List of Facilities Management Key Performance Indicators / Metrics:
(1) Thermal comfort (e.g. temperature, mean radiant temperature, humidity and air speed)
(2) Visual comfort (e.g. illuminance and glare)
(3) Acoustic comfort (e.g. reverberation)
(4) Indoor air quality (e.g. total volatile organic compound, CO2 level, concentration of radon)
(5) Percentage users dissatisfied
(6) Number of users’ complaints per year Financial
(7) Percentage cost of personnel
(8) Percentage cost of subcontractors
(9) Percentage of contractor cost
(10) Actual costs within budgeted costs
(11) Direct maintenance cost
(12) Breakdown severity
(13) Equipment replacement value (ERV)
(14) Maintenance stock turnover
(15) Percentage of maintenance material cost
(16) Percentage of corrective maintenance cost
(17) Percentage of preventive maintenance cost
(18) Percentage of condition based maintenance cost
(19) O&M cost per building area
(20) O&M cost per capacity of installation
(21) Cost of equipment added or replaced
(22) Energy expenditure per building area
(23) Energy expenditure per person
(24) Total safety and security expenditure
(25) Security expenditure per building area
(26) Security expenditure per person
(27) Building income per building area
(28) Total rentable value of the building Task and equipment related
(29) Work request response rate
(30) Scheduling intensity
(31) Manpower utilization rate
(32) Manpower efficiency
(33) Manpower utilization index
(34) Preventive maintenance ratio (PMR)
(35) Percentage of reactive (corrective) work
(36) Percentage of proactive (preventive) work
(37) Percentage of condition based maintenance work
(38) Percentage of improvement work
(39) Number of manhours per capacity of installation
(40) Number completed work orders per staff
(41) Area maintained per maintenance staff
(42) Quality of scheduling
(43) Schedule realization rate
(44) Schedule compliance
(45) Work order turnover
(46) Backlog size
(47) Urgent repair request index (URI)
(48) Corrective maintenance time
(49) Preventive maintenance time
(50) Response time for maintenance
(51) Percentage compliance with required response time
(52) Number of maintenance induced interruptions
(53) Failure/breakdown frequency (number of equipment faults per month or per year)
(54) Mean time between failures (MTBF)
(55) Mean time to repair (MTTR)
(56) Availability
(57) Efficiency of facilities
(58) Gross floor area under safety and security patrol Environmental
(59) Energy use index (EUI)
(60) Energy consumption per person
(61) Greenhouse gas emission per building area
(62) Energy audit
(Sources: British Standards Institution, 2007; Building Services Research and Information Association, 2011; Campbell, 1995; Chan et al., 2001; Electrical & Mechanical Services Department, 2007; Electrical & Mechanical Services Department and Environmental Protection Department, 2010; Hinks and McNay, 1999; Ho et al., 2000; Hong Kong Quality Assurance Agency, 2012; Lai and Yik, 2006; Lavy et al., 2010; Leung et al., 2005; Lukzkendorf and Lorenz, 2006; Muchiri et al, 2011; Parida and Chattopadhyay, 2007; Tsang et al., 1999; Vesela and Michael, 2001). Physical (impact on customer satisfaction)
Collaborative facilities management can, and must…
Facilities Operations & Maintenance Management considerations span several areas.
A partial list is shown below:
The full support of an organization and associated service providers is required in order to deliver provide a level of Facilities Operations & Maintenance Management in concert with their mission and goals.
A comprehensive written facilities management operations and maintenance manual and/or execution guide is a fundamental requirement. It should be written with LEAN process fundamentals in mind that focus upon BEST VALUE outline measurable desired OUTCOMES.
Facilities Operations & Maintenance Management requires and appropriate and ongoing consideration of PEOPLE, PROCESS, INFORMATION, and TECHNOLOGY is needed during the development of the Operations Manual / Execution Plan.
Post construction costs average 80% of total facilities investment thus emphasis upon O &M budgeting and capital planning provides major benefits.
Most organizations are historically first-cost driven, a bias that negatively affects overall return on investment. Appropriate decision-support tools and services (technology, data, and consulting/education/support) must be included to enable consideration of life-cycle costs and financial resource prioritization.
Determining the priority of capital reinvestment into facilities based upon a life-cycle perspective has proven to provide the highest likelihood of positive overall results. Many organizations spend up to 80% of operations and maintenance funds on emergency, unplanned projects and/or projects that provide limited true value to an organization. With proper planning and management processes in place, this ration can be reversed. This beneficial “shift” in resource allocation however is impossible without current actionable information, appropriate decision-support tools and appropriate strategies among all participants and stakeholders.
The productivity, quality, value and satisfaction associated with any facility renovation, repair, maintenance, sustainability, or new construction project are directly linked to the processes employed. Promoting awareness and education of LEAN construction practices and associated construction delivery methods among Owners, Contractors, Engineers, Architects, and Oversight Groups is key to efficient management of the built environment.
Within the LEAN Construction / Collaborative Construction Delivery process framework, emphasis is upon BEST VALUE OUTCOMES as the can be achieved through the leveraging of expertise of all project participants and stakeholders from initial concept and throughout the entire life-cycle of the built structures.
A common and minimum body of knowledge defined as a standard of excellence is key to reversing the current norm of waste, and other negative economic and environmental issues attributed to the Architecture, Engineering, Construction, Operations, Owner (AECOO) sector.
LEAN, BEST VALUE CONSTRUCTION DELIVERY METHODS[1] have been available for decades, but only practiced by fractional percentage of Real Property Owners and service providers. The reason for limited adoption of these methods, capable of enabling more projects to be completed on-time and on-budget, and with higher levels of quality and satisfaction, is simple. It’s a sector-wide lack of awareness and education.
The most widely used collaborative construction delivery methods are JOB ORDER CONTRACTING, JOC for renovation, repair, and maintenance activities and INTEGRATED PROJECT DELIVERY, IPD for major new construction.
As JOC is a form of IPD, directly applicable to operations and maintenance, a typical workflow for job order contract project is shown below.
LEAN Construction methods share has the following characteristics;
Facilities O & M management spans multiple competencies (core skills), business process (asset management practices/industries), and activities. A partial listing is shown below with links to additional information.
Multiple technologies and tools can be used to lower the cost of establishing and deploying facilities management operations and management best practices consistently. A partial listing is shown below, with appropriate links to additional information where available.
Application Software
Enhancing the understanding and appreciation specifically within the below areas will aid in improving productivity, quality, and satisfaction across the AECOO[2] sector, thereby bringing facilities management operations and maintenance to a higher level of performance:
Training and education must be required and ongoing for all stakeholders.
Ongoing performance measurement supports informed, information-based, decision making and improve resource allocation targeting facilities operations and maintenance.
From a generic perspective, an effective measurement system includes:
The importance of performance measurement cannot be understated. It is a fundamental element of LEAN management practices.
Sample O & M performance indicators:
[1] The construction project delivery method, or project delivery method is the process established to define, cost, procure, execute, and manage ) O & M and other construction/service tasks. As there are numerous and disparate operations and maintenance projects facing real property owners and their service providers, is it critical that they be accomplished in a timely and cost effective manner.
[2] AECOO-Architecture, Engineering, Construction, Operations, Owner
Open Data Job Order Contracting should be a requirement for any JOC Program.
WHAT….
Open Data for JOC means…
Note: A national average cost data book is note considered open data from a JOC perspective.
WHY…
Learn more about the OpenCost Approach…
Improving Job Order Contracts to maximize renovation, repair, and construction productivity is easy if you have the right approach, tools, and training.
Improving Job Order Contracts can help to assure that over 90% of renovation, repair, and minor new construction projects are completed on-time, on-budget, and to everyone’s satisfaction. This is only possible, however, if the Job Order Contracts are designed, implemented, and managed properly.
Here are the some major issues to take a look at when Improving Job Order Contracts..
LEAN Construction Delivery can significantly improve quality, productivity, and overall levels of satisfaction. That said, some JOC Programs, especially at the County, State, and Local Government levels have bee set up simple as a means to bypass traditional procurement versus truly establish LEAN collaborative construction delivery processes.
Real property owners must be directly providing leadership and participate in day-to-day functions, and not rely upon a JOC Consultant to provide a management role.
Cloud technology best enables internal and external teams to be connected, and have access to current and actional information from anywhere, anytime.
LEAN collaborative project delivery models need to work in a shared space so that decisions, updates and communications are simultaneously and instantly applied, flagged, and tracked.
According to the International Energy Agency, almost 30% of worldwide energy is attributable to buildings (40% of total in energy in the United States), and will increase 1.5% year through 2040 to almost 50%. The United States is largest user of energy for commercial use. Building energy use, and associated renovation, repair, and sustainability is therefore the top priority. Job order contracting can assist all forms of organizations to expedite the numerous projects to meet sustainability goals.
Locally researched detailed unit price cost data is key to improved financial visibility and transparency. National average unit price commercial construction cost books have their purpose, however, for JOC, you need more. Check our OpenCost Advantage!
Job Order Contracting in the Cloud is simply better, faster, and more secure.
Sure, you can continue to use spreadsheets or national average cost databases and their associated little cost calculators, or you can use powerful, locally research construction cost data developed by teams with years of JOC expertise... AND…. get easy-to-use modern cloud technology!!!
Better. Faster. Stronger. Four BT’s (4BT) cloud-based JOC management software empowers Owners, Contractors, and Subcontractors new, innovative ways.
The demand for faster, more accurate and objective JOB ORDER CONTRACTING systems led to the creation of 4BT-CE cloud-based JOC software.
Please review the following information, and give us a cal to better understand the true value of these tools and how they can benefit our organization.
A few facts about the Cloud-based Job Order Contract Management
The goal of facilities management is to provide the greatest return on investment for dollars spent in delivering physical infrastructure in support of your organization’s mission. Providing internal and external managers and service providers the information they need at any given time is CRITICAL to this goal.
4BT tools help make this possible, connecting all JOC participants and stakeholders with current actionable information and tools.
A JOB ORDER CONTRACT PROCUREMENT STRATEGY spans 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 JOB ORDER CONTRACT PROCUREMENT STRATEGY and 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.
JOB ORDER CONTRACT PROCUREMENT STRATEGY TIMING / Months
JOB ORDER CONTRACT PROCUREMENT STRATEGY is an ongoing activity, the plan is continuously updated.
Components of an acquisition plan within the overall JOB ORDER CONTRACT PROCUREMENT STRATEGY;
Statement of Need. Results of the need analyzed.
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, and 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. It the JOC involves multiple contractors/awardees, it must be determined how selection per task order will 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 / Technology / Software 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 (JOC 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 owner 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 JOC 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.
Job Order / 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.
Job Order Contract Acquisition Milestones
Needs Analysis
Strategy
Acquisition Plan Approval, as required.
Statement of Work
Specifications & JOC Unit Price Book / Data Requirements
Small Business Considerations
Purchase Request
Preparation of Acquisition Package
Obtain Pre-solicitation Approvals (as required)
Review Panel
Source Selection Evaluation Plan Approval (as required)
Issue Solicitation
Preproposal Conference
Evaluate proposals, audits & field reports, as required
Prepare Discussion and Clarification Statements
Prepare Discussion and Competitive Range Decision
Request & Review Revised Proposals (Discussions Process)
Request Final Revised Offer
Prepare Selection Decision
Contract Award
Debriefing(s)
Four BT, LLC – Independent, Objective, Best Value LEAN Construction Job Order Contracting Solutions
www.4BT.us
Learn more…
Delivering Better Facilities Through LEAN Construction and Owner Leadership … 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.
Delivering Better Facilities through Lean Construction and Owner Leadership NIBS 2017
Delivering Better Facilities Through LEAN Construction and Owner Leadership enables major improvements in productivity, quality, and overall satisfaction.
Owners are in the best position to validate appropriate planning, capability, tools, information and processes. They can require all stakeholders to collaborate, be transparent, build strong relationships and drive higher productivity and value for the facility.
Productivity in the architecture, engineering, construction, owners and operations (AECOO) industry lags behind other industries. Given the impact that facilities have on the financial and operational performance of an organization, increasing productivity can make a big difference to the bottom line. However, to achieve better results, owners must be more involved.
Traditional construction delivery methods (e.g., design-bid-build and lowest-bidder) and newer methods (design-build) are not up to the task. Ultimately, these methods fail to integrate the unique variables of each construction project.
Lean construction is a solution for the facilities industry, as it has been for other industries facing similar struggles. Lean Construction Basics Lean construction delivery provides a process framework to improve outcomes. When properly implemented, more than 90% of lean projects (renovation, repair and new construction) are on time, on budget and satisfactory for all parties.
Job Order Contracting Benefits
Job Order Contracting benefits all participants and stakeholders – facilities management, DPW, engineering, real property owners, facility users, procurement, contractors and oversight groups.
JOC concept has several key advantages over the traditional design-bid-build, design-build, and virtually all other construction construction delivery method, exclusive of integrated project delivery, IPD. That said, JOC is a form of IPD that specifically targets renovation, repair, and minor new construction. IPD, on the other hand, targets major new construction.
Though the benefit of Job Order Contracting are significant, users of this method typically undergo a change management process in order to be able to fully adopt and deploy all related processes, procedures, and tools.
Job Order Contracting Benefits
Learn More…
| LEAN Collaborative Construction Practices Construction Cost Estimating
Four BT, LLC
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LEAN Collaborative Construction Practices Construction Cost Estimating – Within this structure the Real Property Owner must demonstrate appropriate leadership skills and manage the appropriate selected team of internal and external service providers and stakeholders without excessive control. Continuous monitoring, process improvement, and resource development should be a central focus.
