A Better Job Order Contracting Approach, Uncategorized

A Better Job Order Contracting Approach

Isn’t it time you got what your paid for?

Time for a better Job Order Contracting approach?

Is your Job Order Contracting Program fully transparent and delivering over 90% of renovation, repair, and minor new construction projects on-time, on-budget, and to everyone’s satisfaction?

Learn more about our OpenJOC(TM) Job Order Contracting Framework.

A Better Job Order Contracting Approach

Defined Processes and Work Flows Using a Common Data Environment, including a locally researched Unit Price Book that provides activities descriptions that are defined, sound, sized correctly, and which can be properly sequenced.

Work with experience and responsible professionals  to develop and support your JOC Program.

Monitor and document projects from concept, through completion/hand – off, and the warranty period.

Maintain earnings and document all activities and process to mitigate errors, omission, and misunderstandings.

Learn more …

 

LEAN Methods for Facilities Operation and Maintenance, Uncategorized

LEAN for Facilities Operation and Maintenance

LEAN METHODOLOGY

LEAN methodology was first introduced by Henry Ford, later expanded by Toyota, and subsequently adopted my many manufacturing and service sectors. An understanding of LEAN fundamentals and their application to O&M and overall Facilities Management will benefit Planning. Briefly, the LEAN methodology involves the consistent application of business processes and workflows in support of the following:

  • Early and ongoing collaboration among all participants and stakeholders
  • Focus upon client requirements and best value outcomes
  • Clearly defined and documented roles, responsibilities, workflows
  • Shared, performance-based risk/reward
  • Decision support based upon current and actionable information
  • Common terms, definitions, & data formats — Common data environment (CDE)
  • Mutual trust and respect among participants
  • Continuous improvement the O&M Plan and associated processes

Specific to O&M, LEAN practices help provide a framework to integrate and maximize the capabilities of available people, processes, information, and technology to address ongoing facilities requirements, as Figures 3 through 5 illustrate. Promoting awareness and education of LEAN O&M best management practices leads to improved outcomes.

Figure 3. LEAN Practices for Optimized Facilities O&M Overview

Figure 3. LEAN Practices for Optimized Facilities O&M Overview

Figure 4. LEAN Practices Asset Competency Model

Figure 4. LEAN Practices Asset Competency Model

Figure 5. LEAN Considerations

Figure 5. LEAN Considerations

MULTIPLE COMPETENCIES, BUSINESS PROCESSES, AND ACTIVITIES

Facilities O&M management spans multiple competencies (core skills), business processes (asset management practices/industries), and activities, such as the following (also, see Figure 6).

Competencies/Activities

  • Strategic planning
  • Cost estimating
  • Procurement/bidding
  • Construction
  • Space planning
  • Operations
  • Maintenance
  • Programming

Business Processes

  • Capital planning and management
  • Construction project delivery methodology
  • Space management
  • Operations & Maintenance
  • Inventory and maintenance disposition management
Figure 6. Life-cycle Management

Figure 6. Life-cycle Management

NOTE: The term “Big Data” has recently become popular to describe the multiple sources, formats, and uses of data that can be leveraged to monitor and improve organizational performance. The Construction Operations Building information exchange (COBie) has become one of the most widely known data formats. COBie is an information exchange specification for the life-cycle capture and delivery of information needed by facility managers. It can be viewed in design, construction, and maintenance software as well as in simple spreadsheets. Other data formats include MasterFormat, Uniformat, and Omniclass.

SUPPORTING TECHNOLOGY AND TOOLS

Technology and tools used to lower the cost of implementing and managing LEAN O&M best management practices (BPMs) include the following:

Technologies

  • Application Software
  • Building Automation Systems (BAS)
  • Building Information Modeling (BIM) (Model & Management Systems)
  • Capital Planning and Management Systems (CPMS)
  • Computer-aided Facilities Management Systems (CAFM)
  • Computerized Maintenance Management Systems (CMMS)
  • Cost Estimating, Procurement, & Construction Project Delivery and Management Systems
  • Geographical Information Systems (GIS)
  • Integrated Workplace Management Systems (IWMS)

Tools

  • Construction code databases
  • Construction cost databases
  • Industry specific glossaries
  • Industry Standards (ISO, NIST)
  • O&M Plan
  • O&M Manuals
  • Standardized data architectures (Cobie, Masterformat, Uniformat, Omniclass)
  • Technical construction specifications

EDUCATION, TRAINING, AND SUPPORT SERVICES

Building the capabilities of internal and external O&M teams involves an ongoing commitment to education and training. From an educational standpoint, both traditional educational institutions and ongoing professional education are increasing their focus upon life-cycle management and the role of O&M.

The need for and level of training requirements, including training aids and O&M manuals, should be specified in the Plan. The type of training (introductory, advanced, certification), format (online/virtual, classroom, self-taught), and frequency is dependent upon each organization’s requirements, types of systems and equipment, and amount of work performed by in-house staff versus that to be outsourced. Support services may include outsourcing certain O&M requirements, independent and/or peer-based audits of O&M practices, and various consulting services.

METRICS/KEY PERFORMANCE INDICATORS (KPIS)

Ongoing performance measurement supports informed, information-based, decision making and helps to maximize the use of available resources.

From a generic perspective, an effective measurement system includes the following:

  • Clearly defined, actionable, and measurable goals
  • Key performance indicators that monitor the overall administration of O&M program, as well as individual projects / task orders, and all associated workflows, deliverables, and outcomes
  • Established baselines enabling measurement of historical and current progress
  • A basis of timely, accurate, repeatable, and verifiable information based upon standardized terms, definitions, and data architectures
  • Applicable reporting and feedback systems to support continuous improvement of processes, practices, and outcomes
  • Leading Indicators (forecast future trends inside and outside the organization) as well as lagging indicators
  • Objective and unbiased information (not subject to manipulation) that is normalized (can be benchmarked against other organizations, departments, locations)
  • Statistically reliable
  • Unobtrusive (not disruptive of work or trust)
  • Appropriate (measures the right things)
  • Quantifiable
  • Verifiable/auditable

The importance of performance measurement cannot be understated. It is a fundamental element of any successful O&M program.

O&M performance indicators include the following:

  • Annualized Total Cost of Ownership (TCO) per building per gross area = Rate per square foot
  • Annualized TCO per building/Current replacement value = Percent of Current Replacement Value (CRV)
  • Annualized TCO per building/Net assignable square feet = Cost rate per net assignable square feet per building
  • Annualized TCO per building/Non-assignable square feet = Cost rate per non-assignable square feet per building
  • Annualized TCO per building/Building Interior square feet = Cost rate per interior square foot per building
  • Churn Rate
  • Utilization Rate
  • AI (Adaptation Index) or PI (Programmatic Index) = PR (Program Requirements)/CRV (Current Replacement Value)
  • Uptime or Downtime = Defined in percent, as amount of time asset is suitable for the program(s) served
  • Facility Operating Gross Square Foot (GSF) Index (SAM Performance Indicator: APPA 2003)
  • Custodial Costs per square foot
  • Grounds Keeping Costs per square foot
  • Energy Usage is expressed as a ratio of British Thermal Units (BTUs) for each Gross Square Foot (GSF) of facility, group of facilities, site or portfolio = BTUs / Gross Area GSF
  • Utility Costs per square foot
  • Waste Removal Costs per square foot
  • Facility Operating Current Replacement Value (CRV) Index = Facility Operating CRV Index = Annual Facility Maintenance Operating Expenditures ($)/Current Replacement Value ($) (SAM Performance Indicator: APPA 2003)
  • Facility Operating GSF Index = Annual Facility Maintenance Operating Expenditures ($)/Gross Area (GSF)
  • Planned/Preventive Maintenance Costs per square foot
  • Emergency Maintenance Costs as a percentage of Annual Operations Expenditures
  • Unscheduled/Unplanned Maintenance Costs as a percentage of Annual Operations Expenditures
  • Repair costs (man hours and materials) as a percentage of Annual Operations Expenditures
  • FCI (Facility Condition Index) = DM (Deferred Maintenance) + CR (Capital Renewal)/CRV (Current Replacement Value)
  • Recapitalization Rate, Reinvestment Rate
  • Deferred Maintenance Backlog
  • Facilities Deterioration Rate
  • AI (Adaptive Index) or PI (Programmatic Index) = PR (Program Requirements)/CRV (Current Replacement Value)
  • FQI (Facility Quality Index) or Quality Index or Index = FCI (Facility Condition Index)+ AI (Adaptive Index)
  • Capital Renewal Index = Annual Capital Renewal and Renovation/Modernization Expenditure ($)/Current Replacement Value ($)EMERGING ISSUES

CHALLENGES AND OBSTACLES

While obtaining adequate O&M funding remains an elusive goal for many, the most significant challenge is change management. Facilities span the careers of individuals, and O&M management transcends generations. As a result, known future impacts may be postponed until “someone else’s watch.” Further, the impact of new strategies and processes can take years to show measurable improvements. Within a society that seeks instant gratification and financial payback periods sometimes measure in months versus years, the need for leadership and commitment of property owner management is paramount.

Additionally, the importance of facilities in the minds of senior management may not be fully appreciated, thus creating the need to better inform them of associated risks and benefits of various O&M strategies. Here, a somewhat pervasive focus upon first-costs versus life-cycle costs must be addressed and altered. Communicating the fact that an emergency repair will have ten times (10x) the cost of an appropriate maintenance operation, is an ongoing need, as well as providing cost multi-year cost impacts of alternative O&M strategies.

Historically, sharing information has been somewhat problematic for a variety of reasons, especially in areas involving costs and or techniques. This obstacle can result in higher costs and marginalized capabilities if not fully addressed. The level of collaboration and transparency required is a change in the way many organizations operate on a day to day business.

Learn More…  www.4BT.us

Facilities Operation and Maintenance Planning

Facilities Operation and Maintenance Planning 2018

Total life-cycle costs include initial design, construction, operations, maintenance, renovation, and demolition. 80% of a building’s life-cycle costs are associated with Operation & Maintenance (O&M). A well-developed strategic O&M Plan will define and communicate best management practices (BMPs) for an organization.

A strategic O&M Plan  provides guidance for decreasing life-cycle O&M costs, extending the lifespan of facility, reducing response times to facility issues, improving personnel satisfaction levels, etc. The Plan is not a static tool, but a living document that is consulted and regularly updated. It serves as a primary tool for communicating O&M strategies and desired outcomes.

Learn more...   https://www.wbdg.org/facilities-operations-maintenance/operation-maintenance-planning

 

Job Order Contracting, Job Order Contracting - Education & Training, Job Order Contracting - LEAN

Job Order Contracting Basic Definitions

Job Order Contracting Basic Definitions

 Job Order Contracting BASIC DEFINITIONS

 

APPLICABLE  REQUIREMENTS

All laws, statutes,  recent building codes, ordinances, rules, regulations, and lawful orders of all public authorities having jurisdiction over the Real Property Owner/Facilities Management,  Contractor, Subcontractor, the Project/Job Order, Work, etc.  Job Order Work site(s), the Work, or the prosecution of the Work including without

APPLICATION FOR PAYMENT

A submittal from Contractor, typically via an authorized form associated with the JOC Program, wherein payment for certain portions of the completed Work is requested.

BASE TERM

The one-year period, beginning with the date of Job Order Contract award, during which the Owner may issue and/or implement Job Orders to the Contractor.  Optional extensions to the initial base year may be provided, at the  sole discretion of the Owner, for up to four additional years.

CERTIFICATE FOR PAYMENT

A form signed by appropriate Owner authorized party attesting to the Contractor’s right to receive payment for certain completed portions of the Work associated with a JOC Project/Job Order.

 

CONTRACT / JOB ORDER CONTRACT

The written Agreement between Owner and the Awarded JOC Contractor(s).  It includes several Contract Documents, including a JOC Operations Manual / JOC Program Execution Manual.  It also includes a reference to the required construction Technical Specifications to be used.  These are typically the Owner’s existing Technical Specifications and not specially developed for the JOC Program.

CONTRACTOR / AWARDED JOC CONTRACTOR

The person or firm identified as such in the Agreement and is referred to throughout the Contract Documents, the will be providing the JOC Construction Services.

DEFECTIVE WORK

JOC construction services work that is unsatisfactory, faulty, omitted, incomplete, deficient, or does not conform to the requirements of the Contract Documents, directives of Owner’s Authorized Representative, or the requirements of any inspection, reference standard, test, or approval specified in the Contract Documents.

DETAILED SCOPE OF WORK (SOW)

A description of services to be provided by the Owner to the JOC Contractor pursuant to an individual Job Order.  There should be sufficient detailed to enable the JOC Contractor to develop a detailed line item JOC Proposal and/or estimate for a JOC Project/Job Order.   SOW documentation may include a narrative description of the Work, drawings, and/or partial or full design documents depending on the complexity of the individual Job Order.

DRAWINGS

Graphic and/or pictorial portions of the Contract Documents showing the design, location, and dimensions of the Job Order Work, generally including plans, elevations, sections, details, schedules, and diagrams.

EXCUSABLE DELAY

A delay that entitles the Contractor to an adjustment of the Job Order Time but not an adjustment of the Job Order Sum/Cost.

EXTRA WORK

Additonal work authorized by the Owner that increased the total Project Cost/ Sum.

JOC construction services work beyond or in addition to the work required by the Contract Documents. Extra Work specifically excludes work identified as scope of any and all existing Job Order Authorizations.

FINAL COMPLETION

A term applicable to any individual JOC Project/Job Order and means the date at which the Job Order Work as been fully completed in accordance with the requirements of the Contract Documents.

GUARANTEE TO REPAIR PERIOD

Time in years, established in the Job Order Contract, within which the Contractor will perform repair, remediation work, at no additional cost to the Owner.

HAZARDOUS MATERIAL

Any substance or material identified as hazardous under any applicable statute (federal/state, etc.)   governing handling, disposal and/or cleanup of any such substance or material.

INEXCUSABLE DELAY

A delay that does not entitle the Contractor to an adjustment of the Job Order Total Price  Sum and does not entitle the Contractor to an adjustment of the Job Order Time.

JOC COEFFICENT

Contractor’s competitively bid price adjustment, typically between 0.80 and 1.20, that is applied to the total of a JOC Project/Job Order line item estimate, as developed using the currently approved JOC Unit Price Book.

JOB ORDER

Construction Document relating to a specific scope of a specific JOC Construction Project under the Contract as defined by the Detailed Scope of Work, Job Order Total Price and associated details, and Job Order Time stated.   A Job Order may constitute all or part of the work. Each Job Order will include a Detailed Scope of Work, a firm fixed-price, detailed line item price estimate, a time duration for the completion of the work and any special conditions that might apply to that specific Job Order such as Liquidated Damages.

JOB ORDER AUTHORIZATION

The document issued by the Owner appropriately authorizing Contractor to perform the JOC Project / Job Order Work.

JOB ORDER MILESTONE

Any requirement in a Job Order that reflects a planned point in time for the start or completion of a portion of the Job Order Work measured from i) the date of the Job Order Authorization or ii) the date of another Job Order Milestone defined in said Job Order, as applicable.

JOB ORDER PROPOSALS / SCHEDULE OF VALUES

The Contractor’s irrevocable offer to perform Work associated with a Job Order. It refers to the Contractor’s prepared document quoting a firm fixed-price and schedule for the completion of a specific Scope of Work. It includes a detailed cost proposal comprised of line items from the approved and current unit price book and supporting documentation for any Non-Prepriced items (NPP), a construction schedule, a list of subcontractors and any other documentation that may be required by the Owner prior to the issuance of a Job Order including, but not limited to shop drawings, sketches, permits, forms, signature, and submittals as necessary.

JOB ORDER / JOC PROJECT SCHEDULE

A representation of a practical plan, in accordance defined requirements to perform and complete the Work of a Job Order / JOC Project within the Job Order Time.

JOB ORDER TOTAL COST / SUM

The total dollar amount of compensation stated in a Job Order for the performance of the applicable Job Order.

JOB ORDER TIME

The number of days set forth in a Job Order within which Contractor must achieve Final Completion.

JOB ORDER WORK

The term “Job Order Work” means the Work of one or more Job Orders as may be modified.

JOC PROGRAM ADMINISTRATOR   

The Owner’s representative  authorized designee, who is authorized to execute the Agreement, Job Order Authorizations, Change Orders, Field Orders and other applicable Contract Documents.

JOINT SCOPE MEETING / JOINT SITE VISIT

The meeting at the Work site attended by the Onwner and the Contractor, at a minimum, to jointly prepare the scope of the work on a Job Order.

MAXIMUM JOC CONTRACT VALUE

The maximum dollar value of Work specified in JOC Agreement that the Owner may order during the Base Term, and if exercised by the Owner, one or more Option Terms (individual years), of the Job Order Contract.

MINIMUM CONTRACT VALUE

The minimum dollar value of Work specified JOC Agreement that the Owner must order under this Contract.

NON-PREPRICED ITEM (NPP)

A construction task unit price line item  not included in the Unit Price Book (UPB) but which is in the general scope and intent of the Job Order Contract.

OPTION TERM / OPTION YEAR

The additional time period beyond the expiration of the Base Term during which Owner may extend its right to implement and/or issue Job Orders to the Contractor.

OWNER JOC PROJECT MANAGER

An authorized owner representative so authorized to oversee technical aspects of a JOC Project/ Job Order

PREPRICED LINE ITEM

A construction task line item of work included in the Unit Price Book, including a defintion, unit of measure, and detailed labor, material, and equipment pricing as applicable.

PROJECT

The work associated with any repair, renovation, or construction service and as requested as a single or multiple Job Orders.   It includes and all  work, labor, equipment, and materials necessary to accomplish the defined Project.

SEPARATE CONTRACTOR

A person or firm under separate contract with Owner performing other work related to the JOC Project.

SPECIFICATIONS / TECHNICAL SPECIFICATIONS

Written requirements for materials, equipment, construction systems, standards and workmanship for the repair, renovation, construction service performance.

SUBCONTRACTOR

A person or firm that has a contract with Contractor or with a Subcontractor to perform a portion of the JOC Project / Job Order Work. Unless otherwise specifically provided, the term Subcontractor includes Subcontractors of all tiers.

SUPERINTENDENT / CONTRACTOR JOC PROJECT MANAGER

An individual person designated by the Contractor to represent Contractor at the Job Order Work site.

 

UNIT PRICE

The price published in the approved and current unit price book (UPB) for a specific construction, repair or refurbishment task. The Unit Prices are  typically fixed for the duration of a calendar year, and updated annually.   Each Unit Price is composed of the Labor, Equipment and Materials cost to accomplish that specific task as applicable, as well as an associated detailed description.

UNIT PRICE BOOK

A comprehensive listing of specific detailed line item listing of repair, renovation, or construction tasks including a description, unit of measure, and unit price with labor, material, and labor breakdown specificity as appropriate.   All pricing should be locally researched to best reflect local conditions.   A properly developed unit price book should be able to account for 90% or more of the costs associated with JOC Projects/Job Orders.

 

 

Learn more…

 

 

 

Uncategorized

Job Order Contracting Training Note – JOC Coefficient

Job Order Contracting Training Note – JOC Coefficient

 

Job Order Contracting Training Note - JOC Coefficient

A JOC coefficient is a factor, typically ranging from 0.80 to 1.20, that is applied to the TOTAL of a detailed line estimate for a JOC Project/Job Order, as created from the approved and current JOC Unit Price Book (UPB).

The items to be considered when a contractor creates a JOC coefficient vary according to the specific JOC Program.  The following is a list of items that are generally considered when a contractor is developing a JOC coefficient.

 

  •  home office overhead;
  • insurance, bonds, and indemnification;
  • project meetings, training, management and supervision;
  • mobilization and close-out for the contract and each Project/Job Order;
  • project office staff and equipment;
  • profit;
  • subcontractor’s overhead and profit;
  • all taxes for which a waiver is not available including material sales tax and equipment rental;
  • employee or subcontractor’s wage rates; fringe benefits, payroll taxes, worker’s compensation, insurance costs and any other payment mandated by law in connection with labor (typically this SHOULD be already including within the locally researched JOC UPB, and therefore only included if this is not the case);
  • cost of financing the work,
  • business risks such as the risk of a lower than expected volume of work, smaller than anticipated Job Orders, poor Subcontractor performance:
  • inflation…

Learn more…

Job Order Contracting Training Note - JOC Coefficient

Uncategorized

OPEN JOB ORDER CONTRACTING – OPENJOC(TM) – LEAN, Best Value Approach to Repair, Renovation, & Construction

OPEN JOB ORDER CONTRACTING – OPENJOC(TM) – LEAN, Best Value Approach

OpenJOC Job Order Contracting is a robust LEAN construction delivery method that provides best value, on-demand repair, renovation, and construction services to the benefits of all participants… owners, contractors, subcontractors, building users, and oversight groups. All job order contracting is not that same, and its up to you to assure you provide a collaborative, transparent, and compliant solution. OpenJOC job order contract provides the tools, processes, and training to do just that!

Learn more about… Requirements, OpenJOC Job Order Contracting (JOC) Information Life-Cycle, Core Value Proposition, Activities & Tools, Available Support, Operations Manuals/Execution Guides, Actionable Detailed and Locally Research Cost Data, and Change Management.

Learn more…

FM & Cost Estimating Tools

FM & Cost Estimating Tools in the Cloud & Free – 2018 National Commercial Construction Cost Database

A Facilities Management platform to manage the entire building’s life cycle, with a detailed U.S. Construction Cost Database…  both FREE!

  • Manage buildings, teams, projects, documents, drawings, estimates… anywhere, anytime.
  • Also view link documents, add notes, etc. to BIM files.Construction site

Learn more…   Sign up.  https://goo.gl/8QNB7T Watch the video!

Screenshot

Uncategorized

LEAN Facilities Renovation, Repair, and Construction

LEAN Facilities Renovation, Repair, and Construction

  1. Change Management – A comprehensive change management plan is a requirement in the journey to collaboration, transparency, and mutual respect among all participants…. and measurably improved outcomes.
  2. Improve Budgeting &  Resource Allocation –  Adopt a common, independent, and objective locally researched detailed construction cost database to better define, communicate, and budget.   Focus upon achievable projects that provide maximum benefit to the organization.
  3. Get Ahead of the Curve, and Stay Ahead –  Adopting and implementing a LEAN collaborative construction delivery methodologies is just the start.  Require initial and ongoing training for all participants and maintain an environment focused upon continuous improvement.
  4. Best Value – Value comes first… from best value procurement to the value of life-cycle asset management.

Effective, efficient, and user-friendly renovation, repair, and new construction in support of an organization’s built environment is possible for anyone that is willing to adopt change.

Ongoing renovation, repair, and maintenance consumes the bulk of facilities expenditures for most organization with substantial real property holdings.

Accordingly, adopting industry best practices as a prerequisite for the allocation and subsequent use of funding can greatly improve “construction” outcomes.

Actively performing routine and capital maintenance to facilities and other forms of physical infrastructure need not be a challenge.  The activities and practices adopted, however, determine ultimate success or failure.

Internal staffing and management capabilities are step one.  Qualified and sufficient staff and staffing policies to maintain and operate facilities may seem an obvious requirement.  That said, competency levels with respect to technical as well as leadership and other management skills remains a major issue.  An operation manual or an execution guide is “must have”.  It is a “living document” that incudes written job descriptions and qualifications for all internal and external staff as well as associated metrics and deliverables.  Associated training must be mandatory and also ongoing.

All decisions are information driven, based upon pre-determined criteria.  Information must be current and actionable.  Represented using common, standard terms and in plain English.

The “construction delivery method” is the single most important item in setting the overall tone, working relationships, and expectations, as well as eventual success or failure.

Regularly scheduled repair, renovation, and maintenance maximizes the useful life of a facility, building system, or other structure, if correctly prioritized and implemented.    Accomplishing the latter requires that structures have an established baseline for minimum baseline performance and condition, a robust method for collecting information in a standardized manner, a decision-support methodology, and an efficient execution / project delivery framework.

Facilities condition assessments and associated work order systems play their respective roles in helping to prioritize work, and subsequent scheduling.   Neither, however, address the efficient execution of the numerous renovation, repair, maintenance, and minor new construction projects facing real property portfolio owners.   Arguably the latter can ONLY be accomplished via the consideration and implementation of LEAN collaborative construction delivery methodologies.

In-house personnel certainly address execution of projects up to a certain size; however, most repair and renovation projects require leveraging external service providers.  Traditional design-bid-build and even design-build are inefficient meeting these needs.  Both require longer timelines, and neither assure 90%+ on-time, on-budget, and satisfactory delivery.

Job Order Contracting, JOC, or more specifically, OpenJOCTM Job Order Contracting, provide a proven framework to help owners operate buildings as they were intended, in a cost-effective manner, and execute projects addressing the highest needs.

OpenJOC Job Order Contracting includes key performance indicators (KPIs) to monitor the dollars and percentage dollars spent on buildings/grounds renovation repair, and associated time line and other predetermined metrics.

OpenJOC Job Order Contracting is tailor for owner needs, however, at a minimum generally includes…

  • Locally researched detailed line item construction cost data organized using CSI MasterFormat
  • Standardized LEAN processes, workflows, documents, a communication
  • A common methodology for creating, sharing, editing, storing and retrieving information
  • Key performance indicators (KPIs)
  • Mandatory initial and ongoing training for all participants
  • Best value procurement
  • Shared risk/reward for owners and construction contractors
  • Regular independent audits
  • Enabling cloud-based technology
  • Owner supplied technical specifications
  • Compliance with Federal/County/State/Local requirements
LEAN Construction Project Delivery enables efficient life-cycle management of the built environment, Uncategorized

LEAN Construction Project Delivery enables efficient life-cycle management of the built environment

LEAN Construction Project Delivery enables efficient life-cycle management of the built environment via a robust integration of process, actionable standardized and common information, supporting technology, and ongoing training.

An example of LEAN Construction Project Delivery is  OpenJOC ™ Job Order Contracting.

LEAN FACILITIES ASSET LIFE-CYCLE MANAGEMENT

OpenJOC Job Order Contracting enables real property owners, contractors, architects, engineers, and building users to collaborate throughout a renovation, repair, or minor new construction life-cycle, from concept through warranty, and beyond.

OpenJOC Job Order Contracting helps to…

  1. Promote and support interdisciplinary internal (real property owner/facilities managers, building users) and external teams (service providers),
  2. Promote the use proven LEAN processes and efficiently share knowledge with respect to creating, upgrading and sustaining facilities.
  3. Publish locally researched, detailed and standardized construction cost data representing most common renovation, repair, and minor new construction tasks encounters,  related to creating, upgrading and sustaining facilities,
  4. Provide on-going training and support for all stakeholders to enable and drive an environment of continuous improvement: written operations/execution manuals, hands-on/web/self-paces formats, certification, audits,
  5. Encourage and support the exchange of information and ideas among all stakeholders, real property owners, architects, engineers, builders, building users, the community…

Learn more about OpenJOC Job Order Contracting….

 

integrated information, process-based, digital environment for LEAN collaborative construction project delivery, LEAN collaborative construction project delivery

Integrated information, process-based, digital environment for LEAN collaborative construction project delivery

The integrated information, process-based, digital environment for LEAN collaborative construction project delivery – OpenJOC ™.

JOC Cascading Service Encounter

Robust, proven processes that drive completion of 90%+ of renovation, repair, and minor new construction projects, on-time, on-budget, and to everyone’s satisfaction.     Full project life-cycle management and control from concept thru warranty,  shared with all internal and external stakeholders. Simply a better, more efficient wayt for working through the use of more standardized processes, information, and ongoing training.

The OpenJOC job order contracting platform requires a new way of thinking in the construction industry.   Resource must be used more efficiently, construction costs reduced, and designers, contractors and stakeholders are  brought closer together. ss value expected from its digital transformation.”

Gain better cost visibility and control, and shorten project delivery times… all while   while minimizing risks and adapting to facilities management requirements.

OpenJOC Job Order Contracting

Learn more…

Job Order Contracting - JOC - Should be a Contractors Opportunity to shine!, Uncategorized

Job Order Contracting – JOC – Should be a Contractors Opportunity to shine!

Job Order Contracting – JOC – Should be a Contractors Opportunity to shine!   With 4BT’s OpenJOC(tm) LEAN Job Order Contracting tools and services, contractor shine and owner benefit… each and every time!

JOC Cascading Service Encounter

OpenJOC Job Order Contracting enables contractors an opportunity to shine.   On-demand, open, transparent, and quality service delivery is the “moment of truth”, a moment that will reoccur each and every time JOC contractors interact with real property owners and building users.

Each encounter can potentially be critical in determining customer satisfaction and loyalty.  Therefore, on-going training, superior tools and processes, quality information, and an integrated, collaborative approach  are paramount.

Leverage the LEAN OpenJOC approach as your opportunity to: – build trust – reinforce quality – build brand identity & increase loyalty.

Learn more…

The Alternative Job Order Contracting Solution, Uncategorized

The Alternative Job Order Contracting Solution

Having only one solution, or source, in the market is never good, so isn’t it time you evaluated an alternative job order contracting solution?

OpenJOC(tm) from Four BT, LLC is the ONLY transparent, open, and best value Job Order Contracting Solution.

What is OpenJOC Job Order Contracting….

  1. Line items are ADDED to the UPB during the contract period based upon owner and contractor input.   All additions are fully transparent.   Items are NOT deducted.
  2. Locally researched cost data that stands alone in its approach and attention to detail.  We apply the OpenJOC 5% Rule(tm).  This means we create cities, counties, regions in instances were the cost variance is 5% or more.
  3. We DO NOT use national cost databases and cost factors/indexes.   The use of cost factors introduced unacceptable levels of error, thus is no considered an best management practice (BMP).
  4. OpenJOC follows industry BMPs and LEAN construction methodology.

