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Taking Charge of the Construction Team From Construction Business Review, Vol. 7, No.1 Owners by definition are the leaders of the construction team. It is time they step forward as the force that ultimately conceives, designs, builds and delivers the finished project, while cost-effectively paying the bills. The concept, as simple as it sounds, has had difficulty being implemented in the past because owners have never had a general association that could effectively serve as their voice at the table with the planners, designers and constructors. Without this critically needed general association, the owners have, for all practical purposes, been left out of the construction industry’s traditional channels for effective communication and interchange. As a result, the construction process as a whole has suffered. That’s the bad news. The good news, on the other hand, is that Associated Owners & Developers (AOD) has most recently been re-energized and is beginning to serve as the much-needed vehicle for responsible communication, education, understanding and cooperation between owners and the rest of the industry. The obvious question might immediately be, Just what makes AOD different from all those other associations serving the needs and representing the interests of a long cast of players from the architect to the specialty contractor? Furthermore, does the industry really need another association? The answers to those questions are really quite simple. For starters, can even one other national association dedicated solely to the interests of owner/developers be readily identified? In reality, a few possibilities may include owner/developers in their broader membership. But the fact that owner/developers are included in and not exclusive to these associations, is the main reason that many owners just don’t join. Historically, associations which have included owners have had agendas compatible with owners’ interests but not geared specifically toward them. AOD is prepared to serve as the much-needed vehicle for responsible communication, education, understanding and cooperation between owners and the rest of the industry. The result will be of tremendous benefit to the entire industry. As summed up by Chuck Williams, Major General (Retired), Chief Operating Officer and Director of Facilities, District of Columbia Public Schools, The time is long past due for an association that looks after the interests of Owners and Developers having experience in both public and private sectors, I am confident that such an association will complete the business circle for our industry, and more than anything else, improve communication and understanding among the pivotal players in our industry I’m totally supportive of this initiative. The nucleus of the construction process is the owner/developer, without which a project would not exist. Owners, as one should expect, are interested in three basic issues when it comes to actual delivery of construction projects: cost, quality, and schedule. Specifically, they should expect quality and receive it within cost, and on schedule! Simple as it may sound, there is in fact a void though, in terms of representation and education where there should be a driving force. With the emergence of the new cooperative era throughout the industry, should the owner/developer be any less informed than the general contractor about partnering, realistic risk allocation, alternate dispute resolution, TQM and other ideas which create harmony? The answer, of course is no absolutely not. Effective communication is certainly one of the key ingredients to the implementation of this answer. Leaders in the construction industry agree. Roger Feldman, President of the National Council for Public-Private Partnerships, put it this way: Achievement of quality in the construction industry and innovation in its transactional arrangements ultimately depend on the informed efforts of owners and developers. Associated Owners & Developers provides the missing essential mechanism to play that role. AOD supports the interests of owners and developers, from both the private and public sectors, while encouraging cooperation among all participants of the construction process. Its goal is to create a more favorable business environment for owner/developers so that they in turn can produce projects which are on time, and within budget; and where all participants reap the financial gains intended at inception. As Jim Groton, Steering Committee member of the Dispute Avoidance & Resolution Task Force, and Attorney, says, "The construction industry can’t function without effective owner input. There is a tremendous vacuum without them. Although AOD’s main body membership is composed solely of owner/developers; in the spirit of cooperation, AOD is in the process of forming a special group, the Coalition/Council, comprised of representatives, from other construction trade associations. Prior to the inception of AOD, associations desiring feedback from owners were hard pressed to find a unified voice representing owner/developers. For example, the American Institute of Architects (AIA) is looking for greater owner input for its standard form documents, and other associations have indicated interest in developing relationships with an owner’s organization. The purpose of the Coalition/Council will be to provide AOD with input from the entire spectrum of the construction industry and to promote AOD’s efforts to achieve broader industry cooperation. As Daniel J. Bennet, President, National Center for Construction Education and Research, has said, There is a great need in the construction industry for an owners’ and developers’ association and for that association to fully understand the problems and issues facing the family of members in construction. The fact that this has not been the case, has resulted in the industry emerging from an era where litigation has run rampant and too often solutions to disagreements between participants in the construction process have been found in court instead of through alternate dispute resolution techniques. There are many useful ideas and practices such as partnering, which have as their main purpose the creation of more cooperative spirit in order to avoid legal costs, delays and over-runs. AOD is a platform from which owner/developers can be introduced to the latest developments. AOD is currently requesting applications from professionals from numerous disciplines (bankers, lawyers, consultants, engineers, etc.) to expand its think tank of Affiliated Members. They make up the AOD Research and Speakers’ Bureaus from which AOD owner/developers can obtain the most up-to-date and reliable information on construction, engineering and business issues on a regional basis. These professionals submit applications detailing their credentials and are evaluated and selected by the AOD membership committee. There are a limited number of affiliated memberships available. The idea is to produce one of the most knowledgeable and respected Research and Speaker’s Bureaus in the industry. The Research Bureau, which is divided into eight regions, will provide a wealth of construction knowledge which the owner/developer can draw from at any time. For example, if there is a question about the feasibility of a project in Oregon, given the owner/developer’s company is in New York, he/she will be able to tap into the AOD Research Bureau for information. In turn, AOD will put the owner/developer in touch with a professional in the correct geographic region. This expert will answer questions on a pro bono basis. Industry reactions to AOD have continued to be positive, in that it is viewed as an association whose scope and purposes were long overdue. Current efforts to ensure that Associated Owners & Developers continues to be fed by the fuel necessary to ensure long-term success and benefit to all involved in the construction industry, is largely dependent on the energy and involvement of you the hard working members. As Mitchell Becker, Senior Vice President and General Counsel for United Infrastructure Company, has stated, Owners and developers should have access to industry peers and counsel that understand their unique needs and motivations. Organizations that merely include them are usually dominated by other interests. The Owner that does a 'one of ' or infrequent project is handicapped within that organization because he never can be confident that his interests are paramount to those of the other members. Getting onboard AOD and actively participating with other involved members is critical to the success of cost-effective construction. It can’t be done without you, so begin now by giving us a call and suggesting how you and your fellow associates can assist with the ongoing efforts to fully energize Associated Owners & Developers. . . . . . . . . . . . . For more information call, (703) 734-2397, fax (703) 734-2908 or write to: Associated Owners & Developers |
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