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Avoiding Construction Mistakes: Third-Party Administrators

Feb 9, 2021 9:00:00 AM / by Jaqualynn Durbin

You may be contemplating your next project. You have a lot to think about and many possible obstacles to tackle ahead of you. You don’t know the industry. You’re already busy at work to take on more. You don’t know what steps to take next.

Already flustered about your project, you start researching your options. You come across a variety of methods including one called “Third-Party Administration.” According to this method, someone can take the burdens of the process off of you, but what does it really mean to use a Third-Party Administrator for your next project?

Construction Management Agreement

What is a TPA?

Third Party Administration (TPA) is a method used by organizations to oversee the work on a specific project(s). By using a TPA, the project owner uses the expertise of professional who has previously completed several projects and is knowledgeable about the process. The TPA will ensure the project is completed to the owner’s satisfaction without the owner needing to be hands-on during the entire process.

The TPA handles the day-to-day management of the project, alleviating this pressure and time from the owner. Thus, the owner isn’t burdened by wanting to undertake a project they may not have time to personally oversee or the knowledge to know if the project is being completed properly.

A TPA establishes a mutually beneficial partnership with their clients, aiming to provide services that may otherwise prove costly, time consuming, convoluted, or even downright confusing. In other words, this expert in the field is tasked with offering a wide variety of turn-key project management solutions for the project. Should an issue arise, they are responsible with providing solutions to untangle what could very well be a confusing mess if the owner undertook the project alone.

TPAs allow the project owner to complete multiple projects simultaneously as well. Using the TPA method, multiple teams can be provided and coordinated to get various projects completed during a set time frame. This is especially critical in industries like construction where the longer a facility remains closed for construction, the greater loss of income which could be made if the facility was open during the time.

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TPAs for Construction

In the Construction industry, TPAs are extremely beneficial for local government, libraries, schools, and parks & recreation organizations. Really, TPAs benefit any industry that has a renovation or construction project they do not have the in-house expertise to perform on their own.

In most cases, the TPA handles every step of the process, from inception to completion. The TPA provides ongoing support through the design phase, bidding process, billing, milestones, and closeout. They ensure that the project owner is satisfied at every step and advocates on behalf of the project owner on the construction site.

Clients who have used the TPA method find that having a trustworthy and experienced partner in charge of their project(s) frees up their time, causes less headaches, reduces overall costs of the project, and ultimately gives them peace of mind.

What a TPA can do for you

If you’re thinking about using a TPA, it’s important to know some of the services a Construction Management TPA can offer. The following list are common tasks TPAs perform, but TPAs can often offer much more.

Quick Glance of TPA Services:

  • RFQ Solicitation and Recommendations for A/E Firms
  • Development of an Accurate and Detailed Scope of Work
  • Solicitation of Qualified Contractors and Subcontractors through State/Local Mandated Public Bidding Processes for Government Projects
  • Evaluation of Contractor Quotes, Compliance with Scope, and Price Analysis
  • Development of Realistic Project Schedules and Definition of Milestones
  • Coordination and Execution of Weekly Meetings with Contractors
  • Coordination and Execution of Weekly Meetings with Owners
  • Execute Change Order Analysis, Bidding, and Discussions with Owners
  • Creation of Change Orders when Needed
  • Approval and Submission of Contractors/Subcontractors Billing
  • Advocacy and Representation of the Client Throughout the Process
  • Effective Communication between Contractors and Owners
  • Quality Assurance
  • Guarantee Compliance at Every Stage of the Project

shutterstock_598270040Should I use a TPA

TPAs are the best solution to get your projects done when you don’t have the personnel or expertise to perform or oversee the project yourself. You don’t need to need to become an overnight expert on construction, instead you can rely on a TPA with plenty of knowledge and experience completing similar projects.

You may only have an idea for a project and don’t know what steps to take next. A TPA will help you turn the vision into reality by using their expertise to guide and oversee the process.

If you are already busy on a regular basis, it may be too much to handle additional tasks on top of it. A TPA can take the day-to-day off of your plate while still keeping you involved in the process. The TPA will act as an advocate, informing of your project’s progress frequently so you still feel part of the process.

Perhaps your facility is in desperate need of multiple repairs or updates. By utilizing the TPA method, multiple projects can be coordinated and performed at once to decrease the amount of overall time your facility is under construction.

IAP as your TPA

If you are still in idea phase or ready to begin the process, IAP Government Services Group can act as your TPA. We will oversee your project and continually advocate for your vision.

If you are ready to build a quality partnership between your company and IAP, let us know by clicking the button below that says “Let’s Get Started!”

If you have any questions, you can also reach out to us at any time by using our “Contact Us” form on our website. We are continually monitoring this form and provide a response within the next 1-2 business days.

Let's Get Started!

Jaqualynn Durbin

Written by Jaqualynn Durbin

Marketing Coordinator for IAP Government Services Group