Timeless Business and Building Strategies

The Owner's Advocate: How Construction Management Transforms Projects

• Tony Johnson

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Tony Johnson welcomes Joe Marangolo from JSM Project Management to discuss the critical role owner's representatives play in successful construction projects. Joe explains how construction management connects the early planning phases with actual construction execution, providing value through team building, risk management, and clear communication throughout the entire project lifecycle.

• Starting as a carpenter and progressing through superintendent and project manager roles, Joe noticed he was only involved in the final 30-40% of projects
• Construction management allows involvement from project inception, connecting design and planning with construction execution
• Even experienced owners benefit from having representatives who can level bidding, eliminate unnecessary change orders, and maintain schedules
• JSM primarily handles large-scale luxury residential projects, high-end restaurants, and buildings requiring capital improvements
• Contractors often refer clients to JSM because they know their needs will be met efficiently
• The firm uses Microsoft OneDrive as their primary repository while interfacing with various contractor systems
• AI integration through VDC (Virtual Design and Construction) has allowed coordination of international vendors without requiring travel
• Business growth has been driven entirely by client referrals, expanding from New York to projects in Los Angeles and Barbados
• Success comes from establishing systems, templates, and pre-vetting quality contractors and architects

For more information, email joe@jsmprojectmgmt.com or visit their website and Instagram @JSM_Project_Mgmt


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Tony Johnson:

Welcome to another episode of Timeless Building and Business Strategies. This is Tony Johnson. Today we have Joe Marangolo with us. Joe, thanks so much for joining us today, sir.

Joe Marangolo:

Thank you very much for having me. I appreciate this. This is great.

Tony Johnson:

Yes, sir. So what you are is primarily an owner's rep a construction management firm. Could you tell us how you got involved in construction management and how long you've been doing it?

Joe Marangolo:

Yeah, I mean, you know, my career kind of started when I was maybe 13 or so. I grew up as a carpenter, a foreman, you know, a superintendent, a project manager and sort of getting to the crux of your question, one of the things I realized as a PM and as a super is that the project takes X number of months or years in its full lifecycle and I really saw that I was coming in in the last 30 or 40%, which is where the construction really kind of starts. So much happens in the beginning and I found myself really going backwards a lot with our clients and having to sort of connect a lot of what was done before, the design, the sequencing. You know. Certainly value engineering ends up being a big part of it. I found that I really enjoyed that as much as anything else and that was sort of the impetus for starting this firm that we would get in with our clients in the very beginning, this firm that we would get in with our clients in the very beginning.

Joe Marangolo:

And really what's been fun is I really identified that need to connect that first you know, 50 to 60 percent of the project to the construction. But what I really found is that we're also able to build teams to understand, you know, the mission of the project. We talk a lot about mission building within the project goals and we find that the influence there really sort of helps define the kind of architects, engineers, vendors, designers and even GCs that we can bring to the project. So it was all of that that really kind of got us to start this firm and go to that other side of the project and influence it from the beginning and we find that it really does sort of connect the entire project timeline much more, you know, safely, securely and when you're really keeping risk management in mind.

Tony Johnson:

So you know, for anyone who doesn't quite hasn't worked with a construction management firm, could you kind of go through what's the whole emphasis or whatever you would call that? Sorry, yeah, what's the antithesis of everything together? What is driving and what's the purpose of what you're doing?

Joe Marangolo:

Yeah, I mean, I think really my role has been something that has increased quite a bit and my competitors and people like this. This role has really sort of taken a hold and I think it has a lot to do with the fact that owners and clients are just less inclined to run the projects themselves, are just less inclined to run the projects themselves and they need to understand how to pick an architect, how to understand what the engineer's role is, how to choose a GC and how to do it in a way that they feel safe with their selections, knowing they're going to get what they want within the agreements set forth. My role right off the bat is to understand what the goals of the project is. The goal? Roi Is the goal a change of life, you know.

Joe Marangolo:

A drastic, you know, redo on an interior space Is it a move, and you know? And a higher investment in what somebody wants to build and or utilize it. You know, understanding that is something that I think was missing a lot on the owner's side of the table and that's where my 35 years, my business partner has 30 years experience, my senior project director has 25 years experience and we all kind of have very different experiences within the industry and so bringing that to a client's side of the table so that they can understand very clearly what the project is going to be. What are the real expectations? We're not starting construction tomorrow, as everybody wants to do. We're going to put together a proper team and a proper process.

