During Mastt’s first funding round, we often had prospective investors scratching their heads saying “Hold on, what? So builders are not your clients?”
We would always follow up with the same answer, that our customers are the capital works owners and their representatives (e.g. Head of Capital Works, Client Side Project Managers), not the builders. We’d then have to outline what an Owner is as they continued scratching their heads. I’d say…
A university capital works manager responsible for $100m in projects per year.
A director of government capital works managing billion-dollar base redevelopments.
A high school business manager, refurbishing campuses with dozens of new construction projects.“
Same Project - through a different lens
Project Managers (PMs) all have the responsibility to deliver a project within an established time and budget. So, what is the difference between getting work done on site as a construction project manager versus getting work done in the office as an owner's project manager?
Managing a capital works project or program is more than getting the job done. It’s also about making sure they get done right. It requires making hundreds of informed decisions about construction delivery methods, contractors, project budgets, and phasing schedules.
We’ve heard quite a few misconceptions of these two roles from our non-construction colleagues, due to both roles being labelled ‘Project Managers’. These two roles frequently co-exist within the same capital project, so understanding each of their domains can help your team save costs and time, ensure smooth handovers of tasks and avoid any gaps in communication.
Owner’s Project Manager Vs Construction Project Manager
Owner’s PMs (OPM), or Client Side Project Managers, serve a broader role, by understanding the entire project planning and execution process. They act as the binding agent between Construction PMs (CPM) and the Owner. They help successfully manage each renovation project or new building construction.
Here are some examples of the boundaries between their jobs.
Differing roles in the same project
A Contruction PM is hired to oversee the construction phase on the actual job site. Their number one goal is to physically build the building, from the first turn of soil through to handing over the keys.
Meanwhile, the presence of the Owner PM extends throughout the entire project from planning and design to construction and closeout. With capital works projects, the owner needs much more than a physical building. The Owner PM or Client Side PM works closely with the asset owners to make sure they understand their needs. They work to ensure the owner’s best interests are protected throughout the entire process, delivering the required scope or capability that the end asset will deliver.
Owner PMs mediate and negotiate between all consultants involved in a building project when issues arise. For example, imagine an issue arises with the building's design. The designer may spend a lot of time and creative thinking to complete a major design work, whereas the contractor’s PM says the design is not do-able due to inconsistent scales or unbuildable elements. The Owner PM is not directly responsible for either role yet understands the standard methods of each. They provide impartial, unbiased oversight to resolve the conflict in a way that minimises costs and delay, enabling the entire construction process to move on.
Schedule and budget management
Similarly, the Construction PM stays in a more micro level of cost and time management of various trades and material suppliers. The frequency of their reports comes down to a daily basis and typically involves materials, machinery and personnel supervision.
Take a look at a Construction PM’s job description on seek.com.au
The Owner PM, on the other hand, is involved in all phases of the process and schedule. They don’t just want the building built on time, they also want to see the project coordinated with others in the portfolio, construction to start on time, furniture installed, and the tenants moved in according to the overall project schedule.
An Owner PM can push all involved parties as needed to ensure the overall project schedule is maintained and met throughout all phases.
When it comes to finances, an Owner PM regularly reviews and approves project invoices, design and builder contracts. These details must be compiled into comprehensive reports and submitted to keep the owner in the loop and to ensure consistent and accurate tracking of all project costs throughout all phases.
The daily to-do list of an Assistant Owner’s Project Manager would look like this. Do you notice any differences in the timeframe and scope of their jobs, the stakeholders they deal with and the kind of expertise they are expected to have?
Level of authority
What it all comes down to is the type of services provided.
A Construction PM oversees construction activities, including personnel management at the construction site and their associated contracts. They will ensure that materials are delivered on time, tools are available, and resources are properly allocated.
An Owner PM acts as a trusted extension of the owner throughout all project phases and milestones, as well as supervising the Construction PM.
Construction projects have grown and become increasingly complex over the years and the need for an Owner PM has evolved. If the owner has more than one project, then chances are Owner PM’s role is extended to the level of capital program or portfolio management. This higher-level role requires more strategic thinking to ensure that business values of the owner are achieved.
Given the much greater scope of work that an Owner PM has to oversee, the owner’s space within the construction industry remains underdeveloped from a technology perspective. Almost all Owner PMs rely on spreadsheets. That means an owner typically waits for a few months (or more) for an outdated report that can be irrelevant by the time they actually receive it.
There is an urgent need in real-time project visibility and automation (data reporting etc). This is now made totally possible via the use of the right collaboration tools such as Mastt.
Our funding story had a happy ending as the prospective investors who understood the industry, understood also where we play in the owner's space. We ended up with the best of the best: Australia’s biggest VC funds Significant Capital Ventures, Artesian, Investible, Bob Hennessy and also Australia’s two most successful construction-tech entrepreneurs Rob Phillpot and Leigh Jasper.
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We've released some new features in the risk module to help provide insights over projects, programs and portfolios of capital works. See them in this article and be sure to follow our newsletter to have them delivered straight to your inbox.
"Mastt provides software that is currently at the forefront of owner/client-side project management for the construction industry and continues to change the way we operate for the better."