Creating a JOC coefficient is an important part of any Job Order Contract. Contractors must evaluate multiple factors in addition to the associated use of their own capabilities and resources.
Specific instructions as to what may be included in a JOC coefficient should also be listed in detail in the associated Request of Proposals (RFP) for Job Order Contracting construction services.
Below is an example of such items.
Items included in a JOC coefficient (also known as a “Bid Factor”).
1. Labor (Both during Normal Work Hours and Outside of Normal Work Hours)
2. Materials
3. Equipment
4. Subcontractor costs
5. Subcontractor mark-ups
6. General / Prime Contractor Overhead
7. General / Prime Contractor Profit and risk
8. Payment Bond premium(s) (please note that Payment Bonds are required for task order
projects valued over $35K;
9. Social security contributions
10. General insurances
11. Workmen’s compensations insurance
12. State unemployment insurance
13. Federal unemployment insurance
14. Mobilization and demobilization costs
15. Site cleanup
16. Supervision
17. Quality control
18. Transportation of contractor’s personnel to, from, and within the job site
19. Shipping of all materials to the jobsite
20. Lodging and per-diem
21. Adjustment factors to account for small jobs
22. Incidental tools and equipment
23. Submittals
24. Job Order preparation costs
25. All contingencies
26. General Requirements (Division 01 – CSM Masterformat)
27. All requirements of the Contract
(Note: Quality, locally researched unit price books will already include social security contributions, general insurances, workmen’s compensations insurance, state unemployment insurance, and federal unemployment insurance.
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