This is the OpenJOC difference!    JOC the way it is supposed to be!

Learn more…

OpenJOC Job Order Contracting

LEAN Facilities Asset Life-cycle Management, Uncategorized

LEAN Facilities Asset Life-cycle Management

LEAN Facilities Asset Life-cycle Management can be accomplished by integrating previously disparate competencies, technologies, and information.   It requires that the owner demonstrate leadership and possess requisite skills.

Focus is upon process.  Process that focuses upon best value outcomes, collaboration, transparency, a shared data environment, and integration of multiple “best of breed” supporting technologies.

Learn more?

OpenJOC The LEAN Job Order Contracting Solution, Uncategorized

OpenJOC(TM) The LEAN Job Order Contracting Solution

OpenJOC Job Order Contracting

OpenJOC(TM) The LEAN Job Order Contracting Solution

• Stage 1 : Define Need

• Stage 2 : Develop Measurement Strategy

• Stage 3 : Initial and Ongoing Training for ALL Participants

• Stage 4 : Procure, Mobilize, Execute JOC Program

• Stage 5 : Collect, Interpret and Analyze Results

• Stage 6 : Report Findings

• Stage 7:  Improve

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LEAN Job Order Contracting and Cloud Facilities Management

LEAN Job Order Contracting and Cloud Facilities Management
Four BT, LLC lemsys
Newsletter November 2017

Building in the Cloud & The Digital Transformation of Construction

LEAN Job Order Contracting and Cloud Facilities Management
The digital transformation of the construction industry is gradually changing how we work each and every day.  LEAN Job Order Contracting and Cloud Facilities Management are a catalyst for this change.

 

Cloud computing and mobile devices, integrated with LEAN delivery methods are changing…

  • The way we work,
  • The products and services we use,  &
  • The relationships between real property owners, service suppliers,  and building users.

While construction sector is lagging behind others with respect to adopting new technologies and LEAN methods, there are signs of change.

 

Can you assure that 90% or more of your repair, renovation, and minor new construction projects are delivered on-time, on-budget, and to everyone’s satisfaction?

 

Those who seize the opportunity of change will survive, evolve, and thrive.

 
Can you share your BIM models securely in real-time?

 

Construction companies and real property owners are rapidly changing under the pressure of an increasingly digital world organized around mobile devices.

Streamline, simplify and automate the your construction document management and create a competitive advantage for your organization.

No one can afford to operate independently and separately from the value chain …

 

View all common formats used in construction such as DWG and BIM models.

 
What’s new in Building in Cloud?

 

Several exciting new features have been added to Building in the Cloud.

Here are just a few…

-Advanced document management

-Advanced BIM data management

-Federated Model Management

–FREE version, including FREE OpenCost™ Commercial Construction Line Item Cost Database

 

Several new task, data, and document management tools.

Building in Cloud is a Trademark of Lemsys S.r.l
4BT and OpenCost are Trademarks  of Four BT, LLC
Mail: info@4BT.US
Website: www.4BT.US
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facilities management in the cloud, Uncategorized

Facilities Management in the Cloud FREE

Facilities Management in the cloud supports significantly higher levels of collaboration, transparency, and productivity.   Also available with FREE 2018 OpenCost ™ National Commercial Construction Cost Database. (over 30,000 line items!!!!)

BIC Video Image

Designer

  • Project management, creation and allocation of tasks
  • Document management with complete log and versioning
  • Folders and flexible authorization of internal and external teams
  • Available BIM (.rvt e .ifc) and DWG viewer, PDF, Excel and Word viewers

Constructor

  • Centralize all information and coordinate your activities
  • Information are accessible to all team member and subcontractors in the field
  • Track all activities and view current information
  • Maintain as-built plans, ready for delivery

Owner

  •  Reduce errors and misunderstandings… so common with facilities management
  • Centralize management of real property information within a single shared environment
  • Import BIM model data and use it maintain your facilities
  • Real-time information on your facilities management costs

Sign up today…

 

Uncategorized, What is OpenJOC LEAN Job Order Contracting

OpenJOC LEAN Job Order Contracting (TM)

OpenJOC Job Order Contracting

What is OpenJOC LEAN Job Order Contracting?   Simple…  a consistent and fully transparent solution that enables owners and construction contractors to deliver over 90% of renovation, repair, and minor new construction projects on-time, on-budget, and to everyone’s satisfaction.

OpenJOC LEAN Job Order Contracting provides the following benefits:

  • Best value procurement and delivery of “turnkey” projects
  • Integration of proven Best Management Practices (BMPs)… locally researched cost data, enabling cloud technology to support opportunity identification, budgeting, project scope development, cost estimating, owner/contractor negotiations, and monitoring/reporting, and ongoing training/support.
  • Significant reduction in JOC Program implementation and management costs.
  • Reduced project delivery times.
  • Compliance with JOC Program requirements.
  • Financial transparency
  • Competitive pricing
  • Risk mitigation
  • Support for all JOC Program/Project sizes
  • Fully verifiable process
  • Ongoing training and support

OpenJOC integrates LEAN best management practices (BMPs) with collaborative cloud technology, locally researched and fully transparent cost data, and a fully range of support services to provide optimal value to both real property owners and builders.

Our team members have supported hundreds of governmental, educational, medical organizations, and their construction service providers with premium solutions.

Our expertise spans the areas of Job Order Contracting, Construction Cost Engineering/Cost Data, Life-cycle Asset Management, and Capital Planning and Management.   This combination enables us to provide a uniquely comprehensive and valued integrated solution.

Learn more…

 

JOC Programs Done Right, Finally, Uncategorized

JOC Programs Done Right, Finally

OpenJOC (TM), is a LEAN implementation of Job Order Contracting, or more simply JOC Programs Done Right, finally.

As the below cartoon notes, sure, you can continue to do JOC the old way… or even trudge through your numerous and ongoing repair, renovation, and minor new construction projects without a LEAN Job Order Contracting implementation.

evolution

On the other hand, you can take the initiative and let us help you to design, implement, and manage a cost effective LEAN Job Order Contract that can deliver over 90% of your repair, renovation, and minor new construction projects on-time, on-budget, and to EVERYONE’s satisfaction…. real property owners, facilities management, building users, and JOC construction service providers.   It’s really that simple.

Here’s just a few areas where LEAN Job Order Contracting can help…

  • Designing a JOC Program that’s right for your organization, compliant with applicable statues, leverages current BMPs (best management practices), cost information, and cloud technology.
  • Facilitate Scoping and Ordering of JOC Work
  • Written JOC Operations Manual / JOC Execution Guide
  • Locally researched detailed construction tasks include labor, material, and equipment details, and line item modifiers (adds/deducts for quantity, installation specs, etc.)
  • Consistent with your construction Technical Specifications (JOC Programs should NEVER has special construction specifications, but rather use the owner’s existing technical specifications.  The latter are references by and included as a requisite component of the Job Order Contract, in addition to the JOC Operations Manual.)
  • Initial and Ongoing Training for ALL JOC participants and stakeholders.  Multilevel and multimode.
  • Dedicated online Resources Page for the JOC Program inclusive of a description of the services that can be ordered under the program, contract documents, ordering instructions, frequently asked questions (FAQs), and contact/support information.
  • Client assistance hotline/e-mail information
  • Workflow information and tips on  safety, site access, scheduling, security requirements, specifications, drawings, daily site clean-up, and task  closeout. We will demonstrate the appropriate basis for weighing alternatives, including equipment maintenance and operations costs and warranties, to reduce the cost without affecting the end product.
  • Sample documents –  sample statement of work, pre-proposal checklist, proposal checklist, etc.  to help identify potential issues and future consideration.
  • Collaborative cloud-based JOC technology that provides instant and continuous access to  an up-to-date list of all active task orders, including a brief description of the types of work involved and a list of subcontractors supporting the effort.  Internal system (not error prone and inefficient e-mail) notification, task generation, daily project status, and issue resolution.  Fully document management system included a detailed record of ALL changes, by whom, and when.
  • Contact information for all participants and stakeholders.
  • Ongoing performance monitoring including scheduled and unscheduled senior management visits
  • Solicitation of customer feedback at project milestones
  • Distribution, collection, tabulation, and reporting on the results of tasks during and at the completion of every job order
  • and More!

4BTOpenJOCcloud

2018 BIC Features

Open Construction Cost Estimating, Uncategorized

Open Construction Cost Estimating

Open construction cost estimating, as employed in 4BT’s OpenCost(TM) approach, simply provides the following…

 

#1. Improves budgeting, design, construction, and operations process flow efficiency.

#2. Generates more value add by helping to eliminate poor communication ans waste.

#3. Shortens project delivery time by simplifying processes and removing information bottlenecks.

#4. Reduces variation while enabling alternative solutions.

In short, open construction cost estimating is a requisite component of any LEAN construction delivery method.   Each of the above ties together.

Decide if open construction cost estimating is for you?

3Steps to Higher Productivity

Uncategorized

LEAN Construction Delivery and supporting cloud-based technology

“Some changes are so slow that you don’t notice, others are so fast that they don’t notice you”.

Ashleigh Brilliant

LEAN Construction Delivery and supporting cloud-based technology are gradually transforming how we do business on a day-to-day basis.

They are changing… 

  • business relationships
  • how create, share, & reuse information
  • overall outcomes.

Those who seize the opportunity of change taking place will  survive, evolve, thrive.

LEAN collaborative construction delivery,  common data environments (CDE), and supporting cloud-based technology profoundly change:
– the way we work
– how we are measured and compensated
– the tools we use
– overall demand for products and services
– relationships between clients, vendors, and stakeholders.

The role of LEAN Construction Delivery (through its key players: architects, engineers, surveyors, builders, managers, owners) is to support the communication, cooperation, and overall optimal outcomes project throughout its full life-cycle.

Historically the focus has always been focused on the ” M “more specifically  “M for Modeling” and 3D visualization. “M” for management, has been somewhat neglected. Process should ALWAYS be the primary focus, and that’s exactly where LEAN comes into play.

Technology itself should be neutral but can, if properly used, enable improved organizational models and consistent deployment of more robust business processes. Processes that create requisite environments of trust, transparency and accountability among all actors involved to achieve common goals.

The 4BT OpenJOC(TM) and OpenCost(TM) platforms support just that.  For example, open job order contacting (OpenJOC), can consistently delivery approximately 90% of all repair, renovation, and minor new construction projects on-time, on-budget, and to everyone’s satisfaction. This is unheard of, and certainly not practiced by the vast majority of  AECOO community members(architects, engineers, contractors, owners, operators/operations).

 

The 4BT-CE Building in Cloud system was designed to support these requirements: share and manage information of build structures, users, and service teams as well as a virtually guarantee of greater efficiency.

4BT-CE Building in the Cloud is accessible using a PC, Tablet, or Smartphone.
A free version of 4BT-CE Building in the Cloud, complete with 4BT National Commercial Construction
Cost database, is available to help you begin to improve the efficiency of your team.\

Learn more…

 

Making Construction Efficient

Making Construction Efficient

Rocket

Making construction efficient is not rocket science.

You might assume that real property owners are demonstrating competence and leadership and using proven collaborative construction delivery methods, tools, and information to drive improved outcomes.   You’d be wrong.

The facilities management industry, including all aspects of design, build, operate and maintain… not just involving buildings, but bridges, airports, railway lines, utilities, roadways, etc. remains archaic, antagonistic, and unproductive.   On average 80%+ of renovation, repair, and new construction projects are late, over budget, and/or don’t otherwise meet the expectations of participants.

The cause is well know, the processes, workflows, tools, and information being deployed prevent projects from being well managed.

The reality is that many real property owners… who pay the bills and are thus ultimately responsible…  don’t have the leadership skills or requisite competence to integrate multi-disciplinary teams. 

Collaborative LEAN construction delivery methods and common data environments are NOT being required.   Furthermore, the reality is that many real property owners… who pay the bills and are thus ultimately responsible…  don’t have the leadership skills or requisite competence to integrate multi-disciplinary teams.

Why is the AECOO Sector Failing!*

*(architecture, engineering, construction, owner, operator/operation)

#1 – Lack of Owner Leadership/Competency in LEAN Collaborative Life-cycle Physical Asset Management

Education and expertise in the area of total cost of ownership management has been largely unavailable.   Architecture, engineering, construction, and even facilities management has traditionally been taught in silos.   Thus, it’s no surprise that practice has followed the same course.     Additionally total cost of ownership and life-cycle management processes are rarely taught and even more rarely taught and practiced.  Focus is largely upon first-costs and short-term horizons.   Even relationships among owners and service providers are largely transient, thus little knowledge and benefit is retained.   It’s almost as if value-add, to highly prized in all other sectors, is unheard of in the AECOO sector.

#2 –  Culture

The culture in the AECOO is one of mistrust, antagonistic and short-term relationships, and  lack of transparency.    Variation, something abhorred in most manufacturing sectors, seems to be the norm.   Also,  the sector is relatively technology adverse. Paper-based and spreadsheet-centric abound to this day. Open, cloud-based apps provide major benefits, yet are not being used to their fullest extent.

Collaboration, a fundamental element of success in any sector, is actually frowned upon by many AECOO traditionalists.   In point of fact, a culture of blame is prevalent

This behavior may also be magnified because the industry has often been managed using an aggressive style of management and a blame culture resides in it’s place.  Thus, early and ongoing communication, a requirement for project success, is a rarity.

BIM, was intended to resolve many of these issues, however, BIM was marketed by vendors as a 3D visualization tool in of an integration of LEAN processes with multiple domain-specific technologies and competencies.  Thus, BIM was destined to fail from its onset.

#3 – Lack of Robust Processes

While every construction renovation, repair, and new build project may be different, there is no reason for the processes to do so.  In fact, it is the lack of robust and consistent processes, as well as failure to leverage a common data environment (CDE), especially with regards to detailed tasks and costs, that is a root failure cause.

Collaborative construction delivery methods have existed for decades.   They readily allow disparate, multi-trade projects to be run within the same manner, across single and multiple locations, markets,  building types, and structures.    Integrated project delivery (IPD) for major new construction, and job order contracting (JOC) for repair, renovation, and minor new construction, are the most notable forms.   Both consistently delivery approximately 90% of project on-time, on-budget, and to everyone’s satisfaction, within an industry where traditional methods yield 20%.

While each repair, renovation, and new construction project is unique,  the processes should be consistent and repeatable.

#4 – Lack of Metrics and Control

The adage, “you can’t manage what you don’t measure” holds across the AECOO sector as well as any other.    Key performance indicators, (KPI’s), prevalent in every other sector, are rarely implemented.   This is not surprising, as LEAN construction procedures, of which KPI’s are a requisite elements, sporadically leveraged.   It seems to be accepted that a lack of control, failure to monitor contractor and subcontractor performance, quality, and attributes is the norm.

Moving Forward

Nonetheless, a select few, less than 5% of real property owners, have made the plunge and are actively progressing with LEAN collaborative construction methods and common data environments.    They are reaping the benefits of information-based decision-making.  They are meeting the challenges of reducing costs and negative environmental impacts.   They are indeed obtaining best value for their resource investments.   In short, they are obtaining higher quality outcomes for fewer dollars.

Change has always been problematic, however, failure to change is catastrophic.

Isn’t it time for your organization to accelerate the pace of change?

After all, making construction efficient is not rocket science.

Setting up a Job Order Contract Using Best Management Practices, Uncategorized

Setting up a Job Order Contract Using Best Management Practices

Setting up a Job Order Contract Using Best Management Practices involves a mix of strategic and operational steps including a gap analysis of current and planned outcomes. 

Setting up a Job Order Contract Using Best Management Practices

 

Job Order Contracting is an alternative LEAN construction delivery method that targets repair, sustainment, restoration,  modernization (SRM), and minor new construction projects (unless prohibited by local statue).    In general, maximum and minimum projects dollar sizes are assigned for each contract and may range from $10,000 to $20M+, with an industry average of approximately $150,000.   From a JOC Program perspective, an annual total JOC construction value of approximately $2M is required before considering JOC due to associated administrative costs.

 

Definitions.

“Coefficient” –  a numerical factor that represents costs (generally indirect costs) not considered to be included in the “Unit Price Book” (UPB) unit prices (e.g., general and administrative and other overhead costs, insurance costs, bonding and alternative payment protection costs, protective clothing, equipment rental, sales tax and compliance with tax laws, and also contractor’s profit). Contingencies such as changes in wage rates and the effect of inflation in option years are also covered in the coefficient when the UPB is not updated annually.  (Note:  Annual updating of the UPB is recommended)  Coefficients proposed by offerors are multiplied times the total of the project estimate developed using the unit prices in the Unit Price Book.  The coefficient(s) proposed by the offeror and accepted by the Owner are incorporated in the JOC.

“Job order contract” – an indefinite-delivery, indefinite-quantity contract based upon LEAN collaborative processes which is awarded on the basis of full and open competition and effective competition and is used to execute repair, sustainment, restoration, modernization and minor new construction projects.

“Unit price book” – (UPB) a comprehensive collection of detailed repair, maintenance and minor construction task descriptions, units of measure and pre-established unit prices for each of these discrete tasks.    JOC unit prices include direct material, labor and equipment costs, but not indirect costs or profits which are addressed in the coefficient(s). Depending upon the source of the data base used, the Unit Price Base (UPB) generally contains from 25,000-90,000 line items, including line item modifiers and demolition line items.   Excessively large UPBs, i.e. hundreds of thousands of line items are not generally recommend at they can negatively impact productivity, create confusion, and add to JOC Program overhead costs.

“Non-prepriced task or item” – a necessary, but incidental, part of a job or project ordered or to be ordered under a JOC that is not susceptible to unit pricing using the pre-priced tasks in the Unit Price Book or database incorporated in the JOC. The coefficient developed for a prepriced task or item must not be applied to a non-pre-priced task or item. The total value of nonprepriced tasks limited to 10% of less of any individual project.

 

Applicability.

JOC is used to execute repair, sustainment, restoration, modernization, and minor new construction projects.   Engineering or architectural support services generally can not be acquired using JOC.  Informal (shop) drawings, incidental to the job, reflecting the plan of action and the completed project, are anticipated under JOC.

 

JOC Characteristics.

(a) Use of a “Unit Price Book” to pre-price the direct material, labor, and equipment costs associated with tasks listed in the book coupled with one or more “coefficient(s)” to cover contractor profit and indirect costs.

(b) A solicitation, construction delivery methods, and contract which contain a large volume of pre-priced, elementary, facilities/infrastructure detailed construction tasks that are normally available on an automated database (preferably cloud-based);

(c) Competitive source selection based on an integrated assessment of capability and past performance, technical and management proposals, sample task proposal, and the coefficient(s) proposed for the first and option years, as appropriate  best value.

(d) An indefinite-delivery, indefinite-quantity (task order) contract which provides for the use of negotiated, definitive, bilateral orders (i.e., the JOC contractor formally accepts the order, as mutually agreed, with real property owner.

(e) Each signed task order becomes, in effect, a fixed price, lump sum contract and is managed accordingly.

Planning and coordination.

(a) JOC should be considered when an owner’s projected repair, sustainment, restoration, modernization, and minor new construction workload is anticipated to be of such a yearly volume that benefits to be derived from JOC use are greater than the costs of the owner’s resources and contractor overhead associated with establishing and using a JOC. These costs include the total owner resources required to award, use, monitor and administer the JOC and JOC orders as well as management oversight and functional support of the total JOC process. The calculated workload for a potential JOC should exclude –

(1) Work normally reserved for 8(a) or set aside for small disadvantaged businesses;

(2) Repetitive tasks that are not complex (such as interior and exterior painting, sanding and finishing/sealing of floors, roofing, etc.) and are traditionally covered by requirements contracts;

(3) Work that can be effectively and economically accomplished by in-house resources.

(b) A market survey must establish that more than one capable firm is willing to compete for a JOC at the owner location(s).

Procedures.

Presolicitation.

(a) The facilities management and/or technical staff must document the decision and plan to use a JOC.

(b) To solicit for a JOC, the owner have an existing set of construction task technical specifications (i.e. UFGS, MasterSpec, SpecLINK, etc.) specifications select a Unit Price Book tailored their needs. Any special range pricing (to get quantity discounts) of units associated with the requirements of known JOC projects to be ordered, or specialized components/processes must be specified.

Solicitation.

(a) Purchasing/Procurement, in coordination with the facilities management and/or technical staff, must assure that the specifications and Unit Price Book have undergone technical review and validation and are tailored to meet the projected requirements  and local economic conditions. This is a critical step in implementing JOC and is required to minimize the need for non-pre-priced items during the processing of task orders. The projects proposed to be ordered under JOC must be identified in internal documentation, and a representative description must be included in the solicitation.  A locally researched unit price book is the best means to support this goal.

(b) To encourage competition and lower coefficients, the JOC solicitation must include realistic and reasonable annual minimum and maximum dollar amounts for projected requirements. Generally, the higher the minimum is, the lower the coefficient proposed will be. The annual maximum is connected with the bonding requirement as appropriate.

(c) The guaranteed minimum for the basic contract and each option period is required. A new minimum guarantee must be obligated upon exercise of an option. The minimum guarantee need not be the same amount that was used to secure the work of the basic contract. However, it must be more than a token amount so that adequate consideration exists.

(d) Because of the complexity of small and small disadvantaged business utilization issues in relation to JOC, additional processes and training may be required.

(e) The Owner’s unilateral right to withdraw a proposed job or order before or after receipt of contractor’s proposal must be included in the solicitation.

(f) The solicitation must explain the make-up of the unit prices and specify what types of costs, as a minimum, must be covered by the coefficient.  Offerors must specify in their proposal what additional types of costs are included in their coefficients. These additional costs may be incorporated in the contract, if appropriate, and may preclude later disagreements over non-pre-priced tasks.   The methods of “Pricing” of option periods must be covered by the contract. Separate coefficients may be used for normal working hours and other than normal working hours.

(g) JOC solicitations and contracts must clearly notify offerors of initial and continuing bonding requirements.  Bonding must be sufficient to cover the stated estimated annual maximum contract value. No JOC contract shall cite the total estimated maximum value of the contract (including option periods) as the estimated annual maximum value, although there may be language in the contract allowing ordering beyond that “maximum” but less than the estimated value of the total contract with option periods. The estimated annual maximum value will be a reasonable figure based on historical experience and known workload for the coming year. This approach should avoid the prior difficulties associated with adjusting bonding coverage every time a new task order is awarded. Because contractors can now plan their liability for premiums, and because they get unliquidated/unneeded premiums reimbursed by the bonding agent, payment incrementally through the use of the coefficient becomes both logical and reasonable. Contractors must be clearly notified, in the solicitation and contract, of their responsibility for ensuring sufficient bond coverage during the course of the contract. All costs associated with bonding (specifically including bond premiums) shall be included in the coefficient.

(h) JOC solicitations and contracts must contain provisions for making annual adjustments to the option year(s) prices. This must be done by updating the base year UPB or the coefficient.  The latter, though not recommended, using criteria and predetermined formulas in an economic price adjustment  clause. Adjustments to the base year coefficient are generally based on the Engineering News Record (ENR) Building Cost Index (BCI) or similar.

(i) Job order solicitations must be accorded the same type of planning and management review as commercial activities procurement actions.

Ordering.

(a) Summary of ordering process. After the requirement is validated in accordance with owner procedures and an estimate is prepared to determine suitability of the project for the JOC, a statement of work (SOW) is presented to the contractor with a request for a proposal (JOC Project/Task Order RFP). The contractor then prepares a proposal that identifies the tasks and quantities necessary to accomplish the job. This proposal is subsequently evaluated, and agreement is reached on quantities, time, performance period, etc., through discussions and negotiations. After agreement, a fixed-price bilateral order is prepared.  Some integral non-pre-priced work may be included in the order.

Statement of work.

(1) The SOW for the proposed order must contain sufficient detail to enable the owner to develop an independent  estimate  and/or internal government estimate (IGE), for all orders or for orders of a predetermined value of more (i.e. $100,000 or more), and to assure that the contractor can properly prepare a responsive and cost effective proposal with a minimum of non-pre-priced tasks.

(2) The SOW must be updated prior to issuing the order to reflect the details of the negotiated agreement and to include significant quantities, methods of construction, quality levels, and number of days to complete the work. This updated SOW may also include a statement that the work must be performed in accordance with the method and quality of construction specified in the contractor’s proposal. Other pertinent aspects of the contractor’s proposal may also be specifically cited as deemed appropriate.  The updated SOW must contain sufficient detail to allow the owner to effectively monitor the contractor’s performance.

(c) Independent Owner Estimate, Independent Government Estimate (IGE).

(1) For JOC projects at, or above, an established dollar thresholds, an independent owner estimate must  be obtained prior to evaluation of the contractor’s proposal. This  is in addition to the earlier budgetary/gross estimate, which helped determine whether the proposed work was appropriate for JOC. The estimate shall be prepared using the same method required of the contractor (e.g., the Unit Price Book). A detailed analysis of all task orders is required for ALL orders, regardless of project dollar value, in order to aid in the determination of a fair and reasonable price.

(2) Total or lump sum owner estimates are not acceptable for proposed JOC task orders. The owner estimate must be sufficiently detailed to be useful in evaluating, not only the reasonableness of the contractor’s proposed price, but also any costs associated with non-pre-priced tasks.

(3) Purchasing or, if applicable, the ordering authority, must insure that significant differences among the SOW, the owner estimate, and the contractor’s proposal are reconciled and documented prior to placing the order.

(4) To the extent practicable, identify non-pre-priced tasks in advance and treat them as discrete items in the owner estimate to help determine if the price of the non-pre-priced work is reasonable and to help calculate the relative value of the non-pre-priced work.

(d) Negotiations.

(1) Negotiations on orders of specified value or greater not begin without an owner estimate.

(2) Negotiations will further reconcile differences among the owner estimate, SOW, and the contractor’s proposal.

(3) At the conclusion of negotiations, purchasing or ordering officer must prepare a memorandum of negotiation and place it in the contract file.

(e) Limitations.

(1) The value of non-pre-priced work under an order must not exceed 10 percent of the value of the pre-priced work.

(i) The value of the pre-priced work must be computed by multiplying the coefficient(s) times the total project estimate as derived using the appropriate unit price(s) in the Unit Price Book.

(ii) When the contract allows, indirect costs and profit for non-pre-priced work may be attributed by application of a solicited and pre-agreed rate to be applied to the bare labor, equipment, and material costs of the non-pre-priced work.

(iii) Description of non-pre-priced work must not be manipulated or forced to fit under a pre-priced line item, either to avoid including non-pre-priced line items in the order or to reduce the value of non-pre-priced line items in an attempt to circumvent the intent of the JOC.

(2)  The value of non-prepriced work under an order shall not exceed 10 percent of the value of the prepriced work.

(3) Normally, if the value of the non-prepriced work exceeds 10 percent, then the non-prepriced work should be reduced, eliminated or performed in-house or the job must be acquired using other contracting methods. However, purchasing may exceed the 10 percent if the non-prepriced portion of the order involves urgent or emergency situations or if the purchasing determines it is a good business decision. Purchasing shall negotiate the modification and make a determination that the price is fair and reasonable.

(f) Funding. Funds for the guaranteed minimum amount must be obligated on the awarded JOC. Contract performance and cumulative orders under the guaranteed minimum amount are not limited to the fiscal year in which the contract becomes effective. Funds beyond the guaranteed minimum required to complete a proposed project must be obligated by each task order. Orders beyond the guaranteed minimum must also comply with the bona fide need principles, statutory and other restrictions on year-end spending.

(g) Forms, numbering and reports.

(1) Appropriate, owner specific forms should be used and electronically completed, exected and stored.

(2) Standard forms are used for all JOC project phases including modifications to a task order.

(3) Purchasing is responsible for the actions involving specific ordering and must retain control over assignment of all orders and/or revisions.

(4) Purhasing must be responsible for ensuring timely preparation and submission of all forms and reports.

(5) Automated versions of forms should be used for JOC,

(h) Distribution. A copy of all JOC orders must be sent to the purchasing, finance and accounting office, the office or individual assigned responsibility for inspection and technical administration of the contract, and any others per the JOC. Purchasing must maintain the permanent record of each transaction.

Contract administration.

Contractor performance evaluations must be prepared for all orders of $100,000 or more, and for the JOC program in general on a regular basis.  JOC administration should not be outsourced in its entirety to JOC consultant.

Purchasing / JOC ordering authority

(a) Appointment. The appointment of a special “JOC ordering authority” is required for executing the JOC task orders. A appropriate facilities management/techical JOC manager shall be appointed to work with the JOC ordering authority. a

(b) Training. All JOC owner and contractor participants must receive specific training and orientation specific to the JOC Program.  This training must cover policy and procedures for operation of JOC,, and shall specifically address all particiipants limitations and responsibilities, to include ethics, conflict of interest, and potential pecuniary liabilities.

(c) Authorization and limitations.

(1) Purchasing exclusively may sign task orders under JOC on behalf of the owner when…

(i) adequate management controls are in place (e.g., contracting oversight);

(ii) adequate training is provided;

(iii) purchasing approves; and

(iv) the value of any non-pre-priced item(s) does not exceed a set value, or the total of nonprepriced items exceed 10% of the total JOC project.

(3) May execute modifications to existing task orders provided that —

(i) pricing is accomplished by using the unit price book; and

(ii) the total value of non-prepriced items under the order as modified does not exceed established limit

(4) \Detailed of all modifications shall be immediately be recorded and available.   Modifications effecting changes to termination actions, or work suspensions, shall be executed by purchasing because of legal consideration issues and the potential fiscal issues involved.

