2024 Job Order Contracting
Job Order Contracting (JOC) can be extremely efficient and provide full cost visibility for reducing deferred maintenance, renovations, repairs, and even new construction. That said, most JOC Programs are not designed, implemented, and managed properly.
Job Order Contracting was created several decades ago as a means to help get projects started quickly. It was simply a way to speed procurement. Since that time JOC has evolved into an integrated project delivery (IPD) method that not only accelerates procurement, but also shorten project delivery times and reduces costs up to 30%-40%.
Core Requirement for 2024 Job Order Contracting
- Current, objective, and granular locally researched construction cost data.
- Internal management of the JOC Program without excessive reliance upon a “JOC Consultant”.
- Senior management leadership, commitment, and support.
- Collaborative focus upon long term mutually beneficial outcomes for all participants and stakeholders.
- Mandatory initial and ongoing training for all participants.
- Regular independent third-party audits.
Current, objective, and granular locally researched construction cost data – All project/workover detailed scopes of work, and contractor proposals/estimates are created using individual detailed unit price construction task line items using local labor, material, and equipment costs. The use of national average cost data, location factoring, area cost factors, etc. are not appropriate and have shown to introduced significant errors in cost estimating.
The cost visibility provided by a locally researched cost database provides unprecedented cost visibility and reduced the typical inefficiencies, complexities, and errors introduced by traditional construction procurement and project delivery methods. Learn more.
Internal management of the JOC Program without excessive reliance upon a “JOC Consultant”– As noted, when properly developed and managed, JOC is a form of integrated project delivery resulting in owners and construction services providers becoming long-term partners, resulting in higher quality and improved overall outcomes from cost and experience perspectives. This is simply not possible if the real property owner is not directly involved in ALL ASPECTS of JOC Program development, management, and continuous improvement. Excessive use of consultants in general has also been shown to introduce the potential for fraud and other forms of mismanagement.
Senior management leadership, commitment, and support – JOC Programs require change management as they involve developing a collaborative philosophy among all internal and external constituencies. Successful implementation is not possible without real property owner leadership, capability, and commitment. With the latter, JOC Programs simply become a means to speed procurement and do not solve the industry-wide problem of excessive financial and environmental waste impacting the construction and facilities management sectors.
Collaborative focus upon long term mutually beneficial outcomes for all participants and stakeholders – Simply put, JOC Programs are a win-win situation for all participants. Projects are completed on-time and on-budgets in a quality manners and for a reasonable cost.
Mandatory initial and ongoing training for all participants – As JOC significantly differs from traditional construction procurement and project delivery methodologies initial and ongoing training is needed. Management and operating behaviors need to be changed and technical skills improved. Information sharing is difficult for many organizations and individuals and involve establishing trust. From a technical perspective, owners and service providers must be capable of line-item construction cost estimating. Learn more.
Regular independent third-party audits – As will any partnering process, and independent review of processes and procedures is a critical element to ensure best management practices are being maintained and areas of potential improvement are noted. Learn more.
Job Order Contracting is a great construction method for public organizations to utilize to get construction projects done quickly, within budget, and efficiently with full cost visibility and transparency.
via Four BT, LLC – Local market objective, verifiable, granular construction cost data and associated efficient construction project delivery tools and services.