In general terms are an actionable construction cost estimate should reflect approximate costs developed for a complete schedule of detailed construction line item tasks/activities after consideration of all physical and functional requirements and possible cost variations. Thus the process of generating an actionable construction cost estimate can be defined as a quantitative assessment process generates a detailed line item construction cost estimate. There are multiple alternative forms of estimates including conceptual, square foot, building, system, life-cycle, etc. The primary focus here is upon detailed line item construction cost estimates as they should be considered mandatory before any final construction project is approved and begun.
A few general principles greatly assist in the development of actionable construction cost estimates: · Early and ongoing participation of all stakeholders (designers, architects, engineers, construction contractors, facilities management, building users, oversight groups, etc.) · Full line item descriptions in plain English using industry standard terms. · Organization by standard data architecture (Uniformat, MasterFormat, Omniclass etc.) · Full details of specific labor, material, and equipment costs and type. · Transparency, sharing, and collaboration among all stakeholders · Independently and objectively locally researched cost information (Note: Do not rely exclusively upon national average cost data, even data with localization factors. Do not rely exclusively upon subcontractor costs. · Assure all cost information is updated to current location, time, requirements, and conditions. |
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General review of the Cost Types associated with LEAN Collaborative Construction Practices Construction Cost Estimating Variable Cost – Any cost that changes with the amount of production or the amount of work. Examples: cost of materials, power, water, labor Fixed Cost – Cost that does not change as production changes is a fixed cost. Examples: mobilization/set up cost, rental or rental of equipment or machinery.
Direct Cost- Costs are directly attributable to the work on the project. Example: team travel, team wages, recognition, and costs of materials used on the project. Indirect Cost – Overhead items or costs incurred for the benefit of more than one project are indirect costs. Example: Corporate Tax, Fringe Benefit Tax. Opportunity Cost – Cost associate by choosing a particular method or project over another an opportunity cost. Sunk Cost – Costs are the ones which were already spent on the project earlier and generally not considered when future decisions are made. Types of Estimating and Associated Key Terms |
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Analogous Estimating – Using the actual cost of previous or similar projects as the basis for estimating the cost of the current project. Researched Costs/Cost Rates – Actual per unit labor and material resource rates are that are collated or estimated. May include subcontractor quotes, current/previous relevant contracts, and commercial cost databases. Bottom-up Estimating (also detailed line item estimating- Individual schedule activities, and/or task, that are estimated to the smallest reasonable level of detail to provide the greatest level of confidence. All costs are then aggregated and used for reporting, tracking and control purposes. Individual activity/task cost consciousness is of prime importance. Parametric Estimating – This technique uses historical cost with current project variables that are determined. This is a highly accurate method as it requires clarity in current project variables. Cost Estimating Software – Widely Available cost estimation applications can be used for faster estimation of alternatives. At a minimum capabilities should include the ability to house, store, and recall a construction cost database, provide a collaborative environment, create, report, and export (excel, PDF), detailed line item cost estimates, track source of line time, and have ability to include notes at line item level. Vendor Bid Analysis / Contractor/Subcontractor Quote Analysis: A method used to benchmark costs. If a project is won in a competitive bid, more details should be considered for cost estimation and control purposes. Contingency or Reserve Analysis – Allowances used to deal with uncertainty or “knowns-unknowns” and these are added to the cost estimates, thus sometimes overstating construction project costs. Options vary between grouping similar activities and assigning a single contingency reserve for that group to a zero duration activity. Cost of Quality – Cost of quality can also be used to prepare the schedule activity cost estimate. |
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| Cost Budgeting – Aggregating the estimated costs of individual schedule activities or work package to establish a total cost baseline for measuring project performance. The project scope of work statements are prepared prior to the summary budget. Schedule activity or work package cost estimates are prepared prior to the detailed budget requests and work authorization. | |
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Cost Aggregation – Schedule activity cost estimates are aggregated and grouped by work packages, which may be then grouped by higher levels as per levels set by the WBS, then finally by the entire project. Parametric Estimating – Using construction project characteristics (parameters) in a mathematical model to predict total project costs. Both the cost and accuracy of parametric models vary widely. They are most likely to be reliable when: the historical information used to develop the model is accurate, the parameters used in the model are readily quantifiable, and the model is scalable (it works within the range of likely construction sizes to be finalized). Funding Limit / Budget Reconciliation – Funds are reconciled and based on the results and new limits are set and WBS components are adjusted. This may impact allocation of resources to the project. If costs are used in the schedule development process, the process is repeated with new constraints and a new baseline is derived.
Primary Causes of Cost Variation |
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| Cost control and/or the level of confidence associated with a construction cost estimate can be affected by several factors… 1. Level of collaboration and detail with which the scope of work is discussed and shared among all stakeholders, 2. The construction deliver method, 3. The experience level and competency of the team, 4. The amount experience that the team has had working together in the past, 4. Degree and/or number of uncertainties, 5. The method in which the project is managed (assuring that requested changes are detailed and agreed upon, managing the actual changes when and as they occur, ongoing (daily) monitoring project work and cost performance to detect and understand variance from the cost baseline, recording all appropriate changes accurately against the cost baseline versus the project cost estimate, adhering to established processes and workflow s (preventing incorrect, inappropriate, or unapproved changes from being included in the reported cost or resource usage, informing appropriate stakeholders of proposed, approved changes, leveraging the use of key performance indicators (KPIs), shared risk/reward among all participants. | |
| Tools and Techniques of Construction Estimating and Associate Cost Control | |
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Project / Program / Contract Execution Plan and//or Operations Manual – In addition to the Construction Delivery Method, likely the most important item relevant to improving outcomes. A written, detailed, and agreed upon document defining roles, responsibilities, documents, costs data types/formats, specifications. Outcomes, deliverables, processes, workflows, approvals/approval levels, etc., tools associated with the cost management plan. Collaborative Construction Cost Estimating and Project Tracking System – Cloud based system that enables transparent creation, modification, use, updating, and storage. Inclusive of construction cost line item database. Key Performance Indicators, KPIs, Performance Measurement Analysis – Performance measurement methods, metrics, techniques to help to assess the magnitude of any variance that will invariably occur with any construction estimate, or construction project/program. For example, the earned value technique (EVT) compares the cumulative value of the budgets cost of work scheduled (planned) to the actual cost control, resource management, and production. An important part of cost control is to determine the variance, the magnitude of the variance, and to decide if the variance requires corrective action. The earned value technique uses the cost control contained in the project management plan to assess project progress and the magnitude of any variations that occur. The earned value technique involves developing these key values for each schedule activity, work package, or control account. Planned value (PV) – PV is the budgeted cost for the work scheduled to be completed on an activity or WBS component up to a given point in time. Earned value (EV) – EV is the budgeted amount for the work actually completed on the schedule activity or WBS component during a given time period. Actual cost (AC) – AC is the actual cost incurred in accomplishing work on the schedule activity or WBS component during a given time period. This AC must correspond in definition and coverage to whatever was budgeted for the PV and the EV (e.g. direct hours only, direct cost only, or all costs including indirect costs). Estimate to complete (ETC) and estimate at completion (EAC) – The PV, EV, and AC values are used in combination to provide performance measures of whether or not work is being accomplished as planned at any given point in time. The most commonly used measures are cost variance (CV) and schedule variance (SV). The amount of variance of the CV and SV values tend to decrease as the project reaches completion due to compensating effect of more work being accomplished. Predetermined acceptable completion can be established in the cost management plan. Cost Variance (CV) – CV equals earned value (EV) minus actual cost (AC). The cost variance at the end of the project will be the difference between the budget at the completion (BAC) and the actual amount spent. Formula: CV=EV-AC Schedule Variance (SV) – SV equals earned value (EV) minus planned value (PV). Schedule variance will ultimately equal zero when the project is completed because all of the planned values will ultimately equal zero when the project is completed because all of the planned values will have been earned. Formula: SV=EV-PV The values CV and SV, can be converted to efficiency indicators (KPIs) to reflect the cost and schedule performance of any project. Cost performance index (CPI) – A CPI value less than 1.0 indicate accost overrun of the estimates. A CPI value greater than 1 indicates a cost under-run of the estimates. CPI equals the ratio of the EV to the AC. The CPI is the most commonly used cost-efficiency indicator. Formula: CPI=EV/AC Cumulative CPI (CPI^c) – The cumulative CPI is widely used to forecast project costs at completion. CPIC equals the sum of the periodic earned values (EV^c) divided by the sum of the individual actual costs (AC^c). Formula: SPI=EV/PV The earned value technique in its various forms is a commonly used method of performance measurement. It integrates project scope, cost (or resource) and schedule measures to help the project team assess project performance. |
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Forecasting – Making estimates or predictions of conditions in the project’s future based on the information and knowledgeable available at the time of the forecast. As the project progresses, the forecasts are adjusted. The earned value technique parameters of BAC, actual cost (AC^c) to date, and the cumulative CPI^c efficiency indicator are used to calculate ETC and EA, where the BAC is equal to the total PV at completion for a schedule activity, work package, control account, or other WBS component. Forecasting technique parameters to assess the cost or the amount of work to complete schedule activities is called the EAC. Forecasting techniques also help to determine the ETC, which is the estimate for completing the remaining work for a schedule activity, work package, or control account. While the earned value technique of determining EAC and ETC is quick and automatic, it is not as valuable or accurate as a manual forecasting technique based upon the performing organization providing the estimate to complete. ETC is based on the new estimate. ETC equals the revised estimate for the work remaining as determined by the performing organization. This more accurate and comprehensive completion for all the work remaining considers the performance estimate to complete all the work remaining and the performance or production of the resource to date. Alternatively, to calculate ETC using value data, one of the two formulas is typically used: ETC based on atypical variances. This approach is most often used when current are seen as atypical and the project management team expectations are that similar variance will not occur in the future. ETC equals the BAC minus the cumulative earned value to date (EVC). Formula: ETC= (BAC – EVC) ETC based on typical variances – This approach is most often used when current are seen as typical of future variances. ETC equals the BAC minus the cumulative EVC (the remaining PV) divided by the cumulative cost performance index (CPIC). EAC using a new estimate. EAC equals the actual costs to date (AC^c) plus a new ETC is provided by the performing organization. Formula: EAC=AC^c + ETC |
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| LEAN Collaborative Construction Practices Construction Cost Estimating |
Learn more about…LEAN Collaborative Construction Practices Construction Cost Estimating
Here are a few lessons learned with respect to improving construction productivity, and overall life-cycle management of the built environment. Job Order Contracting Lessons Learned Regarding Improving Construction Productivity …
Focus must be upon building strong leadership, competency, and collaboration internal to an organization and doing the same with external service providers.
WHAT NOT TO DO….
JOC is a collaborative construction delivery method. It is NOT solely a procurement method. Is also should NOT be used to bypass traditional procurement methods to simply save time or approve project that otherwise would not have been approved. Unfortunately some sectors such as County, State, and Local Government are notoriously poor facilities management practitioners and many agencies have corrupted the use of JOC. This fact readily demonstrated if one take the time to review the many publicly available independent and internal audits of JOC Programs in this sector.
Conversely the Federal Government and Higher Education, for the most part, deploy JOC properly and have reaped the available benefits.
RULES TO LIVE BY…
Deploying JOC, and any collaborative LEAN construction delivery method properly, does indeed solve many AECOO industry if used properly. All, however REQUIRE the following…
Job Order Contracting Lessons Learned Regarding Improving Construction Productivity
Learn more…
Peter Cholakis, 4bt.us
12 Good Reasons to Adopt BIM for Facilities Management
Despite the fact that the use of the BIM[1] methodology in Facilities Management is becoming ever more important for all organizations for both economic and environmental reasons, BIM software adoption for facilities operation and maintenance (O&M) remains poor.
Distribution and sharing of information by the Facilities Management Team is crucial to achieving cost efficient and high performing facilities, however, 3-D BIM visualization and modeling software is generally very sophisticated, relatively expensive, and very complex. Current 3-D BIM software targets sophisticated users who focus upon design yet are ill-suited to support or engage in Facilities Management functions.
Complex 3-D visualization type of software is SIMPLY NOT REQUIRED to practice efficient life-cycle management of the built environment. What is required is an integrated, customer focused service delivery approach based upon LEAN collaborative construction design and delivery methods, a common data environment that transparently shares detailed technical and locally researched actionable and standardized cost information, and the integration of multiple cloud-based technologies to effectively manage each core domain and competencies of facility life-cycle management.
Twelve (12) reasons for facilities managers to adopt change management and relevant technologies in support of BIM strategy and implementation:
1. LEAN Construction Delivery, the foundation of the efficient management of the built environment, have a proven track record. Examples such as integrated project delivery and job order contracting (JOC) deliver over 90% of renovation, repair, and new construction project on-time, on-budget, and to the satisfaction of all participants and stakeholders.[2]
2. There are no barriers to integrating various BIM technologies and LEAN processes, except that of the need for Owners to provide leadership, and for all organization to successfully drive change management.
3. 3-D visualization is already rooted in design and construction phases and is therefore inevitable that it is also adopted in the subsequent operation and maintenance phase, and integrated with other competencies and tools (however, again, is not a requirement).
4. LEAN construction delivery, common data environments, and open cloud-based technologies enable measurable gains in efficiency, cost-effectiveness, collaboration, and transparency.
5. Collaborative LEAN construction delivery and supporting BIM methods and technologies will become the standardized method for Facilities Management, regardless of the size of an organization.
6. The focus of BIM upon life-cycle costs versus first drives continuous improvement and provides major environmental benefits, such a lowering carbon footprints.