(d) Responsibilities. JOC purchasing authorties —

(1) Are responsible for ensuring that all proposed JOC project descriptions and task orders express the Owner’s actual requirements, validated in accordance established procedures, in a professional and understandable manner;

(2) Must ensure that an owner estimate for orders $100,000 or more, is prepared prior to evaluating the contractor’s proposal;

(3) Must ensure that adequate and proper funds are available for the project prior to issuing an order;

(4) Must provide notification of any additional bonding requirements associated with new orders or changes in the value of existing orders;

(5) As the principal point of contact for technical and engineering issues, must respond to requests for technical clarification from the JOC contractor, documenting both the request and the response, and conduct the joint pre-proposal site survey, assuring that the contractor is provided access to all required facilities, plans, and other documents required for full knowledge of the scope and conditions of the required job;

(6) May evaluate contractor proposals; compare them with the owner estimate negotiate scope of work, quantities, and performance period for pre-priced and non-pre-priced tasks; and may negotiate price on non-pre-priced tasks;

(7) For orders estimated to exceed the JOC ordering limits, be responsible for evaluation of contractor proposals for proposed orders and may be authorized to solicit such proposals and clarify and negotiate units and quantities of pre-priced tasks; and must assist the contracting officer, as requested, in negotiations and resolution of variances between the owner estimate and the contractor’s proposal;

(8) Must be responsible for maintaining complete contract file documentation for each order and modification executed, including a record of all related correspondence and actions taken prior to award of the order and in the order administration phase;

(9) Must be responsible, with the facilities management/techincal team, for assisting the  in technical monitoring of the contractor’s performance of orders issued under JOC to include —

(i) Monitoring compliance with the SOW and schedule;

(ii) Contractor or supplier compliance,

(iii) Wage Rate Requirements (Construction) statute compliance;

(iv) Assessment and validation of percentage of completion for progress payment purposes;

(v) Recommendations for changes to existing orders,

(vi) Documenting and quickly reporting  systemic or recurring problems in contractor performance;

(vii) Prioritization of orders, provided no increase in cost is involved; and

(viii) Preparation of any JOC status reports required;

(ix) The above includes preparation of, or input for, performance evaluation reports;

(10) Must update record files upon completion,  (e.g., as-built drawings and warranties); and

(11) Must identify and report  any recurring or significant inaccuracies or omissions in the Unit Price Book contained in the job order solicitation or JOC and propose needed changes.

(12) Be the official ultimately responsible for management of all aspects of the JOC, including the actions of any JOC Managers,  and member of the facilities mangement/technical  staff who is carrying out functional oversight responsibilities related to JOC administration.

(13)  issue orders under JOC, and modifications to such orders.

(14) Exercise an option to extend, or issue any modification to, a job order contract (as opposed to an order under same).

(15) Ensure that all orders and modifications to orders, together with significant supporting documentation  are duly received, recorded, and reported and that such orders are regularly reviewed for completeness and compliance and sound business practices. At least twice a year, tensure that  files and procedures are reviewed and that a representative sampling of orders is selected for tracking from initiation of the requirement to final payment and close-out of the order.

Internal controls.

(a) An internal control program must be present and include the following:

(1) Separation of duties and responsibilities to establish internal checks and balances.

(i) Project scoping and project quality assurance/acceptance activities will be kept separate. Individuals involved with project scoping and development as well as proposal negotiations with the contractor will not be the same individual responsible for monitoring quality assurance. The responsibility for recommending acceptance of completed work will remain with separate quality assurance personnel.

(2) Clear assignment of responsibilities and authority throughout the JOC process.

(b) An internal control JOC action and documentation checklist, tailored to the needs of the owners shall be developed to assist personnel responsible for management of JOC.

Local Construction Cost Data, Uncategorized

Local Construction Cost Data

Local Construction Cost DataLocal construction cost data is critical to owners, builders, and architects.  Using area cost factors or “localization factors” simply doesn’t work as it doesn’t account for changes in crews, actual labor variations, and so on.

Locally researched cost data is the only way to go to assure financial visibility and transparency.    Verify subcontractor/contractor quotes, better plan and execute projects, and more!

Interested?

OPEN Job Order Contracting, Uncategorized

OPEN Job Order Contracting

OPEN JOB ORDER CONTRACTING is a  systematic and dynamic approach to the repair, renovation, and minor new construction of buildings and other physical structures.    OpenJOC(tm) uses LEAN business processes, a common data environment (including locally researched detailed unit price line item construction costs), and cloud-based collaborative tools to improve the way you build and manage things.

OPEN Job Order Contracting

Buildings, systems, road, bridges, airports, mass transit, …  all form of structures can be provided with renovation, repair, and minor construction… on-time, on-budget, and per user requirements.

Learn more…

Efficient, Uncategorized

Job Order Contracting – LEAN, OPEN, Efficient

Job Order Contracting is a LEAN construction process that must be implemented in an open manner in order to be efficient.

All participants are required to collaborate and must have a shared vision.  Understanding that Job Order Contacting is different from traditional and commonly adversarial construction delivery methods is the first step.

While collaboration and mutual respect and trust are key, owners must play a leadership role.  Owners must participate directly in the day-to-day aspects of a JOC Program.

An open, common data environment, in the form of locally researched construction costs, at a detailed line item level, provides the benefits of improved statement of work communication and financial transparency.

Collaborative cloud-based JOC expert systems play a supportive role by enabling lower cost JOC Program deployment and helping to assure consistency.

LEAN, open JOC Programs optimize benefits and savings.

JOC is a proven solution for managing the numerous renovation, repair, and minor new construction projects facing real property portfolio owners.   Unfortunately, less than 5% of owners leverage JOC, and fewer still are maximizing its benefits.

Why would a process that virtually assures 90% delivery of project on-time, on-budget, and to everyone’s satisfaction be in use by less than 5% of owners?   Simple.   A decision-making environment that requires  groups of people to make consensus decisions about complex issues is foreign to the AECOO community (Architecture, Engineering, Construction, Operators, Owners).  A significant change in how day-to-day business is done is difficult for many.   Furthermore, the unfortunate fact is many owners lack the skills to truly implement productive strategies.

Independent, Objective, Best Value Job Order Contracting Solution - OpenJOC

Transforming AECCO core business processes is a basic requirement for future survival in our every changing economic and environmental landscape.

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Open Construction Cost Estimating, Uncategorized

Open Construction Cost Estimating

Open Construction Cost Estimating for 2018 and Beyond!

Forget the past, and move toward greater collaboration and efficiency with open, shared construction cost data.

Our team brings together the best of the best in construction cost estimating, LEAN construction management, and facilities capital planning to provide the next generation of cost information and productivity tools.   Our members have previously worked with the R.S. Means Company, LLC,  US Cost, VFA, Inc, 4Clicks Solutions, LLC, and the JOC Group… and have created the OpenCost Approach ™.

Our solutions combine locally researched construction cost data with LEAN workflows and the latest cloud-based technology to enable real property owners, builders, and designers to collaborate and achieve unparalleled success.

What’s more exciting is that getting started is FREE to qualified organizations.

Open Construction Cost Estimating

Create you own line items from a core line item database, build estimates, manage projects, store and view virtually all forms of documents.  Understand and explore solutions jointly using a common data environment based upon CSI Masterformat.

Gain an integrated, real-time view of project cost and and status.  Furthermore, our platform is IFC compatible.

Especially designed to support LEAN construction procurement and management processes such as Job Order Contracting and Integrated Project Delivery,  you can support  all stages of  any project’s life-cycle.

Begin to improve your planning, budgeting, and construction management decisions today.   Leverage organized, verifiable, detailed construction cost data within a shared environment.  Assure that everyone is working on the same current information.  Mitigate variance and risk!

Open Construction Cost Estimating

 more about OpenCost…

Construction cost estimators and project managers work smarter and faster.

It’s that simple.

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10 Ways To Get the Most Out of Your Job Order Contract

10 Ways To Get the Most Out of Your Job Order Contract

10 Ways To Get the Most Out of Your Job Order Contract

  1. Understand your strategy and goals.   Do you want only to speed renovation and repair projects, or improve them?
  2. Be sure you have a team in place to manage and support your JOC Program.  Don’t expect you can depend heavily upon a JOC consultant or otherwise “outsource” the process.  JOC requires direct and ongoing owner participation.
  3. Understand what best value means… not just to your organization, but to your JOC construction contractors.
  4. Identify the types of documents and reports that will be required of all participants and stakeholder.
  5. Use locally researched cost data.  Do not depend upon location factors and a national average cost book. 10 Tips To Get the Most Out of Your Job Order Contract
  6. Assure you JOC unit price book is appropriately sized.  Approximately 30,000 line items is typically sufficient for even larger JOC Programs.  Excessively large JOC UPBs add to initial costs as well as reduce overall JOC program efficiency by creating confusion and unnecessary work for users.
  7. Use your current construction specifications and make them part of the contract.  Why would you require different technical specifications simply because it’s a JOC?  If you don’t have construction specifications, take advantage of currently available sets that can be purchased and adjusted to your requirements (Masterspec/SpecLink, etc.)
  8. Begin training for your team while developing your JOC Program, well in advance of “go live”.
  9. Require regular and multi-level training for all JOC participants.
  10. Support your JOC Program with cloud-based technology.10 Tips To Get the Most Out of Your Job Order Contract

Learn more?

Uncategorized

LEAN beats BENCHMARKING

LEAN beats benchmarking every time.  A benchmark is, “A standard by which a metric can be measured or judged.”   With respect to efficient life-cycle management of the built environment, and facilities management in general, many depend upon benchmarking as valued tool.  

There are several issues I have with benchmarking…

  1. Is the industry standard (presuming you have selected the right group for comparison) really something that should play a role in your strategy?
  2. The average, mean, median, whatever, of what other are doing, is problematic.  The 80-20 rule applies to facilities management as it does to any industry.  20% of practitioners are doing a good job and only 5% are doing a great job.
  3. Even if you subscribe to the premise and value of benchmarking… do you really believe that the data was collected consistently and in the same manner by all participants?  Despite the glut of information in today’s world, the fact is that quality information is extremely difficult to find.

Do you really what to measure or judge your FM performance based upon the poor performance of others?

LEAN is process by which continually improvement is attained through the collaboration of integrated knowledgeable teams with a common focus upon mutually beneficial outcomes.   A common data environment of current actionable information is key to the process.   Key performance indicators (KPIs) based, developed specifically to measure progress towards current and future goals are used in lieu of benchmarks.

A notable example of LEAN is Job Order Contracting.  It is a collaborative construction delivery method that plays a major role in improving facilities renovation, repair, and minor new construction.

LEAN beats BENCHMARKING

Learn more…

Job Order Contracting 2018 and Beyond, Uncategorized

Job Order Contracting 2018 and Beyond

Job Order Contracting is one of the most important processes for an organization to efficiently manage its numerous repair, renovation, and minor new construction projects.  But many implement JOC Programs with little strategy, direction, or oversight, or even for the wrong reasons (see JOC Audits).    Here are a few examples of improper JOC Program implementation…

  • Excessive use of JOC Consultants:  JOC requires direct Owner participation and leadership.  Improper use of JOC Consultants can led to high costs and even create a situation for misuse and fraud.
  • Use the JOC Program simply as a way to speed projects without proper oversight and/or get project approve that otherwise would not have been approved via traditional procurement methods.
  • Run a JOC Program using spreadsheets or desktop software versus cloud-based collaborative solutions.

All of the above are rarely ideal for developing an efficient JOC Program Strategy.   The first approach goes against the very fiber of JOC by not creating a team environment among owners and contractors.  It also slows, if not prevents, necessary change management within the owner organization.  This approach assumes incorrectly that outsourcing a key facilities management activity if appropriate.

The second approach is not as effective either, as it lacks the overarching focus upon best value.   While JOC does significantly speed project approval and delivery, it must be done with appropriate oversight and within a well-defined, consistent workflow.  Proper oversight by all participants is required.

The third approach also limits the amount of collaboration, productivity, and oversight that can be attained with JOC.   Spreadsheets are cumbersome and its virtually impossible to full review detailed line item estimates completely and/or efficiently.   The use of spreadsheets also can affect JOC Program compliance issues as it is significantly more difficult to determine if contractor’s task order estimate is meeting all requirements.

Unfortunately, many JOC Programs don’t meet promised or anticipated outcomes as a result.   Make sure your JOC Program and future decisions are not misaligned with your organizations objectives.

OpenJOC(tm) Job Order Contracting Solutions Provide a Solid Foundation for Success

First and foremost, the OpenJOC approach provides value to ALL participants, owners, contractors, subs, building users, and oversight groups.   Focus is upon positive outcomes all around.     In addition, the OpenJOC approach embeds robust LEAN construction delivery processes to assure the entire work process.

  • Centralized data and interoperability:   Unit Price Book base upon MasterFormat 50 Division data architecture, with clear descriptions for each line item in plain English.   All cost data is locally researched (we don’t use error inducing location factors).  Each line item includes labor, material, and equipment cost detail as appropriate, as well as line item modifiers for quantity and other variables.
  • Cloud-based collaborative work environment:  Appropriate secure access to team members anywhere anytime.  Everyone is always working with the current version, while all changes are recorded and saved.  Access from computers, tablets, and smart phones.

Free Project, Construction, and Facilities Management Software

  • Document Management: Create, store, and access virtually and form of document and view multiple image formats including DWG and BIM.  Of course, IFC is fully supported.
  • LEAN construction delivery processes:  Defined workflows eliminated silos of information and require collaboration of all participants.   Focus is upon driving optimal operating performance and continuous improvement.  There are virtually no limits upon interoperability, workflows. or data sources.
  • Alignment with financial plans: Effective JOC strategic planning requires clear business goals and this  easily monitored using defined Key Performance Indicators (KPIs).   The OpenJOC approach assures your organization has a clear definition of is goals and that each is measured.

In short,  assure your JOC Program has workflows to achieve your organizations objectives and be adaptable as business drivers evolve.

True performance optimization required defined processes, a common data environment, collaborative teams, and supporting technology…  adapted to your organizational strategies and changing business conditions.

The OpenJOC approach can help to mitigate variation and highly unexpected disruptions, and thus drive optimal productivity.   Don’t let your JOC Program fall short of this.

Managing your numerous and ongoing renovation, repair, and minor new construction projects is more important than ever.  Assure the approaches that you take in are integral to your success.

Learn more…

 

FREE Cloud-based Construction Collaboration Tool

FREE Cloud-based Construction Collaboration Tool

Collaborate Anywhere-Anytime Free
Collaborate Anywhere-Anytime Free

Free Cloud-based Construction Collaboration Platform

A FREE cloud-based collaboration platform that allows construction professionals and owners to work together on virtually any device – computers, tablets, smart phones.

Reduce costs and improve efficiency for buildings and infrastructure projects by consolidating and seamlessly exchanging information throughout the design, procure, build, and operations life-cycle.

Architects, builder, contractors, consultants, and owners can transparently and seamlessly work together on the most current information…. as well as maintain a history of all changes.

Improved Collaboration Translates to Great Efficiency

Owners, architects, contractors and engineers all use different software and hardware tools, as well as information, to contribute their deliverables to a structural project. Information can be contained within 2D drawings, specifications, documents, and Building Information Models (BIM). Sharing information across the tools and technology platforms can be difficult.

Here’s a FREE open cloud-based project collaboration platform that anyone can use to access, review, manage, update and share project data from anywhere, at any time.

IFC is supported as well as multiple data formats and document types.

Create, share, and track activities and issues.

Sign up today!

Job Order Contract Execution, Uncategorized

Job Order Contract Execution

Work Execution and Contract Administration

During this operational phase of the JOC contract, procurement/facility management/engineering generate task orders for various construction services to be performed by the contractor.   The first step is for the assigned Owner “JOC project manager” to request a proposal for the task order, which is then approved by purchasing.

Job Order Contract Execution

It is generally a best practice and recommended that the owner and the contractor conduct a joint site visit to verify specific requirements and note any site conditions that could affect execution of the task order.

The contractor responds to the Job Order RFP by delivering a detailed unit price line item proposal for accomplishing the task.

The timing for contractor response should be specified in the JOC contract.

If the task order is over a specified dollar threshold, the owner JOC project management will, at the same time, prepare an independent owner estimating (also called an Independent Government Estimate (IGE) in the federal sector).  An IGE is REQUIRED for orders valued above a set level, generally $100,000-$150,000 or more.)

Purchasing and facility management review the contractor’s proposal and purchasing negotiates a fair and reasonable price. Purchasing then issues a task order.

Quality assurance, inspection, and acceptance procedures are similar for JOC task orders as for other construction contracts and task orders.

While purchasing generally has primary responsibility for the JOC contractually, the facility management/engineering staff handles technical aspects. These and all joint responsibilities of purchasing and facility management/engineering must be clearly defined.  Proper JOC program execution requires joint execution and monitoring by both the facility management/engineering and purchasing authorities.

Responsibilities should be spelled out for the various contract administration functions – including such areas as payment disputes, appeals, total or partial contract termination, task order termination, and contract closeout. The contract administration plan is part of the JOC execution SOP.

Facility Management/Engineering Organization Staffing Plan. Discuss the organization staffing plan and assignment of responsibilities for the personnel who will be involved with the JOC contract.

Contract Clauses. Identify any specific contract clauses contemplated for inclusion in the solicitation and contract, including those covering bonding, response times, operating hours, quality control, subcontracting plan, and progress payments.

Subcontracting Plan Regarding Small, Small Disadvantaged and Women-Owned Small Business. Discuss the planned structure of the contract to ensure compliance with small, small disadvantaged and women-owned small business subcontracting requirements.

Milestones for the Acquisition Cycle. Identify and establish milestone dates and critical events, to ensure timely accomplishment of the acquisition.

Identification of Participants. List the individuals who participated in preparing the plan for acquisition, giving contact information for each.

 

LIMITATIONS

Task Order Size: Task orders have an estimated minimum value and maximum value.

Non-Prepriced NPP Items:  The percentage of NPP (items used in a task order that are not included in the UPB) generally are stipulated not to  exceed 10% of the total value of prepriced items.

Work Limits): JOC cannot be used to purchase supplies, architect and engineer (A-E) services, or other non-construction services.

Note: Services such as carpet installation, landscaping, asbestos removal, and building demolition are generally considered construction services.

Ordering Limits:  Individual task orders generally have associated limits.  For example, this value by range from approximately $100,000 to $500,000 based upon the sector.  There may also be limits in terms of the total value of NPP items allowed, regardless of the percentage noted above.

Modifications to task orders:  Modifications are allowed, however, only per established limits per contract.

Learn more?

Job Order Contract Staffing, Uncategorized

Job Order Contract Staffing

Job Order Contract Staffing

The initial planning for JOC staffing occurs during the JOC feasibility study.  The minimum skills required to support the JOC process include managerial, contract administration, construction management, project management, and quality assurance.

job order contract staffingJOC staffing levels will change to meet the workload to be managed/performed by using JOC.  Quality assurance personnel  should work in close relation to those preparing task orders to facilitate communications, scheduling, and coordination.

Generally, $2 million to $5 million in annual JOC workload will require the primary or partial responsibilities of four or five staff members. It is recommended that one position be primarily responsible for JOC for purchasing, and that a peer from the technical team also lead that function.  Experienced, competent and credible personnel should be involved in the JOC process.  All personnel assigned JOC responsibilities must be trained to properly perform their job functions. JOC training courses are offered various owner, professional, and educational groups.

Training should begin a minimum of 5 or 6 months before the planned JOC award.  Personnel involved with the JOC contract from both the technical and purchasing teams should visit other locations that are currently executing a JOC contract to gain a working perspective.

Learn more?

Job Order Contract Program Implementation

Job Order Contract Program Implementation

LEAN Pre-Construction Services Considerations

Basic steps involved in JOC Program implementation include;

  1. Strategic evaluation of objectives, goals, and appropriateness
  2. Development of acquisition/procurement approach
  3. Facility management/engineering planning
  4. JOC procurement/award process
  5. Work execution and contract administration
  6. Monitoring
  7. Ongoing training

 

Strategic Evaluation of Objectives, Goals, and Appropriateness

An owner’s review of the historical type and volume of work is generally the first step.  It’s generally considered that numerous and repetitive renovation, repair, maintenance, and/or sustainability work, and minor new construction with a minimum annual volume of $2M is appropriate for job order contracting.  If an owner doesn’t meet these criterial consideration of participating in JOC through a Cooperative may be also an option.

 

Facility management/engineering should conduct a review of work that could be done to under the support of the JOC program and develop an estimated annual volume.  Work below a $2k-$5k threshold should not be included in the analysis as this level may not be cost effective and/or may be best accomplish by in-house staff or alternative methods.  Consider what work is being accomplished, how, by whom, and where.  Also consider the urgency of tasks and other timeline elements.   JOC is particularly well suited for reducing and an existing backlog of projects/tasks.  Consideration of future requirements is also required.

Historical and planned budgets also are evaluated to assure long term, consistent execution of the JOC program.

A review of any existing related contracts is also important in order to avoid any potential conflicts or work disruption.

A review of owner staff personnel is needed to assure proper availability to support both the technical (facility management/engineering) and purchasing administrative elements of the JOC program.

 

Determining the source for the UPB is extremely important.  The UPB must include detailed line items including easy to understand descriptions that reflect the approximately 90% of the work to be accomplished.   Factors such as ease of use, and commonly used terms should be considered.
A market of local contractors to assure a pool of qualified and interested companies is another important task.  This should include consideration of any specific technical or service requirements association with the JOC program.

 

Depending upon the types and locations of work as well as service levels, there may be a need to have multiple UPBs and/or multiple coefficients.   For example, work in several locations and/or associated varied building types may require the use of various location factors or even separate unit price books.   Separate coefficients may be require for work during normal hours, or after hours, and or for specific types of buildings and/or for secure areas.

There also be a need to structure indirect costs and profit for NPP work. Consideration

A final report summarizing the results and conclusions of the strategy component of the JOC program is helpful the final decision and approval processes.

Development of acquisition/procurement approach

The process of soliciting/marketing, contractor selection, and award of a Job Order Contract involves technical and business strategies.

The facility management authority and procurement/contracting/purchasing (purchasing) meet and discuss items such as timing (JOC start and end dates), available funding, access to local contractors, as well as any and all additional resources needed to achieve quality on-time and on-budget performance.   Other authorities in the organization must participate in its development to ensure that all objectives and interests are met (examples: legal, quality assurance, small business, building users, planners)

 

The acquisition approach should be tailored to JOC construction services required.

The acquisition starts with the needs and feasibility study and is complete once the decision has been made to implement a JOC contract.   An acquisition timeline should be developed.

 

JOC Acquisition Phase                         Months

JOC PROGRAM Development and Acquistion Timeline

 

As acquisition planning is an ongoing activity, the plan continuously updated.

 

Components of an acquisition plan;

  • Statement of Need. Results of the need analysis.
  • Surrounding Conditions. All significant conditions, such as requirements for compatibility with existing laws, regulations, contracts.
  • Capabilities Being Acquired. Capabilities and performance goals being sought – on-demand services, quality, expertise.
  • Performance Period. Initial proposed award date, term, and option years as applicable.

Plan of Action

Sources. Research market for skilled and otherwise qualified contractors and subcontractors.

Source Selection Procedures. Method(s) for rating and selecting awardee(s).

Contracting Considerations. Discuss features of the JOC contract and any special clauses and/or requirements.

Multiple Awards. Will the JOC involve one or multiple contractors/awardees. If multiple awardees, how will selection per task order be made.

Budgeting and Funding. Assure process is in place for funding the JOC throughout its term and appropriate provisions are in place should the JOC be terminated.

Management Information System Requirements. Discuss cost estimating or other software that is to be used as well as formats for reporting.

Quality Assurance:  Discuss quality requirements and evaluation procedures and warranties.

Owner Furnished Property. A JOC acquisition may require the contractor to use or occupy owner property, including an on-site work facility, and or dedicated workspaces.

Owner Furnished Information. Owner manuals, drawings, and other data to be provided to prospective offerors and awarded contractors.

Contractor Computer Equipment. The equipment specifications to support the pricing (UPB) software must be planned for and identified in advance. The contractor must equip itself with compatible computer hardware and software so that information can be shared, as required.

Environmental Considerations. Discuss the proposed resolution of environmental issues and any environment-related requirements to be included in the solicitation and contract. Discuss whether any environmental considerations are to be separately treated when individual task orders are issued, and whether contractual coverage will be required.

Security Consideration. If the contractor’s contractual responsibilities require the use of secured areas, discuss how adequate security will be established, maintained, and monitored. Discuss how security clearances for the prime and any subcontractors will be handled and the responsibilities of both the government and the prime contractor regarding them.

Energy Considerations. Discuss energy conservation considerations, including whether specific coverage will be required in the solicitation and in selecting the unit price book.

Standardization. Discuss any standardization programs to be recognized in the contract.

Occupational Safety and Health Administration (OSHA). Discuss how OSHA requirements will be met in the solicitation and contract, including the need for special contract clauses.

Source Selection Evaluation Plan. Because the selection of a contractor is based on other factors in addition to price, the nature and structure of the source selection process should be discussed to ensure that adequate planning occurs.

Contract Structure. Discuss the initial period and option(s) structure of the contract. Discuss the responsibilities of the purchasing authority and technical JOC staff members in monitoring contractor performance.

Bonding Requirements. Discuss any bonding requirements on the part of the contractor.

Preproposal Conference. Discuss the plans for the preproposal conference, including scheduling, owner representation, location, etc.

Task Order Placement. Discuss the appointment and training of the purchasing and technical personnel. Discuss the location and schedule of training, so that it will be completed before contract activation. A JOC basic training course, followed by advanced and ongoing (annual) training is an important consideration• Assignment of Source Selection Authority. As with any solicitation of the magnitude of a JOC contract, the appointment of the source selection authority (SSA) needs to be addressed.

Assignment of Purchasing Responsibilities. Assure roles and responsibilities associated with contract operations, including issuance of task orders are planned and discussed to ensure smooth and orderly accomplishment.

Facilities Management/Engineering Planning

The facility management/engineering (technical) staff administering the program, as well as those responsible for oversight, develop the manual for the JOC program that includes all standing operating procedures (SOP).   First and foremost the facility management/engineering team must have and/or receive appropriate training to enable them to successfully manage and complete the planning process.

The responsible procurement/contracting/purchasing (purchasing) personnel are also involved, however, in most cases, serves in a support capacity during this phase

Responsibilities of the facility management/engineering staff include planning for all requirements and assuring all items necessary to actually acquire and manage the JOC contract.   For example, after acquisition planning, the technical staff is responsible for the UPB and technical specifications, and selecting and training personnel responsible for the JOC contract. The technical staff also develops the JOC statement of work, creates and maintains a technical library, and assist in the source selection evaluation plan. Purchasing is consulted as necessary throughout the process.

 

THE UNIT PRICE BOOK

The JOC contract includes a UPB, which may be obtained commercially. Consider the following when selecting a UPB:

Can line items be added/deleted?

Are demolition line items included for each applicable line item or is there separate demolition section?

Is support provided? Type of support? Cost?

Are specifications included or will existing organizational specifications be used (Note: If existing specifications are available and current, this is the preferable path.  There is no reason to have separate specifications for a JOC.  In fact, the latter can create confusion and complications.)

What are the computer hardware and software requirements?

Can the UPB be localized to reflect the local economy?  How?

How often is the database updated and are there associated costs?

Does the database address the current Masterformat data architecture?

Are there provisions for quantity and/or quality? ( If not, this may be addressed in the basic contract.)

The UPB is a key element of the JOC contract. When combined with existing or JOC-specific specifications, work expectations and fixed prices for the work are fully transparent.

The technical staff has primary responsibility for price review and technical sufficiency of the UPB and specifications.

Purchasing coordinates with the technical team to assure that the UPB has undergone technical review and validation and is tailored to meet the projected requirements and local economic and site conditions.

The use of labor only line items in a JOC UPB is generally acceptable provided proper internal controls are in place and that the method for using labor line items is specifically outlined in the JOC solicitation and contract.

Labor line items should be identified as a modifier or as a new task, such as by LF, SF, EA, etc., and be used only when incidental to construction. Generally, labor line items are not used (at least in the Federal sector) to provide services, which could normally be performed under a separate service or requirements contract.

The unit prices should be thoroughly reviewed by all bidders and the government prior to award. In order to preserve the integrity of the competitive procurement process, post-award changes in unit prices can and should only be made if errors are found, or if new line items should be added.    Any revised pricing or line items should be fair and reasonable and fully supported by appropriate documentation.

Technical Specifications

As noted, the technical will utilize established specifications and revise them as necessary, or develop new specifications. The technical specifications will be included or referenced in the JOC solicitation.

STATEMENT OF WORK – SOW

The technical team’s responsibility is to review all existing renovation, repair, and minor new construction constracts , as well as expected activities contracts before determining the statement of work for the JOC contract.  Factors to be considered in preparation of the SOW include;

  • Capabilities that the JOC contract will provide.
  • Relationship with other contracts
  • Average value and type of typical task orders
  • Contractor use of owner equipment, material, or space (Note- JOC contracts typically require that the contractor furnish the labor, materials, and equipment needed to perform the work. Limited use of owner-furnished material or equipment may be necessary and allowed.
  • Clear, concise, and standard terms, definitions, language, and task ordres (Note – Clear and explicit requirements elicit quality proposals and quality work performance and mitigate disagreements/issues.
  • Inclusion of sustainment, restoration, and modernization of buildings, structures, other real property, or minor new construction only.

