Job Order Contracting – JOC, Training, & Motivation

Job Order Contracting – JOC – delivers greater numbers of quality projects, on-time and on-budget projects, as well as higher overall satisfaction levels than  “traditional” construction delivery methods such as design bid build, design build, CM@R, etc.   For this reason, the top 5% of Owners and Contractors depend upon JOC for horizontal and vertical renovation, repair, and minor new construction.

However, not all Owners and Contractors are ready for job order contracting. JOC requires higher levels of transparency, collaboration, motivation, and training than less productive traditional construction delivery methods.  It also requires shared/risk reward and common terms, definitions, and data architectures.  Many of these characteristics are foreign to Owners and Contractors sole experienced with arcahic and unproductive processes and outcomes associated  with low-bid procurement and dependent upon excessive change orders to complete construction projects.

Leadership and training versus excessive management and control are common with job order contracting.   In fact, on going training and continuous improvement are requirements for all LEAN construction delivery methods (job order contracting – JOC, integrated project delivery-IPD, etc.)

Studies have demonstrated that ongoing training and the selection of the construction delivery method are directly linked to motivation, as well as overall outcomes.  For example the below chart clearly demonstrates that more frequent training leads to higher levels of motivation (2016, Moriarty, T.)

Similarly the benefits of Job Order Contracting are are shown below.   Again, however, these benefits can only be recognized through the implement of LEAN best management practices and continuous support, monitoring, and ongoing training.

(2015, Job Order Contracting – Performance Study – ASU / PBRSG)

 

LEAN Facility Renovation, Repair, & Construction

Owner focus upon a BEST VALUE approach to facility management is required in order to maximize productivity and minimize waster.   Prevalent “low bid” design-bid-build construction procurement and delivery and it’s associated narrow consideration of “first costs”, is extremely wasteful and typically results in poor quality, project delays, excessive numbers of change orders, and overall higher costs.  Even approaches such as design-build or CM@R don’t achieve maximized performance and satisfaction levels.

BEST VALUE construction project delivery methods include Integrated Project Delivery – IPD, and Job Order Contracting, JOC.  Both contractually require collaboration among project participants and deliver superior quality as well as on-time and on-budget performance.

Best practice IPD, JOC and related collaborative LEAN construction delivery methods share the following  characteristics.

1. Early and ongoing participation of all project participants (owners, contractors, A/Es, subs, engineering, procurement, project managers, planners, oversight groups, users)
2. Documented roles, responsibilities, deliverables, and metrics
3. Shared risk/reward
4. Continuous improvement
5. Common terms, definitions, and standardized information formats (for example, UNIFORMAT, MASTERFORMAT, IFC…)
6. Financial transparency (example – commerical unit price book, UPB – material, equipment, labor, productivity).

The are multiple benefits to be gained by LEAN construction delivery participants.

• Improved Customer Service and Responsiveness.
• Shorter Procurement Times
• Decreased Overall Project Delivery Times
• Reduced Procurement Costs
• Greater Financial Visibility
• Longer term relationships
• Shared Risk/Reward
• Higher Quality
• Greater Frequency of On-time Projects
• Greater Frequency of On-budget Projects
• More Funds Allocated to Construction versus Administration
• Fewer Change Orders
• Virtually Elimination of Legal Disputes
• Greater Overall Satisfaction
• Best Value