7. BIM’s collaborative LEAN construction process are beneficial for all types of projects – public and private sector and all types of properties – hospitals, commercial buildings, residential buildings, etc.
8. Cost of implementation is insignificant versus cost savings.
9. The expertise and involvement of Facilities Managers during the initial concept development and design through deconstruction is crucial to ensuring life-cycle performance of the building/physical asset.
10. Current inventory and location, condition, and detailed service plans and costs of building components and technology assets are uniquely stored, traceable, and readily accessed.
11. Information and asset inventory can be viewed in a wide variety of ways depending upon user needs: displaying all the premises using pictures, 3D models, 2D CAD, detailed line items in list view, etc.
12. Operation and Maintenance are now part of an overall integrated service delivery approach.
Solutions such as Building in Cloud, allow, via access through any device (desktop, tablet, or smartphone and a Web browser) access to a full range of facilities management information and associated proven LEAN collaborative workflows/processes.
Have you some cases of successful implementation of BIM in the Facility management processes to highlight and you would like to bring to the attention of those working in the industry?
If yes please comment on this post, or email me, and we will share your experience with others! info@4BT.US
[1] BIM is defined as the efficient life-cycle management of the built environment supported by digital technologies.
[2] For JOC, due to the need for negotiations on individual delivery orders and the lack of a defined scope of work at the beginning of the contract, teamwork and frequent communication are required for a successful contract. . A formal =partnering process is required in JOC to focus the parties in that direction. In addition, many JOC contracts employ a negotiated source selection based upon best value procurement.
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Improve Construction Productivity using Integrated Project Delivery, Job Order Contracting (JOC) and other proven LEAN construction methods.
Research has clearly determined as well as decades of successful deployment have determine that integrated service delivery methods, such as JOC and IPD, improve overall project delivery effectiveness.
Survey information obtained from both real property owners and construction contractors spans construction performance, administrative support, owner-contractor relationships, and overall satisfaction.
Analysis of available survey data and discussion with experience professionals in these areas reveal that owners, contractors, and oversight groups perceived advantages in the use of properly designed and executed Job Order Contracting and Integrated Project Delivery programs.
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Job order contracting information is key to improving construction productivity. Public works contracts vary from private sector contracts in that legislation sets the contracting guidelines for contracts and the public interest demands safeguarding process integrity.
Thus, the requirement for full and open competition is a hallmark of
public contracts.
To minimize the chance of favoritism or corruption, the sealed bid
contracting method was developed to award a contract on the basis of price alone. Also referred to as the “Design-Bid-Build” process, this system has long been the most prevalent option for large and small public works contracts.
Over time, however, 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.
Related Resources:
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.
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
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.
CMMS Facilities Operations Maintenance Best Management Practices span a broad range of services, competencies, processes, and tools required to assure the built environment will perform the functions for which designed, constructed, and currently used: All activities associated with the routine, day to day use, support and maintenance of a building or physical asset; inclusive of administration, management fees, normal/routine maintenance, custodial services and cleaning, fire protection services, pest control, snow removal, grounds care, landscaping, environmental
operations and record keeping, trash-recycle removal, security services, service contracts, utility charges (electric, gas/oil, water), insurance (fire, liability, operating equipment) and taxes. It does not include capital improvements. This category may include expenditures for service contracts and other third-party costs. Operational activities may involve some routine maintenance and minor repair work that are incidental to
operations but they do not include any significant amount of maintenance or repair work that would be included as a separate budget item.
CMMS Facilities Operations Maintenance Best Management Practices include the day-to-day activities necessary for the building/built structure (examples: facilities, roadways, bridges, dams, airports, mass transits, utilities, landscaping, snow removal, etc.) and its systems, equipment, and occupants/users to perform their intended function.
Facilities operations and maintenance encompass a broad spectrum of services, competencies, processes, and tools required to assure the built environment will perform the functions for which designed and constructed. Operations and maintenance are combined into the common term Built structures cannot operate at peak efficiency without being properly maintained.
The following are generally required to implement CMMS Facilities Operations Maintenance Best Management Practices:
Operations and maintenance (O&M) activities can further be divided several functions/areas:
Emergency Maintenance: Unscheduled work that requires immediate action to restore services, to remove problems that could interrupt
activities, or to protect life and property.
General Maintenance: Custodial, trash removal, landscaping, snowplowing, janitorial activities.
Planned or Programmed Maintenance:
Includes those maintenance tasks whose cycle exceeds one year. Examples of planned or programmed
maintenance are painting, flood coating of roofs, overlays and seal coating of roads and parking lots, pigging of
constricted utility lines and similar functions.
Predictive Maintenance: Predictive Maintenance/Testing/Inspection Routine maintenance, testing, or inspection performed to anticipate failure using specific methods and equipment, such as vibration analysis, thermographs, x-ray or acoustic systems to aid in determining future
maintenance needs. For example, tests to locate thinning piping, fractures or excessive vibration that are
indicative of maintenance requirements.
Preventive Maintenance: A planned, controlled program of periodic inspection, adjustment, cleaning, lubrication and/or selective parts
replacement of components, and minor repair, as well as performance testing and analysis intended to
maximize the reliability, performance, and lifecycle of building systems, equipment, etc. Preventive
maintenance consists of many check point activities on items, that if disabled, may interfere with an essential
installation operation, endanger life or property, or involve high cost or long lead time for replacement.
Repair(s): Work that is performed to return equipment to service after a failure, or to make its operation more efficient.
The restoration of a facility or component thereof to such condition that it may be effectively utilized for its
designated purposes by overhaul, reprocessing, or replacement of constituent parts or materials that have
deteriorated by action of the elements or usage and have not been corrected through maintenance.
Routine Maintenance: Normal/Routine Maintenance and Minor Repairs
Cyclical, planned work activities funded through the annual budget cycle, done to continue or achieve either
the originally anticipated life of a fixed asset (i.e., buildings and fixed equipment), or an established suitable
level of performance. Normal/routine maintenance is performed on capital assets such as buildings and fixed
equipment to help them reach their originally anticipated life. Deficiency items are low in cost to correct and
are normally accomplished as part of the annual operation and maintenance (O&M) funds. Normal/routine
maintenance excludes activities that expand the capacity of an asset, or otherwise upgrade the asset to serve
needs greater than, or different from those originally intended.
Unscheduled/Unplanned Maintenance: Reactive and non-emergency corrective work activities that occur in the current budget cycle or annual program. Activities may range from unplanned maintenance of a nuisance nature requiring low levels of skill
for correction, to non-emergency tasks involving a moderate to major repair or correction requiring skilled
labor. Requests for system or equipment repairs that – unlike preventive maintenance work – are unscheduled and unanticipated. Service calls generally are received when a system or component has failed and/or perceived to be working improperly. If the problem has created a hazard or involves an essential service, an emergency response may be necessary. Conversely, if the problem is not critical, a routine response is adequate.
Reactive and/or emergency corrective work activities that occur in the current budget cycle or annual program.
Activities may range from unplanned maintenance of a nuisance nature requiring low levels of skill for
correction, to non-emergency tasks involving a moderate to major repair or correction requiring skilled labor, to
emergency unscheduled work that requires immediate action to restore services, to remove problems that
could interrupt activities, or to protect life and property.
via Four BT, LLC – Independent, Objective, Best Value Lean Construction and Job Order Contracting Soutions
Roles and responsibilities of a job order contracting program manager are both diverse and key to overall success.
Let’s take a look at the roles and responsibilities of a job order contracting program manager. First, and foremost, the JOC Program Manager should be an employee of the real property owner and directly involved in both the strategic and day-to-day operations of the JOC Program. Job Order Contracting is a multiple party, collaborative win-win agreement between a real property owner and the service provider(s), as such JOC Program management should not be outsourced to a third party, such as JOC consultant.
Based upon the type and location of the organization, the JOC Program Manager must assure that the JOC Program is in full compliance statues/regulations/laws pertaining to the acquisition and use of capital funds for a facility and/or physical infrastructure renovation, repair, maintenance, and/or minor new construction.
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Whether you are involved in Job Order Contracting or engaging in general construction cost estimating its time to Stop Using Construction Cost Indexes, Location Indexes, Location Factors. The use of construction cost indexes, location indexes, or location factors is likely costing your organization money and creating major problems for everyone involved; real property owners, contractors, subs, architects, engineers, and oversight groups.
Using location indexes appears to be a gamble, and the result will vary significantly depending on the index used. There is no obvious consistency between the publications, even those of the same type. This is very concerning as major decisions may be based upon this information. – A Guide to Construction Cost Sources, Prism Economics and Analysis and the Department of Civil Engineering, University of Toronto
First, if one compares construction cost factors from various sources there appears to be no rhyme of reason for their development. The variances can be extreme. Secondly, applying a location factor to a unit price line time just doesn’t make sense. The location of a job affects the labor rates, fringes, crew composition, and productivity… all of which can’t simply be multiplied by a factor. As labor alone accounts for 60% of construction cost alone, the use of location factors can easily introduce gross errors. (Note: Some vendors even state the productivity is not considered in creating the location factor!)
Location indexes generally do not contain any assumptions or adjustments related the local labor productivity. It is important to note that the quantities are constant in every location. This means that some aspects of the construction process are not captured, such as labor skill levels or practices and local building code requirements.
Simple. Traditionally cost estimators have researched there own costs by calling subs and also by using national average price books. Locally researched construction cost data either wasn’t available or was too expensive.
That is no longer the case, locally researched cost data is not only available, but it provides a faster, more efficient and reliable method of creating construction costs estimates for all parties. Locally researched line item construction cost data can be even be relied upon to check estimates received from subcontractors/trades!!!
Learn more about locally researched detailed line item construction cost data…
Validation
The reliability of the cost data is always in question. The method used to collect the cost data is very important to ensure the data are representative of the political and economic conditions. Data collection may be done by phone with associated firms (engineers, cost estimators, subcontractors/trades, contractors) providing information, by survey of published labor, material, and equipment costs, and/or by review of completed project files. Where associated firms are providing the information, it is important that they all understand the assumptions that must remain constant for all locations, and to not allow personal or local biases affect the reliability of the process.
Facilities Management Glossary
Facilities management glossary provided to improve collaboration and productivity for real property owners, contractors, architects, engineers & oversight groups .
agreement: a fully executed (signed by appropriate parties) between the demand organization and the provider of services or products that clearly describes requirements in sufficient detail, including conditions, costs, resources required, desired outputs, and associated workflows.
asset: a physical item, thing or entity that has potential or actual value to an organization
asset management: coordinated activity of an organization monitor, control, and realize value from physical items, things, or entities
built environment: buildings, land/landscaped areas, infrastructure and other construction works
competence / competency – ability to apply knowledge, skills, and tools to achieve intended results in a targeted area(s). Examples specific to facility management include: construction cost estimating, maintenance management, capital planning, space planning, project delivery, etc.
demand organization: an entity which has a need and the authority to incur costs to have requirements met
end user: person or organization which uses products or services obtained from a supplier
internal service provision, in-house service provision: delivery and management of by staff employed by the demand organization
facility management, facilities management, FM: organizational function which integrates people, place, process, technologies, competencies, with respect to the with the purpose of improving outcomes, including quality, productivity, satisfaction, and return on investment in support of the organizational mission.
facility process: process which is integrated and managed by a facility management group/facility management organization
facility service: support provision to the primary activities of an organization delivered by an internal or external provider
infrastructure system: of facilities, physical equipment, built structures, and services/products/processes needed for the operation of an organization
open-book: transparent exchange of relevant information (especially costs – (OpenCostTM) between the facility management/construction/AE service provider and the demand organization
organization: person or group of people that has its own functions with responsibilities, authorities and relationships to achieve its objectives (examples: sole-proprietor, corporation, firm, enterprise, authority, partnership, charity or institution, or part or combination thereof, whether incorporated or not, public or private.
mobilization: phase to establish and implement all resources, tools, materials, information, information and procedures prior to taking full responsibility for the facilities services to be delivered as specified in the agreement.
need/requirement: a stated or implied expectation, specific (stated, for example in documented information or abstract, from the demand organization which is essential to enable the achievement of the core purpose and key objectives, generally implied (custom or common practice for the organization and interested parties or obligatory
real estate / real property: immovable land and/or buildings/physical structures.
service level: complete description of requirements of a service, product, technology process or system with their defined characteristics
support service: non-primary activity delivered in support of core business/core service of the organization
service level agreement, SLA: document which has been agreed between the demand organization and a service / product provider on defining performance, measurement and conditions of product/service delivery.
service provider organization: a provider that delivers one or more facility services that is internal or external to the demand organization .
specification(s): detailed description of the required performance and/or technical requirements for services or products and processes set out by the demand organization to make clear to the service provider the requirements to be fulfilled
workplace: physical location where work is performed
work station: location containing furniture and supporting equipment (telephony, IT and power connections), specifically designed or suitable for work-related activities and is suitable for permanent use
Facilities Management Glossary
For a more definitive Construction Glossary, please visit…
For more information…
LEAN Construction Primer, an introduction to collaborative construction delivery.
LEAN Construction delivers higher productivity and over 90% of construction projects on-time, on-budget, and to everyone’s satisfaction.
So what is LEAN Construction? Simple actually, it’s a process the embodies ALL of the following elements….
The most notable examples of LEAN construction delivery methodology that have been deployed and proven include Integrated Project Delivery, IPD (for major new construction), and Job Order Contracting, JOC (for renovation, repair, and minor new construction).
LEAN Construction is tailored to each organization and its service providers, in consideration of the following…
Context of the Organization
Leadership
Planning
Operations
Improvement
Support
Performance Evaluation
via Four BT, LLC, www.4bt.us … Independent, Objective, and Best Value LEAN Construction Delivery Solutions (JOC, IPD…), Training, Technology, Services, and Cost Data
Construction Cost Estimating Software including 50,000 line item construction cost database and access via a secure cloud network, only $150.00/month!