ECONOMIC PRICE ADJUSTMENT

JOC solicitations and contracts should make annual updates to the UPB, and even provide for quarter economic adjustments via a pre-established method.   Updating the base year coefficient using pre-established and industry standard and/or regulated criteria via predetermined formulas is also a method for economic adjustment.

Adjustments to the base year coefficient are traditionally made using a publicized and accepted economic index that reflect weighted aggregate of changes to construction costs.  The economic index used is generally the based upon the near location in order to provide appropriate granularity.

 

ENVIRONMENTAL COORDINATION

Usually environmental assessments are not required for a JOC contract,  however, appropriate regulations and specific issues should be addressed.

 

ESTABLISH TECHNICAL LIBRARY

A technical library is provides potential offerors with access to operating regulations, construction guides, drawings, and various site specifics that applicable to contract performance.  A thorough review of the contract specifications should be made prior to the issuance of the solicitation to ensure that all required references are available.

SOURCE SELECTION

Source Selection Team

A key to performing a successful source selection is the early identification of team members. It is important to train personnel who are not familiar with their responsibilities.  Functional representatives to be involved in the JOC contract shoulbe included on the source selection evaluation team – technical, purchasing, etc.   Senior and highly skilled individuals should be selected.

Selection Evaluation Plan

The objective of source selection is to select the offeror whose proposal provides the BEST VALUE to the owner. Evaluation of proposals and selection should be done following an accepted selection evaluation plan.   The awarded contractor(s) should afford the highest likelihood of delivering contract requirements at a reasonable cost. Ths process may result in an award being made to a higher rated, higher priced offeror.  In this case, it has been determined that the technical superiority and/or overall business approach, potentially including superior past performance outweighs the initial cost variables.

Detailed requirements as identified in the Request for Proposal (RFP), and/or solicitation should communicate how evaluation of objective performance requirements will be accomplished and how the offeror will be credited for such performance.

 

Lowest price, technically acceptable source selection process is generally not appropriate for JOC or other LEAN construction methods.   Overall best value is not as likely to result from a selection that depends exclusively upon technical factors and lowest price. Past experience, and a thorough evaluation of other nontechnical factors afford greater visibility into total capabilities of an offeror.

Use of detailed technical and non-technical evaluation criteria that reflect the requirements of the JOC program enable the owner to emphasize technical ability, management abilities, quality, and past performance in reaching the best possible source selection decision.

Examples of evaluation criteria that have been effectively used in JOC source selections include:

(1) Project management ability, including key project management staff, technical support staff, the quality control plan, and financial resources;

(2) Subcontracting support capability and subcontract management, including identification of key subcontractors, purchasing system/level of subcontracting.

(3) Past and present performance information which will demonstrate ability to perform the proposed effort;

(4) Project execution, including sample project preparation/submission; and

(5) Price, including completeness, reasonableness.

 

PREAWARD ACTIVITIES

After the JOC Program RFP is advertised/solicited the owner technical and purchased team generally conducts various marketing and awareness events/conferences.  These meetings/events/publications help education the pool of potential JOC contractors and allow interested parties to ask questions.  The information sharing aspect of this process is very beneficial to improving the quality of the JOC selection process, as well as the overall success of the program.

Owner Support for the Contractor

Space and/or other items may be provided by the owner for the contractor.  Since the JOC contractor’s coefficient is based on the items in the solicitation document; the owners must decide before the solicitation is issued what, if any, space, equipment, or materials will be provided directly by the Owner for contractor use.

For example the owner may provide facilities and utilities for use by the contractor.

Factors to consider in this regard include the location of the contractor work facility, anyu contractor use of shop facilities, and any charge-backs (rate for utilities use, etc.).

The contractor’s computer hardware and software must be compatible with the owner system to ensure that information can be transferred between the contractor and the owner, and to support the operation of specified JOC software program.  The use of a common JOC software program is typically preferred for larger, and/or multi-location JOC scenarios.

Contractor Phase-In Plan

The key to orderly and timely implementation of JOC operations is the contractors activation and/or implementation plan.  The solicitation should require the offerors to submit a phase-in plan. The contractor’s proposal should demonstrate a full understanding of the UPB, how it operates, how a proposal for a scope of work becomes a task order for tasks contained in the UPB, and how to establish and document/differentiate prices for NPP line items/requirements.

Contractor Phase-Out Plan

The requirement for a contractor phase-out plan should also be included. For example, one JOC contract may expire and another one subsequently awarded.  In these instances, there are typically task orders outstanding from the initial contract.  Should this occur, there may be two different contractors on site simultaneously for a period of time.  There also may be warranty work, etc.   This period of “overlap” can range for one month to several months.  The contractor should clarify how warranties will be managed and how operations at the owner site(s) will be phased out.

Identification of Special Contract Requirements

The technical team must consider special contract requirements before the solicitation is issued. These contract requirements are expressed in site/owner unique JOC statements of work and specifications. For example, the quality control operations expected from the contractor might be appropriate for inclusion. The owner technical and purchasing teams  should work jointly to identify and develop any special requirements of the contract.

Pre-RFP Review

Owner technical and purchasing staff must work together during any pres-RFP reviews. Each functional activity should review and comment on the RFP to ensure that it meets basic requirements:

  • Clearly defines owner’s justification, objectives and goals,
  • Conforms to existing regulations and laws.
  • Implements procurement objectives in conformance with policies and regulations.

FORMAL ACQUISITION PROCESS

Contract Funding

The technical documents (i.e., UPB, technical specifications, and SOW) that the technical staff needs to prepare for the RFP and contract must be submitted to the purchasing activity. Committed for the guaranteed minimum must be available, as well as a strong likelihood of funding for anticipated first year, and following years.

Preproposal Conference

Any potential offerors should be notified of a preproposal conference date in the RFP.  The conference should be scheduled no sooner than 2 weeks following release of the RFP and no later than 20 days before the proposal submission date. This conference enables potential contractors to receive clarifications to any sections of the RFP.   When and if time allows, purchasing should ask prospective offerors to submit written questions in advance so that prepared answers can then be delivered during the conference. Technical, purchasing, and legal personnel attend the conference. Purchasing generally chairs the session and furnishes all prospective offerors information concerning the proposed acquisition, makes a complete record of the conference, and promptly furnishes a copy of the minutes to all prospective offerors.

The owner technical staff should conduct a tour of the facilities to familiarize offerors with local conditions, since they need knowledge of these conditions in order to formulate realistic offers. Remarks and explanations at the conference do not change the requirements; the only way to change the RFP should be by means of amendments issued by purchasing to all the offerors.

Proposal Evaluation

Selected personnel will participate when proposals are evaluated in accordance with the source selection evaluation plan. This will be a joint effort involving owner purchasing, technical, and legal staff.

Competitive Range

The technical team should participate in establishing solicitation evaluation factors and as a member of the evaluation committee. All proposals shall be evaluated based solely on the factors and sub-factors contained in the RFP, price, and other factors. If discussions are to be conducted, the purchasing shall establish a competitive range comprised of all the most highly rated proposals, unless the range is further reduced for the purposes of efficiency. Purchasing’s competitive range decision is based on the summary report, prepared by the evaluation commttiee, for each proposal that includes the evaluated price; the final rating for each factor and sub-factor; and a discussion of the associated strengths, weaknesses, deficiencies, and risks.

 

Preaward Survey

Preaward surveys are important when the puchasing considers that the information on hand is not sufficient to make a determination of an offeror’s responsibility. If a preaward survey is needed, the technical team should also participate.

Evaluation of Contractor Performance

Before awarding a JOC contract, purchasing must retrieve all contractor past performance evaluations.  Awards may denied should unsatisfactory past performant be discovered.

Negotiations and Source Selection

Owner technical personnel participate in contract negotiations as members of purchasing’s technical team. When factors other than price are considered, members of the cognizant technical team are responsible for the technical elements of the evaluation. They will document their decisions and the and these documents will be included as part of the contract files and will be subject to subsequent review.

Debriefing Unsuccessful Offerors

Offerors requesting a debriefing in writing should be debriefed by the purchasing and supported by technical, legal and other functional activities if necessary. Debriefing is an important step in avoiding legal disputes and results in better proposals for future requirements.

 

SUPPORTING THE JOC PROCESS

Staffing

The initial planning for JOC staffing occurs during the JOC feasibility study. The minimum skills required to support the JOC process include managerial, contract administration, construction management, project management, and quality assurance.

The JOC staffing will change to meet the workload to be managed/performed by using JOC.  Quality assurance personnel  should work in close relation to those preparing task orders to facilitate communications, scheduling, and coordination.

Generally, $2 million to $5 million in annual JOC workload will require the primary or partial responsibilities of four or five staff members. It is recommended that one position be primarily responsible for JOC for purchasing, and that a peer from the technical team also lead that function.  Experienced, competent and credible personnel should be involved in the JOC process.  All personnel assigned JOC responsibilities must be trained to properly perform their job functions. JOC training courses are offered various owner, professional, and educational groups.

Training should begin a minimum of 5 or 6 months before the planned JOC award.  Personnel involved with the JOC contract from both the technical and purchasing teams should visit other locations that are currently executing a JOC contract to gain a working perspective.

Facilities

Adequate office space, equipment, and telephones are necessary for a productive environment.

Preaward Activities

The owner technical team personnel assume responsibility for selecting, reviewing and revising the UPB.  They, and purchasing personnel jointly develop an SOP guide for the JOC.

The SOP guide must identify the roles, responsibilities, workflows, and reporting requirements for the JOC, including identifying all requirements, verifying the validity of acquisition under the contract, establishing task orders, (including negotiation of work unit requirements as required), a contract administration plan, and negotiating NPP work requirements.

Sample JOB ORDER CONTRACT SOP

STANDING OPERATING PROCEDURE OUTLINE

The following is a generic example only. A unique job order contracting SOP must be developed for each contract.

SOP OUTLINE

  1. Introduction
  2. Purpose
  • Definitions
    1. Job Order Contracting IX. Reporting Requirements
    2. Task Order
    3. Coefficient
      1. Normal Hours
      2. Other Hours
    4. Contract Award & Execution Authority
    5. Appointment of JOC Purchasing Authority
      1. How
      2. When
      3. Limits
      4. Training
    6. Task Order Authority
      1. Prepriced limits
      2. NPP limits
  • Execution Procedures
    1. Work Coordination
      1. In House
      2. Contract
    2. JOC Execution
    3. Request for Task Order
  • Task Order Modification
    1. Differing Site Conditions
    2. Change Clause
  1. Reporting Requirements
    1. Contractors
    2. Purchasing
    3. Technical
  2. Payments
  3. List of SOP Attachments
    1. Sample Appointment Letters
      1. Purchasing Officer
      2. Purchasing Officer Representative
    2. Task Order Checklist
    3. Request for Proposal-Sample
    4. Internal Control Procedures
    5. Contractor Proposal-Sample
    6. QA Plan
    7. Workflow Diagrams
    8. Price List Changes-Sample
    9. Required Forms

 

A good internal control procedure and compliance with it is critical.   Multiple JOC audits performance by public agencies are available on the Internet.  In virtually all cases, any reported issues could have been averted with good internal controls procedures in place.

While the potential for fraud, waste or abuse exists, it can be significantly mitigated if reasonable measures are taken such as the following:

 

  1. Personnel to be assigned to work with JOC will be carefully screened to ensure only competent individuals with a high degree of integrity are assigned.
  2. Managers at all appropriate levels will:
    1. Ensure JOC personnel are properly trained to do their jobs.
    2. Ensure JOC personnel are familiar with and understand the terms of the contract they are executing.
    3. Ensure that the procedures established are followed for processing JOC actions from start of job to finish of contract administration.
    4. Ensure all JOC personnel read and adhere to established standards of ethical conduct for Owner employees (public and/or private sector guidelines)
    5. Ensure JOC personnel seek assistance and guidance before proceeding on unclear or borderline issues.
  3. Meaningful quarterly reviews of JOC operations will be made by DPW manageme staff and contracting officer’s staff.
  4. All personnel concerned will ensure work scopes, owner estimates, contractor’s proposals, awarded task orders, and contractor invoices are logically progressive, consistent and clear.
  5. Project scoping and project quality control/acceptance activities will be kept separate. Individuals involved with project scoping and development as well as proposal negotiations with the contractor will not be the same individual responsible for monitoring quality assurance. Although project engineers may be required during the construction phase to clarify scope of work or recommend modifications for changes or unforeseen conditions, the responsibilityfor recommending acceptance of completed work will remain with separate quality assurance personnel. This principle of separation should also allow for effective coordination between project engineers and quality assurance persons so that problems occurring during the construction phase do not cause contractor delays and potential claims to the owner.
  6. The senior authority for the location with responsibility for JOC will:
    1. Ensure contract administration documentation activities are kept current, complete and correct.
    2. Ensure periodic sessions are held regularly among JOCpersonnel to discuss their work activities, procedures and problems.
    3. Complete at least annually, the JOC internal control checklist (sample below)
    4. The appropriate authority will complete any of the items on the internal control checklist that pertain to his area of responsibility.

 

 

Sample  – Job Order Contracting Internal Control Checklist

  1. Is there an SOP for JOC, signed by both the DPW and contracting officer, that identifies authorities, limitations, and responsibilities of all DPW and contracting office personnel involved in the JOC contract?

Response: YES ______ NO ______

REMARKS:

  1. Was the JOC unit price book sufficiently reviewed and changed

before contract award, when required, in order to meet the specific

needs of the installation and the requirements of job order

contracting?

Response: YES ______ NO ______

REMARKS:

  1. Have JOC ordering officers received training and orientation

regarding policy and procedures for operation of the JOC contract

which specifically addresses their authorities, limitations and

responsibilities?

Response: YES ______ NO ______

REMARKS:

  1. Were JOC duties of project negotiating and inspection performed by

different personnel?

Response: YES ______ NO ______

REMARKS:

  1. Do statements of work for proposed task orders under a JOC

contract contain sufficient detail to assure that the government can

properly develop an IGE and that the contractor can properly prepare

responsive and cost-effective proposals with a minimum of nonprepriced

work?

Response: YES ______ NO ______

REMARKS:

D-3

(Back To Table of Contents)

 

  1. Was the Independent Government Estimate (IGE) prepared prior to

evaluation of the task order?

Response: YES ______ NO ______

REMARKS:

  1. If there were significant differences between government estimates

and contractor proposals, were they evaluated to determine

reasonableness of bids or accuracy of government estimates and

documented in the task order file?

Response: YES ______ NO ______

REMARKS

  1. Were projects developed near the end of the fiscal year based on

bona fide needs?

Response: YES ______ NO ______

REMARKS

  1. Does contractor notify government quality assurance representative

at critical construction points (hold points)?

Response: YES ______ NO ______

REMARKS

  1. Does contractor provide payrolls weekly on each task order?

Response: YES ______ NO ______

In preparation for awarding the contract, the Engineering/Technical/DPW should identify potential projects that will be performed under the JOC contract and announce the pending award of the contract to tenant activities on the installation. Upon receipt of requirements from potential customers, the work requirements should be reviewed.

Learn more???

 

 

 

 

 

 

 

 

 

 

Job Order Contract / Task Order Process, JOB ORDER CONTRACT PROCUREMENT STRATEGY, JOC Program Guide - Job Order Contract Considerations, Uncategorized

JOC Program Guide – Job Order Contract Considerations

The JOC Program Guide provides an overview of strategic and tactical considerations for the planning, development, bidding, awarding, execution, and monitoring of a Job Order Contract.

Information is provided for each of the following major areas:

  1. An introduction to the JOC construction delivery methods, key characteristics, benefits versus traditional construction delivery methods, general statement of works and/or scope of work, and responsibilities of participants.
  2. Principle considerations before making a decision to implement a Job Order Contract.
  3. Advertising, bidding, and awarding a JOC
  4. Facility management / Engineering role in a JOC.
  5. Contract administration and program/project management functions. Task order proposal requests, negotiations, issuance, administration, and inspection.

Request your complimentary copy…

Consistent Delivery of On-time, On-Budget, Quality Renovation, Repair, and Construction, Uncategorized

Consistent Delivery of On-time, On-Budget, Quality Renovation, Repair, and Construction

Consistent Delivery of On-time, On-Budget, Quality Renovation, Repair, and Construction is available to any competent real property owner that demonstrates leadership.

The AECOO sector is not wasteful due to its inherent complexity, it’s due to lack of proper management.

LEAN Collaborative Construction is the delivery tools for owners, builders, and other stakeholders that wish to consistently deliver quality projects on-time and on-budget.

Consistent Delivery of On-time, On-Budget, Quality Renovation, Repair, and Construction

Key Characteristics of LEAN Collaborative Construction Delivery

(Specifically for Job Order Contracting, though Integrated Project Delivery is similar and used for major new construction)

  • Firm, Fixed Priced based upon Locally Researched Unit Price Book, UPB ( Bare Cost …not including contractor overhead and profit, Line Item Construction Tasks based upon Local Prevailing Wages/Davis-Bacon Wage Rates, Material and Equipment Costs and organized using 50 Division MasterFormat, inclusive of line item modifiers and demolition line items)
  • Minimum and Maximum Dollar Values (Per Contract, Per Job/Task Order)
  • Best Value Procurement Competitively Bid
  • Designed to Accomplish Small-Medium Size, Multi-trade, Minor Construction, Repair and Remodel Projects, or Minor New Construction
  • Numerous Individual Projects Issued As Job/Task Orders Under the Base Contract
  • Implemented by… Federal Government (most experienced and successful), Education, Healthcare, County/State/Local Government (in early learning curve phase)
  • Generally Three (3) to Five (5) Year Duration (base, plus option years)
  • Shorter Project Delivery Times
  • Shared Risk/Reward
  • Mutual Trust/Respect
  • Fully Defined and Documented Roles, Responsibilities, and Workflows (Job Order Contract Execution Guide / Operations Manual) – Examples – Procedures for.. defining scope, joint site visits, ordering projects, proposal requirements and formats,  timelines, auditing/reporting…
  • Use Owner’s Existing Technical Specifications (if not available, create using commercially acceptable standards modified to owner requirements)
  • Associated Documents and Reports (JOC Operations Manual, Notice to Bidders, Bid Forms, RFP, Proposal Form, Negotiations Records, Close-out Form/Package)
  • Supporting Collaborative Cloud-based Technology
  • Contractor coefficient(s) – Normal Hours, Outside of Normal Hours, Special Access, etc.  Coefficient make up defined in contract and examples of items that may be including are overhead, profits, taxes, fringe benefits, permits, clean up.
  • Owner competency and leadership
Job Order Contract Unit Price Book Basics, Uncategorized

Job Order Contract Unit Price Book Basics

The following are important considerations when selecting a Job Order Contract Unit Price Book…

  • CSI MasterFormat – 50 Divisions
  • Clear description in plain English for each task/line item
  • Labor, equipment, and material costs, as appropriate for each line item
  • Locally researched pricing (no use of localization factors or other generalized price adjustments
  • Appropriate number of line items (generally 60,000 or fewer)
  • Price for each task if for complete and in-place renovation/repair/construction under normal working conditions
  • Separate demolition line items (generally found at the beginning of each section)
  • Line Item Modifiers – Add/Deduct cost per unit of measure for certain variables ( quantity/work access…)
  • Easy access – search by 1. Tree/MasterFormat Section, 2. Keyword,  3. Scroll, Tag, and Paste

BrowsePriceListFeatures

Job Order Contracting Services & Tools, Uncategorized

Job Order Contracting Services & Tools

4BT develops and maintains JOC unit price books containing costing data for individual construction tasks for a wide range of general construction, maintenance, repair, and construction of facilities, roads, parking lots, and other construction-related components typically encountered by real property owners.

Job Order Contracting Services & Tools

We also provide professional training and support to owners and awarded JOC contractors for our web based JOC cost estimating, project, and information management software system.  Additional service offerings are also available.

4BT  can support any Job Order Contract design and implementation with an open, transparent, and efficient solution based upon industry best practices.   Our tools and services support project identification, detailed scope of work development, price proposal review, and construction management support.

4BT is  a veteran-owned small business limited liability company.  Our team include JOC Professionals, Program Managers, and Cost Estimators with decades of experience working in senior roles for The R.S. Means Company, LLC, U.S. Cost, LLC, 4Clicks Solutions, LLC, The JOC Group, and VFA, Inc.   The pedigree of products and services of our offerings date back to the early JOC contracts deployed by the U.S. Army deployed in the United States, as well as the first web-based facilities capital planning and management systems developed and deployed for major real property owners.

We have been involved in managing supporting well over 4.5 billion dollars of construction procurement and delivery inclusive of pre-construction services, construction management, construction estimating, project management, facilities & JOC program management, JOC estimating, JOC software, JOC Unit Price Books, and JOC auditing services throughout the United States.

OpenJOC LEAN Job Order Contracting Framework, Uncategorized

OpenJOC (TM) LEAN Job Order Contracting Framework

  1.  Collect, select and prioritize the right initiatives
  2.  Optimize your resource allocation and planning
  3.  Develop your team
  4.  LEAN construction delivery – project and program management
  5. Continuous monitoring and improvement 

The OpenJOC Job Order Contracting Framework enables centralized management and consistent deployment of best value and compliant processes, methods, and technologies to drive optimal renovation, repair, and construction outcomes.

OpenJOC LEAN Job Order Contracting Framework

An OpenJOC Program can build and maintain the optimal resource mix for delivery and to scheduling of facilities renovation, repair, and minor new construction activities to best achieve an organization’s operational and financial goals, while honoring regulatory and other constraints.

  • Gather all the possible project input from all participants from the very early conceptual period onward.
  • Assure use of common terms, and standard data formats, including locally research construction cost data, complete with detailed line item task descriptions.
  • Prioritize projects based upon importance to the organization and budget.  Assure projects are linked to organizational strategy.
  • Consider safety and compliance issues when prioritizing projects.
  • Beware of “mandatory projects” which are, in fact, politically motivated.
  • Clarify the scope, fix deadlines and understand drivers before establishing priorities.
  • Assure experienced project managers with appropriate competencies are involved.  Seek out and leverage individuals who can deliver high-level estimates of requirements  in short time frames.    Detailed, carefully considered estimates are essential to selecting the right projects.
  • Assure all projects are included appropriately in the budget.
  • Make certain projects remain within the budget, or that the impacts of any cuts are known to management.
  • Focus upon life-cycle costs in addition to first costs.   Lower bid projects rarely provide the greatest long-term return on investment.  viewed quite differently.
  • Attacking variation reduces risk.   All estimates should have a 95% probability of realizing planned completion on budget.

OpenJOC LEAN Job Order Contracting Framework

  • Quality of internal and external staff is directly related to both capacity and outcomes.   Excessive reliance upon external consultants is a recipe for disaster.   Internal competency and leadership is a requirement.   External sources should be used to supplement capacity ONLY.
  • Keep all parties involved from the beginning and throughout the project, even if their intervention is minimal and planned for the final stages.
  • Regular  communication among all stakeholders is required.
  • Realize technology is a tool and NOT a driver.
  • Make ongoing training, at all levels, a requirement for all participants.
  • Collaboration is a requirement.
  • Pay attention to education and training for both hard and soft skills; technical project management activities such as planning, risk management, reporting or financial control, communication, negotiating and coaching on your project managers’ development agenda.
  • Develop and monitor key performance indicators (KPIs) and conduct regular independent/third-party program audits.
  • Encourage new ideas… each project has its own dynamics outside of the process that drive day-to-day operations.
  • Build a community – Long term relationships internal and external to the organization are critical to maximizing productivity and overall success.   Consider the needs of ALL participants when making decisions, and assure the impact are in concert with long-term value for the community.
  • Standardized LEAN project management methodology and project success are directly linked.
  • Assure common access to information and require “information packages” for each stage in a project.  Assure team members have a collection of steps, a to-do list, tips and examples that will help them succeed with that crucial first step and all ongoing steps of a project.
  • Tailor the information packages to the audience.   Assure technical and non-technical team members have what they need to succeed.
  • Remember, technology usually doesn’t solve a problem, but it can help to enable a solution.

LEAN-Job-Order-Contract-2017

 

 

 

 

 

 

Highly Performing Job Order Contracts, Uncategorized

Highly Performing Job Order Contracts

Properly designed and implemented JOC Programs deliver approximately 90% of renovation, repair, and minor new construction projects on-time, on-budget, to the satisfaction of all participants and stakeholders.

4BT uses the OpenJOCTM framework to achieve this objective.  OpenJOC abides by the fundamental JOC principles of collaboration and transparency, and embeds LEAN construction processes.

That said… are you aware some JOC Program excessively rely upon “JOC Consultants”?    Read independent and internal audits on this topic.   While the Federal Government and many Educational Institutions have excellent JOC Programs, the State, County, and Local Goverment sector in some parts of the Country have a ways to go on the JOC learning curve.

Leverage OpenJOC

Learn more…

 

Job Order Contracting Done Right, Uncategorized

Job Order Contracting Done Right! Open, Best Value, Efficient

Job Order Contracting done right, that’s what the OpenJOC(TM) Job Order Contracting Framework is all about.  An open, objective, independent and verifiable JOC Cost Estimating, Project Management, and Document Management System for real property owners, architects, contractors, facilities management, and oversight groups.

OpenJOC  uses common, standardized terms, definitions, and data architectures (CSI Masterformat licensee) to minimize cross discipline data gaps and errors and to improve collaboration.

Focus is upon providing an Open Framework that can be used out-of-the-box, yet also be tailored to specific organizations and requirements, while still maintaining standardized informational core data to assure portability and information maintenance.

Independent, Objective, Best Value Job Order Contracting Solution - OpenJOC

Any organization customize requirements, yet maintain the open, standardized  data framework.   This fundamental aspect has been lacking in traditional JOC and AECOO business processes and technologies.

The lack of robust, standardized processes and common, standardized information, combined with the excessive use of JOC consultants and limited market options, has been the primary reason for rampant waste and lack of productivity in certain sectors, especially State, County, and Local Government.

(more…)

LEAN Construction Project Delivery, LEAN Project Delivery, Uncategorized

LEAN Construction PROJECT DELIVERY

While BEST VALUE procurement is certainly a component on the path toward significantly improve AECOO outcomes, the real benefit comes from the adoption of LEAN Project Delivery Methods.

The most widely known LEAN project delivery methods are Integrated Project Delivery, IPD (for major new construction), and Job Order Contracting, JOC (for renovation, repair, maintenance, and minor new construction.

Learn more … https://4bt.us/wp-content/uploads/2016/02/NIBS_Spring17_FacilityManage_Cholakis_Reprint.pdf

LEAN Construction - Delivering Better Facilities

www.4bt.us

Cloud Facilities Management, Uncategorized

Cloud Facilities Management – Free Version

Building in Cloud – Important news and a completely free version for facilities managers

The new version of Building in Cloud aims to further improve the productivity of our solution by increasing performance in three key areas:

1. AIM (Asset Information Model)

The new Asset management capabilities increase the value of BIM data model.

When importing one or more models in Building in Cloud, regardless of Autodesk Revit or Open IFC format, the data contained in the original template becomes instantly available and interrogable in a shared Web environment to allow team members to have all the information they need at any stage of the building process – Anytime; Anywhere.

The viewer has also been further enhanced to allow you to now explore buildings for floors, categories, or individual BIM models.

 

2. CDE (Common Data Environment) 

Building in Cloud now allows federated models management; you can connect to a single Building/project infinite BIM models and explore their geometries and information indifferently in graphical and data mode.

The BIM model Federated management allows you to directly select a component from the federated model and, for example, assign to a team member an issue to be solved or a task to be performed on the component and, finally, track it down.

Building in Cloud is now compliant with the requirements of the norms Pas 1192-2 and Uni 11337.

3. CDM (Construction Document management) 

Building in Cloud Integrated Document Manager has been further enhanced with a new folder management tool to allow access to documents with differentiated privileges for single user or user groups.

All activity carried out on documents is mapped and historized, each changement can be notified to a user or group of users depending on the choices made by system administrators to be sure to always work on the most up-to-date document.

Building in Cloud “Free”

The “Free” version allows you to use Building in Cloud for free and time-consuming, making it the ideal solution for small workgroups.

The new “Free” level differs from the “Professional” and “Ultimate” levels for the lack of some resources and capabilities (buildings, user and storage space).

For more information about version features, please view this page.

With the availability of access to BIM models directly from any browser and a more sophisticated document access tool, we enable all construction and real estate professionals to have a very advanced tool and easy to use for managing and sharing information on a project or building. ”

Get your free version today… 

Uncategorized

International Construction Cost Data Report

The 2017 International Construction Cost Data Report puts New York City at the top of the list.  International Construction Cost Data Report 2017

Quality, locally researched detailed line item construction cost data is critical to measurably improved construction outcomes in adding to teams integrated by LEAN construction delivery processes such as IPD and JOC.

 

2017 International Construction Cost Data Report

Uncategorized, Why the BIM Revolution Fizzled

Why the BIM Revolution Fizzled

The “BIM Revolution” fizzled since technology was never the problem.   The primary challenges facing the AECOO sector are due to lack of owner leadership and competency…

The adoption of BIM as a tool to efficiently manage the life-cycle of built structures requires a full understanding of LEAN collaborative processes as they apply to asset total cost of ownership.

LEAN Construction

An understanding of dynamic interrelationships of disparate knowledge domains and needs of all participants and stakeholders is rarely taught and practiced even less.   The “gorilla in the room” is that less than 5% of real property owners both understand and practice total cost of ownership life-cycle asset management.

Any major positive upon the AECOO sector must begin with education and a focus upon change management.   The adoption of LEAN project delivery methods requires a totally different way of doing business on a day-to-day base for most owners, architects, engineers, construction contractors, building users… etc.

