An Introduction to JOC
A Job Order Contract (JOC) is a competitively bid, fixed price, multi-year, multi-party LEAN collaborative construction contract. A locally researched line item unit price book (UPB), organized using CSI Masterformat, forms the basis of communicating and costing renovation, repair, and minor new construction projects. A multiplier, called a contractors JOC coefficient is applied to the total project costs of a task order developed using the UPB. The coefficient includes the contractor’s profit and overhead as stipulated by the specific JOC Contract requirements. The contract is an indefinite delivery, indefinite quantity contract (IDIQ) for on-call repair, renovation, maintenance, or new construction services. Minimum and maximum values for the JOC Program as well as for each JOC Project are designated within the contract.
As part of an introduction to JOC, is important to understand that job order contracting provides an optimal method for real property owners to get numerous, commonly encountered construction projects done faster, with fewer complications, and with improved outcomes. JOC reduces time, duplication, cost, and errors associated with engineering, design, contract procurement, and project execution. JOC is most used to clear deferred maintenance backlog and deliver rapid response for the numerous and ongoing time-sensitive projects needed to support existing facilities and other built structures.
Read more about the history of JOC / SABER unit price books, UPBs…
An Introduction to JOC BENEFITS
With an emphasis on partnering and teamwork between owners and contractors, JOC provides the methodology to simultaneously execute a considerable number and a wide variety of indefinite delivery, indefinite quantity, fixed price, works orders for renovation, rehabilitation, and repair work projects. An introduction to JOC would be incomplete with a listing of its benefits:
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Shorter Project Delivery Times
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Faster Project Starts
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Higher Quality
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Long-term, Mutually Beneficial Relationships
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More Efficient Use of Construction Funding with More Dollars Spent on Actual Construction
JOC projects typically begin in weeks versus months long or even year long delays created by traditional construction delivery methods. Since the contractor is already under contract and on-call, owners and facilities management can directly submit a request for proposal to an awarded JOC contractor.
Studies have shown that the average procurement time for projects is reduced over 80% using JOC.
In addition to rapid deployment and shorter project duration, accurate and transparent expenditure documentation help to assure cost visibility and accountability, in compliance with federal and state/local government regulations/statues. Work quality is also enhanced since each contract is managed on a performance basis.
Introduction to JOC support information: Job Order Contracting Fundamentals 2020 ,LEARN MORE ABOUT OpenJOC…
JOC is a Program, not a Project
A properly implemented JOC Program spans Planning, Procurement, and Project Delivery from a life-cycle perspective, incorporating fundamental LEAN processes and workflows.
JOC is a form of integrated project delivery (IPD), integrating People, Process, Information, and Technology, that collaboratively and transparently brings all participants and stakeholders together on an early and ongoing basis with a primary focus upon mutually beneficial and best value outcomes.
JOC services providers are an extension of a client organization’s resources, within a structure whereby the client provides leadership and global oversight while taking advantage of services providers’ expertise and decision-making.
One of several requirements for assuring quality on-time and on-budget repair, renovation, and new construction project delivery is the thorough and adequate creation and communication of a scope of work reflective of actual client requirements. As within any LEAN process, this is accomplished using a common data environment (CDE). LEAN JOC programs use a locally researched detailed unit price book to clearly define and cost labor, material, and equipment requirements in a granular manner. (Note: the use of “national average cost books with or without “localization factors” is not considered a best management practice, due to lack of actionable cost visibility.) Selecting appropriate line items and quantities reflecting the a mutually agreed upon detailed scope of work is critical element of LEAN planning, procurement, and project delivery and associated quality and timely outcomes.
COLLABORATION
LEAN JOC Program deployments efficiently manage the life-cycle of each work order. The following terms define a few of the core elements associated with LEAN JOC Programs. It is important to understand, however, that not all JOC Programs are not the same.
- JOC Program – Overall structure and repository for strategy and objectives.
- JOC Contracts – Term-based (1-5 year) multi-party agreements defining the roles, responsibilities, work flows, data environments, metrics, including an associated JOC Operations Manual / JOC Execution Guide.
- JOC Projects – A work element included a detailed scope of work (SOW) and one or more associated work orders.
- JOC Work Orders – The “active” element of a JOC which includes a detailed SOW, and one or more associated estimates.
WORKFLOW
A JOC Program may involve one or more awarded JOC contractors. A workflow is associated with each Project and Work Order. While the workflow can be tailored to client needs, certain core aspects are fundamental to all JOC Programs in order to optimal, best value outcomes.
The ability of a JOC services provider to directly work with the client organization to assure an accurate and concise scope of work is critical to JOC Program success. The extended use of JOC consultant as a JOC “Program Manager” is therefore not recommended. A joint site visit (awarded JOC contractor and owner team) is a key phase of the scope definition process. Scheduling the joint site visit is triggered by a request for a proposal (RFP), sent by the owner to the JOC contractor. A site visit checklist is generally used to help document existing conditions as well as requisite tasks, safety, quality, schedules, and other conditions. Post site visit, the JOC contractor responds with a detailed unit price proposal using the approved UPB and also provides associated schedules and other information required in the proposal package per the contract.
Accurate content of tasks and materials, and calculations of quantities is assured by mutual and joint review of the submitted proposal. Continuous communication among all participants and stakeholders throughout this phase and beyond creates an environment wherein all issues are considered and addressed rapidly and satisfactorily.
Benefits
• Clear, timely communications
• Effective long-term partnerships
• Clear, timely communications Actionable, detailed, and verifiable local Unit Price Book Estimates
• Solid, long-term subcontractor relationships
• Established work order management
• Responsive service
• Quality and safety
• Virtual elimination of change orders and legal disputes
• Consistent on-time and on-budget project delivery
• Risk and waster mitigation
• More dollars actually spent on work
• Audit worthy compliance
• Coordination among internal and external teams – procurement, facilities management, building users…
Supporting and Enabling Collaborative Technology
Cloud-based enterprise-level application supporting all aspects of LEAN construction planing, procurement, and project delivery:
- Program Management
- Contract Management
- Project Management
- Proposal/Bid/Estimate Management
- UPB Management
- Work Order Management
- Work Flow and Approvals Management
- Document Management
- Contractor Management
- Subcontractor Management
- Scheduling
- 8a/WBE/MBE/Hubzone Management
- BIM integration
- Team and Role Management
- Building Management
- Issues/Tasks Management
- Space Management
- Component Management
