Excessive Administrative Fees for JOC Construction Services – Buyer Beware
If you are a member ( a public real property owner) of Cooperative and paying an “Administrative Fee”,or any fee at all…. beware. When every dollar counts, why would a public sector entity pay a fee.., let alone a hefty one like this? There is simply no justification for the practice, especially when some Cooperatives DO NOT CHARGE MEMBERS an administrative fee, yet provide equivalent, if not superior services. Excessive administrative fees negatively impact the amount of construction dollars spent upon actual work.
As a public sector it is your responsibility to procure services on a best value basis per applicable regulations in concert with your fiduciary responsibilities.
Considerations for Selecting a Cooperative for Job Order Contract Construction Services
Leveraging JOC Construction Services via a Cooperative can provide major benefits for public sector facilities owners who have a never-ending need for on-demand, quality, and cost-effective renovation, repair, and minor new construction services.
A JOC Cooperative is a great option if,
1.) your organization has a budget of less than $2-$3M projected annually for JOC construction services,
2.) you have a need to supplement an existing JOC program due to excessive demand,
3.) your organization is new to JOC and would like to experience the process and its benefit,
4.) administrative fees are not excessive and not charged to members, and
5.) you select a robust, compliant Cooperative.
Top 4 Considerations When Selecting a JOC Cooperative
#1 – Ownership and Administration – Determine if the cooperative is both owned and managed directly by a Government Agency: Some cooperatives are owned and/or managed by for-profit, or not-for-profit companies/organizations. In these cases, the motivations for providing services may be not be fully compatible…
Learn more? info@4bt.us
