Understanding Owner's Engineering: A Strategic Necessity for Utility Companies

by Theron Easley, Director of Owner's Engineering

As the energy sector navigates rapid transformations, utility companies are under increasing pressure to deliver projects that are not only on time and within budget but also adhere to stringent quality and safety standards. One critical service that has emerged as a linchpin in ensuring the success of these projects is Owner's Engineering (OE). But what exactly is Owner's Engineering, why is it essential, and what should utility companies look for when selecting an OE partner?

What is Owner's Engineering?

At its core, Owner's Engineering is a service that provides utility companies with technical and management expertise throughout the lifecycle of a project. An Owner's Engineer acts as an extension of the utility’s in-house team, offering an independent, expert perspective to ensure that projects are executed according to the owner’s best interests.

Typically, an OE firm will handle responsibilities such as scoping, drafting bid documents, estimating, and quality assurance/quality control (QA/QC). These functions are critical to maintaining the integrity, safety, and efficiency of projects. The OE firm essentially takes on roles that the utility would traditionally manage in-house, acting as a trusted advisor and ensuring that the utility's standards and requirements are met throughout the project.

The Role of an Owner's Engineer

Think of Owner’s Engineers like a sibling to the utility company. They work in tandem with the utility, performing tasks that the utility would otherwise do internally -- from developing project scopes and conducting estimates to preparing bid documents and overseeing QA/QC processes. This close partnership allows utilities to offload specific responsibilities, ensuring that projects are managed by experts with deep industry knowledge.

For example, in the case of a gas utility, where projects tend to be more civil and mechanically intensive, an OE firm might bring in specialized expertise in geotechnical analysis, ensuring that underground pipelines are safely and efficiently installed. For electric utilities, where projects are more focused on electrical and civil engineering, an OE firm might focus on ensuring that transmission lines and substations are built to the highest standards, often working closely with geotechnical experts but focusing on different aspects compared to gas utilities.

Why Utility Companies Need Owner's Engineering

The need for Owner's Engineering has become more pronounced due to several industry-wide challenges. First and foremost is a shrinking talent pool. With fewer engineers entering the workforce and many experienced professionals retiring, utilities are finding it increasingly difficult to maintain the necessary in-house expertise to manage complex projects. This talent shortage means that utility companies are often stretched thin, struggling to juggle multiple projects with limited resources.

Moreover, the regulatory landscape is becoming more stringent, with utility commissions demanding higher levels of oversight and accountability. This, coupled with the complexity of modern energy infrastructure projects, makes it imperative for utilities to partner with experts who can provide the necessary technical guidance and oversight.

Another significant factor is cost efficiency. Hiring a team of in-house engineers for a specific project can be financially burdensome, especially if the need for such expertise fluctuates. Instead, by outsourcing to an OE firm, utilities can access the required expertise on a flexible basis, aligning resources with project demands without the overhead of maintaining a large permanent staff.

Overcoming the Challenges of Outsourcing

One of the primary concerns utility companies face when considering Owner's Engineering services is the potential loss of control. Trusting an external firm with critical tasks can be daunting, particularly for companies that have traditionally kept these functions in-house. Utilities may be hesitant to relinquish control over QA/QC processes, especially when they have spent years developing their own standards and protocols.

However, a reputable OE partner understands these concerns and works to build a relationship of trust. The key is transparency and collaboration. A good OE firm will not only adhere to the utility’s standards but will also provide regular updates and engage in open communication throughout the project. This ensures that the utility retains oversight and can make informed decisions at every stage.

What to Look for in an Owner's Engineering Partner

When selecting an Owner's Engineering partner, utility companies should prioritize the following attributes:

1. Experience and Expertise The most critical factor is the firm's experience. Look for an OE partner with a proven track record in managing similar projects. This experience should extend to all aspects of project management, from scoping and estimating to QA/QC and bid process management. The firm should have a roster of senior-level professionals who bring years of industry-specific knowledge to the table.
2. Technical Capabilities Ensure that the OE firm has the technical expertise required for your specific type of project. For instance, if you are managing a gas utility project, the OE partner should have a deep understanding of mechanical engineering, high-pressure systems, and civil infrastructure. For electric utilities, the focus might be on electrical engineering, substation design, and transmission line construction.
3. Safety and Compliance Given the high stakes involved in utility projects, safety should be a non-negotiable priority. The OE firm should have a robust safety culture and a commitment to adhering to all regulatory requirements. This includes not only following industry best practices but also ensuring that all project activities comply with local, state, and federal regulations.
4. Reputation and References A reputable OE firm will have a solid reputation within the industry and should be able to provide references from past clients. These references can offer valuable insights into the firm’s reliability, professionalism, and ability to deliver results.
5. Flexibility and Scalability Your OE partner should be able to scale their services to match the needs of your project. Whether you require comprehensive project management or targeted expertise in a specific area, the firm should be able to adapt their approach to meet your requirements.

Owner's Engineering is an essential service for utility companies facing the challenges of modern energy infrastructure projects. By partnering with an experienced and reputable OE firm, utilities can ensure that their projects are executed with precision, safety, and efficiency. The right OE partner acts as an extension of the utility’s team, providing the expertise and support necessary to navigate the complexities of today’s energy landscape.

As the demand for energy continues to grow and the regulatory environment becomes more stringent, the role of Owner's Engineering will only become more critical. Utility companies that invest in an Owner's Engineering partner like PFES better position themselves to meet project goals and deliver reliable, safe, and cost-effective energy solutions to their customers. Contact us today to learn how.