The only cloud based construction cost estimating system available that is independent and objective, includes over 50,000 detailed construction line items created by cost estimators, project managers, and facilities managers with decades of industry experience, AND also the a wide range of features noted below, and more!
Job Order Contract outsourcing of core management is inconsistent with its inherent design and function.
outsource (verb) – to make an arrangement where an external organization/service provider/consultant performs part of demand organization’s function or process. Note: The demand organization is an entity requesting services or products from an external service provider. The external organization is outside the scope of the management system of the demand organization.
By definition Job Order Contracting is a LEAN construction delivery method that focuses upon early and ongoing communications between real property owners and construction contractor. Competent and directly leadership, provided by the real property owner is important, IF NOT REQUIRED, in order to achieve the benefits of Job Order Contracting.
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Job Order Contract Open Standards increase collaboration and productivity for owners and contractors as well as improve financial visibility.
OpenJOC provides facilities management a means to consistently execute renovation, repair, and minor new construction on-time, on-budget, and per established requirements.
OpenJOC improves financial visibility
OpenJOC helps to assure compliance
OpenJOC established a collaborative, win-win relationship between owner and contractor teams
OpenJOC can be monitored globally yet managed locally
OpenJOC embodies change management
OpenJOC provide a wealth of current and actionable facilities information, including detailed unit price line items.
OpenJOC is supported by cloud technology
OpenJOC can be tailor to organization and local requirements
OpenJOC delivers competitive advantage through improved performance
OpenJOC delivers best value through proven process implementation
OpenJOC minimizes disruption through effective risk management
OpenJOC uses common terms and a common cost data environment (CCDE)
OpenJOC clearly defines service level requirements and customer expectations
OpenJOC monitors key performance indicators
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LEAN Construction Job Order Contracting Standards provide requirements, workflows, specifications, guidelines or characteristics that can be used consistently to ensure that renovation, repair, minor new construction projects and their associate materials, products, processes and services are fit for their purpose, and delivered on-time and on-budget, to everyone’s satisfaction.
Contact us today to get your 80+page template…. (available to qualifying organizations only).
LEAN Construction Job Order Contracting Standards provide requirements, workflows, specifications, guidelines, and characteristics to improve outcomes for all.
What is a Good JOC Program ?
Request a copy of an 80+ page Job Order Contract Operations Manual Template
via www.4BT.US – Independent, Objective, Best Value LEAN Job Order Contracting Solutions for Savvy Owners & Contractors.
More About Us…
Six Key Job Order Contract Features Assure Success for real property owners, contractors, and oversight groups.
Six Key Job Order Contract Features Assure Success
Request an 80-page JOC Operations Manual Template to receive information that goes well beyond Six Key Job Order Contract Features Assure Success …
Job Order Contracting can be a powerful tool in addressing physical infrastructure maintenance management. JOC can used across the facilities maintenance management spectrum.
Leveraging JOC to move from reactive to proactive maintenance management results in fewer costly and highly disruptive emergency events, providing higher quality, greater customer satisfaction, and lowering overall costs.
via www.4BT.US – Independent, Objective, and Best Value LEAN Job Order Contracting Solutions for savvy owners and contractors.
Community-based Construction Cost Estimating … The OpenCostTM Approach
Take advantage of several critical improvements relative to the collection, validation, use, and maintenance of detailed line item unit price cost data to improve construction outcomes.
Traditional cost data commonly available on the market is based upon national averages. Localization factors are used to attempt to provide a reasonable approximately of construction costs in particular areas. While this approach is fine for gross approximation, locally researched cost data provides significantly improved financial visibility.
The OpenCost MethodologyTM is a collaborative and ongoing cost estimation process. The estimator (owner/contractor/A&E, etc.) leverages an OpenCostTM locally researched and fully detailed line item cost database as a baseline. Participant experience and a site visit with all service providers and stakeholders lead to a detailed construction cost estimate. A collaborative and potentially iterative process then occurs between the owner and contractor(s) on a detailed line item basis. The standardized terms and data formats contribute to the all parties’ ability to generate the final and mutually approved cost estimates that truly reflects the desired scope of work.
Once the estimate is mutually approved the construction team uses the estimate for the development of the schedule of values, the cost loaded schedule, and management of the construction progress and costs within the limits of the estimate, the associated construction delivery method, contract, and detailed written operations or execution manual.
The OpenCost ApproachTM leverages industry standard terms and definitions expressed in plain English with minimal use of confusing acronyms or abbreviations. All data is organized by the Construction Specifications Institute MasterFormat.
The OpenCostTM Approach provides the following features, benefits, and core defensible elements:
JOB ORDER CONTRACTING Solutions should be designed for Owners and Contractors to drive the best possible outcomes and assure compliance. As such, they must be independent, objective, fully transparent and NOT linked to a JOC consultant if the later is being paid a percentage fee and managing the JOC Program.
Job Order Contracting, or a JOC Program is NOT simply a procurement method that public and/or other organizations use to complete renovation, repair, and minor new construction projects. A JOC Program is a LEAN Collaborative Construction Delivery Method.
As such, the JOC Program MUST be directly managed by the real property owner to achieve optimal results and NOT managed by third party. Outsourcing a JOC program to a third party may be an excellent method (if the program is designed and managed properly), for an Owner to learn JOC and/or for Owners with total annual JOC construction values under $2M, but otherwise, Owners should provide direct leadership and support.
Independent, best value JOC Programs and associated JOB ORDER CONTRACTING Solutions are capable of delivering more than 90% of projects on-time, on-budget, and to the satisfaction of all participants.
Job order contracts are awarded to a contractor(s) based upon BEST VALUE. Selection criteria generally include technical qualifications, past experience and or demonstrated ability to perform requisite tasks, small business/WBE, MBE status, and the associated co-efficient(s) bid by the contractor.
JOC Programs, contract documents should address and/or include the following:
Requests for projects are made but the customer/building user(s) per the pre-approved forms and generally via the electronic cloud JOC cost estimating/management software. The owner technical and procurement team reviews and clarifies the request (JOC RFP). The owner forwards the request to the approved JOC contractor(s) and schedules a site visit and scoping meeting among all participants in which they will discuss the requirements, goals and further define the scope of work. The owner (technical and procurement team) reviews the detailed line item estimate and if the proposal is above a set threshold compare the estimate to the internal owner estimate / internal government estimate, IGE. The owner and contractor enter in negotiations and/or discussions as needed and the owner approves the JOC project/task order, or cancels the request. On average, there should be no more than one or two iterations when reviewing the taks order. If there are more, there is likely something wrong with the JOC process and/or JOC tools.
If approved, the contractor sets up a JOC kick-off meeting mobilized for the project. The owners should visit and review progress regularly (daily in most cases). Once completed the owner does and inspection and signs off on the project and the contractor provide the requisite final JOC package as required, or the owner provides a punch list for the contractor to address any issues.
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Optimizing Construction Cost Estimating Outcomes requires experience, LEAN management practices, common data outcomes, metrics, and continuous improvement.
The OpenCost Approach incorporates significant improvements into the collection, validation, use, & maintenance of detailed line item unit price Construction cost data.
Request our white paper to learn more about Optimizing Construction Cost Estimating Outcomes.
Below is a the Table of Contents for the 20-page document.
Contents
Detailed Construction Cost Data. 3
Traditional Construction Cost Methods. 4
Size of Typical Construction Cost Estimates & Unit Price Cost Books. 5
The Construction Estimating Conundrum.. 11
Line Item Estimating Details. 12
Addition for Overhead and Profit 14
Construction Estimator Skill Requirements for Detailed Unit Price Line Item Estimating. 14
Accurate Estimate – An Oxymoron. 17
How Good is Your Job Order Contracting Program?
Is it providing the benefits you anticipated…. saving money, providing on-demand quality services?
If you are a County, State, or Local Government and have a job program, the majority of independent and internal audits indicate you are NOT running your JOC Program optimally.
Characteristics of a Successful JOC Program:
So, How Good is Your Job Order Contracting Program?
If you are interested in improving your JOC Program, please contact us….
4BT OpenJOCTM Unit Price Book (UPB)
The 4BT OpenJOC Job Order Contract Unit Price Book contains line item task descriptions and costs for commonly encountered renovation, repair, and minor new construction costs.
The number of and content of the line items within the 4BT OpenJOC Job Order Contract Unit Price Book are established to assure that 90% of the total dollar value of construction cost estimates for individual JOC projects/tasks is derived from UPB prepriced line items (items within the published and accepted UPB). A 4BT OpenJOC Job Order Contract Unit Price Book of 40,000 to 60,000 unit price line items should be sufficient for most JOC Programs.
Core elements of the 4BT OpenJOC Job Order Contract Unit Price Book and the 4BT OpenCOSTTM Methodology:
Labor, material, and equipment details are provided within the 4BT OpenJOC Job Order Contract Unit Price Book for each line time as appropriate.
As noted in the below figure, line items are easily found by 1-keyword search, 2-MasterFormat Section Tree, or 3-scrolling.
JOC Contractor Selection: Owners select and award JOC contracts via a best value procurement methodology which may include multiple selection criteria’s. Once a Job Order Contract is advertised in accordance with local requirements, contractors should respond with an appropriate description of their capabilities, experience, past performance, and a JOC coefficient(s) (a coefficient may also be referred to as an “adjustment factor” or a “multiplier”). There are generally three coefficients, one for standard work hours, one for non-standard work hours, and another for non-prepriced items, however, additional coefficients may be requested for “secure areas”, “remote areas”, etc. . . An industry average JOC coefficient typically will range from 0.80 to 1.20. The coefficient(s) is intended to account for the contractors overhead and profit, and any other items that are allowed per the Job Order Contract. Awarded JOC contractor(s) use the coefficient(s) to determine lump sum costs for JOC task orders/projects. The total cost of a JOC task order/project, as developed using the approved JOC UPB, is multiplied by the appropriate JOC coefficient to determine the total lump sum cost proposed by the contractor.
Learn more about the 4BT OpenJOC Job Order Contract Unit Price Book…
Independent Objective Locally Researched Construction Cost Data is critical to improving communication, productivity, and overall satisfaction.
While the most popular source of construction cost data may be “national average” price books and associated localization factors, this approach simply doesn’t provide what owners and contractors need or what oversight groups should require!
In order for the AECOOO sector to take responsibility for the built make progress toward eliminating its legacy of environment, focus must be upon learning, collaboration, and actionable information.
Furthermore there must be contractual incentives for all participants involved to learn collectively and as individuals, and to be successful.
Best value LEAN construction delivery methods are proven to create an environment where over 90% of renovation, repair, and construction projects are delivered on-time, on-budget, and to the satisfaction of all participants and stakeholders. Specific examples of these proven collaborative methods include Integrated Project Delivery, IPD, and Job Order Contracting, JOC. The former is used for major new construction, while JOC is appropriate for renovation, repair, and minor new construction.
Both IPD and JOC require a common data environment, CDE, to drive communication, provide financial transparency, and to mitigate the number of errors and omissions and changes orders that are prevalent with traditional construction delivery (design-bid-build, lowest bidder, design-build…).
A CDE included a common set of terms, definitions, and standardized data architectures. Terms should not be overly complex, stated in plain English, and limit the use of confusing acronyms. CSI Masterformat, Uniformat, and Omniclass are examples of standard data architectures, which play an extremely important role in aiding communication, improving productivity, and lower the cost of information gathering and maintenance.
Detailed line item cost data, organized by CSI Masterformat, is the foundation of any project and all associated construction cost management activities. The source of this information typically varies, yet commonly includes a combination of in-house experience, subcontractor information, and purchased third party cost data.
Independent, Objective, Locally Researched Construction Cost Data
Estimating Construction Costs for Job Order Contracts properly is critical to the success of any JOC program.
As a real proper owner, facilities management professional, or construction contractor, is important to review internal policies, procedures and controls with respect to your JOC Program and Estimating Construction Costs for Job Order Contracts:
Reduction in the procurement lead-time and construction cost for work orders is a benefit promised by some JOC Consultants and/or service providers. That said, several independent and/or internal audits have found that the cost savings has not occurred. This failure, however, is not due the fundamental aspects of JOC, but rather the failure of the Owner and/or the JOC Consultant to implement the JOC Program properly.
Direct owner leadership, involvement, management, and the exploration/implementation of opportunities are all key to the successful implementation of any JOC program.
A JOC Operations Manual and/or JOC Execution Guide must be present and a part of the the JOC contractual documents. They serve a detailed written workbook that defines roles, responsibilities, tools, workflows, metrics, and overall expectations.
Proper and ongoing training must be a requirement, as well as owner and indepent oversight, and supporting technology to assure that adequate controls are in place to mitigate risk.
Owners JOC project management processes must be both efficient and
effective with respect to meeting the operational goals and assuring compliance.
There are always opportunities for improvement within JOC Programs and JOC program management processes, policies and procedures, however, these cannot be fully realized is JOC program management is outsource to a third party/ JOC consultant.
It is the real property owner’s sole responsibility to mitigate risk, increase organizational efficiency, and align current processes with industry best practices.
As an owner, what should you expect from a JOC Program?
Key performance indicators related to Estimating Construction Costs for Job Order Contracts:
Their are many Challenges facing Owners LEAN Facilities Management in terms of moving from theory to practice.
Achievement of LEAN Facilities Management requires greater focus upon change management as well improving overall owner leadership skills and competency.
In general, real property owners lack an understand of facilities life-cycle and LEAN construction best management practices.