LEAN AECOO impacts on every element of thinking, work, and business models.  Changing work flows and business relationships, restructuring how organizations interact and are compensated is a requirement.

Furthermore, a common data environment (CDE) is a fundamental element.    A standardized set of terms, definitions, and data formats is needed.   For example,  a locally researched unit price description of construction tasks, organized by Masterformat, and regularly update, should be required by every real property owner.  Depending  exclusively upon contractor or subcontractor quotes, and/or internal cost data,  is recipe for waste, dissatisfaction,  and overall poor outcomes.

Financial transparency and common data improve mutual understanding or requirements from concept through warranty period and beyond for all stakeholders.

For example, integrated project delivery, IPD (for major new construction), and job order contracting, JOC (for renovation, repair, and minor new construction), a proven LEAN construction delivery methods capable of consistently delivering approximately 90% of projects on-time, on-budget, and to everyone’s satisfactions.   This level of performance is a far cry from the current dismal performance across the AECOO community.

LEAN Construction

The buck stops with owners.

Both of the above methods, however, require owner leadership and competency.  Neither can be accomplished through a third-party, i.e. a consultant, without risk of poor performance and/or increased potential for mismanagement.   Owners must be directly involved as they ultimately defined requirements and pay the  bills.

LEAN AECOO / Facilities Management will eventually become the norm, if not a legal requirement.   Arguably, the public sector should be requiring LEAN currently or otherwise be delinquent of their fiduciary responsibility.    The benefits of  clarity on the required scope of work… for all project stakeholders… from the very early stages,  shared risk/reward, and mutual trust  drastically reduce change orders and legal disputes.  The availability of current, shared, and mutually understandable data to all parties  ensures that everything is correct and to specification.

Learn more about LEAN Construction Delivery Methods and Life-cycle Facilities Management…  info@4BT.US

LEAN Construction Delivery for Renovation, Repair, and Minor New Projects, Uncategorized

LEAN Construction Delivery for Renovation, Repair, and Minor New Projects

Real property owners, facilities management, contractors, AEs, and building users are rightly worried about the rising costs of getting the numerous renovation, repair, and minor new construction projects completed.

Simply carrying on in business as usual fashion is a recipe for continued waste, inefficiency, and dissatisfaction for all participants.

SOURCE: NRC. 2008. Core Competencies for Federal Facilities Asset Management

The AECOO (Architecture, Engineering, Construction, Owner, Operator/Operations) industry relies heavily on the belief that what worked on the last project will work for this one… despite FACTS to the contrary.   The vast majority of construction projects are over budget, significantly delayed, and don’t meet user requirements.

Public sector organizations have even more complicated issues such as compliance with statutes as well as fiduciary responsibility to their constituents.

LEAN construction delivery processes, common data environments (CDE),  and supporting services are giving savvy owners the ability to optimize for first costs AND life-cycle cost, as well as make better decisions for all team members and stakeholders.

Integrated projects delivery, IPD, for major new construction, and Job Order Contracting, JOC, for renovation, repair, and minor new construction provide efficient ways of working and to virtually assure that approximately 90% of projects are delivered on-time, on-budget, and to everyone’s satisfaction.

r-contracting-services-and-tools/

That said, not all implementations of IPD and JOC are the the same, nor do they comply with the fundamental required aspects of each method.   Beware of “outsourcing” either to consultants, as BOTH require directly owner involvement.

If you are interested in learning more about how to better manage multiple objectives and constraints, and integrating powerful methods, tools, and teams,  please consider reaching out to us.

Learn how tools, processes, training, and new ways of working together  are enabling integrated teams, financial transparency, and virtually eliminating risk.

www.4BT.US

 

 

Job Order Contracting Done Right, Uncategorized

Job Order Contracting Done Right

Job Order Contracting done right with Job Order Contracting Done Right

What is 4BT OpenJOC Building in Cloud?

Just for starters…

Project Management

Measurably improve your organization’s construction project management activities with 4BT OpenJOC Building in Cloud’s powerful tools.

Project team management

Internal and external team members gain instant authorized access to current information to share and manage tasks and solve problems.

Administrators can easily add new team members and define information access rights at the project or building level.

Building in Cloud allows authorized team members to access and share documents, manage tasks, or troubleshoot.

Administrators can easily add new members to the team, define access privileges by differentiating them for each project or building.

Activity and Problem Management

Create and assign tasks to any member of a team.  Request an specific action such as uploading a file or photo, for the task be closed. Tasks can be connected to any entity within Building in Cloud, from a document to a component in the ventilation system.

You can create and assign tasks to any member of a team. Require action to be taken such as uploading a file or photo so that it can be closed. Activities can be linked to any entity within Building in Cloud, from a document to a ventilation plant component.

Messages and Notifications

Send messages directly within Building in Cloud and avoid the inefficient and error prone Email.   Building in Cloud can easily send automated notifications to team members or subgroups to carry out certain actions, such as closing an issue or uploading a new version of a document.

Learn more….

Free facilities management software, FREE Project Construction Facilities Management Software

FREE Project Construction Facilities Management Software

FREE Project, Construction, Facilities Management Software… No credit cards, no gimmicks., period.

Improve your team’s efficiency and have all the information and documents for your buildings and projects at your fingertips.

  • No installation required (access with any Internet browser)
  • No credit card required
  • Create your free account and start working right away
  • All your information is secured via SSL protocols
  • Project management, Document management, Asset management and more!

Free Project, Construction, and Facilities Management Software 1

  • Create a new account and start working in our secure cloud
  • Invite users to share information and collaborate on any project
    Free Project, Construction, and Facilities Management Software 2Free Project, Construction, and Facilities Management Software 3Free Project, Construction, and Facilities Management Software

 

Uncategorized

JOC Tutorial #71 – Terms

(a) “Adjustment factor” / “coefficient+ –  job order contractor’s competitively bid adjustment to the organizations prices as published in the current unit price book.  Typically within a range of 0.80 to 1.20.
(b) “Indefinite quantity” means one or more of the construction tasks listed in the unit price book.
(c) “Job order” –  a firm, fixed priced, lump-sum order issued by an organization to a job order contractor for a definite project scope of work as compiled from the unit price book to be performed pursuant to a job order contract.
(d) “Job order contract” –  a contract, awarded to a most qualified bidder on a best value selection basis in which the contractor agrees to a fixed period, fixed-unit price, and indefinite delivery, indefinite quantity contract that provides for the use of job orders for renovation, repair, maintenance, or minor new construction projects in conformance with applicable regulations.
(e) “Job order contract technical specifications” – a book, defined by the organization, detailing the technical specifications with regard to quality of materials and workmanship to be used by the job order contractor in accomplishing the tasks listed in the unit price book.  These are typically not specialized to the job order contract, but the organization’s current standard technical specifications and referenced as applicable to the all JOC projects.
(f) “Job order contractor” – a licensed, bonded, and general liability insured contractor awarded a job order contract.
(g) “Offer to perform work” – the job order contractor’s proposal for a specific job order in response to the organization’s RFP.
(h) “Plans and specifications” -the unit price book and the organization’s technical specifications. The scope of work to be performed with a job order contract is potentially, but not necessarily, all the tasks published in the unit price catalog.  No more than 10% of the  value of any JOC project should be derived from items not found within the UPB.
(i) “Project” – the specific requirements and work to be accomplished by the job order contractor in connection with an individual job order.
(j) “Project labor agreement” – an agreement that meets the requirements of applicable regulations.
(k) “Project scope of work” – the document and related drawings, specifications, and writings referenced therein which together set forth the specific requirements and work to be accomplished by the job order contractor in connection with an individual job order.
(l) “Proposal” – the job order contractor prepared document quoting those construction tasks listed in the unit price book that the job order contractor requires to complete the project scope of work, together with the appropriate quantities of each task…  a detailed line item construction cost estimate.  The pricing of each task shall be accomplished by multiplying the construction task unit price by the proposed quantity.  The total of all line items is then multiplied by  the contractor’s competitively bid and accepted adjustment factor/coefficient.  The proposal shall also contain a schedule for the completion of a specific project scope of work as requested by the organization. The proposal may also contain approved drawings, work schedule, permits, or other documentation as the organization may require for a specific job order. The proposal shall be certified as contract compliant by a reviewer independent of the contractor, and a member of the owner organization (not a JOC consultant or other third party with a financial interest tied to the value of construction volume, or other association that could lead to the potential for fraud.
(m)  “Subcontractor” -any person, firm, or corporation, other than the employees of the job order contractor, who is bonded and general liability insured and who contracts to furnish labor, or labor and materials, at the worksite or in connection with a job order, whether directly or indirectly on behalf of the job order contractor.
(o) “Unit price book” – an electronic/published book containing specific construction tasks and the unit prices to install or demolish that construction. The listed tasks shall be locally researched  and based on generally accepted industry standards and information, where available, for various items of work to be performed by the job order contractor. The prices shall include the cost of materials, labor, and equipment for performing the items of work. The prices shall not include overhead and profit. All unit prices shall be developed using local prevailing wages and/or Davis Bacon wage rates.
AECOO Change Management - LEAN Construction, Uncategorized

AECOO – LEAN Construction Management

 

AECOO Change Management - LEAN Construction
LEAN Construction Primer

 AECOO Change Management – LEAN Construction are the path to improved productivity.

If the architectural, engineering, construction, operations, and owners sector (AECOO) would stop its hype about digital transformation and BIM/3-D visualization and focus upon change management and associated LEAN construction methods significant benefits would be realized in relatively short order.

As is stands now, without a dedicated focus upon making a success of change management, the AECOO sector is doomed to continue its legacy of economic and environmental waste.

The  Fallacy of Digital Transformation

Forward-looking organizations never start of by saying let’s focus upon technology.  Their primary focus is upon outcomes and building teams and assuring adequate resources to obtain them.

One only need look at the failures associated with ERP systems and most recently with BIM.    Companies looked to ERP technology to prepare them in meeting business challenges, yet for years simply automated existing poor practices verses making fundamental improvements.

BIM has suffered the same fate to date.  Companies assume BIM is some sort of ERP for the AEC sector, when in fact, it is little more that a 3-D visualization tool when it comes to a technology, and little more as a business solution.

Collaborative LEAN Facilities/Asset Management

LEAN collaborative construction delivery methods have existed for decades and they have proven to consistently deliver approximately 90% of renovation, repair, and new construction projects on-time, on-budget, and to the satisfaction of all participants and stakeholders.   Despite their availability however fewer than 5% of the AECOO sector takes advantage of their use and even few use them properly.

The  reason for lack of adoption and proper use is simple.   LEAN collaborative construction delivery requires fundamental changes in how people work and interact on a day-to-day basis.    Collaboration is required.  Financial transparency is required.  Shared risk/reward is required.  Owner leadership is required.  A minimum level of competency for all participants is required.   These requirements sadly are foreign to most AECOO participants.

Integrated Project Delivery-IPD, for major new construction and Job Order Contracting-JOC, for renovation, repair, and minor new construction are proven collaborative LEAN Construction Delivery Methods.  Tools and services are readily available to any AECOO sector member.

Cultural and people change activities need to take place in BEFORE any major technology change activities, or at the very least in concert with them.   The role is technology is secondary, it help so reduce the cost of deployment and assist in assuring levels of consistency and ongoing improvement.

Primary focus MUST be upon education and training.  Specially building the level  of Owner leadership and competency, as well as assuring all participants fully understand and accept working within a collaborative and transparent environment.

 

AECOO Change Management – LEAN Construction are the path to improved productivity.

  • Strategy and organization alignment and focus upon outcomes
  • Feedback and championing success
  • Employee and partner team engagement at all levels
  • Shared Risk/Reward
  • Common Data Environment – CDE
  • Transparent financials/costs

Learn more?

 

Job Order Contract Fraud Prevention

Job Order Contract Fraud Prevention

While properly designed and managed JOC Programs can delivery significant benefits, Job Order Contract Fraud Prevention should be thoroughly addressed.

Job Order Contract Fraud Prevention

In order to prevent fraud, waste, and abuse, an organization adopting job order contracting should do ALL of the following:
(a) Prepare for each individual job order developed under a job order contract an independent owner estimate for every instance, or for job orders at, or above, a set dollar threshold.  The independent owner estimate should be  prepared prior to the receipt of the contractor’s offer to perform work and associated contractor prepared estimate,  and be compared to the contractor’s proposed estimate on a detailed line item by item bases to determine the reasonableness of that price before issuance of any job order.
The basis for any adjustments to the owner’s estimate and the contractor’s estimate should be documented on a line item bases with associated notations per each line item.   If the contractor’s proposal for a given job order is found to be unreasonable, not cost-effective, or undesirable, the owner is under no obligation to issue the job order to the job order contractor, and may instead elect to ask the contractor to revise the contractor estimate accordingly, cancel the procurement, and/or utilize any other available procurement procedures.
(b) The owner shall not issue a job order until the job order has been reviewed and approved by the appropriate level of management.
(c) Once a job order has been issued, all documents pertaining to preparation and approval of the job order, including the independent owner estimate, and the Notice to Proceed, NTP, shall be available for public review.
(d) No  more than 10% of the total value of the approved contractor’s estimate shall be non-prepriced (NPP) line items,  line that are not derived directly from the currently approved unit price book, UPB associated with the JOC Program.
Job Order Contract Fraud Prevention
Learn more…

 

Improve Renovation - Repair Construction Performance

Improve Renovation – Repair Construction Performance

Are you a real property owner looking to improve renovation – repair construction performance?

 

Consider giving us a call, or send us an email to inquire about our new OpenJOC LEAN Construction Delivery Platform (TM).

Here are just a few benefits of our new OpenJOC set of tools and services…

  1.  Less Time To Start Up A Project, including Procurement, Design…
  2.  Less Time To Close Out A Project
  3.  Easier To Use
  4.  Independent, Objective, &  Best Value

Let us help you to …

  1. Build Integrated Teams
  2. Benefit from Early Collaboration
  3. Move to Best Value / Qualifications-Based Selection
  4. Assure Cost Visibility and Transparency

Learn more…

Improve Renovation - Repair Construction Performance

 

 

 

Construction Delivery 101, Construction Delivery Training

What every Owner should know about Construction Delivery

What every Owner should know about Construction Delivery is that it affects success or failure more than any other element.

At a broad level, the following Construction Delivery Methods are available to Owners…

  • Traditional Delivery Method- Design-Bid-Build
  • Various Construction Management Delivery Methods
  • Design/Build Delivery
  • LEAN Collaborative Construction Delivery – IPD, JOC
What every Owner should know about Construction Delivery
LEAN Construction Primer

Each has its associated contract types, which may include…

  • Lump Sum or Fixed Price
  • Unit Price
  • Cost Plus Fee
  • Cost Plus with a GMP ((guaranteed maximum prices, not-to-exceed price, NTE, or NTX)

The selection and appropriate application of any construction delivery methods is dependent upon the following factors…

  • Owner’s experience, qualifications and capabilities
  • Construction project size, form, function and complexity
  • Time and sequencing requirements
  • Budget and other factors

Design-Bid-Build

 Most common

 General Procedure

Owner first contracts Design Professional.  Design completed prior to bidding/pricing and construction. Competitive bidding with selection being the lowest cost selection of the bidder compliant with the scope of work and associated the bid documents.

 Pros

Well known.

 Cons

No upfront collaboration of contractor

Unknown construction price until bids are received

Questionable collaboration between owner/designer

Risk dependent upon completeness and accuracy of construction documents within a relatively ‘ad hoc’ process

Inherently adversarial process

Prone to dissatisfaction, cost over-runs, and litigation

Construction Management Approach 

 Relatively common.

 General Procedure

Involves multiple contracts and intensive professional management.

 Pros

Reasonable communications among owner, designer, and CM firm, if owner all are transparent and capable.

Opportunities for cost savings and value engineering by having construction expertise involved earlier in process.

 Cons

Cost effective for major new construction only.

Unknown construction price until bids are received.

Risk dependent upon completeness and accuracy of construction documents within a relatively ‘ad hoc’ process

Clear potential for conflict of interest – Assumes one entity, manages all facets of the construction effort including pre-construction services. During pre-construction the contractor is a CM and converts to GC after GMP is mutually agreed upon.

Design-Build Method

 Somewhat known

 General Procedure

A single entity provides both design and construction services per the bidding document and final signed contract documents.  The contractor and designer work together for Owner based upon mutually agreed cost, schedule and scope of work.

 Pros

Ability for fast track/phased construction

Three types of deployment –  Contractor Led (subcontract design or joint venture) – Designer Led (subcontract construction or joint venture) – A single firm with both capabilities internally

Perceived higher quality

Generally reduced number of claims and/or litigation issues

Earlier cost identification

More contractor involvement and generally better documentation

 Cons

Suitable for major new construction only

Not fully collaborative, can still bit one party against others

Level of owner involvement may not be required and fully defined

Unknown construction price until bids are received.

Risk dependent upon completeness and accuracy of construction documents within a relatively ‘ad hoc’ process

Clear potential for conflict of interest – Assumes one entity, manages all facets of the construction effort including pre-construction services. During pre-construction the contractor is a CM and converts to GC after GMP is mutually agreed upon.

Contractor is exclusively responsible for design risk

Scope development and selection can be ill-defined and problematic

Legal and professional issues

Not supported in some public and/or federal procurement areas

LEAN Collaborative Construction Delivery Methods

 Not well know, applied, or understood

 General Procedure

Long term multi-party agreement using LEAN construction processes within which the focus is upon outcomes, financial transparency, shared risk/reward,  performance-based incentive.

 Pros

Proven ability to consistently deliver approximately 90% of projects on-time, on-budget, and to the satisfaction of all participants and stakeholders.

Available for major new construction – Integrated Project Delivery, and renovation, repair, and minor new construction – Job Order Contracting – JOC.

Financial transparency

Fully defined roles, responsibility, and required levels of collaboration and training.  Includes the use of standardized construction tasks at line item cost detail.

Focus upon best value procurement

Available supporting technology, training, services

 Cons

Generally requires significant internal “change management” for all participants.  Fundamental difference in thinking and day-to-day activities versus traditional traditional construction delivery methods.

Owner must demonstrate high levels of leadership and competence across multiple domains.

Sometimes used improper by Owners to “bypass” the checks and balances provided by procurement/purchasing authorities (particularly in the State/County/Local Government Sectors).

What every Owner should know about Construction Delivery

What every Owner should know about Construction Delivery

Learn more…

Job Order Contracting- Partnered Best Value Construction Procurement, joc procurement

Job Order Contracting- Partnered Best Value Construction Procurement

The OpenJOC (TM) Job Order Contracting– Partnered Best Value Construction Procurement can offer measurable, if not significant improvements for the numerous renovation, repair, and minor new construction projects facing real property owners and facilities management.

Job Order Contracting- Partnered Best Value Construction Procurement

2000, Mulcahy, F. S.  The Effectiveness of Partnering and Source Selection in Job Order Contracting.

 

 

 

 

 

 

OpenJOC (TM) Job Order Contracting- Partnered Best Value Construction Procurement drive improvements in…

  • Quality
  • Safety
  • On-Time Completion
  • Scheduling and Performance of Subs
  • Warranty Service
  • Responsiveness of Support
  • Innovation and Value Engineering
  • Responsiveness to Client Needs
  • Preventing and Solving Problems
  • Contractors Management Effectiveness
  • Dispute Resolution
  • Level of Trust
  • Communication

Job Order Contracting- Partnered Best Value Construction Procurement drives improved productivity and better outcomes for all participants.

Independent, Objective, Best Value Job Order Contracting Solution - OpenJOC

Learn more…

JOC Project Delivery Integrates LEAN Pre-Construction

JOC Project Delivery Integrates LEAN Pre-Construction Services

JOC Project Delivery Integrates LEAN Pre-Construction  Services to drive measurably improve outcomes for all participants and stakeholders.

LEAN Pre-construction services provide a focus upon Best Value, Alignment of Outcomes, Leadership, and Quality.

A written JOC Operations Manual / JOC Execution Plan establishes a set of interacting players and elements to assure that all roles, responsibilities, are clearly defined and desired outcomes are acceptable to all.

JOC Project Delivery Integrates LEAN Pre-Construction Services

Integrating teams with processes to achieve clearly defined objectives is central to any LEAN Pre-Construction framework.

JOC, and other LEAN construction delivery methods assure coordinated activities of both internal and external teams to realize value from all renovation, repair, and/or new construction project.

JOC Project Delivery Integrates LEAN Pre-Construction Services to drive significant gains in productivity, quality, and overall satisfaction.

The role of the real property Owner is to provide leadership, without excessive management and control.  The Owner must support the team of internal and external service providers in a collaborative manner.   While performance monitoring is critical, mutual respect and shared risk/reward are equally important.   It is understood by all that ongoing and required training and continuous improvement are components of the process for all participants.  In this regard, relationships focus upon long term value delivery, with all parties doing what is necessary to assure  success for every participant.

Learn more?

 

 

 

LEAN Pre-Construction Services Considerations

LEAN Pre-Construction Services Considerations

LEAN Pre-Construction Services ConsiderationsLEAN Pre-Construction services considerations significantly improve outcomes.

Pre-Construction Services include the following…

  • Project Conceptualization
  • Project Delivery Method Selection
  • Design
  • Construction Documents
  • Bidding/Negotiating/Procurement

Adopting a LEAN pre-construction services approach REQUIRES collaboration among all participants and stakeholders and front loads their participation and information-sharing.  Some LEAN project delivery methods already integrate these core elements and thereby increase the success rate of projects to approximately 90% or higher.

Job order contracting, JOC and integrated project delivery, IPD, are the two most widely known forms of LEAN collaborative construction delivery.  Both integrate design, construction, procurement, and all internal and external team members from conceptualize to hands-off, and even beyond.

Job Order Contracting is suitable for renovation, repair, and minor new construction, whereas Integrated Project Delivery is used for major new construction.

The benefit of integrating pre-construction services with Project Delivery is abundantly clear.    It is the Project Delivery Method that established the processes by which all of the procedures and components of initially scoping out a project, designing it, procuring it,  and building it are defined, organized, and structured together into an agreement, as well as an associated Operations Manual or Execution Guide.

It is the role of the real property Owner to provide leadership and match the project delivery method to the project, approach and organize  project teams, establish metrics, and assure both competency of all involved and ongoing improvement.

Project Delivery is the embodiment of the workflows, requirements, and contractual relationships, between the owner, architect/engineer (A/E), contractor(s), and building users, among others.

The Construction Project Delivery Method, the Contract, and the associate Operations Manual/Execution Guide must all be consider jointly.  Collaborative construction delivery methods require multi-party agreements as well as share the following characteristics:

LEAN Pre-Construction Services Considerations increase productivity, quality, and overall satisfaction for all participants.

LEAN Pre-Construction Services Considerations

Learn more?

Integrated Project Delivery, IPD, IWMS, JOB ORDER CONTRACT LEAN CONSTRUCTION, Job Order Contracting, LEAN Construction Managment, Uncategorized

ERP, BIM … Are they really useful to Facilities Management

While at some high level integration, ERP is valuable to FMers, especially from a financials perspective, let’s face it… it’s just another reporting tool at best.   ERP, even IWMS systems are too generic to provide the domain-specific information required across all FM areas…  

  • Strategic Capital Planning &  Management
  • Project Delivery
  • Operations & Management
  • Recycling/Disposal

LFocus Upon LEAN Construction to Improve Productivity

 

As to BIM,  great at the moment for 3-D visualization and some aspects of project delivery, but a child that’s still growing.

Sure, software vendors will tell you otherwise, but when you start asking about the details…. workflows, datasets, KPIs, and being able to drive best practices across the disparate areas… everything simply just falls apart.

Thus, any successful FMer knows that  picking the best-in-class solution in  each knowledge domain…  those that provide what is needed and those that “play nice” with their peers by using industry standard data formats and architectures  (UNIFOMAT, MASTERFORMAT, OMNICLASS, ….) is the way to go.

The key is assure a common data environment (CDE) that enables the appropriate information … in terms of quantity, content/level of detail, and format… to be rapidly accessible to each knowledge domain and/or operational element and/or process.

Tools that claim to integrate ERP with IWMS and/or BIM… well…  good luck with that.  Do you REALLY see you procurement, engineering, operations and maintenance, construction, architecture, and other service delivery teams using the same tools?

My guess is… of your not.  You do, however, want them sharing information, and using the same tools for  like processes.

For example, Job Order Contracting, JOC, is a proven LEAN construction delivery method that can consistent deliver the vast majority of renovation, repair, and minor new construction projects on-time, on-budget, and to the satisfaction of all participants and stakeholders.     Technology, tools, cost databases,Technology, tools, cost databases, and services are available to accomplish this.   Is this capability a component of any turnkey ERP/IWMS/BIM platform… of course not.

Technology will NEVER transform an industry…. especially the AECOO sector, unless CHANGE MANAGEMENT is addressed properly.

CHANGE MANAGEMENT across the AECOO sector must first address the following…

  • Owner leadership & requisite competence
  • Require collaboration among ALL participants
  • Shared risk/reward
  • Common  terms, definitions, and data environments
  • Locally researched, detailed, line item cost data presented within a standard data architecture (MasterFormat)
  • Financial transparency
  • Mutual trust and respect
  • Long term, mutually beneficial relationships
  • Key performance metrics & associated continuous improvement
  • Ongoing training
  • Best value procurement

Those that claim to have a “single source of truth” should  cause any FMer concern, especially ANY tech vendor that claims that they can”bring it all together in one solution”.

There is a reason that the AECOO sector lags all others in productivity.  Focus must NOT be upon technology, but upon improving OUTCOMES via robust LEAN process implementation.

Learn more?

 

Facilities Management evolution

Facilities Management Evolution

Facilities management evolution is an ongoing process.

SOURCE: NRC. 2008. Core Competencies for Federal Facilities Asset Management

 

 

LFocus Upon LEAN Construction to Improve Productivity

The only certainty is that Facilities Management evolution is an ongoing process requiring the integration of disparate competencies, technologies, and processes.

Is your FM Team up to the challenge?

 

Job Order Contract Facilities Management Software

Job Order Contract Facilities Management Software

Job Order Contract Facilities Management Software

4BT-CE Building in Cloud – Job  Order Contract Facilities Management Software – Independent, Objective, Best Value

Simply… an  easier, more efficient way to get things done!

Capabilities

Job Order Contract Facilities Management SoftwareBuilding Location / Information – Building Explorer

The easy way to keep all your current building and project information at your fingertips.  Locate your property using Google Maps and immediately obtain all  the associated construction and operational information, documents, correspondences, drawings, etc.

The innovative way to keep everyone on the same page and everything under control without duplication of effort or loss of time.

The data for every building is stored in a constantly accessible and manageable online archive. Any document type and all of the most common viewers for any type of browser can be handled.

Job Order Contract Facilities Management SoftwareDetailed Line Item Construction Cost Estimating 

4BT-CE OpenCOST sets the new standard for construction cost data.  Finally, just what the industry has needed for decades… independent, objective, and fully transparent cost data for renovation, repair, and construction.  Fully supported by a professional team with decades of cost engineering, project management, and capital planning experience with organizations such as the R.S. Means Company, LL, U.S. Cost, 4Clicks Solutions, LLC, and VFA, Inc.  A team that saw the need for more representative detailed line unit price construction cost data. Licensed by the Construction Specifications Institute (CSI) for MasterFormat data organization.
Job Order Contract Facilities Management Software

Building Information Modeling – BIM

4BT-CE Building in Cloud also allows you to leverage the benefits of BIM (Building Information Modelling), to increase levels of efficiency and collaboration between team members involved in the design, construction and operational phases of the building project process.

Internal and external team members can access the latest building project, construction site, maintenance, or building efficiency information.

4BT-CE Building in Cloud is compatible with both the IFC (Industry Foundation Class) format and the RVT format used by Autodesk Revit.

Job Order Contract Facilities Management Software
Job Order Contract Facilities Management Software
Team

To achieve time, cost, and quality objectives in a complex project, the optimal management of the team is a fundamental requirement.

Building in Cloud enables authorized team members to access project details and documents, manage activities, resolve problems and share documentation with others.

The Building/Project Manager can easily add users, configure access privileges for each project, or building, and much more.

 

Job Order Contract Facilities Management SoftwareDocument Management

The Document Management module lets you manage and share files, while keeping a record of all reviews and uploaded documentation throughout the entire life-cycle of the building.

Upload and share documents and make them available to your whole team – including PDF, Word and Excel files, images and videos.

View and analyse data from BIM models (RVT and IFC formats) directly from your browser without the need to purchase expensive software.

Instant access to drawings using Building in Cloud built-in DWG viewer.

Job Order Contract Facilities Management SoftwareProject Management

Using e-mail is not efficient for managing teams and projects in today’s work environment.   Email simply isn’t up to the task of efficiently supporting construction project complexities or timelines.

4BT-CE Building in Cloud creates teams and provides all information in its current version and assigns and monitors tasks, activities and team communications… accurately and transparently.

The less time spent on managing e-mails the more time you’ll have to manage and monitor the progress of your project.

Job Order Contract Facilities Management Software
Space Management
The Space Management module is designed to provide designers, engineers, contractors, owners visibility into the use of building and external spaces.
Real-time  information in housed in one centralized database, no matter how larger your building portfolio may be, or how much information you may need.  Information is available by spaces, floors, geographic areas, and more!
Asset Management
The Asset Management module lets you keep track of multiple asset classes: buildings, office equipment, furniture, laboratory equipment, and so on.   All are managed throughout their life-cycle. All technical and support information if readily available to those users with appropriate privileges.

