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.
- Best value procurement
- Owner-developed and Owner-managed (versus consultant or outsourcing)
- Financial Transparency (Unit price book, independent owner estimates and owner review of contractor estimates)
- Mutual trust and respect
- Early and ongoing collaboration
- Joint site visits
- Detailed project scopt of work, SOW
- Key Peformance Indicators, KPIs
- Shared risk/reward
- 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:
- Faster Response – days or deeks instead of months or years to begin projects.
- Well defined projects
- Outcome-focused management
- Higher quality and satisfication
- More dollars spent on construction
- Long term, mutually beneficial owner-contractor relationships
- Reduction in procurement time
- Reduction in overall project delivery time.
Job Order Contract Steps / Phases
- Owner develops scope of work, with sufficient detail to enable contractor to understand requirements, and submits a Request for Proposals, RFP to the contractor.
- Owner schedules a joint site visit with the contractor.
- 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).
- Owner reviews contractor proposal and, compares contractor proposal to internal estimate as appropriate.
- Owner and contractor negotiate and items and/or scope as required.
- Owner issues a Notice to Proceed, NTP, to the contractor, or denies the proposal.
- Project kick-off meeting
- Project/task order is mobilized and executed
- Contractor completes project.
- Owner inspects the project and requests any associated changes (punch list) or accepts project as complete and authorizes payment and close-out.