Facilities life-cycle and LEAN construction best management practices …
- Collaboration will ALL project participants and stakeholders
- Common data environment (CDE) and standard data architectures (CSI MasterFormat, Uniformat, Omniclass) – Locally researched and shared/common line item unit price database
- Continuous improvement (not being satisfied with the status quo)
- Shared risk/reward
- Financial transparency
- Ongoing REQUIRED training and certification
- Design, implementation, and monitoring of LEAN collaborative construction delivery methods (Integrated Project Delivery – IPD, for major new construction, and Job Order Contracting – JOC, for renovation, repair, maintenance, sustainability, and minor new construction)
- Leveraging technology for lower cost implementation and consistent deployment and monitoring, versus being the driver
- Life-cycle versus first-cost decision-making
- Understanding the value of long-term win/win relationships
LEAN Construction in the Public Sector requires Owners to take responsibility for their facilities and other forms of built structures.
This simply cannot occur until Owners become competent in Collaborative LEAN Construction Delivery Methods and associated life-cycle management of the built environment.
Collaboration and win-win contractual incentives for all participants (AE firms, contractors, subs, owners, building users, oversight groups) are prerequisites to measurable improvements in facilities management outcomes.
Best value procurement, financial transparency, and a common data environment (CDE) must be implemented in concert with a rigorous and sustained focus upon CHANGE MANAGEMENT.
Until real property owners are held accountable in their roles as stewards of the built environment there is no reason to expect that the rampant waste associate with the AECOO sector will diminish (architecture, engineering, construction, owner/operator/operations).
Collaborative, proven, best value LEAN construction delivery methods have existed for decades and are capable consistent achievement of 90%+ of projects on-time, on-budget, and to everyone’s satisfaction. Thus the issue is not the unavailability of solutions, but rather the level of education and awareness across the AECOO sector.
Total quality management and continuous improvement are industry norms across most other business sectors. It’s beyond due for implementation throughout our AECOO community.
The failures associated with facilities management are largely the responsibility of property owners and oversight groups. They pay the bills. It’s really that simple.
Learn more about LEAN Construction in the Public Sector…
Job Order Contracting versus Design Bid Build can help to measurably improve construction productivity, quality, delivery times, and overall satisfaction for all participants.
Job order contracting saves significant time and improves quality, consistency, and overall satisfaction vs. traditional design-bid-build.
Efficiently managing the numerous renovation, repair, maintenance, sustainability, and minor new construction projects facing real property owners and facilities management teams is critical to the success of every facilities dependent organization.
Job order contracting is a LEAN collaborative construction procurement and delivery method that that delivers major advantages versus conventional design-bid-build. The focus placed upon early upfront and ongoing communications and full transparency associated with Job Order Contracting is central to improving outcomes.
Even though job order contracting has been successfully practiced in the U.S. since the 1980’s, it remains unknown to many and is commonly poorly implemented.
Job Order Contracting requires competency and leadership on the part of the owner, and an appropriate focus upon change management. Collaboration, mutual respect and trust among selected service providers and the owner, and full financial transparency are targeted goals.
A locally researched, independently sourced detailed line item Unit Price Book, UPB, provides the basis for shared project knowledge and transparent pricing. A properly designed UPB lists common and repetitive commercial construction tasks construction tasks using industry standard terms in plain English. Each line item includes labor, material, and equipment costs as appropriate. The UPB generally has approximately 40,000 to 60,000 line items, including demolition line items and line item modifiers. The latter account for varying quantities, work location, and other variables. Best management practice notes that the UPB be updated annually and locally researched.
JOC is an an integrated project delivery (IPD) approach designed specifically for smaller renovation, repair and minor new construction projects, however maintains all the same collaborative principles.
Integrated project delivery ” integrates people, systems, business structures and practices into a process that collaboratively harnesses the talents and insights of all participants to reduce waste and optimize efficiency through all phases of design, fabrication and construction…. Integrated Project Delivery is built on collaboration. As a result, it can only be successful if the participants share and apply common values and goals.” – AIA
Benefits of Job Order Contracting versus Design Bid Build
Common Myths Associated with Job Order Contracting versus Design Bid Build
Learn more…
Building Information Modelling BIM in the Construction Industry – Technical Report TR-1405A
The National BIM Standard Definition from 2007, NBIMS states that a BIM is a:
“… digital representation of physical and functional characteristics of a facility. As such it serves as a shared knowledge resource for information about a facility forming a reliable basis for decisions during its life cycle from inception onward”.
To optimise the return on investment and associated impacts upon the environment, stakeholders may be involved in a single aspect or multiple aspects of a BIM system (Cholakis 2012) including design, procurement, construction delivery methods, construction management, condition assessment, repair, renovation, adaptation, utilization, capital planning and budgeting, life/safety and security management.
The BIM system is a collaboration by different stakeholders at different phases of the life cycle of a facility to insert, extract, update or modify information in the BIM to support and reflect the roles of that stakeholder (NBIS 2007). Figure 2.1 summarises the BIM system as the integration of the AECO stakeholders through the utilization of people, processes and systems.
That said, the primary drivers and/or requirements of BIM are process-based and require a laser-like focus upon CHANGE MANAGEMENT and LEAN Collaborative Construction Delivery Methods (Integrated Project Delivery – IPD, and Job Order Contracting – JOC).
The role of technology is simple one, to support lower cost deployment, collaboration, and ongoing management. Technology, however, should not be the primary driver or main focus. Lastly, 3D visualization should not be confused with BIM. BIM can be accomplished without 3D visualization.
Building Information Modelling BIM in the Construction Industry – Technical Report TR-1405A
Outsourcing Job Order Contracts is contrary to the fundamental concepts this LEAN construction delivery method and at best should be considered only as a temporary solution.
Job order contracting is a collaborative construction delivery method capable of consistently executing 90%+ of renovation, repair, and minor new construction project on-time, on-budget, and to the benefit of all stakeholders… if designed, implemented and managed properly. That said, while there are many, here are three reasons not to outsource job order contracts.
First, however, a quick explanation about what I mean by outsourcing job order contracts is called for. Hiring a JOC consultant and paying them a fee based upon the total construction volume, to “manage” a JOC program is basically outsourcing from a business and process perspective. This is inherently contradictory to the core aspects of JOC such as direct early and ongoing participation by real property owners and building uses, as well as owner leadership and furthermore can create conflicts of interests and even set the stage for fraud.
Organizations, large and small, have difficulty managing the numerous repetitive renovation, repair, and minor new construction projects required to sustain a facility portfolio and maintain performance requirements cost effectively. Most organizations suffer a large number of project failures: slow response times, poor quality, excessive costs, and/or excessive costs.
Traditional project delivery methods such as design-bid-build, lowest bidders, and even design-build have provided fully adequate solutions.
While there may be reasons to hire a JOC consultant initial to “manage” a JOC Program, owners/facility managers should use this interim period to learn to be self sufficient. There are currently far too many real properly owners wasting millions of dollars on non-valued-added services, not to mention less than efficient JOC programs versus running efficient owner-managed JOC programs.
Hopefully real property owners, and the AECOO industry as a whole will deals with these addressable, time saving, money saving ideas will increase the success rate and efficiency of their numerous renovation, repair, and minor new construction projects.
What to learn more…
via Four BT, LLC – Independent, Objective, and Best Value LEAN Construction & Job Order Contracting Solutions
To date, 2017 Construction Labor Cost Data shows a increase of 2.5%-2.7% (over 12 months period), indicating a strong overall industry and consistent with forecasts of an approximate 3% increase for the year. Some trades are anticipated to rise as much as 4%. (BLS)
Real gross Private investment in nonresidential structures increased 22% , while government gross investment in structures was down 15% (Bureau of Economic Analysis, BEA).
Private office construction spending increased 29% in 2017, but demand has decreased (Census Bureau).
Locally researched 2017 Construction Labor Cost Data, as well as full line items tasks including labor, material, and equipment, is now available. Stop relying up “national average” cost books, and get the actionable construction cost data your need!
LEAN Construction Cost Data drives an open, transparent approach that is best suited for collaborative construction delivery.
While it may be generally recognized that detailed line item construction task definition and associated costing methods provide the most beneficial and defensible form of information, there are multiple issues/concerns that must be considered in order to properly leverage and benefit from this highly refined level of construction costing.
Here is a short list of noteworthy factors…
Unit price line item cost data collection is expensive in terms of resources required to develop and maintain current and defensible information, thus is generally cost prohibitive for any single real property owner, AE firm, or construction contractor to pursue.
Commercial construction cost databases of approximately 60,000 unit price line are generally adequate to cover 90% or more of commercial projects normally encountered. Some vendors may boast hundreds of thousands of line items, however databases of this size can actually be counterproductive, by creating confusion, delaying initial implementation, contributing to errors, and even lowering productivity.
Interested in learning more?
Request the OpenCost LEAN Construction Cost Data White Paper…
Note: The term “construction” is being used generically to describe any type of construction, including renovation, repair, maintenance, sustainability, and/or new construction projects, unless specifically otherwise stated.
Phases of a Job Order Contract Task Order
As a the most widely used LEAN construction delivery method, Job Order Contracting can deliver multiple benefits, including the consistent delivery of over 90% of projects on-time, on-budget, and to the satisfaction of all participants and stakeholders.
That said, Owners must be competent and provide leadership, all participants must act in a transparent, collaborative, and mutually beneficial manner, and process must be implemented consistently.
Below is an example of the process involved in a JOC task order/ JOC construction project.
Phases of JOC Task Order
To help illuminate the lean construction method, here are the specific phases of
the JOC task order life cycle:
PHASE
1
Owner establishes a current construction need, determines preliminary
budget and confirms funding availability.
PHASE
2
Owner team (technical/facilities management, JOC program/project
manager, contracting/purchasing or building user) conducts a pre-proposal
meeting and drafts a JOC task order signed by the JOC contract
administrator.
PHASE
3
Owner team and JOC contractor make a joint site visit and confirm
work scope, site conditions and any unusual requirements.
PHASE
4 Owner creates an independent, detailed, line-item cost estimate using approved, locally researched Unit Price Book, UPB, and approved JOC software (Note: a national average price book, even with the use of location indexes, is not recommended.)
PHASE
5
Contractor creates estimate. (Both owner and contractor use the
contract-required unit price book.)
PHASE
6
Contractor submits a task order proposal/estimate. Owner compares it
to independent owner estimate.
PHASE
7
Owner and contractor negotiate a review of any variances or conflicts
with the JOC program. There are three possible outcomes: 1) Owner
issues a notice to proceed (NTP) to contractor; 2) Owner issues
specific changes or requests additional information; or 3) Owner
cancels task order.
PHASE
8
A project kickoff meeting takes place and the worksite is handed off to
the contractor.
PHASE
9
Owner conducts weekly site visits and reviews progress reports
submitted by the contractor.
PHASE
10
Project closes out with a final package of warranty and maintenance
information as specified in the JOC operations/execution manual.
via Four BT, LLC – Independent, Objective, & Best Value LEAN Job Order Contracting Solutions & Services
JOB ORDER CONTRACTING OPPORTUNITIES provides by Four BT, LLC , provider of independent, objective, and best values JOC solutions – UPBs, Technology, Services, & Support
A list of current (top) and past job order contracting opportunities for contracting serving public sector renovation, repair, and minor new construction requirements.
Title: Job Order Contract – Fort Bliss, Texas (includes White Sands Missile Range, New Mexico)
Sol. #: W91151-17-R-0066
Agency: Department of the Army
Office: Army Contracting Command, MICC
Location: MICC – Fort Hood
Posted On: Apr 24, 2017 3:55 pm
Base Type: Sources Sought
Link: https://www.fbo.gov/notices/168ff16017e411f4c4c91dce86de8ed9
——————————————————-
Title: Job Order Contract – Yuma Proving Grounds
Sol. #: W91151-17-R-0065
Agency: Department of the Army
Office: Army Contracting Command, MICC
Location: MICC – Fort Hood
Posted On: Apr 24, 2017 3:50 pm
Base Type: Sources Sought
Link: https://www.fbo.gov/notices/b0bfdbd3fb1d16e7548424d318050d5f
——————————————————-
Title: Job Order Contract – Dugway Proving Grounds, Utah
Sol. #: W91151-17-R-0064
Agency: Department of the Army
Office: Army Contracting Command, MICC
Location: MICC – Fort Hood
Posted On: Apr 24, 2017 3:45 pm
Base Type: Sources Sought
Link: https://www.fbo.gov/notices/c0594948c40f0249ea5fb561c29f40f1
Job Order Contract Staffing should include skilled owners and construction contractors, and the limited use of JOC consultants.
Direct Owner Involvement – A fundamental premise of Job Order Contracting is owner involvement with all service providers, Communication and collaboration must be early and ongoing. In order for this to occur, and for ALL parties to receive the maximum benefit of JOC, owners must be competent and capable with respect to LEAN construction delivery methods and tasks such as detailed line item estimating and owner/contractor negotiations.
While some owners rely upon JOC consultant to manage their JOC Program, this practice should be temporary only. It is certainly more costly and, as the major of independent JOC Audits have demonstrated, inefficient and potentially subject to inappropriate abuse.
Planning for Staffing Requirements – 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.
Initial Staffing Requirements – 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 for various owner, professional, and educational groups.
Training Requirements – 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.
via 4BT.US – Independent, Objective, & Best Value Job Order Contracting and LEAN Construction Delivery Solutions – Locally researched unit price books, cloud estimating technology, training, and services.
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The primary objective of a Job Order Contract Source Evaluation Plan is to select the service provider that provides the BEST VALUE.