Learn more…

 

Job Order Contracting Task Order Process

Job Order Contracting Task Order Process

Job Order Contracting Task Order Process

The Job Order Contracting Task Order Process and LEAN Construction Delivery Approach exists to improve organizational performance specifically with respect to facilities management planning, renovation, repair, and minor new construction.

The Job Order Contracting Task Order Process helps owners and their approved JOC construction contractors…

  • Improve construction outcomes,

  • Assure appropriate management, technical/engineering, procurement, user, and construction service provider engagement,

  • Provide significant improved clarity and transparency for the scope of work, means, methods, and costs,

  • Integrate and leverage diverse areas of expertise,

  • Properly address multiple sources of needs and obligations,

  • Create a collaborative versus antagonistic atmosphere founded upon mutual respect and mutual risk and reward.

Learn more about the OpenJOC Job Order Contracting Task Order Process …

Job Order Contracting Helps Construction Contractors

Job Order Contracting Helps Construction Contractors

Job Order Contracting Helps Construction Contractors in several ways.  If you firm has yet to participate in JOC Programs, it may be the time to do so.

Job Order Contracting Helps Construction Contractors

Job Order Contracting Helps Construction Contractors …

Outperform competitors,

Achieve greater financial visibility,

Improve profit margins,

Develop more consistent revenue streams,

Improve customer service and loyalty,

Develop longer term client relationships, 

Acquire new customers and retain existing clients.

Learn more about Job Order Contracting & How Job Order Contracting Helps Construction Contractors….

 

Best Value Job Order Contracting Solution, Best Value Job Order Contracting Solution - OpenJOC

Independent Objective Best Value Job Order Contracting Solution – OpenJOC

The Best Value Job Order Contracting Alternative

– Independent, Objective, Best Value Job Order Contracting Solution – OpenJOC

Independent, Objective, Best Value Job Order Contracting Solution - OpenJOC

Independent, Objective, Best Value Job Order Contracting Solution – OpenJOC

Robust, Proven Processes that Delivery Approximately 90% of Renovation, Repair, and Minor New Construction Projects… On-Time, On-Budget, & To Everyone’s Satisfaction.

  • Create advantage through improved performance
  • Produce value through sustainable LEAN business practices
  • Minimize disruption through effective risk management
  • Assure quality through common language and common data environment (CDE)
  • Define service level requirements and customer expectations

Tailored to Your Organization

  • Overview of External & Internal Issues

  • Interested Party Requirements Considered Early and Throughout Process

  • Fully; Transparent Scope of Work

Leadership

  • Owner Leadership & Commitment

  • Competent Teams

  • Leadership & Commitment

  • Establish FM Policy

  • Communicate FM Policy

  • Relevant Roles

  • Responsibility & Authority

Planning

  • Fully Defined Mutual Risks & Opportunities

  • Clear Defined Stakeholder Requirements

  • Written Job Order Contract Operations Manual / Execution Plan

  • Defined Planning Horizons and Key Performance Indicators (KPIs)

Operation

  • LEAN Facilities Management and Construction Processes

  • Change Management and Control

  • Focus upon Relationships & Satisfactory Outcomes for Clients and Service Providers

  • Integrated Service Delivery

Improvement

  • Minimal Nonconformity

  • Defined Corrective Actions

  • Proactive Measures

  • Gap Analysis

  • Continually Improve

Support

Performance Evaluation

  • Formal and Informal Estimate Reviews

  • JOC Program Compliance Monitoring

  • JOC Audits

  • Performance Reviews

Learn more about the Independent, Objective, Best Value Job Order Contracting Solution – OpenJOC

Applying the Independent, Objective, Best Value Job Order Contracting Solution – OpenJOC and associated process standards …

  • contribute to the optimization of regulatory compliance
  • assure technical and procurement information is more accessible through standards implementation and cloud technology
  • improve the quality of contractor services and owner support.
and characteristics

Job Order Contracting requirements, specifications, guidelines, and characteristics

OpenJOC – Job Order Contracting requirements, specifications, guidelines, and characteristics that can be used to assure consistency, limit variation, and enable optimal efficiency with respect to material, products, processes and services fit for facilities management… renovation, repair, maintenance, and construction.

Job Order Contracting requirements, specifications, guidelines, and characteristics

The OpenJOC suite of tools support Job Order Contracting per Owner guidelines and requirements.

  • Specify performance of personnel and services
  • Virtually eliminate misunderstandings, errors, and omissions
  • Elevate operational and ethical levels
  • Enhance positive change management
  • Integrate and leverage diverse areas of expertise
  • Assure cost visibility and transparency
  • Create operational competitive advantage
  • Assure quality
  • Meet team and user expectations
  • Continuously improve
  • Fully define requirements, roles, processes, and workflows
  • Clarify risks and opportunities
  • Minimize variance
  • Require leadership & commitment
  • Supporting collaborative technology – cloud-based
  • Document results
  • Regular third-party maintenance

 

Either Agency or JOC Consultant acts as CM

Agency or JOC Consultant acts as CM

” Either Agency or JOC Consultant acts as CM. ” is a sentence that should NEVER appear in a Job Order Contract RFP or associated with a JOC Program.

Unfortunately, however, Job Order Contracts, in certain areas, primarily County, State, and Local Government, has been known to abuse JOC and allow JOC consultants to manage JOC programs and projects.

The following definition should also NEVER appear within the scope of a JOC Program…

“Construction Manager – The authorized representative of the Agency to administer, coordinate, and manage the Job Order or JOC Project. The Construction Manager can be either the Agency or the JOC Consultant’s Construction Manager.   If the Construction Manager is managing a Job Order or JOC Project, the term Construction Manager is used interchangeably with “Using Agency” and/or “Agency Owner” in the Contract Documents.  Also known as JOC Consultant.”  (Source:  http://www.dgs.pa.gov/Documents/Procurement%20Forms/Handbook/Pt4/Pt%20IV%20Ch%2015%20Job%20Order%20Contracting%20Program.pdf )

A JOC Program should ONLY be managed by an independent government agency with appropriate authority, and/or the real property owner implementing the JOC program.

The primary focus of any “best practice” Job Order Contract” is to develop, support, and manage long term win-win relationships between Owners and Contractors, resulting in quality construction projects delivered on-time, on-budget to the satisfaction of all participants.

Achieving maximum benefit from a JOC program requires a competent owner that provides leadership, without excessive management and control.

An owner-managed Job Order Contract drives superior outcomes and avoids any potential for conflict of interests, abuse of contractors, and/or fraud.   JOC can also be deployed via cooperatives, if such cooperatives are directly managed by independent governmental agencies with the authority to do so.   Use of JOC consultants and/or cooperatives owned and managed by private entities presents an opportunity for abuse and/or fraud, especially if payment to the JOC management firm is in the form of a percentage of total JOC construction volume. Several independent audits of JOC programs have documented these an associated issues.

Cooperatives, managed by independent governmental authorities, provide other public sector real property owners, with access to JOC Construction Services without the cost of setting up a JOC.   This is generally considered to be beneficial to owners with annual JOC construction volumes less than $2M per year.  Properly managed cooperatives that provide independent, objective, and professional JOC services thus play an important industry role.

OpenJOC, a term coined by Fout BT, LLC, abides by fundamental JOC principles of collaboration and transparency, as well as core LEAN construction processes. Focus is upon providing tools, training, and support at the appropriate level to enable owner-managed JOC programs and associated support services, as well as support for JOC cooperatives managed by independent governmental agencies.

Either Agency or JOC Consultant acts as CM

OpenJOC is based upon the philosophy that a full understanding of owner and contractor needs, requirements, competencies, and behaviors is vital to JOC program success and continuous improvement.

Focus upon OUTCOMES by all participants and shared risk-reward drives overall BEST VALUE that can be quantitatively measured.

OpenJOC delivers and supports all requisite components of a Job Order Contracting System based upon current best management practices (BMPs) including;

  • Electronic Cost Data- Unit Price Book(s) – Detailed locally researched construction task descriptions in common terms, with detailed labor, material, and equipment breakdowns included.
  • Support, & Training – Ongoing support and  software technology and cost data updates,  and multiple levels and formats of training for all JOC program participants (introductory, advanced, domain specific, regional, on-site, and virtual).
  • Services – Independent Government Estimating (IGE), Budget Collaboration Reviews,  JOC Marketing, Informal Estimate Auditing Services/Formal Estimate Auditing Services, Marketing – Internal and external marketing to build awareness of the JOC Program and its core feature, benefits, and requirements.
  • Technology – Collaborative cloud environment embedding  LEAN construction delivery methodology and designed to support consistent JOC Program deployment:
    o Integrated Cost Estimating, Contract Management, Project Management, and Document Management
    o Access to Multiple Cost Data Sources / UPBs
    o Ability to Lock Down UPBs/Price Guides, and associated Coefficients per Job Order Contract(s)
    o Export to Excel, PDF
    o Store, Recall, Share, Reuse Estimates from Central Location
    o Link to Specifications / Graphics / Pictures
    o Powerful Estimating Tools
    o Standard and Custom Reporting
    o Industry Standards – Masterformat licensed
    o Secure Data Encryption
    o Full Administrator ControlsLearn more about OpenJOC…. www.4BT.US

Uncategorized

LEAN Construction Delivery

LEAN construction delivery is the solution to the AECOO sector’s track record of poor productivity.    While LEAN processes have been deployed just as successfully as in the manufacturing, software, and other areas,  penetration has been anemic.   Less than 5% of the AECOO currently uses LEAN construction, and even fewer do so optimally.

LEAN, whose first successful implementation is credited to Henry Ford and the automobile industry,  provides several benefits. Perhaps the most important benefit of LEAN however is its ability to limit variation.

The AECOO industry suffers from an inability to control variation.    Certainly there are multiple variances from project to project, including but not limited to, labor skill requirements, capabilities, and availability, location/site issues, weather, construction means and methods, material/equipment costs and availability,  regulations, and procurement processes.   Nonetheless, the AECOO’s woes are not due to project dissimilarities, but rather, in how participants have historically planned for and reacted to them.

LEAN Construction Delivery Methods provide …

  • The ability to leverage the skills and resources of teams with varying competencies and requirements. Teams under Varying Site, Regulatory and Weather Conditions,

 

  • Tools to  optimize knowledge, information, and prior experiences.

 

  • Flexibility to adapt to changing needs and conditions with minimal risk,  

 

  • Procurement systems based upon Best Value

 

  • Shared risk/reward

 

  • Financial Transparency

 

  • Common Data Environment

 

  • Access to current, defensible, and actionable information 
Construction Industry Productivity Remains Poor

Construction Industry Productivity Remains Pool

It’s likely no surprise that construction industry productivity remains poor.  Ninety percent (90%) of capital projects are not delivered on-time, on-budget, or to the satisfaction of participants (Construction Industry Institute, CII, research).

What is truly unacceptable is that solutions to the problem have existed for decades, yet are seldom implemented.  LEAN construction delivery methods have proven to yield significant improvement over the past thirty plus (30+) years, yet less than five percent (5%) of owners have successfully adopted their use.

Construction Industry Productivity Remains PoorConstruction Industry Productivity Remains Poor

LEAN Construction Delivery Methods

Integrated Project Delivery, IPD, for major new construction, and Job Order Contracting, JOC, for minor new construction, renovation, and repair, are both capable of consistently improved performance… over 90% of projects delivered on-time, on-budget, and to the satisfaction of all participants and stakeholders.   Despite the availability of these and other robust solutions, the  AECOO* sector as a whole continues to waste time with excessive focus upon so called “technology solutions” (3D visualization, BIM, IWMS…), yet ignoring the fundamental requirement for Owner competence and leadership.   As result… construction industry productivity remains poor.

*AECOO – Architecture, Engineering, Construction, Owners, Operations

Learn more today…

Facilities Asset Management and Enabling The Workforce

Facilities Asset Management and Enabling The Workforce

Facilities Asset Management and Enabling The Workforce requires a focus upon managing relationships, transactions, information, tools, and resources.

Enabling the workforce specifically demands optimizing competencies and relationships among internal and external facilities services providers.  While it’s widely recognized that facilities asset management is best considered from a life-cycle and best value perspective, it is rarely practiced in this manner.

Best value facilities asset management and enabling the workforce demands the integration of multiple competencies that may be in-house and external to the organization, as well as disparate information, technologies, and competing goals.   Managing the numerous and ongoing facilities renovation, repair, maintenance, and minor new construction projects is particularly problematic for many real property portfolio owners. As the proper stewardship of existing buildings is generally critical to the function and bottom line performance of facility intensive organizations, improvement in this area is paramount.

Measurable and significant improvement in competencies relevant to facilities asset management and service delivery is easily attainable via LEAN collaborative construction delivery methods.  Job Order Contracting, JOC, is the most widely known and used method for renovation, repair, and minor new construction.

JOC Programs, when deployed in an independent, objective, and best value manner, can consistently delivery over 90% of projects on-time, on-budget, and to the satisfaction of all participants and stakeholders.   Unfortunately, less than 5% of the market current uses JOC and some sectors within this category, particularly state, county, and local governments have yet to master the concept.

Until senior management focus is upon developing required competences associated with LEAN facilities management and construction service delivery,  core facilities management capabilities and outcomes will continue to suffer their legacy of waste and low productivity.

This is particularly disappointing as implementation of LEAN methods is not difficult as support tools and services abound.  Based upon the level of owner resources, a JOC Program can be up and running within six months or less.

Learn more about Facilities Asset Management and Enabling The Workforce…  info@4BT.US

Facilities Asset Management and Enabling The Workforce

OpenJOC LEAN Job Order Contracting

OpenJOC LEAN Job Order Contracting

OpenJOC LEAN Job Order Contracting delivers optimized facility renovation, repair, and minor new construction services via teamwork and the consistent implementation of proven management processes.

OpenJOC LEAN Job Order ContractingOpenJOC LEAN Job Order Contracting

What sets OpenJOC LEAN Job Order Contracting apart?

1. User focus—Focus is upon the user and the organisation with respect to providing the best possible services.  Client/User values define the program and are shared by JOC contractors.
2. Demand driven—Requirements of users and the organisation, derived from strategic and tactics objectives prioritize resource allocation and JOC Program activities.
3. Best Value and Context of Use—Consideration is given to the context of use and achieving best value for resources expended, rather than selection of the lowest bid, or lowest initial cost.
4.  Process oriented—JOC is viewed as a construction delivery process rather than as a means to bypass traditional procurement checks and balances.
5.  Service production— OpenJOC assumes service solutions are co-created by service users and service providers and that both will contribute to continuous improvement and mutual benefit.
8. Relationship management— Long term, mutually beneficial relationships are key to increased productivity.  Knowledge is retained and improvements frequent.
9. Learning process – Training and ongoing learn is a requirement.

What OpenJOC is not!

  1. A service designed to maximize benefits exclusively for the real property owner, without proper reward to and consdieration of contractors.
  2. A mean to bypass traditional procurement checks and balances and/or a means to get projects approve that otherwise would not have been via traditional procurement/construction delivery methods. (see JOC Audits to learn more…)
  3. A service paid for via a % of total construction volume to a JOC consultant who is involved in approving construction projects.
  4. A JOC that is “open book”, i.e. relies upon contractor and subcontractor quotes versus a locally researched and verifiable unit price book. (see JOC Audits to learn more…)
  5. A JOC Program dependent upon spreadsheets and ‘ad hoc’ practices versus application-specific collaborative JOC technology.

Uncategorized

Setting up a LEAN Job Order Contract

Setting up a LEAN Job Order Contract.. OpenJOC, a LEAN Job Order Contract,  provides an environment  that efficiently supports core facilities management functions, including renovation, repair, maintenance, and minor new construction.  The OpenJOC LEAN Job Order Contract includes all required tools, information (including locally researched line item cost data), workflows, documents,  and services

Any organization that wants to  contribute to the development and creativity of their internal staff as well as external service providers can reap significant benefits with an OpenJOC Job Order Contracting Program versus traditional construction services procurement and delivery, or even “run of the mill”, or less robust JOC Programs.

The key to an OpenJOC JOC Program is that is establishes the strategies and processes necessary to connect diverse people, skills, information types, and competencies to drive maximum resource utilization and focus uponn  positive outcomes for all participants and stakeholders.   While independent and objective, OpenJOC also provides a proven framework that integrates the traditionally sil0-based processes of owners and service providers.  Properly setting up LEAN Job Order Contract and managing it properly typically results in approximately 90% of projects being  delivered on-time and on-budget per client requirements.

Stakeholders include owners, occupiers and operators of the facility, all service providers, the local community, and representative agencies.

Setting up a LEAN Job Order Contract

OpenJOC Job Order Contracting assures robust implementation of processes that mutually benefit all stakeholder interests.   The multiple and unique experiences and competencies of participants are leveraged to drive optimal results.   Limited in-house resources are used to the maximum extent possible.

The learnings obtained from the experiences of the team and co-creation of solutions are preserved within the transparent OpenJOC environment and supporting OpenJOC cloud technology.

Setting up a LEAN Job Order Contract helps participants  achieve measurable gains in productivity, quality, responsiveness, and overall satisfaction.

Traditional Design-Bid-Build OpenJOC – Job Order Contracting
Generally antagonistic as individual needs of owners and service providers tend to compete. Concerns of all stakeholders are considered throughout the process – owners, building users, contractors, oversight groups…
Generally rigid process, little interaction, few checks and balances. A continuous/cyclical process, adaptable to changing needs/focus. Client and service provider needs and capabilities are fully considered and supported.
A structure based upon separate areas of expertise or capabilities.  Information is limited to silos with little opportunity for mutual benefit.  Duplication of effort and waste is common. Shared information process supported by common data environment, REQUIRED collaboration and information sharing (including financial transparency via a mutually agreed upon detailed line item unit price book, UPB).  Co-learning, recommendation for improvement, and continuous improvement are not only encouraged, but rewarded
Facilities users are considered as data sources at best. Facilities users are actively involved as part of a requirements and acceptance process.  Users viewed as valuable information sources and team members.
The end result is typically rampant waste, brief owner/service partner relationships, and facility user dissatisfaction. The result is acceptance of solutions based a detailed line item estimate complete with supporting notes, information, plans, etc.  and generally 90%+ of projects completed on-time, on-budget, to everyone’s satisfaction.

Learn more…

Relationship Management:   procurement-technical-management-building users-oversight groups

Cross-functional Teams & Systems Throughout Project Life-cycle

Targeted Value Statement to Each Participant/Stakeholder

Primary Orientation Towards Quality Outcomes

Discrete Process Supporting Long Term Relationships/Value

 

Uncategorized

Facilities Management Key Performance Indicators

Facilities Management Key Performance Indicators (KPIs) provide objective analysis of select aspects of the built environment.

KPIs are essential to facilities management, as the old axiom goes, “you can’t manage what you don’t measure”.

Facilities Management Key Performance Indicators

While benchmarks against peer organizations are important, the collection and analysis of actual current and actionable information is preferable.

The following terms, definitions and KPI’s are relevant to life-cycle management of the built environment and may be useful to your organization.

  1. Number of service requests per time period.
  2. Number/percentage of service requests completed versus requested.
  3. Number/percentage of service requests completed per established timeframe
  4. Number of contractor estimates issued.
  5. Number/percentage of contractor proposal requests received on time.
  6. Average time from RFQ to receipt of contractor estimate.
  7. Average variance between owner estimates and contractor estimates.
  8. Number/percentage of change orders.
  9. Total value of change orders.
  10. Average project delivery time versus project size.
  11. Quality/satisfaction of work performed.
  12. Average dollar value of renovation, repair, maintenance work.
  13. Annualized Total Cost of Ownership (TCO) per building per gross area = Rate per square foot
  14. Annualized TCO per building/Current replacement value = Percent of Current Replacement Value (CRV)
  15. Annualized TCO per building/Net assignable square feet = Cost rate per net assignable square
    feet per building
  16. Annualized TCO per building/non-assignable square feet = Cost rate per non-assignable square
    feet per building
  17. Annualized TCO per building/Building Interior square feet = Cost rate per interior square foot per
    building
  18. Churn Rate = The total number of moves made within a 12-month period divided by the number of occupants
    during the same period.
  19. Utilization Rate = = Occupied Space/Facility Usable Area
  20. AI (Adaptation Index) or PI (Programmatic Index) = PR (Program Requirements)/CRV (Current Replacement Value)
  21. Uptime or Downtime – Defined in percent, as amount of time asset is suitable for the program(s)
    served.
  22. Project Soft Cost Index = Soft Costs/Adjusted Total Actual Project Cost
  23. Estimating Index = Actual Time or Costs/Estimated Time or Costs
  24. Custodial Costs per square foot
  25. Grounds Keeping Costs per square foot
  26. Energy Costs per square foot
  27. Energy Usage = British Thermal Unit/Gross Area = BTUs/GSF
  28. Utility Costs per square foot =
  29. Waste Removal Costs per square foot
  30. Facility Operating Current Replacement Value (CRV) Index = Annual Facility Maintenance Operating Expenditures ($)/Current Replacement Value ($)
  31. Facility Operating GSF Index = Annual Facility Maintenance Operating Expenditures ($)/Gross Area (GSF)
  32. Planned/Preventive Maintenance Costs per square foot
  33. Emergency Maintenance Costs as a percentage of Annual Operations Expenditures.
  34.  Unscheduled/Unplanned Maintenance Costs as a percentage of Annual Operations Expenditures.
  35. Repair costs (man hours and materials) as a percentage of Annual Operations Expenditures
  36. AI (Adaptive Index) or PI (Programmatic Index) = PR (Program Requirements)/CRV (Current Replacement Value)
  37. FQI (Facility Quality Index) or Quality Index or Index = FCI (Facility Condition Index) + AI (Adaptive Index)
  38. Capital Renewal Index = Annual Capital Renewal and Renovation/Modernization Expenditure ($)/Current Replacement Value ($)

Via WWW.4BT.US – Leading provider of LEAN Construction Delivery Solutions, including Job Order Contracting.

KPI Categories – Physical, Financial, Task/Equipment Related, Environmental, Health/Life/Safety/Legal…

Focus Upon LEAN Construction to Improve Productivity

Focus Upon LEAN Construction to Improve Productivity

There is only one barrier to the efficient management of the built environment…. commitment.  While BIM has been hyped by vendors and industry alike, technology is not a solution the AECOO sector’s woes.  The AECOO (Architecture, Engineering, Construction, Operations, Owner) sector could easily improve its notorious legacy of uniquely low productivity and rampant economic/environment waste with a focus upon LEAN Construction / LEAN Facilities Management.

Focus Upon LEAN Construction to Improve Productivity

What is LEAN Construction?

LEAN Construction is not complex, but does required change management for most AECOO organizations.  The basics of LEAN Construction simply involve required collaborative efforts among all participants in order to drive optimal outcomes.   This necessitates a deeper and more widespread awareness and understanding of human behaviors, organizational productivity drivers, as well as  the concepts of life-cycle management of the built environment.

The need for Change Management

A requisite level of understanding with respect to the strategic and operational value of the built environment and life-cycle facilities management and associated stewardship nonetheless has yet to be achieved by the majority of real property owners.   As owners must provide leadership within a LEAN environment, challenges will continue to exist.

Real property owners must forge closer links and collaboration between the financial, technical, sociological and operational aspects of facilities life-cycle management and integrate multi-discipline teams.   When they are capable of technical and professional leadership and transparently sharing information within an atmosphere of mutual respect and shared risk/reward, true advancement will occur.

Professional organizations and formal educational institutions also need to provide a forum for distributing and exchanging LEAN Construction know-how and best management practices.

Roadmaps and Robust Processes Already Exist

LEAN collaborative construction delivery is not new.   The two most common forms are integrated project delivery, IPD, for major new construction, and job order contracting, JOC, for renovation, repair, and minor new construction.   Nonetheless only a fraction of industry practices either, and even fewer do so to the fullest extent.

There is only one barrier to the efficient management of the built environment…. commitment.

Focus Upon LEAN Construction to Improve Productivity… Learn more…

Expanded Job Order Contracting Solutions

Expanded Job Order Contracting Solutions

Four BT, LLC (4BT – www.4BT.US), offers expanded Job Order Contracting solutions.

4BT provides advanced expanded Job Order Contracting solutions for the construction industry.   We deliver the ability to enable JOC participants to collaborate, share information and work transparency… anytime and anywhere… within our secure cloud environment.

4BT is a veteran owned small business that specializes in providing Job Order Contracting cost estimating, project, and program management software, cost data and support services.

We help real property owners and their multi-discipline in-house teams and external service providers to work more efficiently and achieve better outcomes.

Our staff is a team of estimators, cost engineers,  project managers, and JOC professionals who have built hundreds of JOC unit price books, supported large and small Job Order Contracts, and developed enterprise-level software systems.    Our team has played key roles in leading organizations including, The R.S. Means Company, LLC, VFA, Inc, U.S. Cost, LLC, and 4Clicks Solutions, LLC.

What makes 4BT different…

• Independent, Objective, and Best Value Resource for Job Order Contracting
• Expertise in Job Order Contracting Estimating,Project Management, and JOC Program Support
• Current Generation Cloud Technology
• We Locally Research Own Own Cost Data!!!
• We Provide What Our Clients Want…

A Partial List of our unique JOC Solution Capabilities…

• Our own independently and locally researched unit price cost data
• Integrated JOC application specific cloud cost estimating and project management software
• Unit Price Books are locked to JOC Contract(s)
• Project, task, and document management
• Integral version control
• We DON’T USE location factors (too prone to error)
• Standard Summary and Detailed Estimate Reports, complete with line item and estimate level notations
• Export to PDF and Excel
• Industry Standards – Licensed by CSI Masterformat – 49 Divisions
• Secure Data Encryption
• Full Administrator Controls
• Deployment via Cloud – NO TERMINAL SERVERS or outdated technology used

Services

  • 4BT OpenJOC Custom Unit Price Book Development 
  • 4BT On-Site Training Class
  • 4BT On-Line Virtual Training Class
  • Professional Services
  • JOC Program Implementation
  • Informal JOC Estimate Compliance Review Per Audit (ICR)
  • Formal JOC Estimate Compliance Review Per Audit (FCR)

 

www.4BT.US

Job Order Contracting Life-cycle Facilities Value Management

Job Order Contracting Life-cycle Facilities Value Management

Job Order Contracting Life-cycle Facilities Value Management and improving AECOO outcomes for all participants and stakeholders.

 

INTRODUCTION – The goal of Job Order Contracting Life-cycle Facilities Value Management activities is to maximize the value of physical structures and assure appropriate ownership of the project outcomes over the project’s life span.   Funding for maintaining built structures is rarely sufficient, thus existing budgets must be maximized.   Job Order Contracting Life-cycle Facilities Value Management enables the efficient use of available funds targeted  for executing renovation, repair, maintenance, and minor new construction projects.  While some attempt to differentiate between life-cycle and value management, in reality, they should be one in the same, thus the use of the term, Job Order Contracting Life-cycle Facilities Value Management.

Life-cycle analysis takes into account best value.  This includes first costs as well as ongoing operation, maintenance,and disposal/recycling.  A best value approach to facilities management considers all possible alternatives and focuses upon total cost of ownership in concert with the built structures relative support of the organizational mission.

Maximizing facilities functions and performance at the lowest possible total cost is the definition of best practice facilities management, and/or Job Order Contracting Life-cycle Facilities Value Management.   This includes reducing the risk of project/system failure, on-time and on-budget project delivery,  shortening projects delivery times,  lowering operational costs, as well as improving quality, reliability and safety.

ROLE OF CONSTRUCTION DELIVERY METHODS – Collaborative participation of all participants and stakeholders as early in the project phase as possible and on an ongoing basis,  i.e. from concept onward, is a core element of successful life-cycle / value management.

The degree of success achieved with respect to life-cycle / value management is largely determined by the construction delivery method used.   Traditional design-bid-built has been noteworthy in its failure to deliver efficiency and long-term mutually beneficial relationships.   Alternatively, the proven success of Job Order Contracting, JOC and integrated project delivery, IPD have demonstrated significant measurable improvements in construction and life-cycle outcomes for all participants and stakeholders.

For example, Job Order Contracting can deliver over 90% of projects on-time, on-budget, and to the satisfaction of all stakeholders. This is amazing within an AECOO industry where waste and low productivity is the norm.

Both collaborative construction delivery methods, JOC and IPD,  focus upon best value.   They are proactive and based upon  problem solving management and maximizing the functional value of a project by assuring teamwork from concept stage to operation stage of projects.  They also leverage the expertise multidisciplinary teams.    JOC and IPD make the real property owner’s  value system explicitly clear from the project’s conceptual stage and onward.   They are designed to obtain the best functional balance between cost, quality, reliability, safety and aesthetic as determined by owner specifications.   Owner leadership and competence is a fundamental requirement, as is the competency and collaborative nature of each team member.

IMPLEMENTATION – Implementation of IPD and JOC programs commonly take the form of arranging an intial workshop in which all participants, the client/real property owner, facilities management, AE’s, contractors, suppliers, manufacturers, specialists and other stakeholders involved take part and put forward suggestions for discussions.   This is distinct from a project kick-off meeting.  The process assures that everyone understands what a client will accept as the benchmark to measure the outcome of their investment, as well as everyone’s roles, responsibilities, capabilities, risks, and rewards.

JOC, IPD, and life-cycle / value management are defined as an organized and written set of procedures.  Example being Operations Manuals or Execution Manuals, which are part of the contractual documents.  Both are based upon LEAN management principles, as both JOC and IPD are LEAN collaborative construction delivery methods.   Both are and  organized and written set of specified procedures and processes that are introduced, purposely to enhance the function of a designs, services, facilities or systems at
the lowest possible total cost of effective ownership, in concert with the client’s value system for quality, reliability, durability, conformance, durability, aesthetic, time, and cost.