Tony Johnson:

It's almost hard to calculate that value because we're saving time, we're controlling budgets and we're really sort of making sure we understand and set the expectations for quality and scope as well. Right, and so breaking down what you're saying there a little bit, joe is you know, what Joe is coming in and doing is dealing with whether it's an educated owner or an uneducated owner having a project wanting to get done. There are multiple owners that we deal with that have large companies, do tons of projects and you would say, oh, why would someone like that need a construction management firm? And to speak to what Joe's saying, is because you know, though, they're experienced and understand the construction side of things, joe and his team would be able to go in. They're going to really be able to dig in on when contractors are looking at a project to really level the bid, level the playing field, make sure everything is right, make sure the scope is written up to cover the project. So an owner, though he might be knowledgeable, they might not know how to write up a scope of work, to make sure that these contractors are bidding everything, to eliminate the necessary change orders. That would come along if an owner just wrote up a scope of work and left it open, or would get completely different bids.

Tony Johnson:

When he's getting from a contractor, then holding the contractor accountable to meeting, timeline given and knowing when you know, as opposed to an owner that might not have the time to keep up and maintain with that schedule and the schedule updates, joe's going to be right on top so he's going to be able to notify that owner. Hey, there is no way this contractor is finishing on time, or this contractor the scope of work is written up this way. He's giving you this this is not what was drawn on the drawings that you might miss, because we're going to catch it right. So you're going to make sure they're going to get what they're paying for. The project's going to stay on schedule. If not, you're going to be right on top of it.

Tony Johnson:

So those are some of the big key advantages on the owner side and you know, on the contractor side, there's advantages for us as well, because the owner, when you have a big league owner, he's busy, he doesn't have time to take my calls. I got questions, I got things, I need answers. You need that intermediary to answer questions to keep the projects on track. So it's beneficial on both sides, right. So I love the idea of it, and it is becoming more prevalent in jobs these days. So could you give me an idea of what type of projects do you guys align with the most?

Joe Marangolo:

Yeah, most of our projects are large scale luxury residential projects. We have, you know, we have a project that's essentially a five building residential estate in one in upstate New York. We've got, you know, an apartment that's almost 12,000 square feet with some extremely high complexity. We've got, you know, we also have on the commercial side, where you know we're doing some restaurants right now. We have buildings that are going through either capital improvement, you know, or you know actual, you know severe, you know structural issues that right now we have buildings that are going through either capital improvement or actual severe structural issues that they bring us in to make sure and manage and mitigate that risk as fast as possible. Bring in the right people, understand timelines, still utilize a proposal process. So we know we're spending our money wisely, but we're also bringing in experts.

Joe Marangolo:

I think the fun thing that you mentioned there is that, because I come from the GC side, we actually do get referred by GCs to clients for the exact reason you mentioned. I know exactly what a GC needs A we know they need to be funded. So, understanding how to go through the requisition process, understanding the requisition itself, working together and collaborating so that I can go back to the client and say here's where we are, here's everything we've discussed and here's the money that's owed and we can go ahead and approve this right now. So understand, funding is really that gas that we pour into the project for the contractor to keep going To your other point understanding timelines and getting questions answered, getting selections, completing the design process in time it's so critical to maintaining our schedule.

Joe Marangolo:

You know, what I find is good.

Joe Marangolo:

Contractors don't want to delete the job, they don't want changeovers, they want to get in, do the job and their client to say, wow, this was way easier than I thought it was going to be and this is the goal of every project is to try to mitigate all of these issues and to make sure that not only are we feeding the contractors what they need, but we're also setting an expectation with the client as to what to expect from the contractors.

Joe Marangolo:

And it's been really sort of a pleasant surprise to see a contractor refer us to a project and say we know that we're going to get what we need if you're on the project and that and you, you understand the process. You understand not just what what we need from you, but you know what, what we can make sure we can agree to and and really sort of set an expectation and then meet or beat it, and that's that's always the goal for all of us. You know, my success is tied to the success of everybody else as well, and I think that's a pretty good relationship to have in a project team.

Tony Johnson:

Absolutely, and you know the good thing is with any business right. So when you do a great job, that owner is going to keep you on, and typically you know that's the only way you survive in this business is you need to find some type of repeat business. So obviously that's great. So you said you have a partner in this, and so how did you two get aligned?

Joe Marangolo:

We worked on a couple of projects when I first started this firm, and he was part of a GC and we did some residential projects together and just hit it off and thought to ourselves we have really aligned interests, aligned ethics, aligned values and really an aligned vision. And so we joined forces and he came on with clients of his own as well and the two of us just have. I mean the last five to six years and in particular, have been massive growth years for us. We've hired PMs, We've taken on more and more projects and we have this thing we say our clients are our sales force, because what we do we can't really be out there, there's not really a good direct sell to some of these clients, and so our projects are all referral-based and so every project we do is somewhat precious to us. Oh, absolutely, and we know we've got to make sure our client can. Somewhat precious to us.

Tony Johnson:

Oh, absolutely.