It some markets, one be might surprised to learn that a Job Contract Source Evaluation Plan is either not used, or is basically a simple modification of a typical procurement process. The net result of such an approach however is a relatively high percentage of Job Order Contracting Programs that are under performing and too costly versus best management practice implementations.
Whether evaluating proposals for a JOC Consultant or JOC construction contractors, following a well thought out and accepted selection evaluation plan should provide the highest likelihood sourcing a contractor capable of delivering contract requirements at a reasonable cost. This 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, however, the total cost of the program is anticipated to be lower.
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 wihtin a Job Order Contract Source Evaluation Plan:
(1) Project management ability, including key project management staff, technical support staff and the quality control plan.
(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.
Need assistance in developing a Job Order Contract Source Evaluation Plan?
Learn more…
Hard Construction Costs are the detailed tasks, materials, equipment, and labor required to complete a renovation, repair, maintenance, sustainability or new construction project.
They are quantifiable and best determined by an experienced construction cost estimator with at least a decade of line item construction cost estimating under his/her belt.
Contrary to somewhat general opinion the best method for obtaining hard costs is NOT exclusively from subcontractors. There are many pitfalls in simply using past experience and subcontractors for only for generating a hard cost estimate:
Requiring the use of locally researched detailed unit price book, organized using CSI Masterformat, and noting which line items are modified and not modified provided significant valued to ALL project participants. (Note: Using a so-called “National Average” price books, even if one applies cost factors is not the same a s locally researched price book, and is not recommended. National average price books are far too general. )
Local for a unit price book that is objective, independent, locally researched and has between 50,000 and 75,000 line items which include the below:
Once their is common understand of the scope of work AND a site walk has been conducted, a detailed line item estimate of hard construction costs can be developed that includes all appropriate quantities in term of number of items, labor hours and crew compositions, material quantities and costs, and equipment costs. General conditions are also considered and many or may not be included in the line item estimate based upon contract requirements.
Detailed estimates should provide a variance range of +/- 5% if the project has been clearly communicated and understood by all parties, barring any extenuating circumstances. At this stage, contingency should be in the 0 to 10 percent range.
Learn more…
via Four BT, LLC – Independent, Objective, and Best Value JOC & LEAN Construction Solutions, including locally researched line item cost databases.
Construction Project Management activities, adequately supported by LEAN construction processes (JOC, IPD,PPP), a common data environment(CDE), and technologies such as the Cloud and BIM allow savvy AECOO[1] organizations to more consistently achieve a higher quality and productivity gains.
The complexity of the new construction, renovation, repair, and maintenance project activities requires the integration of people with varying areas of expertise and skill levels that may or may not be co-located.
The ability to share and edit current common actionable information provides major benefits. Properly designed and implemented Collaborative LEAN Construction Project Management consistently delivers 90%+ of projects on-time, on-budget, and to everyone’s satisfaction.
Cloud Construction Project Management Solutions allow enables teams to collaborate more quickly and efficiently by providing appropriate access to current and actionable information.
LEAN Construction Delivery Methodology, supported by Cloud Construction Project Management, allows all participants and stakeholders to progress beyond the “modeling” and “visualization” capabilities of BIM, to the real-time critical “information” sharing level throughout the life-cycle any form of physical infrastructure.
The Cloud allows everyone to work in teams and share information in a way that was never before possible. Increased focus upon actionable current information “Big BIM” and higher levels of connectivity and transparency enable greater focus upon outcomes.
A CDE (Commom Data Environment), a mutually understood set of terms, definitions, and data formats, also greatly assists everyone to understand the current and potential future status of physical infrastructure and associated activities.
Facilities management and service providers can make more informed choices and more consistently obtain higher quality and productivity.
Building in Cloud is designed precisely to meet these needs: to share and manage building and project information and drive greater team performance.
Try Building in Cloud for a month for free… you’ll be amazed at how you can increase the efficiency of your organization.
2017, Cholakis, P. (Four BT) Moscardi, L. (Lemsys)
[1] AECOO – Architecture, Engineering, Construction, Owner, Operator/Operations
via Four BT, LL – Independent, Objective, & Best Value JOC and LEAN Construction Delivery Solutions
Learning how to estimate construction costs will minimal variation requires a decade or move of experience and observing several key LEAN construction best management practices including collaboration, transparency, standard terms/data architectures, and continuous improvement.
Estimate Construction Costs
It is generally recognized that detailed line item construction task definition and associated costing methods provide the most beneficial and defensible form of information.
That said, there are multiple related issues/concerns that must be considered in order to properly leverage and benefit from this highly refined level of construction costing. These include, but may not be limited to the following;
Unit price line item cost data collection is expensive in terms of resources required to develop and maintain current and defensible information. It is generally cost prohibitive for any single real property owner, AE firm, or construction contractor to maintain a cost research staff capable of generating an actionable 30,000 to 60,000 commercial construction line item database.
Learn more and request the 20 page white paper…
via Four BT, LLC – Independent, Objective, and Best Value JOC & LEAN Construction Solutions
Traditional Construction Cost Estimating
Traditional Construction Cost Estimating can benefit from LEAN business practices, a focus upon education and training, and collaborative technology.
Bills of Quantity (BOQ),Bill of Materials (BOM), and/or detailed line item methods provide the lowest level, and/or most granular construction costs. The opposite end of the spectrum, and least detailed, includes Order of Magnitude and Square Foot Costs.
Traditional Construction Cost Estimating at a detailed level fully considers construction components, tasks, quantities, and costs inclusive of materials, equipment, and labor items. Tasks are generally organized in a consistent manner by trade, associated with a construction[1] project. Quantities are expressed as “each”, “square feet”, “square yards”, “cubic yards”, “hours”, and related local standards of measure.
The sources of the information generally include historical cost data, estimator experience, and independent third parties (cost consultants, public “reference” information, and subcontractors).
A unit price includes material, labor and equipment for each component and/or construction task/activity at a granular level. A total project is therefore represented by multiple line items. Based upon the source and type of information, there significantly differences in levels of sophistication, detail and quality occur.
It is generally recognized that detailed line item construction task definition and associated costing methods provide the most beneficial and defensible form of information. That said, there are multiple related issues/concerns that must be considered in order to properly leverage and benefit from this highly refined level of construction costing. These include, but may not be limited to the following;
Unit price line item cost data collection is expensive in terms of resources required to develop and maintain current and defensible information. It is generally cost prohibitive for any single real property owner, AE firm, or construction contractor to maintain a cost research staff capable of generating an actionable 30,000 to 60,000 commercial construction line item database.
Learn more about the available locally researched unit price cost databases…
[1] The term “construction” is being used generically to describe any type of construction, including renovation, repair, maintenance, sustainability, and/or new construction projects, unless specifically otherwise stated.
Facilities Lifecycle Management requires increased competency on the part of facilities owners and facilities management. See asset life-cycle model…
A total cost of ownership perspective is also required as opposed to the more prevalent practice of first-cost dominance.
LEAN collaborative construction delivery and similar best management practices provide a framework for generating positive facilities management outcomes versus economic and environmental waste.
The Top 10 List when considering BIG BIM and Facilities Lifecycle Management:
1. Collaboration – involvement of all stakeholders – Owners, AE’s, Contractors, Oversight Groups, Community …
2. Transparency – Appropriate access to cost information, and associated comparison to published independent third-party costs, such as RSMeans Construction Cost Data.
3. Consistent Format and Terminology – Use of a standard set of terms and data architectures such as Uniformat, Masterformat,and Omniclass.
4. Metrics and Benchmarks – Time, Accuracy, Conditions, Cost…
5. Proper allowances for local conditions – geographic, weather, productivity of labor, security, …
6. Appropriate level of technology to assure productivity, collaboration, security, audit trail.
7. Robust Process – The application of a robust process and business “best-practices” with a focus upon continuous improvement.
8. Appropriate knowledge of all “levels” of construction cost estimating, cost engineering, and their potential accuracy – Square Foot / Conceptual / Building Level Construction Cost Estimating, Assembly / System Level Construction Cost Estimating, Unit Line Item Construction Cost Estimating.
9. Knowledge of the impact of the Construction Cost Delivery Method upon construction costs and life-cycle costs – Design-Bid-Build, CM@Risk, Design-Build, Job Order Contracting, Integrated Project Delivery
10. Fundamental understanding of Total Cost of Ownership and Facilities Lifecycle Management – Physical and functional conditions, Operations, Sustainability, Renovation, Repair, Efficient Project Delivery Methods (IPD-Integrated Project Delivey, JOC – Job Order Contracting)
A JOC Cooperative is a method of procuring and implementing job order contracting services primarily for public sector agencies that anticipate an annual JOC construction volume of less than $2,000,000.
Using a JOC Cooperative enables eligible entities to meet requirements associated with providing legally mandate competition for contracts of commonly purchased products and services, while saving the the cost of going through the traditional procurement process for each and every renovation, repair, or minor new construction project.
JOC construction contractors benefit as well by having a multi-year contract and saving the time and expense of going through the procurement process for each individual participating governmental entity.
All Cooperatives are NOT the same however. Here ares some items to look for when evaluating and selecting a JOC Cooperative.
Note: If, as a public agency, your JOC construction volume reaches $2M/year or more, it is time to consider setting up your own JOC program
Learn more….
via www.4bt.us – Independent, objective, & best value JOC Soutions
In general, it is advantageous, if not a best management practice, to require all renovation. repair, maintenance, construction projects, as well as all participants and stakeholders, to use common terms, definitions, and standardized data architectures.
If this were done, there would be far fewer misunderstandings, errors, omissions, change orders, etc.
OMINCLASS, Uniformat, MasterFormat are all all extremely valuable and should be required in North America, and “interchangeable” formats developed on a worldwide basis.
COBie should be fully compatible and not divergent.
Standardized “glossaries” & data architectures combined with LEAN Construction Methodologies & increased competence and leadership on the part of real property owners (and all service providers), would go a lot further to solving the rampant waste so common throughout the AECOO sector than the “obsession with 3D visualization”. Tech will not sole much on its own.
Tech is important, but…
As a clear line item description of construction tasks, including labor, equipment, and materials, is critical to a common understand of the scope of work, a unit price book organized by CSI Masterformat should be a component of every job.
An accurate and shared description of all work task and a clear indication of budgetary requirements is a fundamental element of project success. It’s amazing how many construction projects lack this basic foundation.
www.4BT.US
Request The Definitive Guide to Order Contracting to learn:
How to create a solid Job Order Contracting Program to meet your goals
What stakeholders to involve across the organization
How to identify, prioritize, and profile JOC Projects/Task Orders
What information you need to support a JOC strategy
What internal and external teams to leverage and how to coordinate them
How to measure the effectiveness of your JOC strategy
Request: info@4BT.US
Construction Document Information Management is central to productivity improvement.
2017, Cholakis, P. (Four BT) Moscardi, L. (Lemsys)
Imagine the ability to rapidly organize data and leverage mobile tools to enable access to, and the management of, actionable, standardized, defensible information… anytime and anywhere.
Streamlining Construction Document Information Management processes is an essential step towards improving productivity, quality, and overall value for all stakeholders. The process creates a competitive advantage for innovative construction companies.
A Construction Document Management System must allow the visualization of the most common files used in the construction industry such as detailed line item construction cost estimates, required forms, drawings and BIM models.
Time spent looking for the right information accounts for approximately 13% of an employee’s time each and every week. Up to $10,000, or more, is be wasted annually, per employee, just on looking for the right information. This does not nclude the cost of not finding the correct information in a timely manner, or using the wrong information.
In the construction industry companies the situation if far worse. It’s not usual for project managers to spend 30% of their time searching for the information needed to carry out their activities within e-mail, paper documents/paper binders, and digital files that are not shared or centrally located.
In addition, by 2020 digital information will be increased by 30 times. Survival for many AECOO (Architecture-Engineering-Construction-Owner-Operation) will require the adoption of information management tools expressly designed for LEAN collaborative processes and/or workflows.
Appropriate, current, and actionable digital document must be available to participants and stakeholders.
Construction Document Information Management and LEAN Construction Delivery are key focal areas to be addressed by AECOO organizations. Real transformation is required, thus a successful change management programs must be supports by everyone. Only those that are successful this effort will achieve increased business productivity and efficiency, while reducing operating costs.
Operating separately, isolated from the value chain, is rapidly becoming unsustainable.
Here are a few essential points to consider when planning a collaborative documents and LEAN construction delivery strategy.
The 4BT-CE Cloud Estimating & Building in Cloud Solution is an example of a framework expressly designed to meet the needs of the AECOO community to share and manage information of a building as well as ensuring greater efficiency in team activities. Current, actionable, and commonly formatted information is available to all team members (internal and external) anywhere, anytime and from any device (PC, Tablet or Smartphone).
A free trial is available, and costs are as low as $26.90/month per unlimited number of concurrent users.
Basic Module includes….
