Job Order Contract Best Management Practices for Real Property Owners

By peter.cholakis@verizon.netJob Order Contract Best Management Practices, Uncategorized

JOC Strategic Needs Analysis

JOC requires a focus upon change management for many/most organizations.

  1. Does your organization have a backlog of millions of dollars in renovation, repair, and minor new construction projects?
  2. Does your staff have requisite levels of leadership and facilities management competencies?
  3. Can your team work collaboratively with builders and establish long-term, mutually beneficial relationships?

JOC Review/Audit

Regular job order contracting audits are critical for any successful JOC Program.  Continuous improvement is central to LEAN JOC practices.   As the saying goes… “you can’t manage what you don’t measure.”   Processes, procedures, and outcomes should be monitored and independently audited for compliance and value to the organization.   Tier One JOC Cooperatives, such as the Allied States Cooperatives, for example, require a third party review of every contractor’s JOC proposal.

Reduct Costs and Risks

Initial and Ongoing Training

Introductory, Advanced, and Refresher Training should be required for all JOC Program participants.  This training can be provided hands-on and virtually.

LEAN Job Order Contracting Guide

Locally Research Line Item Unit Price Cost Data

Job Order Contracting cost data, the unit price book, is a required element of any JOC Program.   Locally researched cost data provides multiple advantages over the use of “national average price books” and/or localization factors or “cost indexes”.   Furthermore, a JOC UPB should not be “static” (be the same price book throughout the duration of a multi-year JOC) and updated solely via a generic economic factor.   Labor costs should be updated quarterly, and line items added as appropriate.  Lastly, UPBs should not include an excessive number of line items.  30,000-60,000 line items are sufficient for the majority of JOC Programs.   Having hundreds of thousands of line items can continue to confusion, excessive costs, and project delays.

JOC Software

Technology is an enabler.  JOC software should be cloud-based and have core LEAN JOC processed embedded in order to support consistently JOC Program delivery.   Using generic software, ERP software, IWMS software, or spreadsheet, will provide “generic results.”

Remember, All JOC Programs are not the same!

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