The Life-cycle of a Job Order Contract

Job Order Contract Life-cycle

 

JOC is a LEAN collaborative construction delivery methods, and a form of Integrated Project Delivery – IPD.

The benefits of using JOC, such as reducing the total lead-time and cost for common construction, repair and renovation projects for  facilities and infrastructures, are achieved through the consistent application of proven best-management practices.

job order contract

 

Concept

A “Pre-proposal meeting” is held between the “JOC Program Manager” (PM), user/client, and contractor to generally define a work need.   The PM should should have a meeting sign-in sheet and meeting agenda. At the  Pre-Proposal Meeting, the  PM  should  set up a  date  for  the pre-construction “site visit”.

A designated form with an appropriate amount of information requesting JOC work is completed and forwarded to the “Contract Specialist”.

Proposal Request

The Contract Specialist drafts the a “JOC Request for Proposal” , assigned a project number, and obtains appropriate approvals and signatures

The Contract Specialist  e-mails a copy of the RFP to the contractor and other stakeholders, and adds the project/”task order” to the “Active” status.  The Contractor has a specified period of time to complete and forward a proposal/contractor estimate.  The time period may vary based upon the size of the job.

Joint Site Visit

The “Contract Specialist” in coordination with the PM sets up a joint site visit with the JOC Contractor to further defined project/”task order” requirements and establish are joint “scope of work” (SOW).

Contractor Estimate

The contractor prepares a detailed line item estimate using the JOC “unit price book” (UPB).  Drawings, typically in PDF format, are included.

Owner Estimate

An independent owner estimate may also be prepared for projects/task orders above a specified dollar threshold as specified in the Job Contract and/or associated regulations.  Generally an independent estimate is required for task orders equal to, or above, $100,000 to $150,000.  In the government section, this may be called an independent government estimate (IGE).

Coordinator review the preliminary Scope of Work. Once the client approves the Scope of Work in writing (e-mail is acceptable) the clock starts on preliminary pricing.

Proposal Review

Owner (PM, Contract Specialist) reviews the contractor proposal and compares it to Owner estimate if applicable.

Negotiations

Any changes made by the Owner ( PM/Contract Specialist) are returned to the Contractor and discussed accordingly.   The Contractor makes any necessary changes and returns the revised Proposal to the PM/Contract Specialist.   The Proposal is “Approved”, or the decision may be made to “Reject” it.  If Approved, the Proposal becomes “Final” and it is now “firm/fixed price”.  The approval is usually made by email per designated form and a
“Notice to Proceed” (NTP) issued to the approved Contractor.  Upon receipt of all forms and signatures, the task order is “fully executed”.

Job Start Meeting

This meeting officially hands over the job site to the contractor (contractor puts up their signs – the contractor “owns” the job site.  PM will schedule/establish Progress Meetings .

Job Start

 

Construction phase.  Weekly reports are generally required and submitted to the PM. Change order are typically rare with JOC, however, may result due to client requests, or unforeseen site conditions.  Generally the same procedures are followed as those for the RFP.  The Change Order is recorded per appropriate form is approved, per the associated   Change Order Proposal submitted by the contractor,  and if sufficient funds are in place.

Owner Sign Off

Upon completion of the project/task order, the contractor will notify the PM and request a final inspection.   The PM will schedule the Final Inspection with all requisite attendees and stakeholders.  If complete, the Contractor will return the job site to the client (demobilize).   If their are remaining items to be completed, a “punch list” is created by the PM.    Project close-out occurs upon sign off and contractor submission of any required final documents.  As built documents, warranty documentation, service manuals, and request for final payment are provided as appropriate.