4BT-CE-User Administration User Assignments/Privileges
4BT-CE-Dashboard Calendar, Open/Closed Issues, Assignments
4BT-CE-Login/Authentication Secure Login
4BT-CE-Estimating Cost Estimating
4BT-CE-Reporting Reporting & Export to Excel/PDF
4BT-CE-Estimating/Estimate Management Manage Estimating
4BT-CE-Estimating-Browse Price List Price List – Read Only
4BT-CE-User Profile User Information-Name, Title, Photo, Contact Info, Language, Time Zone, Units of Measure, Date/Time Formats, Currency Time/format, Privacy, Security
4BT-CE-Systems Alert System Notifications
4BT-CE-Message Center Internal Messaging / System Email
4BT-CE-Settings Organization Level – General Information, Subscriptions, Roles and Permissions
4BT-CE-Subscription User Level Subscription Information
Buildings Building Information
Team Team Information
Documents Document Management
Tasks Task Creation and Management
Issues Issue Creation/Management
Spaces Space Information/Management
Options – Below are Optional
BIM BIM model viewing
Custom Reports Client defined Reports
Custom Documents Client requested/defined Documents
Best Practice Job Order Contracting
The DOD has long been recognized as the leader in best practice job order contracting. Other non-DOD Federal Government Agencies and Higher Education follow in a close second in terms of level of general knowledge and skill. County, State, and Local Governments, include secondary education unfortunately continue to use JOC simply as a means to speed delivery and bypass traditional procurement versus as a LEAN collaborative construction delivery method. These markets also rely up a troublesome practice of relying up JOC consultants to play key JOC administrative roles, if not basically outsource their JOC programs. The latter is fundamentally in opposition to JOC’s basic principles and in some cases a breeding ground for potential program misuse and fraud (see various independent and internal audit of JOC Programs). Thus while County, State, and Local Governments in general have a ways to go in deploying Best Practice Job Order Contracting, the potential benefit are certainly worth the effort.
The following provides a good introduction to best practice Job Order Contracting. Note that for
“speed reading”, key items have been highlighted in “red”.
Best Practice Job Order Contracting
AFARS – PART 5117
SPECIAL CONTRACTING METHODS
(Revised September 23, 2015)
Subpart 5117.90 – Job Order Contracts
5117.9000 Scope of subpart.
(a) Job Order Contracting (JOC) is an alternative contracting method to fulfill requirements for sustainment, restoration, and modernization (SRM) projects at installation level (post, camp or station), with an estimated value exceeding $2000, but not exceeding the amount of SRM authority delegated to the installation by the ACOM and/or HQDA. In general, proposed projects valued at $2,000 or less are considered inappropriate for ordering under JOC because of the administrative costs associated with processing JOC orders and the simplified purchase methods available for these actions. [AFARS Revision #15, dated February 17, 2005]
(b) Additional information on executing JOC is found in the JOC Guide published by the JOC Steering Committee. The guide may be obtained from Assistant Chief Of Staff (Installation Management), Attn: DAIM-FDF-M, 7701 Telegraph Road, Bldg. 2594, Alexandria, VA 22315-3800.
Best Practice Job Order Contracting
5117.9001 Definitions.
As used in this subpart –
“Coefficient” means a numerical factor that represents costs (generally indirect costs) not considered to be included in “Unit Price Book” 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 Economic Price Adjustment is not used. Coefficients proposed by offerors are multiplied times the unit prices in the Unit Price Book to price a job or project on individual orders. The coefficient(s) proposed by the offeror and accepted by the Government are incorporated in the JOC. [AFARS Revision #15, dated February 17, 2005]
“Job order contract” means an indefinite-delivery, indefinite-quantity contract which is awarded on the basis of full and open competition and effective competition and is used to execute sustainment, restoration and modernization projects at installation (post, camp, or station) level. The JOC includes a comprehensive collection of detailed repair, maintenance and minor construction task descriptions or specifications, units of measure and pre-established unit prices for each of these discrete tasks. Each project or job ordered under a JOC is normally comprised of a number of pre-described and pre-priced tasks. [AFARS Revision #15, dated February 17, 2005]
“Non-prepriced task or item” means 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.
“Unit Price Book” means the compilation of sustainment, restoration, and modernization tasks, associated units of measure and unit prices that are used in job order solicitations and JOC. JOC unit prices include direct material, labor and equipment costs, but not indirect costs or profitswhich are addressed in the coefficient(s). Depending upon the source of the data base used, the Unit Price Base (UPB) may contain from 25,000-90,000 line items. [AFARS Revision #15, dated February 17, 2005]
Best Practice Job Order Contracting
5117.9002 Applicability.
(a) JOC may be used to execute sustainment, restoration, and modernization projects at an installation. [AFARS Revision #15, dated February 17, 2005]
(b) JOC must only be used for the projects covered at 5117.9000. Installation facilities engineering support services, such as utility plant operation, custodial, grounds maintenance, refuse collection and disposal, and similar work cannot be acquired using JOC. Architect-engineer services as defined in FAR 36.102 cannot be acquired under JOC. However, informal (shop) drawings, incidental to the job, reflecting the plan of action and the completed project, are anticipated under JOC.
Best Practice Job Order Contracting
5117.9003 Use of job order contracts.
5117.9003-1 Characteristics.
In general, a JOC involves the following unique 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 and contract which contain a large volume of pre-priced, elementary, facilities engineering type, detailed tasks that are normally available on an automated database;
(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 base year and option years, as appropriate (best value). (Selection of Architects and Engineers statute procedures must not be used for evaluation or award of JOC.)
(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, by signing the DD Form 1155; see 5117.9004-3(h)); and
(e) Each signed task order becomes, in effect, a fixed price, lump sum contract and is managed accordingly.
Best Practice Job Order Contracting
5117.9003-3 Planning and coordination.
(a) JOC should be considered when an installation’s projected sustainment, restoration, and modernization 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 Government resources and contractor overhead associated with establishing and using a JOC. These costs include the total Government 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 covered by contracts awarded under the Commercial Activities Program; and
(4) Work that can be effectively and economically accomplished by in-house resources. [AFARS Revision #15, dated February 17, 2005]
(b) A market survey must establish that more than one capable firm is willing to compete for a JOC at the installation.
Best Practice Job Order Contracting
5117.9004 Procedures.
5117.9004-1 Presolicitation.
(a) The DPW must document the decision and plan to use a JOC in support of an installation or activity. The garrison commander, who cannot re-delegate this authority, must approve the decision and plan. The decision to use JOC must also be documented and approved when the JOC is re-solicited. [AFARS Revision #15, dated February 17, 2005]
(b) To solicit for a JOC, the Government must develop task specifications and a Unit Price Book tailored to the needs of the installation to be supported. Any special range pricing (to get quantity discounts) of units associated with the requirements of known JOC projects to be ordered must be specified.
Best Practice Job Order Contracting
5117.9004-2 Solicitation.
(a) The contracting officer, in coordination with the installation DPW, must assure that the specifications and Unit Price Book have undergone technical review and validation and are tailored to meet the projected requirements of the installation 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.
(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 (see the definition at 5117.9001).
(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, a DD Form 2579 is required for proposed JOC solicitations. The Small Business Specialist must send a copy of the DD Form 2579 to the Director, Office of Small Business Programs.
(e) The Government’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 Government unit prices and specify what types of costs, as a minimum, must be covered by the coefficient. (See 5117.9001 for definition.) 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. “Pricing” of option periods, to include consideration of any wage adjustments when Economic Price Adjustment is not used (see 5117.9004-2(i)), must be covered by contractor’s coefficient(s) proposed for those periods. 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. The term “bonding” used in this paragraph includes any relevant alternative payment protection as discussed in FAR 28.102-1. 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. If the estimated annual maximum value is exceeded, FAR 28.102-2(a) and (b) apply. Since the bond premium is repaid through the coefficient and the coefficient is paid as an indirect cost under progress payment or other normal payment provisions there will be no separate repayment(s) for bond premiums.
(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 coefficient using criteria and predetermined formulas in an economic price adjustment (EPA) clause. Adjustments to the base year coefficient will be based on the Engineering News Record (ENR) Building Cost Index (BCI) as published by McGraw Hill. The ENR index is a weighted aggregate of changes to construction costs. For computation of the EPA, the BCI for the city closest to the supporting installation will be used. EPA will not be used for JOCs awarded outside the United States; nor shall it be used under National Guard Bureau, and other, JOC contracts employing an annually updated catalog. JOC solicitation and contracts must use annual adjustments or annually updated catalog, but not both. The clause set forth in 5152.237-9000 must be used in JOC contracts in accordance with this paragraph. Use of EPA under regional or multi-site JOCs with multiple coefficients is at the discretion of the contracting officer on a case-by-case basis but should be declared in the affected solicitations. Any deviation from the required use of EPA (and this EPA clause) for pricing option years, or the use of the specified index (BCI), must require prior approval from DAIM-FDF and SAAL-PP.
(i) Job order solicitations must be accorded the same type of planning and management review as commercial activities procurement actions.
[AFARS Revision #21, dated May 22, 2007]
Best Practice Job Order Contracting
5117.9004-3 Ordering.
(a) Summary of ordering process. After the requirement is validated in accordance with command or installation procedures and an estimate is prepared to determine suitability of the project for the JOC, the SOW is presented to the contractor with a request for a proposal. 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. (See (e)(2).)
(b) Statement of work.
(1) The SOW for the proposed order must contain sufficient detail to enable the Government to develop an independent government estimate (IGE), for orders $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; however, the entire contractor’s proposal will not ordinarily be made a part of the SOW. The updated SOW must contain sufficient detail to allow the Government to effectively monitor the contractor’s performance.
(c) Independent Government estimate (IGE).
(1) In accordance with FAR Part 36.203, a detailed IGE for orders $100,000 or more, should be obtained prior to evaluation of the contractor’s proposal. This IGE is in addition to the earlier gross estimate, which helped determine whether the proposed work was appropriate for JOC. The IGE 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 orders less than $100,000 in order to aid in the determination of a fair and reasonable price.
(2) Total or lump sum IGEs are not acceptable for proposed JOC task orders. The IGE 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) The contracting officer or, if applicable, the ordering officer, must insure that significant differences among the SOW, the IGE, 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 IGE 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.
Best Practice Job Order Contracting
(d) Negotiations.
(1) Negotiations on orders $100,000 or more may not begin without an Independent Government Estimate (IGE).
(2) Negotiations will further reconcile differences among the IGE, SOW, and the contractor’s proposal.
(3) At the conclusion of negotiations, the contracting officer or ordering officer must prepare a memorandum of negotiation and place it in the contract file.
Best Practice Job Order Contracting
(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 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 limitation in (e)(2).
(2) Except as provided in paragraph (3) below, 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, contracting officers may exceed the 10 percent if the non-prepriced portion of the order involves urgent or emergency situations or if the contracting officer determines it is a good business decision. The contracting officer 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 in AR 37-1, statutory and other restrictions on year-end spending.
Best Practice Job Order Contracting
(g) Forms, numbering and reports.
(1) Use DD Form 1155 to issue task orders. Include the following statement in Block 19 of the DD Form 1155:
“Contractor must sign this task order in Block 16 and return a copy. The signature in Block 16 reflects contractor’s acceptance of the task order.”
(2) Use Standard Form 30 to execute modifications to a task order. When signed by an Ordering Officer, the SF 30 must be modified by deleting the words “Contracting Officer, United States of America” and typing in “Ordering Officer, Authorized Representative of the Contracting Officer”.
(3) The contracting officer responsible for the actions of specific ordering officers must retain control over assignment of all Supplementary Procurement Instrument Identification Numbers (SPIINS) related to JOC task orders. (See DFARS subpart 204.70.)
(4) The contracting officer must also be responsible for ensuring timely preparation and submission of procurement reporting forms and related reports and data (e.g., DD Forms 350 and 1057).
(5) Automated versions of forms may be used for JOC if authorized.
(h) Distribution. A copy of all JOC orders must be sent to the contracting office appointing ordering officers, the Finance and Accounting Office, the office or individual assigned responsibility for inspection and technical administration of the contract, and any appointed COR. The contracting officer must maintain the permanent record of each transaction.
Best Practice Job Order Contracting
5117.9005 Contract administration.
Contractor performance evaluations must be prepared for all orders of $100,000 or more and submitted to the CCASS in accordance with 5136.201.
Best Practice Job Order Contracting
5117.9006 JOC ordering officers.
(a) Appointment. The appointment of a special “JOC ordering officer” is authorized, but is only required when the contracting officer will not be executing the task orders. Appointments of ordering officers under each JOC must be minimized. JOC ordering officers must be nominated by the Director of Public Works (or equivalent facilities engineering manager) and appointed by letter similar to that in 5153.303-2 (see 5101.602-2-92), tailored for JOC, signed by the contracting officer, and approved at a level above the contracting officer, or the chief of the contracting office.
Best Practice Job Order Contracting
(b) Training. All JOC ordering officers must receive specific training and orientation from the responsible contracting office. This training must cover policy and procedures for operation of JOC, including this AFARS coverage, and shall specifically address the ordering officer’s authority, limitations and responsibilities, to include ethics, conflict of interest, and potential pecuniary liabilities.
Best Practice Job Order Contracting
(c) Authorization and limitations.
(1) JOC ordering officers may sign task orders under JOC on behalf of the Government when authorized by their appointment letter and the terms of the contract, provided that the total value of the order is $100,000 or less and the value of any non-pre-priced item(s) does not exceed $2,500.
(2) JOC ordering officers may be authorized to sign task orders of greater value, but not to exceed the thresholds as specified in 10 U.S.C. 2805(c)(1), on behalf of the Government, if determined necessary to realize the benefits of JOC, provided that –
(i) adequate management controls are in place (e.g., contracting officer oversight);
(ii) adequate training is provided;
(iii) the contracting officer approves; and
(iv) the value of any non-pre-priced item(s) does not exceed $2,500. [AFARS Revision #15, dated February 17, 2005]
(3) May execute modifications to existing task orders provided that —
(i) the contracting officer specifically delegates this authority in the JOC ordering officer appointment letter (generally will include modifications under the Changes clause, Changed Site Conditions, etc.);
(ii) the amount of the modification does not exceed the ordering officer’s authority;
(iii) pricing is accomplished by using the unit price book; and
(iv) the total value of non-prepriced items under the order as modified does not exceed the ordering officer’s authority.