Joe Marangolo:

And we know we've got to make sure a client can look back at us and say I could not have done this without you. And that's a really important part of how we start the project knowing how we want to end the project.

Tony Johnson:

That's fantastic. Now we like to talk a lot about, you know, not only building, but business strategy. So saying you know, when we talk about this partner, you know and you so. Do you guys run on EOS or do you use any type of operating system that you run on? How is your business structured?

Joe Marangolo:

Yeah, you know it's funny project to project. You know we've got our own, so we use Microsoft OneDrive as our repository. We do you know use've got our own, so we use Microsoft OneDrive as our repository. We do, you know, use Autodesk within our project management side. The fun, the funny thing, is that you know our GCs generally have their own project management software and this is where this is where sort of the all the experience that we have comes into it, because I'm quite experienced in co-construct and Pro core, certainly Autodesk and building connected and things like that. So we end up having our hands in every system.

Joe Marangolo:

But for us in our organization our repository is all through OneDrive, which gives us a lot of flexibility in applications and all the different things that we can do, and I'm sure everyone here kind of knows that it's either OneDrive or Gmail or something like that for repositories. But then Autodesk is where we house drawings and process and things like that, where we capture communication. We try to do as much as we can to integrate it with our project partners as well. But we have to toggle that a little bit so that we also get into our GC system. We can, you know, we can help approve submittals and you know see RFIs and you know go through that process with them as well. So we do sort of wear, we wear a good bit of technology around our, you know, around our office here.

Tony Johnson:

Yeah, Speaking of the technology, have you guys incorporated, or are you working to incorporate, any AI to automate any processes, or have you guys delved much into AI? I know it's really building a lot of steam these days.

Joe Marangolo:

You know I know I shouldn't say it out loud but my first foray into AI was chat GPT, helping my email sound a bit less like a 12-year-old and more professional. You know, growing up as a carpenter and a superintendent, my typing skills were, you know, were fine, and certainly coming out of college that was fine as well. But you know, we're using AI the most at the moment, interestingly, is through the VDC programs we've put together. We're working VDC on two different projects right now for two very different end goals, and that AI is actually filling in a lot of blanks for the engineer as we sort of go through clash detection and we actually do. We're doing a full build out on a hotel and we're doing it all within an environment. Right now I'm literally placing, you know, threaded rod anchors and hangers and things like that in the, in these ceilings and stairwells and around the trusses, so that we can. You know our goal is to be at about 92% of zero clashes by the time we start construction and it's been an incredible process and I've had to learn a lot about the AI process that is used there. I've got a really great engineer that sort of is running it, but we've been able to jump in and go through the constructability, the feasibility side of it, the other you know the other side of it, and this is really where I think AI has helped us a bit.

Joe Marangolo:

You know we've got a luxury residential project here that you know. For example, we've got three mill workers in different countries. We have a stone contractor that they are themselves in two different countries, and so us being able to provide a 3D environment that's accurate to within, you know, less than an eighth of an inch, so everyone actually can go into this environment and measure. We update our scans every month and everyone is able to really pull from the exact same dimensions throughout the entire project and in doing so, this thing is sort of learning itself where things are going to go and how it can help distribute the information to all the different people that are pulling from this.

Joe Marangolo:

It's a complex process to me because I still go back to 30 years ago using a water level.

Joe Marangolo:

I don't know who in your audience is going to recognize water level, but I certainly used it when I was younger, um, and and so now to be able to walk into a virtual 3d environment and have this thing learn around you and be able to distribute information, decipher what everyone is trying to do at the same time and, uh, and put it all together. We can. We can send it in BIM and Revit and AutoCAD, as well as a 2D you know, just a 2D drawing as well, and it's been a process that has saved a massive amount of time and money because we're not flying all over the place. I can send this to my one mill worker in Germany. I've got another mill worker in London, the finisher is in Italy, the stone contractor is in Austria, so I can send this to everybody and they can be putting this together, at least to a well within our shop drawing tolerances, as we put it all together and nobody has to fly anywhere, and it saves a massive amount of time and money.

Tony Johnson:

Yeah, I mean, there are so many benefits. You know, people are just now starting to realize a couple little tangible benefits, and it's moving so quickly. It's hard you learn one aspect of it and then there's five new ones coming your way. So you know, I'm interested to see where everything is going to be in the next five to six years. I do, you know, a lot of industries are going to get wiped out. A lot of industries are going to get wiped out.

Tony Johnson:

I think this, being more service-based and manual, is beneficial to our industry, because it will take longer. You have to have robotics, which obviously that is not near as simple as some of the things you can do right across the internet. And then technology, um, but you know, I do have a lot of architects and engineers are a little bit worried. They're nervous, for sure. I would say that, yeah, when you could just have these renderings come up in five seconds. But you still need the human element. Um, you know that's without question successful. You know, I think what? But? But the intelligence level, the value of intelligence, of human intelligence, is going down at a rapid pace, unfortunately.

