Owner’s Rep. Healthcare Construction Projects

According to Health Facilities Management’s (HFM,) annual 2015 Hospital Construction Survey far fewer hospitals completed construction projects on or within budget and/or ahead of schedule in 2014 than reported in 2013 year.


Related article: 5 largest Healthcare Projects within the United States 


In fact, more hospital construction projects were behind schedule and/or over budget than in any year since 2006. Out of all of the 3,414 hospital and health systems surveyed about their projects:

  • 22 percent of were behind schedule
  • 15 percent were over budget
  • 12 percent of all projects were BOTH over budget and behind on schedule


A wide range of challenges that organizations are facing could point to the reason why project schedule / budgets are heading the wrong way. One reason could be the fact that the demand for construction services is high and that organizations cannot allocate the proper resources and man power to manage these projects in house. Thus the lack of oversight and attention to budget/schedule is a contributor. Another contributor could be the lack of internal intellectual capital when it comes to handling projects correctly since managing large scale real estate and construction projects are not an everyday occurrence.


Related article: Healthcare: The Need for an Owner’s Rep.


For all of the possible contributing factors; an independent owner’s rep. could be a resource that would help eliminate such issues. An owner’s rep. working side by side with the organization’s representatives, would be able to act as an extension of the organization and provided the necessary attention and oversight to deliver a successful project. An owner’s rep. would also be able to provide the intellectual capital to help come up with creative solutions and ways to protect the original budget and schedule since handling projects is something they do every day.

Stephen Fean
Stephen Fean is the Vice President of Business Development at Watchdog Real Estate Project Managers, a real-estate consulting firm that provides owner’s representation and project management services. More about Watchdog Real Estate Project Managers as well as additional blog posts can be found here.
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