JOC, IPD and other LEAN collaborative construction delivery methods center around enabling  team  creativity, innovation, and continuous improvement.   Other key characteristics include the following:

Job Order Contracting Life-cycle Facilities Value Management

LEAN Planning Outline 

 

Work

Activities

  

Phase

  

Activities

  

Questions

  

Techniques
 

 Conceptualization  

 

 

 Concept Select appropriate team, assure all members are trained in LEAN process(es), initial briefing meeting Needs, budgets, resource requirements, study areas.

Identify areas of potential improvements.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

Information

 Collect latest and correct information Required information, areas of expertise? Request for facts from validated sources.
 

 

 

 Functional analysis  

Identify, classify and document functions

 What asset/area  do? Identify main functions, cost and worth to organization (priority).
 

 

  

Analysis

  

Generate alternative ideas

 What else will perform the functions? Simplify and classify functions, use creativity and innovation.
 

 

 

 Evaluate  

Evaluate alternatives. Total cost, availability,
technology, merits,constraints, ease of construction, schedules impacts,
safety, ease of procurement, coordination…

  

What is the cost/value  trade off for each alternative? 

 Established standard for evaluation, developed cost (UPB) and value model
 

 

 

  

 

Development

  

Developed evaluated alternatives

  

 Meet client’s requirement?

 Collect defensible data and consider other alternatives
 

 

 

 

 Presentation  

Method of presentation, present workable alternatives.

 List benefits and constraints Method of presentation, prepare reports tailored to appropriate audiences.
 

 

 

 

 

  

 

 

 

Execution

  

 

 

 Implementation Implement presented ideas Award approved service providers. Determine if contractual changes or special conditions are needed Eliminate roadblocks, actualize plan, implement ideas.
 

 

 

 Follow up Check results. Audit. Ideas successful or not , what are the benefits and setbacks Final feedback. Document learnings. Key Performance Indicators, KPIs

 

Introduction to LEAN Facilities Management

Introduction to LEAN Facilities Management

An introduction to LEAN Facilities Management involves discussions about collaboration, competencies, tools, interpersonal relationships, delegation, strategy formulation, implementation, monitoring, and ongoing improvement.

Facilities Management is a leadership function with the central goal of maximizing value of  with available resources.  Technology is helpful for lowering associated implementation costs and to helping to assure consistency, but should not be the primary driver.

The Success of LEAN Facilities Management REQUIRES the following…

  • A common understanding and commitment to the fact that facilities/built environment is critical to the organizational mission.
  • Owner competency and leadership
  • Collaborative and competent teams
  • Ability to leverage disparate areas of expertise and/or cross-functional teams
  • Financial transparency
  • Shared risk/reward
  • Common data environment
  • Focus upon outcomes and best value
  • Required collaboration
  • Required training
  • Continuous improvement
  • Key performance indicators (KPIs)
  • Supporting tools, technologies, and services
  • Life-cycle versus first-cost mindset
  • Relationship building & long-term relationships
  • Alignment of built structures with organizational mission
  • Fully defined and written FM Execution Plan – outcomes, roles, responsibilities, work flows, metrics, requirements.

The fact that most FM executives list “budgeting and cost management” as their most significant challenge is indicative that the profession has a long way to go.    Building internal and external capabilities and competencies should be the primary focus and challenge.   Measurable FM gains can only be achieved when capable cross-functional teams are established within a supportive organization.

The role of the Owner…

Learn more…

 

Uncategorized

LEAN FM Involves Leveraging Teams and Diverse Skills

LEAN FM Involves Leveraging Teams and Diverse Skills.  There is nothing new or complex about LEAN FM.  It’s benefits of delivering 90%+ of service delivery on-time, on-budget, to everyone’s satisfaction are well documented.  Yet, only 5% of FMers truly practice LEAN…. why?

The answer is equally simple.  LEAN FM required significant change management as well as owner leadership.

LEAN FM

  • Cooperative Teamwork
  • Leveraging Diverse  Skills & Capabilities
  • Continuous Skills Deployment
  • Mutual Trust/Respect
  • Shared Risk/Reward
  • Financial Transparency
  • Common Data Environment (CDE)
  • …

Read above article “Delivering Better Facilities…”

LEAN Facilities Management

LEAN Facilities Management

LEAN Facilities Management Drives Optimal Outcomes for owners, facilities users, contractors, architects, engineers, and oversight groups.

LEAN is not new to the AECOO sector.  In fact, it has been successfully practice for decades in the form of Integrated Project Delivery, IPD and Job Order Contacting, JOC.

When applied to Facilities Management, LEAN’s value lies within integrating previously disparate technical and business domains and leveraging their experience from project concept through close out.

LEAN Facilities Management

  • Integrates technical and business teams
  • Leverages disparate experience of team members
  • Focus is upon outcomes
  • Rapid response and client-focused services delivery

To date, only 5% of the AECOO sector truly leverages LEAN for facilities renovation, repair, and maintenance, despite readily available and proven tools, techniques, and service providers.   While LEAN can delivery over 90% of projects on-time, on-budget, and to the satisfaction of all stakeholders, it does require significant “change management” for the uninitiated.   For example, information must be shared among all participants transparently, including financial/cost data.   Additionally risk and reward are shared among all teams.   This type of an environment is generally foreign to those experienced solely with traditional facilities management, construction, and AE activities.

LEAN Facilities Management

Learn more today…

 

 

Uncategorized

Deploy your Job Order Contract Optimally

Deploy your Job Order Contract optimally using LEAN best management practices and supporting tools and services provided by JOC professionals with your needs in mind.

Deploy your Job Order Contract Optimally

  • Continuously Evaluate & develop Maintenance Excellence
  • Clearly Define Work Responsibilities, Tasks, and Outcomes within a Job Order Contract Execution Manual
  • Perform Regular Audits
  • Minimize Response Times
  • Assure Regulatory Compliance
  • Use Current, Locally Researched Tasks and Detailed Unit Price Costs
  • Reduce Unplanned Maintenance Requests
  • Leverage Collaborative Cloud Technology and Processes

Learn more today….

Prioritizing Job Order Contract Task Orders

Prioritizing Job Order Contract Task Orders

Prioritizing Job Order Contract Task Orders is a key part of providing efficient facilities management services on an ongoing basis.

Job Order Contracting provides the ability to deliver over 90% of renovation, repair, and minor new construction project projects on-time, on-budget, and to the satisfaction of all participants.   That fact aside, there is never enough money in the budget to fulfill all requirements.

Does your organization have a process in place for prioritizing job order contract task orders?

There are several items to consider in this regard.  First, is the methods being used to manage your real property portfolio.  It’s likely you have a mix of planned, preventative, and reactive strategies in place based upon your budget, mix of facilities, and other factors.

Your plan also includes various types of inspections, visual and other, with multiple items/units of detail/measure…  paint condition, chalking, water/gas leaks, window casings, concrete cracking, etc.

All of the above, then fit into a priority listing and/or matrix, such as the following…

In Good Condition (Good = ok for now)
Functional with warning (Failure Predicted = pay attention, but not a critical system/location)
Schedule Work Order (Fix Needed = Something is amiss, and should be scheduled for repair based upon established criteria)
Urgent Work Order (Emergency Fix Needed  = Must be done asap and/or within a set period)

Priority #1 Immediate /Same Day Response (Emergency or Safety) – Direct health or safety impact and preventing the delivery of the core mission.
Priority #2 48 Hour Response (High) –  If not attended to, possible direct health or safety impact or impact on the core
mission.
Priority #3 10 (x-day) Working Day Response (Medium) – No immediate health or safety impact but needs attention. Work needs to be
complete but no immediate impact on the core mission.
Priority #4 Date Sensitive Response (Scheduled) – Customer requested completion date. This work needs to be completed based on the date the customer is requesting in order to keep their operations functioning normally to achieve
the core mission.
Priority #5 90 Day Response (Low) – Requests that have an impact on aesthetics or minor impact on the function of
the building.

Prioritizing Job Order Contract Task Orders

 

Construction Cost Data

Independent, Objective, Best Value, Construction Cost Data

Independent, Objective, Best Value, Construction Cost Data is changing the way architects, engineers, contractors, subs, and owners interact. The OpenCost Approach provides a locally researched unit price detailed construction cost data base withing a standard data architecture (CSI Masterformat).   Unlike traditional “national average cost databases” that rely upon cost factors to provide local costs, the OpenCost Approach delivers data from each city, region, or state as required.

Independent, Objective, Best Value, Construction Cost Data

Information is updated annually, however, data can be modified by users at any level of detail and reused while still maintaining proper organization.

The OpenCost Approach provide the unique ability to actually quote construction jobs and not simply have a “reference cost database”.

So, if you organization is looking for Independent, Objective, Best Value, Construction Cost Data, why not contact us today?

Additional Information:

The OpenCost Approach delivery Independent, Objective, Best Value, Construction Cost Data within a database to handle your current and future needs, quickly and accurately.   Provide and share valuable information to your organization, your business partners, and/or your service delivery partners.

Any construction, renovation, or repair process becomes quantifiable with a standard format, easily understood by everyone!
Create estimate, budgets, life-cycle capital reinvestment models, or link to BIM!

Budgeting, estimating, approving, executing, and managing renovation projects has just gotten easier!   The OpenCost Approach  is a common tool that enables major improvements in communicating scope of work.  Tasks are clearly characterized and shared with a shared environment.

Teams can move from managing people to sharing information and knowledge.  Long term, mutually beneficial relationships are formed as the expertise of all parties can now be shared to improve the overall project outcome.

The OpenCost Approach contributes to the development of a common template of tasks and costs to create a shared understanding. This creates a functional versus dysfunctional system, with all parties working toward a common purpose.

Independent, Objective, Best Value, Construction Cost Data

OpenCost is a trademark of Four BT, LLC

Independent, Objective, Best Value, Construction Cost Data

Uncategorized

Common Myths Associated with LEAN Construction & LEAN Facilities Management

#1. LEAN FM & LEAN Construction require more time and cost more.

FALSE: Traditional methods such as design-bid-build and even design-build, are wasteful and cost more in the long run than Integrated Project Delivery (for new construction) and Job Order Contracting (JOC) for renovation, repair, and minor new construction. Life-cycle costs are reduced by LEAN methods, as are procurement costs. LEAN methods also significantly reduce project delivery times and improve overall satisfaction for all participants.

#2. LEAN FM & LEAN Construction are difficult to implement.

FALSE: While LEAN methods do require a certain amount of change management with an associated shift to a focus upon collaboration and mutually beneficial outcomes, as well as leadership on the part of the real property owner, and competence of all service providers, tools, training, and consulting are readily available.

#3. All suppliers, tools, consultants and approaches to LEAN FM & LEAN Construction are the same.

FALSE: Do your homework! Tools, suppliers, and consultants must be independent, objective, and focused upon providing the best value for the client. Do not purchase IPD or JOC services that are based upon compensating the supplier by a total percentage of the construction volume. This is expensive and can lead to compliance issues, as well as set the landscape for improprieties.

#4. LEAN Facilities Management and LEAN Construction Delivery Methods are new.

FALSE: LEAN methods have been successfully practices for decades and have proven to consistently deliver over 90% of projects on-time, on-budget, and to the satisfaction of all participants and stakeholders.

LEARN MORE… White Papers, Articles, etc.

Procuring Construction Performance with Job Order Contracting

Procuring Construction Performance with Job Order Contracting

INTRODUCTION – Procuring Construction Performance with Job Order Contracting yields significantly outcomes for owners, contractors, and facilities users.

Traditional construction delivery such as design-bid-build, and even efforts at improvement such as design-build, are lacking the respect to  1. basic contract focus and requirements,   2.  relational aspects,  and 3., integration of disparate processes and information.

A focus upon the procurement of AECOO (Architecture, Engineering, Construction, Operations, and Owner) OUTCOMES to the mutual benefit of all involved participants and stakeholders in not difficult, nor is it new.   Furthermore, the benefits of this approach are well documented, and include a completion rate of approximately 90% or greater in terms of on-time, on-budget, and satisfactory renovation, repair, maintenance, or new construction project delivery.

That said, less than 5% of the AECOO sector engages in procuring construction performance and an even lower percentage does so efficiently.

FOCUS UPON OUTCOMES –  An early and ongoing focus upon outcomes core aspect of Procuring Construction Performance with Job Order Contracting.

Every plan, activity, and expenditure of resource is done with the goal of increasing value for all participants and stakeholders.  This can only be achieved if all participants and stakeholders are competent, engaged, understand and agree with all roles, responsibilities and planned outcomes, and share information in standardized, transparent manner.

With respect to the AECOO sector, the most important aspect is that the Owner provide leadership and have access to the required competencies for all aspects of the projects at hand.   It is the Owner that must lead without excessive management and control, and provide an appropriate level of oversight.

Traditional construction delivery to reconcile the divergent values and strategies held by owners, contractors, building users, facilities managers, and others.    In fact, it relies upon the false premise that lowest bidder and/or volume are the best ways to save money or improve efficiency.

LEAN construction, as embodied within OpenJOC Job Order Contracting,  creates an environment that support specialized capabilities to create value beyond that achieved through artificial cost economies.  For example, rewards are based upon performance, and processes are designed to mitigate opportunistic behavior and reduce both uncertainty and ambiguity.  Roles and responsibilities are clearly specified and collaboration is a requirement of all participants.

Learn more…

 

 

 

 

 

 

 

Introduction to Current Construction Cost ESTIMATING Techniques , Uncategorized

Introduction to Current Construction Cost ESTIMATING Techniques 

Introduction to Current Construction Cost ESTIMATING Techniques 

 By Four BT, LLC

INTRODUCTION

Robust construction cost estimating is critical to improving productivity, quality, delivery times, cost control, and overall satisfaction for any renovation, repair, or new project.

There are several types of construction cost estimates that provide varying levels of detail and confidence.   They range from proving a conceptual or “ballpark” estimate for budgetary purposes to detailed line item estimates.

An integrated, collaborative cost estimating approach provides greater value to all participants and stakeholders.  This specifically involves assuring that appropriate owner, contractor, engineering, and architectural representatives are brought into the process as soon as possible where functional and financial aspects are discussed openly.

While cost estimating has traditionally focused upon initial costs, a life-cycle perspective generally provides greater value.

Construction cost estimates are provided by a professional estimating firm either as part of the design team or as an independent party contracted with the construction firms or directly for the agency/owner.  In many instances the latter is preferred in order to ensure the independence of the estimate and to meet associated fiduciary responsibilities.

 

ESTIMATING FORMATS

The format of the construction cost estimate should be specified by the owner and associated contractual documents.   Common industry terms and definitions should be used for all descriptions.  Based upon the level of detail of the estimate, the most common data formats used are the CSI MasterFormatTM and Uniformat.

MasterFormat is used for detailed line item estimates and consist of 49 divisions.  Uniformat is used for system level and/or early stage/conceptual estimates and includes the major systems of a building.  In some cases Uniformat and MasterFormat are used jointly.

TYPES OF ESTIMATING & ESTIMATES

Conceptual/Preliminary/Square Foot Estimates –

Early in the planning/budgetary stages a conceptual “Ballpark” estimate is used to provide a gross order of magnitude estimate.  Based upon a preliminary scope of work provided by the agency/owner, this type of an estimate provides a +/- 40% approximation of the target cost. Estimates of this kind are generally provided on a square foot basis and/or a combination of square foot and Uniformat.   The types of estimating used for this level include Project Comparison Estimating, Parametric Cost Estimating, and/or Area & Volume Estimating.  Historical information on total job costs from similar projects are typically used for preconstruction services; an example would be the number of beds in a hospital, the number of rooms/floors in a hotel, etc.  This method makes the assumption that the approximate gross area and type for the proposed work has sufficient examples within the historical records for the area.

Intermediate/System Level Estimates – 

These level of estimates provide a more detailed look at the buildings structure from a system level versus the square foot approach.  Alternative construction techniques, assemblies, systems, and materials are included versus looking at building type and/or general systems as a whole.  Estimates at this level are generally presented in Uniformat.   Various LEAN methods are used in developing these estimates such as Earned Value Analysis.  Assembly and/or System Estimating is used for this level.  Estimates are generally within approximately +/- 25% of the target value.

Final/Detailed Estimates –

This is the most comprehensive type of estimate.  It is provided is CSI MasterFormat™ format and most closely approximates the target cost.

The multiple construction tasks required for a specific project with the associated labor, material, and equipment breakdowns for each individual task are definitively described and quantified.  Work is divided into the smallest possible work increments known as the “Unit Price”.  That Unit Price is then multiplied by the required quantity to determine the cost for that specific task.   All line item costs are summed to obtain the total estimated cost that most represents the closest approximation of a project’s target cost.

This approach creates an optimal environment for all parties to communicate and understand the project scope of work and serves as a means to compare various estimates and associated outcomes.

LEAN Construction Delivery methods, such as Job Order Contracting (JOC), require detailed line item estimates using  either  a contract specific Unit Price Book (UPB)  or other published unit pricing mechanism that allow all parties to jointly focus on line item tasks and usages.  A Unit Price Detailed Line Item Estimating is used at this level.

LEAN Collaborative Construction Practices Construction Cost Estimating

 

 

Actionable Construction Cost Data for Job Order Contracting

 

Construction cost databases

Types:

 

Compiled Cost Records of Completed Projects

Pros

  • Time to create an estimating is relatively short.
  • Cost to create is relatively low

Cons

  • Every project is unique.
  • Involves local factors
  • Improper use can cause gross errors
  • Target value is approximately +/- 25% to 30%.

 

Line Item Unit Price Books

Pros

  • Provides detailed task information that is locally researched for labor, material, and equipment
  • Can greatly speed estimating time
  • Generally within +/- 5% of target cost.

Cons

  • Not all unit price books are locally researched
  • Some UPB’s have national averages and may yield unpredictable results
  • Some UPB’s use cost factors in an attempt to localized data.
  • Users must be highly skilled in line item detailed estimating.

 

Source – www.4BT.US

 

Learn more…

Uncategorized

JOC Users

https://4bt.us/job-order-contracting/

JOC Users

The following sectors use Job Order Contracting.   The list is in approximate order regarding capability (primary) and volume (secondary).

  1. Federal Government – DOD and non-DOD
  2. Educational Institutions – Higher Education, K-12
  3. Transportation – Airports, Mass Transit
  4. Hospitals
  5. County, State, & Local Governments
  6. Utilities

Learn more about LEAN Construction and Job Order Contracting

While JOC users span multiple sectors, the level of competency and implementation consistency varies greatly.  The DOD sector has used JOC the longest and developed the most comprehensive JOC Programs.   Independent and internal JOC Audits, however, have unearthed that the County, State, and Local Government sectors appearto be in a learning mode.

If you currently wish to improve your JOC Program, or a considering JOC for the first time, review the Basics of JOC.

 

Job Order Contract Unit Price Book Basics

Job Order Contract Unit Price Book Basics

Job Order Contract Unit Price Book Basics

Improve your JOC Program today with independent, objective, locally researched cost data.

Detailed Line Item Unit Cost Construction Estimating, & Unit Price Books, UPB (Unit Price Guides-UPG)

Definition: detailed cost estimate: “a forecast of construction cost prepared on the basis of a detailed analysis of materials and labor for all items of work.”  – 13th edition of the Architect’s Handbook of Professional Practice

A detailed unit cost line item construction cost estimate involves a  review and understanding of the scope of work of the associated project including all possible factors and risks.

Materials, labor, and equipment cost breakdowns and detailed descriptions in plain English provide the highest level of granularity and value when preparing a cost estimate.

Anticipated productivity is also a key element.  The latter can be affected by multiple variables such as labor composition and availability, weather, site access, materials availability, etc.

Owners – Detailed unit price line time estimates are required by public agencies for most  IDIQ construction projects, and ALL conforming JOC Programs.    If the project exceeds a specified dollar threshold, an independent owner estimate generally is required (also called an independent government estimate – IGE).  Detailed line items are also used to create and validate construction budgets.

Contractors – Detailed unit price line estimates derived from unit price books are used to bid jobs, or supplement bids, and are also used by general contractors and construction managers to validate bids from sub contractors.  Detailed unit price line item are also critical for progress reporting, invoicing, and payment processes.

Required Skills – Field  construction experience is extremely important as it is perhaps the only way to gain a true appreciation of risk factors and other variables that can impact a construction project.  In addition, the ability to review and interpret construction drawings, work with cost estimating formulas and technologies, communicate information to disparate disciplines and audiences, and attention to detail are all additional requirements.

Process Tasks  – Processes associated with creating a line item construction cost estimate include the following:

  • Definition of services to be provided and associated statement of work – SOW
  • Estimate preparation
  • Validation of contents and assumptions
  • Estimate reconciliation (if multiple estimates are required for a project)
  • Documenting and associated presentation of the estimate

Defining the scope of services in itself requires several considerations such as identifying inclusions and exclusions, defining the basis to be used for pricing (construction cost databases and/or unit price books – UPB, unit price guides, subcontractor quotes), presentation of line items as bare costs or inclusive of overhead and profit,  classification system to be used, i.e. CSI MasterFormat, Uniformat II, WBS, etc, and format of the estimate (summary level, detailed level, price vs. non pre-priced items, associated formulas, source of each line item).

Collaboration among construction project participants and/or stakeholder is critical to assuring a proper definition of the scope of services, and thus mandatory if the estimate is to reflect the expectations of the owners, design, contractor, etc.  As one might expect, achieving the best possible outcome for the estimate and the overall construction project is dependent upon the processes involved in gathering accurate information in a timely manner and to employ the actions and philosophies associate with continuous improvement and LEAN best management practices.

The following is a graphic noting some of the items that may be considered in the creation of a construction cost estimate.

unit price book - upb

Multiple construction delivery methods require line item construction cost estimates.  Job Order Contracting – JOC, for example, requires the use of line item unit price book – UPB and/or unit price guide – UPB.   Unit prices books are typically updated annually and quarterly price adjustments may also be applied by specified processes and factors.

job order contracting

CONE OF UNCERTAINTY – (Source:GAO)

job order contracting unit price book

Learn more about JOC Tools & Resources…

improve your job order contract

IMPROVE YOUR JOB ORDER CONTRACT

The application of LEAN methods and best management practices can significantly improve your job order contract.

IMPROVE YOUR JOB ORDER CONTRACT

The potential for fraud, waste or abuse exists for Job Order Contracting as it does for any other construction delivery method. A review of  completed Job Order Contract Audits provides ample evidence of this fact.

Proper selection of a JOC consultant and tools, professional JOC Program set-up, internal controls, and education/training improve your job order contract.

It is important and necessary to be alert to the potential for fraud, waste, and abuse, and to take reasonable, prudent, efficient actions and implement appropriate safeguards.  Personnel to be assigned to work with JOC should be carefully screened to ensure the selective use of competent individuals with a high degree of integrity

  • JOC management authorities must require…
    • JOC personnel are properly trained to do their jobs.
    • JOC personnel are familiar with and understand the terms of the contract they are executing.
    • Procedures established are followed for processing JOC actions from start of job to finish of contract administration.
    • JOC personnel read and adhere to standard for ethical conduct.
    • JOC personnel seek assistance and guidance before proceeding on unclear or borderline issues.
    • Meaningful quarterly reviews of JOC operations are done by technical/engineering/ facility management staff and contracting/purchasing/procurement staff.
    • Work scopes, government estimates, contractor’s proposals, awarded task orders, and contractor invoices are logically progressive, consistent and clear.
    • Project scoping and project quality control/acceptance activities are kept separate. Individuals involved with project scoping and development as well as proposal negotiations with the contractor must not be the same individual responsible for monitoring quality assurance. Although project engineers may be required during the construction phase to clarify scope of work or recommend modifications for changes or unforeseen conditions, the responsibility for recommending acceptance of completed work will remain with separate quality assurance personnel. This principle of separation should also allow for effective coordination between project engineers and quality assurance persons so that problems occurring during the construction phase do not cause contractor delays and potential claims.

IMPROVE YOUR JOB ORDER CONTRACT

The head of the team or division with responsibility for the Job Order Contract should ..

  • Make certain contract administration documentation activities are kept current, complete and correct.
  • Conduct periodic sessions among JOC personnel to discuss their work activities, procedures and problems.
  • Complete a JOC internal control checklist and/or audit annually.
  • Assure all aspects of the JOC SOP (Standard Operating Procedure) properly identify authorities, limitations, and responsibilities of all technical and contracting/purchasing  personnel involved in the JOC contract, and that processes are being followed.
  • Review the JOC unit price book to assure it is sufficient to meet JOC requirements and updated per changed to meet the specific needs on an annual basis.
  • Require all JOC participants (internal and contractor) receive training and orientation regarding policy and procedures for operation of the JOC contract which specifically addresses their authorities, limitations and responsibilities.
  • Assure  statements of work for proposed task orders under a JOC contract contain sufficient detail to assure that the owner can properly develop an estimate and that the contractor can properly prepare responsive and cost-effective proposals with a minimum of non-prepriced work.
  • Review any  significant differences between owner estimates and contractor proposals and determine reasonableness of bids and/or accuracy of estimates.

IMPROVE YOUR JOB ORDER CONTRACT

Uncategorized

Unit Price Books Construction Cost Data

Unit Price Books Construction  Cost Data

Unit Price Books Construction Cost Data

LEAN Collaborative Construction Practices Construction Cost Estimating

 

Not surprisingly there is a great deal of confusion about Job Order Contracting, especially when it come to unit prices books and the use of appropriate and best value construction cost data.

Selective the appropriate Unit Price Book is extremely important to the overall success of any JOC Program.

While Job Order Contracting remains the most widely used form of integrated project delivery, many if not most users are not receiving the best possible outcomes.

What Unit Price Book is best for your JOC Program depends upon several factors:

  • Location (s)
  • Types of Work / Work Scope (General renovation/repair, trade-specific, specialized work)
  • JOC Implementation Method (Owner-managed JOC, JOC Consultant, Cooperative)
  • Type and Competence of Users
  • Data Format (CSI Masterformat is highly recommended)
  • Update frequency (Annual updates are recommended)

Unit Price Books Construction Cost Data

Types of Unit Price Books ( In order of likely best overall value)

  • Locally researched unit price book (may include some owner-specified unit price line items)

  • Owner specified unit priced book (may also be called a “customized unit price book”)

  • Commercial unit price book (typically uses also involves the use of cost/location factors)

Unit Price Books Construction Cost Data

Selecting a best value UPB solution balances the cost and quality of the offering specific to your JOC Program Goals.

Locally researched unit price book (may include some owner-specified unit price line items) – Based upon your location and other requirements, the cost of locally researched unit price book may be comparable is cost to a standard commercial unit price book, or require a one time fee of approximately $10,000.   Even considering the one time fee, a locally research unit price book generally provided the best solution as it most accurately reflects local material, labor, and equipment costs.  For example, is is not unusual for a commercial unit price book to have error rates of 30% or more, even when localization factor are used.  These errors can cost significant delays do to the need for prolonged owner/contractor negotiations, and/or impact the project value to participants.  Thus the cost of the locally research unit price book can easily be justified.

Unit Price Books Construction Cost Data

Owner specified unit priced book (may also be called a “customized unit price book”) –  The use of  fully owner-specified unit price book is extremely rare due to the detail included in locally researched unit price books and the excessive cost of a fully owner-specified unit price book.   Creating an unit price book from scratch could easily cost hundreds of thousands of dollars.

Commercial unit price book (typically uses also involves the use of cost/location factors) – Using a commercial construction unit price book for JOC, with or without localization factors, is typically the lowest cost solution.  That said, it may not accurately reflect costs for the JOC region(s) and generally will also lack required construction tasks.

Both Owners and Contractors should carefully research and/or review the unit price book to assure it is in alignment with organizational goals.

Learn more today!

 

Construction Cost Data Sources:

Locally researched JOC Unit Price Books (Locally researched unit price line items, including line item modifiers, demolition line items)

Four BT, LLC

The Gordian Group

Commercial Unit Price Books (Typically a commercial unit price books that involves the use of cost/location factors)

The Gordian Group / R.S. Means Company

 

 

 

 

 

 

 

JOC Process Post Task Order Approval

JOC Process Post Task Order Approval

While specific procedures are tailored to your JOC Program, here is a JOC Process Post Task Order Approval.

Once a JOC project is approved a standardized process occurs per JOC Program requirements.  This process is generally detailed within the JOC Operations Manual and/or JOC Execution Guide.

JOC Process Post Task Order Approval is detailed within the Job Order Contract Operations Manual / JOC Execution Manua

A typical JOC Process Post Task Order Approval  is show below.

JOC Process Post Task Order Approval is detailed within the Job Order Contract Operations Manual / JOC Execution Manual

  • Appropriate authority (typically procurement) approves and executes the Job Order and associated package via the issues of a  Notice To Proceed (NTP) – (copied to the owner and contractor JOC “managers”)
  • Owner’s JOC Manager organizes a pre-construction kick-off meeting with JOC contractor and building user
  • JOC Contractor begins work
  • Owner’s JOC Manager or assigned person regularly inspects JOC work site to assure compliance.
  • Contractor’s JOC Manager informed Owner of completion a JOC project
  • Owner’s JOC Manager does a final inspection, reviews work package and either creates a punch list or processes and pays the invoice
  • Define Closeout process is followed by both Owner and Contractor
  •  Owner designates project is complete.

Learn more today!

Better JOB ORDER CONTRACT

Better JOB ORDER CONTRACT

Do you need a better Job Order Contract?

better job order contract

At the very least, a Job Order Contract should be all of the following…

  • Low cost (not based upon a percentage of total construction volume
  • Benefit ALL participants – Owner & Contracts
  • Financially transparnet
  • Easy to implement
  • Based upon industry best management practices
  • Use independent, objective, and locally researched cost data.