Joe Marangolo:

You know, I still like the on-site meetings where everyone shows up and we look at our problems, we solve them and you know, and perhaps that's a bit old school, we are looking at ways in which we've just got to and again we are utilizing AI and we're utilizing the things that are coming in. But where I really sort of value experience and I value education and I value intelligence, I really still utilize the on-site meetings where we can look and touch and feel the problem and solve it, because ultimately, that's our job is to make sure we can keep moving through this thing. And I value our architects and engineers highly in these scenarios and I'm curious where it goes and I know they're worried, but I still have a high value and a high respect for that human intelligence that we utilize on a daily basis.

Tony Johnson:

Yeah, Absolutely so. When you guys look forward for your business, where are you guys trying to take your management company in the coming years? And I'm sorry it's JSM Project Management, correct? Yes? So, JSM Project Management. I don't know if that mentioned that in the beginning. I want to make sure I get that out there and we'll have it in the show notes, that out there and we'll have it in the show notes.

Joe Marangolo:

Yeah, perfect, I mean. So we're primarily based in New York city. We've got some, some clients that have taken us out West. You know, we've got a project in Los Angeles, we have a project coming in Barbados. I might selfishly take that one on myself. Obviously, I'll let you know if I need some help, tony. Thank you?

Tony Johnson:

Yeah, I will be waiting for that phone call. So walk us through. How is your set to manage that? You have to obviously have systems in place to handle something that far away. So how is that going to be different from one at home, and how will you handle it?

Joe Marangolo:

So you know, fortunately I've worked in quite a few cities. I've worked in Los Angeles, I've worked in DC and Miami and New York. I luckily don't have to really cold interview anyone yet. I've got enough of a network to be able to bring people on board as soon as I'm ready to go, and so I've really been able to find, you know, within my network, people that have again those shared visions, the shared process. One thing I did in the very beginning was I wrote process process. One thing I did in the very beginning was I wrote process and I said, look, I would love to tell you and I would love to try a lot of you until I invented all this project management process. We all know why I did it. I was PMP certified when I worked for a government contractor there in DC. So, funny enough, the government cares about the certification but not necessarily the actual process. Our industry doesn't care about the certification but the process is invaluable, exactly, and this is really the funniest thing about it.

Joe Marangolo:

But we've got our systems in place, we've got our templates in place. We're able to really sort of kick up and going pretty quickly, especially in these areas that we've already worked. We already know the local DOB, we already know the codes and requirements. We have our network of architects and engineers and even GCs, and I think that's really a value that we bring to our clients is that we can eliminate the initial scare of who do I call? How do I know what contractor to call? What friends am I going to ask Is that contractor right for the kind of work that we do? Well, that's something. We can eliminate that concern and say here's a list of who we would recommend here for the bidding process.

Joe Marangolo:

Let's start with this, let's pare it down to this and then let's make our selection Again a very sort of buttoned up and streamlined process. Our vendors and those in our networks, our architects, our engineers, our GCs they really do appreciate that because when we bring them in, they know they're going to get a proper RFP with proper drawings and they're going to have an ability to really meet an expectation. And that's the give and take above and below. What we do is to be able to bring people in pre-vetted. They know what they're going to get when they, when they come into one of our projects and they know they're going to have an opportunity to succeed. I mean, let's you know they're they're in business to do to to. You know, execute a project, you know earn their reasonable profit and move on to the next project. And and that's really it is a goal of the project to make sure that everybody is successful, because if the GC is successful, I mean likely, the owner is going to be very, very happy.

Tony Johnson:

Right, absolutely Well, fantastic, joe. Thank you so much, man. I really appreciate you coming on today and walking through this with us. Now, if somebody wants to get in touch with you and potentially work with you, what's the best way to reach out to you?

Joe Marangolo:

You can email me at joe at projectmgmtcom. You can go to our website. There's a contact page there. I'm pretty sure there's Instagram. I'm not going to lie to you. We have something that does Instagram, because that's something I have not figured out yet you don't have to tell me I'm the same way.

Tony Johnson:

But yes, sir, so we will make sure we have all that in the show notes. It's at JSM Project. Mgmt is their Instagram handle If you guys want to check them out. Hey, joe, thanks so much for jumping on today. We really enjoyed the chat, sir.

Joe Marangolo:

Thank you very much for having me on and I appreciate what you're doing to highlight businesses like mine as well. So I really appreciate what you're what you're doing.

Tony Johnson:

Thanks so much, sir. Have a great afternoon.