Job Order Contracting – JOC – An Ideal Project Delivery Method

Job Order Contracting as a Project Delivery Method

The design and construction phases of a project consist of a sequential series of interrelated processes that are influenced by time, cost and quality. The choice of project delivery method can directly affect the overall time line and cost of a project—and has the potential to influence the working relationships among project participants, thereby affecting the quality of their performance.

An owner chooses the project delivery method that is most advantageous to a particular project. The selected method is a contracting “tool” that will be used to administer the project’s construction phase and, with some methods, the design phase.

Until recently, most project delivery methods fostered only process-oriented and, in a sense, distant relationships among project participants. These traditional methods involve selection and award of professional design services (to develop comprehensive, complete design documents), followed by a separate process for construction services to accomplish and deliver the project to the owner. These are commonly referred to as design-bid-build type methods and are still in use today.

Currently, owners have several options other than traditional design-bid-build methods. These delivery method alternatives promote interaction among the owner, the design phase participants and the construction phase participants. These approaches have gained popularity in the construction industry, primarily because they can accelerate preconstruction time lines, but they offer other attributes as well. Job order contracting (JOC), which also is referred to as delivery order contracting or DOC, is one such method.

JOC is well-matched to meet many of the project delivery needs of today’s facility owners—particularly owners involved in public education; municipalities; local, state, or federal agencies; and the military, as well as other entities with facility project needs, both public and private.

JOB is an ideal project delivery method for minor construction, renovation, rehabilitation and maintenance projects. The quality of work performed is usually equal to or greater than any other project delivery method currently in use. Project costs are usually equal to or less than other methods, and the criteria used for pricing are typically firm, objective and consistent.

JOC’s pricing structure provides consistently accurate and predictable project cost estimating, and the method can be used for construction work as well as for facilities maintenance or specific trade groups. In addition to these attributes, JOC contractors are service-oriented to the owner.

JOC is a perfect match for owners who have the need to complete multiple small- to medium-size repair and renovation projects easily and quickly. Once a JOC contract is in place, the owner simply identifies each project with a brief description and notes the desired or required dates and times for performing the work. The JOC contractor is notified by the owner, who requests a design (if necessary), a detailed scope of work and a price proposal for the project. This process is commonly referred to in JOC as a Request for a Job Order (JOC) Proposal.

The owner, JOC contractor, and designer (if necessary) work closely during the site visit to identify site characteristics and decide on the most economically advantageous means and methods needed to perform the work. The design (if needed), along with a detailed scope of work including the project’s performance times, is then submitted by the JOC contractor to the owner for consideration. Once these submittals are mutually agreed on, the JOC contractor submits a detailed, lump-sum fixed price proposal based on the defined scope of work.

JOC Process

The combination of these submitted documents is referred to as the JOC contractor’s job order proposal. The owner reviews the price proposal for accuracy in accordance with the JOC contract provisions. When the JO proposal approval process is completed, the owner signs off on the proposal and the project can proceed as scheduled.

With JOC, numerous projects can be in progress concurrently under one contract, allowing the owner to complete a high volume of projects as the need arises (subject to the contractor’s capabilities). The method is a good candidate for projects that require phasing to accommodate operations and/or budget constraints, and is particularly well-matched for projects with critical performance times. Additionally, having a JOC contractor already mobilized at a facility or in the surrounding area can give owners the capability of almost immediate mobilization for emergency projects.

Adapted from Job Order Contracting: Expediting Construction Project Delivery, available through RSMeans,  via http://www.4Clicks.com – Premier cost estimating and efficient project delivery software solutions for JOC, SABER, IDIQ, MATOC, SATOC, MACC, POCA, BOA, BOS … featuring an exclusively enhanced 400,000 line item RSMeans Cost Database, visual estimating/automatic quantity take off ( QTO),  and collaborative contract/project/document management, all in one application.   Our technology is currently serving over 85% of United States Air Force bases and rapidly growing numbers of other DOD and non-DOD (United States Army Corps of Engineers,  Army, GSA, Homeland Security, VA..) federal departments/agencies, as well as state/county/local governments, colleges/universities, healthcare,  and airports/transportation.  RSMeans Strategic Partner.