The Definition of Job Order Contracting – What is JOC?


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;

  1. Qualifications Based or Best Value Selection
  2. 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.
  3. Early and ongoing information-sharing among project stakeholders
  4. Performance-based structure – Some form of financial incentive to drive performance
  5. Appropriate distribution of risk
  6. A long term relationship (3-5 years) between Owner and Contractor/AE
  7. Standard specifications established in a master contract with a summary of work, also   including any specific or client-driven conditions.
  8. 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.
  9. 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.
  10. Issuance of contractor’s work orders based on owner’s requirements.
  11. Costs for individual work orders are calculated by multiplying the preset unit prices by the quantities multiplied by the contractor’s coefficient.
  12. 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:

§    Fast and timely delivery of projects.
§    Low overhead cost of construction procurement and delivery.
§    Development of a partner relationship based on work performance.
§    Virtual elimination of legal disputes.
§    Reduction of change orders.
§    Standard pricing and specification utilizing a published unit price book (UPB),       resulting in efficient and effective estimating, design, and fixed price construction.
via http://www.4Clicks.com – Premier cost estimating and efficient project delivery software – JOC, SABER, IDIQ, SATOC, MATOC, MACC, POCA, BOA ….

 

4 thoughts on “The Definition of Job Order Contracting – What is JOC?

    1. Job Order Contracting is a “Delivery order contract”. A construction delivery method for renovation, repair, sustainability, and minor new construction projects. JOC does not assure a firm dollar value of work other than a minimum or maximum value, for the issuance of orders during the period of the contract (typically 3-5 years). JOC is a collaborative, performance based process. Both Owner and Contractors/AEs conduct a joint site walk. Owners also prepare internal estimates for comparision agaisnt contractor/AE estimates to assure transparency and scope.

      A “Task order contract” also does not procure or specify a firm quantity of services, other than a minimum or maximum quantity, and that provides for the issuance of orders for the performance of tasks during the period of the contract.

      Task order contracting (TOC), simplified acquisition of base engineering requirements (SABER), and delivery order contracting (DOC), are all JOC. That said, all must follow the basic tenants of JOC. There are many programs, especially in California, that are called JOC, but are not.
      In order to be a true JOC and in order to gain the benefits of JOC (a form of IPD – Integrated Project Delivery), ALL of the following must be present and practiced:

      Qualifications Based or Best Value Selection
      Some form of pricing transparency (commonly a Unit Price Book from a defensible source, i.e. RSMeans)
      Early and ongoing information-sharing among project stakeholders
      Appropriate distribution of risk
      Some form of financial incentive to drive performance
      Owner independent estimates
      Three to five year duration

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s