Unit Price Books – UPBs & Other Things JOC
A Job Order Contract requires the use of a unit price book, UPB, and an associated co-efficient. Contractor bid one, or multiple co-efficients and then apply the co-efficient to the unit price line items when preparing an estimate for specific JOC project (task order).
In many cases, an area location factor may also be be applied to the estimate, in addition to the construction co-efficient.
Line items from the current UPB are called “priced”, or “prepriced” line items. Any line item used in a JOC estimate is called a non-prepriced, NPP line items. JOC contracts typically limit the total value of NPP line times to be no more than 10% of the total cost of the project estimate.
Historically, most Job Order Contracts have used the Facilities Construction Cost Data publication from the RSMeans Company, LLC as the UPB. This was likely because the RSMeans Company, LLC was recognized at an objective national resource for cost data. With the acquisition of the RSMeans Company, LLC by The Gordian Group, the types(s) of unit price books used, and their prevalence, may change.
Most job order contracts, at least in the public sector, require the use of “bare cost” line items, i.e. costs that do not include contractor overhead and profit. Contractor overhead and profit and other costs are generally expected to be accounted for within the contractor’s JOC co-efficient.
Any selection of a unit price book for a Job Order Contract should consider the following:
- Detailed descriptions for each line item in common industry terms, and with a minimum of abbreviations.
- Cost data research and provided by an independent and objective source.
- Ease of use
- Full search capability
- Annual updates
- Area cost location factors, with quarterly availability