The $1.2M Mistake: Why Owner’s Reps Must Be Engaged Early
A Foundational Guide for Smarter Project Delivery (OR-002)
By David Gray | DavidGrayProjects.com
I’ll never forget sitting in a project review where the CFO quietly leaned across the table and said, “We just lost $1.2 million because we didn’t have you in the room at the start.”
That’s the painful reality for many organizations: they wait too long to bring in an Owner’s Representative (OR). By the time we’re engaged, millions may already have been lost through missteps that could have been prevented.
This blog is about that lesson — and why engaging an OR on Day One is not a cost, but an investment.
What Went Wrong in That $1.2M Case
The company launched into design before fully locking scope, budget, or delivery strategy. They trusted the process would sort itself out.
But when construction pricing came back, they were blindsided. The design didn’t align with budget realities. Cost overruns were inevitable. They had to re-scope, re-design, and re-bid. That cycle alone cost them $1.2 million.
If an Owner’s Rep had been engaged early:
Scope and budget would have been validated before design progressed.
Market benchmarks would have exposed risks before committing.
Governance would have flagged unrealistic assumptions.
In short, the mistake was preventable.
What an Owner’s Rep Really Brings
I think of the OR role as a translator and protector for owners. We ensure that project teams — designers, contractors, consultants — are aligned with what the owner truly needs.
The value isn’t just technical expertise. It’s foresight, accountability, and advocacy:
Foresight: Identifying risks before they become change orders.
Accountability: Holding vendors and contractors to standards and commitments.
Advocacy: Protecting the owner’s interests when tough calls have to be made.
The Day One Difference
Engaging an OR early changes the trajectory of a project. Here’s how I scale the approach:
| Project Type | How an OR Adds Value on Day One |
|---|---|
| Tenant Improvement | Validate budget and schedule realism before lease commitments |
| Healthcare Renovation | Identify life-safety and phasing risks early; align design with regulatory needs |
| Manufacturing Plant | Benchmark costs, validate delivery strategy, flag constructability issues |
| Hyperscale Data Center | Establish governance, delivery model, and procurement strategy before design |
Pitfalls I’ve Seen When ORs Arrive Too Late
Projects already overdesigned for the budget
Schedules set based on assumptions, not market reality
Contracts signed that favor vendors, not the owner
No mechanism to enforce accountability
Boards losing confidence before ground is even broken
My Perspective
The $1.2M mistake I witnessed wasn’t unique. I’ve seen versions of it across industries: healthcare, manufacturing, data centers, higher ed. For large scale projects I’ve seen these mistakes ad up to $100s of million. Then compounded once change orders are pushed through on an already awarded project. A little foresight can manage these risk and result in millions or hundreds of millions in avoided cost.
It taught me one thing above all: owners can’t afford to wait.
Bringing in an Owner’s Rep early isn’t about adding another consultant. It’s about making sure strategy, scope, and budget are aligned from the very start. It’s about protecting the investment. And in my experience, it pays for itself many times over.
Read the consulting version of this article:
What Are Project Controls? – Albers Management
About the Author
David Gray is a capital delivery strategist, owner’s representative, and founder of DavidGrayProjects.com. With over two decades of experience helping organizations bring complex projects to life—from data centers and healthcare facilities to higher-ed campuses—David blends practical delivery with forward-thinking strategy.
He writes about project controls, capital planning, and real estate development to help leaders deliver smarter, faster, and more sustainably.
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