Job Order Contract Execution Plan I

Job Order Contract Execution Plan I


A property designed, staffed, and executed Job Order Contract can provide an significantly more productive way to accomplish a large number of renovation, repair, and sustainability construction projects.

The Job Order Contract enables multiple individual projects to be accomplished by the contractor(s) on an on-call basis through a single competitively bid procurement.

Best Practice Job Order Contract

The following are generally considered best management practices and core elements of a Job Order Contract.

  1. Best value procurement
  2. Owner-developed and Owner-managed (versus consultant or outsourcing)
  3. Financial Transparency (Unit price book, independent owner estimates and owner review of contractor estimates)
  4. Mutual trust and respect
  5. Early and ongoing collaboration
  6. Joint site visits
  7. Detailed project scopt of work, SOW
  8. Key Peformance Indicators, KPIs
  9. Shared risk/reward
  10. Continuous education and improvement

Benefits of Job Order Contracting

Design-Bid-Build, Design-Build, and other  tradictional construction delivery methods have proven to be inefficient and/or costly.   The require months over even years from project Identification to contract.   Adversarial relationships. waste, and legal disputes are the norm.

JOC is a LEAN collaborative construction delivery method that offers a proven, cost effective alternative to traditional contraction delivery.   Benefits of a properly owner designed and owner managed job order contract include:

  1. Faster Response – days or deeks instead of months  or years to begin projects.
  2. Well defined projects
  3. Outcome-focused management
  4. Higher quality and satisfication
  5. More dollars spent on construction
  6. Long term, mutually beneficial owner-contractor relationships
  7. Reduction in procurement time
  8. Reduction in overall project delivery time.

job order contract

Job Order Contract Steps / Phases

  1. Owner develops scope of work, with sufficient detail to enable contractor to understand requirements, and submits a Request for Proposals, RFP to the contractor.
  2. Owner schedules a joint site visit with the contractor.
  3. Contractor prepares a detailed line item cost estimate using the assigned and updated Unit Price Book, UPB, complete with labor, material, and equipment information, as well as a schedule.   No more than 10% of the value of the estimate included non prepriced line items, NPP (NPP items are line items not derived from the appropriate JOC UPB).
  4. Owner reviews contractor proposal and, compares contractor proposal to internal estimate as appropriate.
  5. Owner and contractor negotiate and items and/or scope as required.
  6. Owner issues a Notice to Proceed, NTP, to the contractor, or denies the proposal.
  7. Project kick-off meeting
  8. Project/task order is mobilized and executed
  9. Contractor completes project.
  10. Owner inspects the project and requests any associated changes (punch list) or accepts project as complete and authorizes payment and close-out.

job order contracting

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