In the latest Project Insights’ episode, PMA Managing Director Clark McCormick and cohosts Zoe Mervine and Brian Sullivan discuss the advantages of securing the services of an owner’s project manager (OMP) to manage changes and claims in construction projects.

For the last 28 years, Clark has provided contracts administration, claims management, and OPM services on education and transportation projects. His time with PMA started with the Central Artery Tunnel, one of the largest infrastructure projects in the country, extending I-90 under the Boston Harbor to Logan International Airport and replacing the existing I-93 highway viaduct with a newly constructed tunnel. Currently, he is the project lead on the Poplar Street Pump Station, which encompasses the construction of an above-ground 50-million-gallon stormwater pump station, an underground stormwater storage tank, a force main, and associated property and streetscape improvements. With this depth of experience across many types of construction projects, Clark had much to share about his experience ensuring their successful delivery, especially as an OPM.

One of Clark’s main takeaways was that while both an OPM and claims consultant helps resolve change orders and claims, they do so differently. From planning to completion an OPM acts as a facilitator amongst the project stakeholders. Each owner brings a different level of experience to a construction project and stakeholders likewise have varying levels of expertise, so not everyone is on the same page. OPMs help make sure that even with this disparity, the project is delivered successfully and the owner is protected – this is why states such as Massachusetts require their services on projects over $1.5 million.

An OPM specifically aids with changes and claims by preparing the owner for the inevitable. A catastrophic issue may not arise, but there will always be something—the most common change orders are often caused by owner-directed changes or unknown environmental factors. Preparing for these changes starts in the earliest planning stage, where the OPM identifies the owner’s preferences, objectives, and goals so that they can make a cost management plan, factoring risks and contingencies. Clark also specifies that establishing a change order process, labor and equipment rates, and overhead is key to carrying out change orders seamlessly. Since changes on a project are inevitable, these precautions keep the owner one step ahead.

Beyond preparing during the planning phase of the project, Clark recommends that owners and OPMs schedule claims avoidance reviews throughout the design of the project to address issues before they escalate. As far as strategies to resolve potential disputes on large projects, stakeholders could involve a dispute review board (DRB) that visits the site on an agreed upon cadence, allowing them to observe the project’s progress. If any claims or disputes arise, the DRB can discuss them with the owner and contractor, offering more insight into the situation.

Without proper measures in place, claims requiring a consultant can hinder a construction project’s progress. While an OPM facilitates overall project execution, a claims consultant specializes in preparing and resolving claims. Clark, as a claims consultant, often has to reconstruct the entire project to address issues. The OPM’s firsthand knowledge of the project helps maintain momentum, whereas the claims consultant focuses on resolving disputes. Although bringing in a claims consultant may be necessary, it requires additional time and financial resources from the owner, OPM, and other stakeholders.

Construction projects will always come with an inherent risk and cost. However, with an experienced OPM, you can minimize them to ensure the best project results. To learn more about an OPM’s role and advice for both owners and OPMs, listen to the full episode of Project Insights.