look out for your interests. An owner's representative will be a voice of knowledge when you bring him on early, preferably before your designer or builder comes in, and can help you make decisions, keep contractors accountable and keep your project on track to homeownership.