As a public sector real property owner it is your fiduciary responsibility to provide the best value for use of public funds.   Job Order Contracting can be very beneficial in this regard, but only if used properly!  JOC should never be used to bypass traditional procurement process and to minimize due process.

If you would like to learn more about how to implement a better Job Order Contract, contact us today!

better job order contract

 

Uncategorized

Job Order Contract Estimate Management

Job Order Contract Estimate Management

Assigned owner and contractor team members request, create, review, edit,  and/or approve detailed line item estimates during the JOC process.

These actions can occur during conceptual, request for proposal, detailed estimating, or estimate approval/review stages.

A clear written definition of the Job Order Contract Estimate Management process should be included within the approved Job Order Contract Operations Manual and/or JOC Execution Guide.

Proper Job Order Contract Estimate Management greatly aids in the coordination of all team members and JOC consultants.

Type of Job Order Contract Estimates

  • Conceptual/Budgetary Estimate – Owner/Owner’s Representative
  • Owner Estimate or Independent Government Estimate – Owner/Owner’s Representative
  • Task Order Proposal – Contractor
  • Revised Task Order Proposal – Contractor
  • Owner Approved Task Order Proposal

 

Conceptual/Budgetary Estimate – An Owner may create construction cost estimates to determine “ballpark”/order of magnitude level estimates based upon a conceptual scope of work for budgetary purposes.   It is best to use the accepted JOC Unit Price Book at this stage to avoid duplication of work and to avoid future communication issues.   This effort may be solely for the Owner’s budgetary purposes, or as a prerequisite for submitting an RFP to a JOC contractor.   Appropriate Owner team members are responsible for validating the scope of work and validating the level of detail.  This is general a joint effort between the Owner Procurement Authority, Technical/Engineering Authority, and Building User.

Owner Estimate or Independent Government Estimate – A detailed line item estimate for a proposed JOC project/task order using the approved JOC unit price book.  This is generally completed after a joint site walk between Owner and Contractor Teams.  A cross functional Owner team consisting of the JOC procurement authority, technical/engineering team, and building user may be involved.

Contractor JOC Proposal– A detailed line item estimate in response to an Owner’s JOC Request for Proposal for a specific JOC task order/project. JOC project/task order using the approved JOC unit price book.  This is generally completed after a joint site walk between Owner and Contractor Teams.

Assigned individuals are responsible for coordination/communications, appropriate documentation/reviews/approvals, version control, per the approved Job Order Contract and associated approved JOC Operational Manual.

All estimates should maintain the required usage of the Unit Price Book line items and associated data architecture (CSI Masterformat).  Any non-prepriced line items should be based upon an existing line item and assigned a CSI Masterformat association.

Remove term: Job Order Contract Estimate Management Job Order Contract Estimate Management

Learn more…

LEAN Job Order Contracting 5

LEAN Job Order Contracting 5

LEAN Job Order Contracting 5 – Project Goals and Objectives:

LEAN Job Order Contracting 5

 

Project Goal Objective Project Time frame
Paperless review, research, and internal presentation processes. Improve information access, collaboration, and transparency. Work on current data. Throughout JOC Program
Build upon our collocation strategies and collaboration efforts. Learn the best way to deliver  coordinated and collaborative information and services and leverage the shared experience of all parties involved. Throughout JOC Program
Educating all stakeholders on the benefits of LEAN collaborative construction delivery. Encourage continuous information sharing and continuous improvement via shared risk/reward. Throughout JOC Program
Develop, record, and analyze metrics and key performance indicators (KPIs) Retain learnings from each project with the goal of making future  projects more efficient. Throughout JOC Program
Take the time to periodically present what project learnings to stakeholders Use presentations to increase the knowledge base of our peers. Throughout JOC Program
Identify and resolve conflicts as early in the process as possible. Reduce construction cost, rework ,and project delivery time.

 

 Throughout JOC Program
Utilize 4BT Builiding in Cloud technology capabilities to stream line analysis, cost estimation, project management, and training Use defined consistent process,parameters, and phasing to reduce human error and reduce time needed for scope of work development, cost estimating, information sharing, etc. Throughout JOC Program
Improve the Quality of all information and documentation. Reduce miscommunication, errors and rework. Throughout JOC Program
Improve the quality in the field. Leverage cloud computing and tablets to improve information quality and timely generation. Throughout JOC Program

LEAN Job Order Contracting 5

Resources

 

LEAN JOC Construction Improves Facilities Management Outcomes

LEAN JOC Construction Improves Facilities Management Outcomes

LEAN JOC Construction Improves Facilities Management Outcomes for all participants and stakeholders by focusing upon best value.

In order to achieve the Project goals, all team members must proceed with with informed, accurate information concerning process, quality, cost and schedule.

While each Project Team Member will brings different expertise and capabilities, all of these issues and the full weight of the entire teams’ expertise should be integrated throughout the project to attain optimal outcomes.  None of the parties can proceed in isolation from the others.  Extensive collaboration and continuous flow of information is required from concept onward.

LEAN JOC Construction Improves Facilities Management OutcomesThe likelihood of a successful project will be increased by promoting the following LEAN JOC Construction objectives:

  • Increasing the competency of all participants and appropriate levels of Owner competence and leadership.
  • All participants and stakeholders  collaborating throughout the project life-cycle
  • Planning and managing the Project and optimizing it as a whole rather than to the benefit of a particular party.
  • Tightly coupling learning with action promoting continuous improvement throughout the life of the JOC Program.
  • Fundamental willingness and ability of the Delivery Team members, Owner,  Owner’s Representative and the Owner’s JOC Consultants to make and secure reliable statements and commitments as the basis for planning and executing the Project.
  • The conditions of satisfaction are clear to all parties – the performers and the recipient
  • All parties are competent to perform the task(s) or has access to the competence to perform the task and the wherewithal (materials, tools, equipment, instructions
  • Performers have  estimated the time to perform the task and have  allocated adequate resources for successful project completion.
  • The performer is sincere in the moment that the promise is made – only making reasonable commitments that can and will be
    fulfilled.
  • The performer is prepared to mitigate the consequences that may ensue if the promise cannot be performed as promised.

“Delivery Team” describes the following parties collectively as appropriate: Owner’s Representative, Architect, Architect’s consultants, Owner’s consultants including key Owner personnel such as Facilities, Maintenance and Information Technology managers, Procurement/Purchasing/Contracting Contractor, Subcontractors, and Suppliers. The Delivery Team has the legal duties of the constituent parties as outlined in their respective contracts.  The team members are expected to openly share information and cooperatively collaborate for the benefit of the Project.

“Core Team” – The functioning and operation of the Project is administered by the “Core Team”. The Core Team include the Owner/Owner’s Representative,  the Contractor/Contractor’s Representative, and others as identified in the contract.

The Core Team should be facilitated by the Core Team (Owner) representative selected by the Core Team representatives collectively. This initial Core Team may invite others to become members of the Core Team and may also remove added members from the Core Team. The Core Team should exercise its authority in the best interest of the Project. Each party should assure that its Core Team representative attends all Core Team meetings, has authority to act on behalf of the Party, and fulfills his or her responsibilities as a Core Team representative. The Core Team may approve any representative’s designation of an alternate representative; any purposed replacement of a Core Team representative should be subject to the Core Team’s approval, which should not be unreasonably withheld.

The Core Team should endeavor to make decisions for the Project by consensus. In the event the Core Team fails to reach a consensus, the objecting party may rely on the terms of its separate agreement(s).

The Core Team has a regular meeting schedule during active projects which in general should be no less frequently than weekly.  The Core is responsible for reviewing and stimulating the progress of the Project and developing benchmarks, metrics, or standards, and monitoring Project Evaluation Criteria. The Core Team plans and implements items to improve Project performance.   On a regular basis, the Core Team Meeting should include by invitation a Senior Management Representative from each of the Core Team member firms.

The Owner/Owner’s Representative is responsible (unless otherwise stipulated) for coordinating action among the project participants, including any additional Owner personnel who must participate in decision making on the Project.

The Core Team is responsible for achieving the targeted best value for expended resources.    Cross-functional team leaders meet regularly and frequently to review opportunities,  including function / cost trade-offs and authority to direct value engineering and adjustments of the to maintain total project target cost.

CORE TEAM REPRESENTATIVES

Owner’s Representatives

  • JOC Program Manager – Typically designated Procurement Authority
  • Technical/Engineering/DPW
  • Senior Management Representative

Contractor’s Representatives

  • JOC Project Manager

METRICS

Cost

Did the project come in within or below the Project Budget?

Were estimates, projections and recommendations provided by the Contractor and Delivery Team correct?

Were cost savings realized?

Schedule

Was the Project completed according to the Project schedule?

Were all punch list items and corrective work orders completed in a timely manner?

Process & Documentation

Where all documents complete, clear and complete?
Did the Project proceed smoothly with a minimum of change orders,  request for additional information, payment issues,
claims and conflicts and were all records and books maintained in good order?

Were the goals of the LEAN integrated process model realized, including efficiency, communication and predictability?

Did the Delivery Team display creativity and intelligence in preparing for and constructing the Project and addressing problems as they arose?

In daily interactions, did everyone believe they received good and responsive service from the Delivery Team?

Did the Project, as initially proposed meet all regulatory requirements so that permits
were timely issued?

Construction Quality

Was the construction work performed in a good and workmanlike manner free from faults and defects with little corrective or punch
list work required?

Were all punch list items and corrective work orders completed in a timely manner

Learn more?

 

LEAN Job Order Contracting Intro 4

LEAN Job Order Contracting Intro 4

LEAN Job Order Contracting Intro 4 continues to define LEAN JOC versus others so-called “JOC Programs”.

Basic elements of LEAN Job Order Contracting …

  • Rewarding desired behaviors
  • Alignment of risk and reward with a party’s ability to control risk
  • Creating a culture of partnership among all stakeholders
  • Creating an open information environment
  • Integrating operating, design and construction knowledge through broad based team meetings
  • Reducing redundant efforts, conflicts
  • Continuously improving means and methods
  • Consistent application of collaborative processes, supported by cloud technology
  • Ongoing required training for all participants
  • Key performance indicators (KPIs) and regular audits by independent third party
  • Owner leadership without excessive reliance upon “JOC consultants”
  • Focus upon best value outcomes

LEAN Job Order Contracting Intro 4 helps drive better outcomes for owners, contractors, and subcontractors and better assure financial transparency as well as fiduciary responsibility.

Learn more about LEAN Job Order Contracting Intro 4 …

FEATURED ARTICLE

Delivering Better Facilities through Lean Construction and Owner Leadership NIBS 2017 – The ability to significantly improve how facilities are constructed, managed and operated depends largely on whether owners provide high levels of leadership, knowledge and collaborative support.

ASSET LIFE-CYCLE MODEL – Total Cost of Ownership Management – A framework for facilities life-cycle  management.

Building Information Modelling BIM in the Construction Industry – Technical Report TR-1405

BIM, LEAN Construction, and a Common Data Environment (CDE) – A  strategic tool for sharing information and managing a team within a BIM / LEAN Construction Delivery environment.

BIM, PROJECT DELIVERY METHODS, WASTE, & LACK OF LEADERSHIP – Traditional design-bid- build (DBB) contracting techniques, and even more recent attempts to improve DBB such as design-build (DB), CM@R, etc. should not be considered LEAN efficient construction delivery methods.

COAA – Owners Perspective – BIM for FIM, BIFM – BIM for FM and a “Building Information Management Framework” – BIMF includes a laser sharp focus on integrated functional planning and cost metrics. The framework’s value for stakeholders includes: a) transformational change effected by a capital planning philosophy that emphasizes integration of professional practice; b) delivery models that emphasize lean construction practices; and, c) transparent standardized construction and facility operations data and taxonomies that contain cost by providing access to building information whether stored or linked to a building
model.

Delivering Better Facilities through Lean Construction and Owner Leadership

How to Select a JOC Unit Price Book – White Paper – Download – Select a JOC UPB – A JOC  Unit Price Book, UPB is very important to the  quality, integrity, productivity,  and transparency of any Job Order  Contract.

JOB ORDER CONTRACTING – Overview & Best Management Practices – Job Order Contracting White Paper 2016801 – Job Order Contracting (JOC) is a competitively bid, firm-fixed price, Indefinite Delivery Indefinite Quantity (IDIQ) LEAN construction delivery method.

COLLABORATION IN CONSTRUCTION – IPD, JOC – Collaboration In Construction-White Paper – Owners determine the  approach  for funding, using, sustaining and disposing of buildings and infrastructure. They also select the construction delivery method.

Construction Cost Workbook – 2002 – Conference on the International Comparison Program World Bank

Delivering Better Facilities through Lean Construction and Owner Leadership NIBS 2017 – The ability to significantly improve how facilities are constructed, managed and operated depends largely on whether owners provide high levels of leadership, knowledge and collaborative support.

INTEGRATED PROJECT DELIVERY – for Public and Private Owners – Integrated_Project_Delivery_for_Owners_ – A Joint Effort of the National Association of State Facilities Administrators (NASFA);Construction Owners Association of America (COAA);APPA: The Association of Higher Education Facilities Officers;Associated General Contractors of America (AGC); and American Institute of Architects (AIA)

THE HISTORY OF JOB ORDER CONTRACTING – The LEAN Construction Delivery Method – The United States Department of the Army is attributedwith initially developing and deploying Job Order Contracting during the early 1980s.

Job Order Contracting – A Procurement Success Story, 1998 – Moore, W., Stout, C.

LEAN Construction Detailed Overview – LEAN Construction Institute, LCI – An overview of LEAN Construction

Unit Price Books for Job Order Contracting – A quick tutorial about Unit Price Books, UPB (s), for Job Order Contracting, and what you need to know.

Why BIM Will Not Succeed – Higher Level of Owner Competency Required – BIM requires a higher  level of  interdependence and information sharing in order to fully understand needs, requirements, limitations, desired outcomes, and overall best value.

The What, Why and How of Job Order Contracting (JOC) – CEFPI Educational Brief – JOC a unique cost competitive delivery process for minor construction, renovations, repairs, and alterations that is faster and better than the traditional “design-bid-build” method.

2015-IDIQ-Contract-White-Paper-National-Academy-of-Sciences – Systematic, well-designed research provides the most effective approach to the solution of many problems facing highway  administrators and engineers.

THE EFFECTIVENESS OF PARTNERING AND SOURCE SELECTION IN JOB ORDER CONTRACTING – Design-bid-build has proven to be inefficient, antagonistic, and incapable of delivering the majority of construction project on-time, on-budget, and to everyone’s satisfaction.

 

LEAN Job Order Contracting Intro 4… Contact us.

LEAN Job Order Contracting Intro 3

LEAN Job Order Contracting Intro 3

LEAN Job Order Contracting Intro 3 – Hoe to provide focus upon best value, quality, timeliness, and reasonable cost, assuring overall satisfaction.

LEAN Job Order Contracting Intro 3

  • Scope of Work is fully, unambiguously defined, coordinated and validated.
  • Scope validation phase  is longer and more intense than traditional design bid build, or other “so-called” JOC programs
    because more is accomplished.
  • All tasks are fully defined by detailed locally researched unit price line items from the accepted unit price book.
  • Owner provides LEADERSHIP and the team collaborates to resolve any inconsistencies or conflicts.
  • Each team member is responsible for their area of competence, task, and documentation.
  • Technology and tools used are inter-operable and fully transparent to support checking for inconsistencies/conflicts.
  • Industry standard terms, and clear, concise definitions in plain English are REQUIRED, as well as standardized data formats (CSI MasterFormat).
  • Predefined workflows, processes, sign offs, and work packages are consistently used, and continuously improved.
  • Technical Specifications are those in place by the Owner and not customized.
  • Subcontractor and other vendor insights are integrated into design and used for coordination and conflict
    resolution.
  • Focus is upon Best Value – Quality and Timeliness at a reasonable cost.

LEAN Job Order Contracting Intro 3

Learn more about LEAN Job Order Contracting Intro 3 …

Job Order Contracting – JOC Articles JOC Articles

AEC Best Value Construction and Facilities Operational Exellence- Position Paper

Collaboration In Construction-WhitePaper

JobOrderContractingWhitePaper2016801

JOC Construction Services RFP Considerations for Real Property Owners

IntegratedOrderContractingSAME

LEAN Construction, Building Energy Efficiency, & the Cloud

General Facility Management

Asset Total Cost of Ownership-Efficient Life-cycle Management Model

Classification Criticality – Architecture, Engineering, Construction, & Life-cycle Facility Management – A Draft White Paper

BIM for Facility Management

The Evolution of Construction Cost Estimating Technology

Maintenance and Repair of Federal Facilities

Integrated Project Delivery – IPD

Integrated_Project_Delivery_for_Public and Private Owners – AIA, NASFA, COAA, APPA, AGC

LEAN JOB ORDER CONTRACTING PROCESS INTRO 2

LEAN JOB ORDER CONTRACTING PROCESS INTRO 2

LEAN JOB ORDER CONTRACTING PROCESS INTRO 2 – LEAN Construction is an integral part of JOC and other integrated project delivery methods.LEAN JOB ORDER CONTRACTING PROCESS INTRO 2

1. Involve all key stakeholders including Owner, contractor, subcontractors, and building users in the process.
2. Identify key technologies, such as cloud based cost estimating and project management and begin to capture key parameters.
3. Cost structure – Locally researched unit provide book, UPB
4. Develop performance goals, including metrics for determining team performance.
5. Preliminary schedule for JOC Program and each JOC Project / JOC Task Order.
6. ALL decisions are made on a “best for project” basis.
7. Scope is fixed, price is fixed and cost is established on an detailed line item basis – joint site meeting, joint scope of work review/refinement.
8. Owner signs off on what will be built allowing the team to evolve and optimize any issues.  Collaborative approach and
focus is upon to schedule and outcomes.

 

Learn more…

 

LEAN Construction Job Order Contracting, Uncategorized

LEAN Construction Job Order Contracting

LEAN Construction Job Order Contracting (INTEGRATED PROJECT DELIVERY) – RELATIONSHIP CONTRACTING

LEAN Construction Job Order Contracting follows the fundamental aspects of integrated project deliver versus simply being a method to bypass delays and/or checks and balances provided by traditional procurement and/or construction delivery methods.

LEAN Construction Job Order Contracting

LEAN Construction Job Order Contracting offers several enhancements …

  1. Competent Owner providing leadership on-site management.

  2. Formation of a LEAN Job Order Contracting (JOC) core group which includes stakeholders

    from the Owner, Contractor, and Subcontractor (as applicable) – procurement, technical, facilities management, building users…)

  3. Joint refinement of Scope of Work

  4. Defined workflow and associated document packages

  5. Contract documents are developed.

  6. Collocation of team members at key phases

  7. Full financial transparency

  8. Locally researched unit price book

  9. Supporting cloud-based technology

  10. Iterative continuous improvement philosophy

  11. Focus upon BEST VALUE OUTCOMES

    1. Take ownership of the project

    2. Continuously improve the services, disciplines, and project delivery

    3. Consider life-cycle cost

    4. Deliver the project using defined workflows and monitor with key performance indicators (KPIs)

    5. All parties contribute to drive innovation & find cost savings and schedule improvements to bring the

    project in at the best value

    6. Employ OpenJOC transparent processes

  12. Shared Risk/Reward

LEAN Construction JOB ORDER CONTACTING is a deeply collaborative process that uses best available processes, information, and technology. Essential Principles are set forth as necessary and REQUIRED assumptions in that contribute to the teaming process. Unless all parties are deeply committed to these principles, LEAN Construction JOB ORDER CONTACTING
will not succeed.

Workflow begins with building an Integrated  and Competent Team and conclude with an integrated closeout for warranty period, operations, and maintenance.

LEAN Construction JOB ORDER CONTACTING

  • requires fundamental changes in participants, timing and intensity.
  • involves dynamic, flexible and iterative processes
  • integrates people, systems, business structures and practices
  • harnesses the talents and insights of all participants collaborative to reduce waste and optimize efficiency

ESSENTIAL PRINCIPLES of LEAN Construction JOB ORDER CONTACTING

ALL participants MUST share and apply common values and goals.

1. Mutual respect: Participants understand the value of collaboration and are committed to working as a team in the best interests of the project. To
harness the collective capabilities of the integrated team, all key participants should be involved as early as possible with multiple competencies, disciplines, technologies, and interests represented.

2. Mutual Benefit: All members will benefit and use innovative business models to support, rather than discourage, collaboration and efficiency.

3. Early Goal Definition: Project goals are developed early and agreed upon by all participants. Insight of each participant is valued in a culture that promotes and drives innovation and outstanding performance.

4. Enhanced Communication: Focus on team performance is based on communication among all participants that is open, straightforward and honest. Responsibilities are clearly defined in a no-blame culture leading to identification and resolution of problems, not determination of liability.

5. Appropriate Technology: Rely upon cloud technologies,  specified at JOC Program initiation, to maximize functionality, generality and interoperability.

6. High Performance: Integrated projects will lead to optimized design solutions, higher performance buildings/physical structures, and sustainable design.

7. Leadership: Although each participant is committed to achieving project goals, leadership should be taken by the OWNER.   Each participant should lead in areas of their traditional competence with support from the entire team; however specific roles are necessarily determined on a task at hand basis, and the OWNER IS RESPONSIBLE FOR PROVIDING LEADERSHIP.  Roles are clearly MUST BE CLEARLY DEFINED.    No party (especially JOC CONSULTANTS) should create artificial barriers that chill open communication and risk taking, and/or are solely to the benefit of the JOC Consultant. The core LEAN CONSTRUCTION JOB ORDER CONTRACTING group exists to streamline decision making and problem resolution process.

 

LEAN Job Order Contracting

LEAN Job Order Contracting

LEAN Job Order Contracting requires adherence to and the continuous improvement of process, and a central focus upon transparency, competency, relationships, and shared best value outcomes.

LEAN Job Order Contracting

How does this differ from Job Order Contracts currently being administered?   In some cases, there is little difference.  However, in some segments, particularly State, County, and Local Government, JOC is being used primarily as a means to “bypass” procurement or simplY speed up project deliver times.   These uses are NOT in concert with LEAN Job Order Contracting.

To determine if you are following a LEAN Job Order Contracting process, see if your JOC Program allows you to check off all the following boxes.  If not, you may wish to consider looking into your program a bit further.

  • Strong owner competency and leadership
  • Clear, quantitative JOC Program goals
  • JOC metrics (key performance indicators) 
  • Project prioritization methodology
  • Regular reassessment and audits
  • Continuous Improvement
  • Win/win program structure for owner and all service providers
  • Full financial transparency
  • Locally researched cost data
  • Compliance 
  • Focus upon Best Value Outcomes

ASSESS & PRIORITIZE NEED – FINANCIAL DUE DILIGENCE & FULL TRANSPARENCY – CLEAR ROLES & RESPONSIBILITIES – DEFINED WORKFLOW & ASSOCIATED REQUIRED DOCUMENTATION/SIGN-OFFS – REGULAR INSPECTIONS – ONGOING TRAINING – REQUIRED COLLABORATION

PROJECT SET-UP & APPROVAL – PROJECT EXECUTION – COMPLIANCE

 

Estimating Facility Life-cycle Costs

Estimating Facility Life-cycle Costs

Estimating Facility Life-cycle Costs is a critical aspect of facilities management.

Key elements associated with Estimating Facility Life-cycle Costs include the following:

  • Experience
  • Detailed Project Data
  • Systems costs and systems life-cycles
  • Detailed unit price line item information
  • Current and desired physical condition levels
  • Annual expenditures for operations and maintenance
  • Used of standardized data architectures (CSI Uniformat, CSI Masterformat)
  • Use of common, easily understood industry terms and definitions
  • Building models for multi-year capital planning – including system-level models, linked to unit price data and energy use models, etc.)
    • Expected system/assembly life-times
    • Current percentage of life used
    • Failure mode/failure distribution – percentage and associated curve
    • Priority – system criticality

Managing Life-cycle Costs

With respect to efficiently executing the numerous repetitive renovation and repair costs during the life span of a facility, Job Order Contracting, JOC is a LEAN collaborative construction delivery method that has proven capable of delivering over 90% of project on-time, on-budget, and to the satisfaction of all parties.  Learn more about JOC?

Estimating Facility Life-cycle Costs

What to learn more about Estimating Facility Life-cycle Costs?

 

Actionable Construction Cost Data for Job Order Contracting

Actionable Construction Cost Data for Job Order Contracting

Actionable Construction Cost Data for Job Order ContractingKey characteristics of actionable construction cost data for Job Order Contracting…

  • Independent Source
  • Locally Researched
  • CSI Masterformat data architecture
  • Clear concise definitions in plain English
  • Full details – labor, material, equipment, crew
  • Ability to create Non-pre-priced (NPP) line items from unit price book (UPB) line items
  • Best value (not linked to total value of construction project or total value of JOC construction)

Actionable Construction Cost Data for Job Order Contracting

If your looking for Actionable Construction Cost Data for Job Order Contracting, contact us today!

Benefits of Actionable Construction Cost Data for Job Order Contracting

  1. Uniform language among staff and service providers
  2. Shared vision
  3. Informed decisions
  4. Managed risk
  5. Improved efficiency
Uncategorized

IPD LEAN Construction JOB ORDER CONTRACTING

IPD LEAN Construction JOB ORDER CONTRACTING – all are interrelated and all can lead to measurably improved outcomes for all participants.

IPD LEAN Construction JOB ORDER CONTRACTING

IPD – Integrated Project Delivery – Collaborative process that harnesses the talents and insights of all participants to optimize project results, increase value to the owner, reduce waste, and maximize efficiency through all phases of design and construction.

LEAN CONSTRUCTION – A way to design production systems to minimize waste of materials, time, and effort in order to generate the maximum possible amount of value.

JOC – Job Order Contracting – IPD specifically for renovation, repair, and minor new construction projects.

IPD LEAN Construction JOB ORDER CONTRACTING – PRACTICES

Ground Rules for Effective Communications
 No Animosity – Free & Open Communications (Keep it Professional)
 Respectful – Level of Trust / Build-up Relationships
 No Interruptions – One at a time
 No Bad Ideas
 Don’t Force a Situation / Response (Take time to correct issues)
 Focus on Solutions / Goals – Not Blame
 Be Accurate / Truthful
 Remember – We’re One Team (Support each other / We have the same goals)
 Listening vs. Talking
 Listening before Speaking

Improving Communications
 Listen carefully & help others do the same
 Invite others to restate what they heard the other person say
 Reflect back your understanding of content, feelings & meaning
 Dialog is seeking understanding; not agreement
 Use non-verbal communications to set a positive tone
 No “end arounds”

CONFLICT RESOLUTION
Team Goals and Objectives: All project team members working cooperatively in an
atmosphere of mutual trust, respect and understanding, to anticipate and streamline resolution
to problems. Core to this focus is identifying problems early by getting information from all
involved, conducting team problem solving, giving clear and direct communications and
providing timely resolution of issues.

OWNER RESPONSIBILITIES

OWNER’S AUTHORIZED REPRESENTATIVE (LA) AND KEY STAFF
1. Coordinates necessary contacts with internal and external staff and team members, consultants, and community resources to ensure design and development review of the construction project.
2. Attends regular meetings on planning, maintains a record and observation of processes, and assists the team in ordering, storage, and placement of new materials and equipment as required. Serves as the central liaison between the building users, contractors, and all team members.
3. Represents the Owner and building users in meetings and public forums with affected and interested municipalities, community groups, businesses, individuals, regulatory personnel, and
legislators. Assists in the development of printed materials and other types of
information for presentation to various stakeholders. Makes oral presentations
covering a wide variety of project-related topics. Identifies and provides consultation
to staff, contractors, or volunteers, instructing on departmental regulations,
standards, and operating policies. Participates in all assigned/required training as needed.
4. Represents Owner in meetings with affected and interested stakeholders concerning
construction and operation issues and responds to questions from others
that arise during the course of construction.
5. Creation and assured compliance with roles and responsibility matrix.

Core Practices – IPD LEAN Construction JOB ORDER CONTRACTING

  • Reward desired behaviors
  • Alignment of risk and reward with a party’s ability to control risk
  • Creating a culture of partnership among stakeholders
  • Creating an open information environment
  • Integrating operating, design and construction knowledge through broad based team meeting
  • Reducing redundant efforts, conflicts
  • Improving means and methods
  • Modeling enterprise operations at the start, and behavior after occupancy
  • Mutually promote the success and benefit of the project and abide by the consensus decisions made by the Core Team composed of one leader from entity/area of competence.
  • Use detailed JOC Operations Manual/JOC Execution Guide to promote high performance with mutual benefit in the quality and efficiency of the process and outcome

IPD LEAN Construction JOB ORDER CONTRACTING

Learn more…

Uncategorized

Job Order Contracting Course – Competency 101

Job Order Contracting Competency 101 – The basic element of LEAN construction for renovation, repair, and minor new construction of the built environment.

Complimentary 20 Minute Webcast – Job Order Contracting Competency 101

Job Order Contracting Competency 101

Job Order Contracting Competency 101 – Outline

  1. What is LEAN Construction
  2. Owner & Contractor Requirements
  3. Requisite Tools
  4. Sample JOC Workflow

Register Here for Job Order Contracting Competency 101- (Time/Date TBD)

Job Order Contracting Competency 101 – your first step toward measurable improvements in productivity, quality, and overall satisfactions among participants.

About Us.

Our JOC Team helps Owners, Contractors, Subcontractors, Architectural&Engineering/Contract Management Companies and Cooperatives develop, deploy, and execute LEAN best practice Job Order Contracts.