How NOT to run a Job Order Contract – JOC

How NOT to run a Job Order Contract

Job order contracting can delivery a significantly higher number of quality renovation, repair, and maintenance construction projects on-time and on-budget.

There can be major issues, however, if an Owner is not fully involved and doesn’t have the ability to create and manage a JOC Program per best management practices.

Here are few items that should NOT be done in a Job Order Contract:

  1. Do not use Job Order Contracting as means to bypass the procurement/purchasing department, or to execute construction jobs that otherwise would not normally have been approved.
  2. As an Owner, do not pay a fee to a JOC consultant based upon the amount of construction associated with the JOC program, if  the consultant project approval authority.  This can create a potential, if not overt conflict of interest.
  3. Do not use JOC for projects under or over established dollar thresholds per contract.
  4. Do not make JOC awards to contractors solely bases upon price and/or coefficient.
  5. Do not allow any JOC task order to be approved without a detailed review of the contractor’s construction cost estimate.
  6. Do not start a JOC project without a joint site visit (with the contractor) and a project kick-off meeting.
  7. Do not approve any JOC project/task order that has nonprepriced items (line item not obtained directly from the approved JOC Unit Price Book) totaling  more than 10% of the total project cost.
  8. Do not omit to conduct internal JOC line item estimates for project over a specified threshold.
  9. Do not conduct a JOC Program without regular audits.
  10. Do not conduct a JOC Program without annual training for all participants.
  11. Do not approve or implement a JOC Contract wihout a comprehensive written JOC Operations Manual and its mandated use as part of the contract.
  12. Do not create or implement a JOC without a thorough review of applicable law / regulations.
  13. Do not expect a contractor to be able to create a construction estimate without provide a sufficient statement of work – SOW.
  14. Do not approve a JOC without a project timeline.
  15. Do not assume a JOC unit price book is static.  At a minimum the UPB should be updated annually, and adjusted quarterly via an economic factor.
  16. Do not approve coefficients outside of a range of 0.80 to 1.20 unless there are mitigating factors.