Job Order Contracting is a collaborative construction delivery method, a type of integrated project delivery (IPD) that specifically targets renovation, repair, sustainability, and minor new construction.
Characteristics and/or components of JOC program include the following;
- Qualifications Based or Best Value Selection
- Some form of pricing transparency- Typically a Unit Price Book (UPB) containing preset unit prices for construction tasks. Note: Most JOC programs leverage RS Means cost data to some degree.
- Early and ongoing information-sharing among project stakeholders
- Performance-based structure – Some form of financial incentive to drive performance
- Appropriate distribution of risk
- A long term relationship (3-5 years) between Owner and Contractor/AE
- Standard specifications established in a master contract with a summary of work, also including any specific or client-driven conditions.
- Facility owner issues a request for qualifications (RFQ), evaluating firms using best-value, performance-based criteria, or an invitation to bid awarding to the lowest responsive and responsible bidder.
- A guarantee of minimum amount of work for the contractor. This is usually a small amount for consideration – a requirement in most states for contracts.
- Issuance of contractor’s work orders based on owner’s requirements.
- Costs for individual work orders are calculated by multiplying the preset unit prices by the quantities multiplied by the contractor’s coefficient.
- Open communication between facilities team and JOC contracting team, including a kick-off partnering session between everyone utilizing the contract.
Advantages typically associated with JOC – Job Order Contracting Programs: