Some real property owners don’t take advantage of the major benefits of job order contracting. For example, some pay a JOC “program management fee” or similar fee to a JOC consultant to create and/or review JOC task order estimates. The fee may or many not include software and cost data. The fee can average as much as 8% of total construction dollars spent.
This practice can create several issues. First, this fee based approach can easily result in millions of dollars spent annually. Funds that could have been spent on actual construction costs. Second, adding a JOC consultant to the mix can create an “arms length” relationship between the JOC contractor and the Owner. A fundamental element and benefit of JOC is the early and ongoing collaboration and information sharing directly between the JOC Contractor and the JOC Owner.
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