(4) If applicable, numbers for modifications shall be obtained from the contracting officer. Copies of all modifications shall be immediately provided to the contracting officer for reporting. Modifications effecting changes to termination actions, or work suspensions, shall be executed by the contracting officer because of legal consideration issues and the potential fiscal issues involved.
Best Practice Job Order Contracting
(d) Responsibilities. JOC ordering officers —
(1) Are responsible for ensuring that all proposed JOC project descriptions and task orders express the Government’s actual requirements, validated in accordance with command and installation procedures, in a professional and understandable manner;
(2) Must ensure that an IGE, 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 notify the contracting officer 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 IGE; 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 valued at $2,500 or less for orders within the JOC ordering officer’s signature authority;
(7) For orders estimated to exceed the JOC ordering officer’s signature authority, the JOC ordering officer must generally 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 IGE 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 Director of Public Works, for assisting the contracting officer 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 with the clause at FAR 52.225-5, Trade Agreements (Apr 2000);
(iii) Wage Rate Requirements (Construction) statute compliance;
(iv) Assessment and validation of percentage of completion for progress payment purposes;
(v) Recommendations to the contracting officer for changes to existing orders, beyond the ordering officer’s authority;
(vi) Documenting and quickly reporting to the contracting officer systemic or recurring problems in contractor performance;
(vii) Prioritization of orders when required (in coordination with the DPW and appropriate installation officials), provided no increase in cost is involved; and
(viii) Preparation of any JOC status reports required by command, installation, or DOC regulations or directives or as requested by OACSIM or HQDA;
(ix) The above includes preparation of, or input for, performance evaluation reports (see 5136.201);
(10) Must send the complete record file to the contracting officer upon completion, and keep for DPW files, additional copies of documents required for continuing DPW responsibility (e.g., as-built drawings and warranties); and
(11) Must identify and report to the DPW and the contracting officer any recurring or significant inaccuracies or omissions in the task specifications of the Unit Price Book contained in the job order solicitation or JOC and propose needed changes.
Best Practice Job Order Contracting
5117.9007 Contracting officer responsibilities.
(a) The contracting officer is the official ultimately responsible for management of all aspects of JOC, including the actions of any JOC ordering officer, COR, and member of the DPW staff who is carrying out functional oversight responsibilities related to JOC administration.
(b) The contracting officer must issue orders under JOC, and modifications to such orders, which a JOC ordering officer is not authorized to execute. In general, all orders exceeding the simplified acquisition threshold or involving non-pre-priced tasks exceeding $2,500 must be executed by a warranted contracting officer, but see 5117.9006(c)(2) for an exception.
(c) Only the contracting officer may exercise an option to extend, or issue any modification to, a job order contract (as opposed to an order under same).
(d) The JOC contracting officer must ensure that all orders and modifications to orders, together with significant supporting documentation issued outside the contracting office, are duly received, recorded, and reported and that such orders are regularly reviewed for completeness and compliance with AFARS and sound business practices. At least twice a year, the contracting officer must ensure that ordering officer 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.
Best Practice Job Order Contracting
5117.9008 Internal controls.
(a) The internal control program must 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. Alternatives are acceptable; however, they must meet the intent of 5117.9008(a)(1).
(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 command or installation shall be developed to assist personnel responsible for management of JOC. Activities may use those measures outlined in the Internal Control and Review Plan, Appendix D of the JOC Guide to supplement existing internal control plans.
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Subpart 5117.2 – Options
5117.204 Contracts.
(e) Principal assistant responsible for contracting may approve use of options that extend contracts beyond the five-year regulatory limit.
Best Practice Job Order Contracting
5117.206 Evaluation.
In awarding the basic contract, if a contracting officer determines that the Government is reasonably likely to exercise the option at FAR 52.217-8, Option to Extend Services, the contracting officer shall evaluate the price of the option as part of the source selection. The solicitation shall include the basis for evaluating the option price (see FAR 17.203(b)). If the contracting officer does not evaluate the option at FAR 52.217-8 at the time of award, but later decides to exercise the option, the contracting officer shall prepare a justification and approval (J&A) in accordance with FAR 6.303 prior to exercising the option (see FAR 17.207(f)).
Best Practice Job Order Contracting
5117.207 Exercise of options.
(c) In addition to the requirements at FAR 17.207(c) and DFARS 217.207(c), the contracting officer may exercise options only after determining, when applicable, that –
(i) Government performance monitors have used a written quality assurance surveillance plan to ensure that services and supplies conform to contractual requirements (see FAR 37.603, 37.604, 46.102 and 46.401);
(ii) The contracting officer has appointed a properly trained contracting officer’s representative for the contract or task order, or has documented the file to support retention of surveillance duties by the contracting officer (see DFARS PGI 201.602-2);
(iii) The contracting officer has verified registration in the Contractor Performance Assessment Reporting System of the contract or task order for the current period (see FAR 42.1502, DFARS 242.1502, and 5142.1502), and that the assessing official will complete the final report within 120 days following the end of the current performance period; and
(iv) There are monthly surveillance reports in the Virtual Contracting Enterprise Contracting Officer’s Representative Module, along with necessary corrective actions.
5117.290 Addition of option clause or quantities to contracts after award.
Contracting officers shall obtain prior approval in accordance with FAR 6.304 before modifying a contract to incorporate option clauses or additional option quantities after award. Justifications shall include the reason for the proposed modification and the potential impact of disapproval.
Best Practice Job Order Contracting
Subpart 5117.5 – Interagency Acquisitions
5117.502 Procedures.
5117.502-1 General.
(a) Determination of best procurement approach.
(i) The requiring activity is responsible for making the determination required by FAR 17.502-1(a). A Government official who is of a grade not lower than O-6 or GS-15 and is assigned to the requiring activity approves the determination. The requiring activity obtains prior concurrence of the determination in accordance with paragraph (a)(ii) of this subsection.
(ii) The following officials from the requiring activity’s responsible contracting office shall concur with the determination of best procurement approach prior to public announcement of the requirement:
(A) For acquisitions valued at or above the simplified acquisition threshold, but less than $50 million, the head of the contracting activity (HCA), delegable no lower than two levels below the principal assistant responsible for contracting (PARC).
(B) For acquisitions valued at or above $50 million but less than $250 million, the HCA, delegable no lower than one level below the PARC.
(C) For acquisitions valued at or above $250 million but less than $1 billion, the HCA, delegable no lower than the PARC.
(D) For acquisitions valued at $1 billion and above for services, the Senior Services Manager without delegation.
(E) For acquisitions valued at $1 billion and above for supplies, the Deputy Assistant Secretary of the Army (Procurement) without delegation.
(iii) If the proposed acquisition meets the requirements for a written acquisition plan, the contracting officer should attach the determination of best procurement approach to the acquisition plan for concurrent approval when routing the acquisition plan for coordination and approval.
(iv) If the approving official approves a determination of best procurement approach at the blanket purchase agreement level, individual calls against the agreement do not require separate determinations.
(b) Written agreement on responsibility for management and administration.
(1) Use the DD Form 448, Military Interdepartmental Purchase Request (MIPR) as Part B of the Office of Federal Procurement Policy (OFPP) model interagency agreement. If a non-DoD agency is unable to accept a MIPR for part B, use the Part B provided in the OFPP model interagency agreement.
(c) Business-case analysis requirements for multi-agency contracts and governmentwide acquisition contracts. For guidance on business-case analysis, see FAR 17.502-1(c). Submit the business case to the Office of the Deputy Assistant Secretary of the Army (Procurement) at the email address listed in 5101.290(b)(2)(ii)(A).
(i) Cover letter. The PARC shall sign the cover letter, recommending the business case for approval. The letter must indicate whether there is any Congressional interest in the procurement.
(ii) Business case review document. The business case review document shall include the signatures of the preparer, contracting officer, technical representative, requirements representative, program manager, program executive officer, legal counsel, and PARC.
(iii) Business case. Use the format provided at FAR 17.502-1(c). Include the command control number on the upper right hand corner of every page of the business case, including the review document and approval page, to enable the reassembling of the business case analysis if the documents become separated.
(iv) Approval page. Submit the approval language as the last page of the business case on a plain page, not letterhead.
5117.502-2 The Economy Act.
(a) Assisted acquisitions that are subject to the Economy Act shall comply with:
(i) DoD Financial Management Regulation DoD 7000.14-R, Vol 11A Chapter 3 and
(ii) DFAS-IN Regulation 37-1, Chapter 12.
(c) The requiring activity is responsible for preparing the Economy Act determination and findings (D&F). Approval of the D&F is in accordance with DFAS-IN Regulation 37-1, Chapter 12. The Economy Act D&F is required for both direct and assisted acquisitions, in addition to the determination of best procurement approach.
Subpart 5117.7 – Interagency Acquisitions: Acquisitions by Nondefense Agencies on Behalf of the Department of Defense
5117.770 Procedures.
Follow the procedures at FAR 17.5, DFARS 217.5, DFARS 217.7, and 5117.5 for acquisitions by nondefense agencies on behalf of the Department of Defense.
Being a good commercial construction cost estimator requires years of experience in the field as well as estimating at a line item level.
A detailed line item unit price book also greatly aids in improving productivity, sharing information, and minimizing errors and omissions.
Here are some considerations whether purchasing, buildings, or improving upon a detailed line item Unit Price Book.
UPB Application/Use – Specific Considerations for a Commercial Construction Cost Estimator
Are you are Commercial Construction Cost Estimator looking to build or improve upon your unit price cost database? Learn more…
Writing a Job Order Contract Task Order 
There are basically two methods to consider when writing a Job Order Contract Task Order:
#1 Completely design the project with either Owner in-house assets or a separate A/E indefinite delivery contract prior to giving it to the JOC contractor.
#2 Develop a more generalized scope of work without full A/E requirements, but with sufficient detail (potentially including an internal line item cost estimate) to enable the awarded JOC construction contractor to create an accurate and detailed construction cost estimate.
After identifying requirements for the required project, critical items are stated, paying attention to the all performance requirements.
Once the site visit is made, the scope is further developed by including the detail and specific requirements discussed.
The scope is further developed during and upon completion of the negotiation/scope clarification meetings.
The final scope is a mutually developed scope of work between the owner and the contractor.
The JOC process puts the responsibility of performance on the contractor while reducing the owner manpower requirement, however, the amount of early and ongoing communications and collaboration is significantly increased versus traditional construction delivery methods.
The owner clearly defines to the contractor what is required and the contractor develops how it will be done.
Any rationale for changes to the scope are documented until the final negotiations and subsequent job order contract task order is issued.
Writing a Job Order Contract Task Order – Sample:
The following sample is provided to assist in Writing a Job Order Contract Task Order. It is intended to generally show the development and refinement of the scope of work through the entire task order process.
Install suspended ceilings in rooms A and B as indicated in the drawing below.
The revised scope of work would then be as follows:
Remove the existing incandescent lighting, and install fiberglass batt insulation at the roof deck. Install suspended ceiling and troffer lighting in rooms A and B as indicated in the drawing below.
The final scope of work would then be as follows:
Remove the existing incandescent lighting and install Kraft faced R19 fiberglass batt insulation at the roof deck. Install suspended ceiling and 4 tube fluorescent troffer fixtures in rooms A and B as indicated in the drawing below. One lighting fixture in each room shall have emergency battery backups. The new ceiling height shall be 8 feet above finished floor.
Note: Ceiling Height to be 8 feet above finished floor.
NOTE: This is only an example showing the nature of the scope development process. The final scope of work should be detailed enough that both parties can agree to the requirements of the project at a line item level of detail using the approved JOC Unit Price Book.
Building Energy Efficiency, LEAN, and Cloud Technology Improved Facilities Management Outcomes
According to the International Energy Agency, almost 30% of worldwide energy is attributable to buildings (40% of total in energy in the United States), and will increase 1.5%/year through 2040 to almost 50%.[1] The United States is largest user of energy for commercial use. Building Energy Efficiency, LEAN, and Cloud Technology are central to improving facilities management outcomes.
The fastest growing energy consumer is the commercial building sector. Commercial sector energy consumption form profit and nonprofit organizations is used primarily for heating and cooling systems, lights, refrigerators, computers, and other equipment in the buildings where businesses, institutions, and other organizations are located. Examples of commercial sector buildings include retail stores, office buildings, government buildings, restaurants, hotels, schools, hospitals, and leisure and recreational facilities. Non-building energy use is included in the commercial sector, where it contributes to public services such as traffic lights and water and sewer systems.
The top five users of energy in the commercial sector are;
Malls and stores, Car dealerships, Dry cleaners, Gas stations
Professional and government offices, Banks
Elementary, middle, and high school, Colleges
Hospitals, Medical offices
Hotels, Dormitories, Nursing homes
Together increased energy use is a parallel rise and CO2 emissions, leading to the urgent need to improve energy efficiency and make more sustainable the buildings.
The use of technology: IoT – Internet of Things; Life-cycle Facilities Management, LEAN Construction Delivery Methodologies, BIM – Building Information Modeling and the Cloud today allow to design, build and manage building smarter.
The ability to have real-time, current, and actionable information related to the need for and execution of sustainability renovation and repair projects, use of the energy consumed or what might be spared help to reduce energy costs in combination with CO2 emissions responsible for the greenhouse is a critical tool.
The energy manager and facilities management team is responsible for the proper use and energy management. They are tasked with eliminating waste through the data analysis, the identification of critical issues and implementation of LEAN best management practices at reducing energy consumption, and cost associate with associated tasks.
The implementation of ICT – Information and Communication Technology – can contribute significantly to improving the quality of the overall performance of buildings in terms of greater energy efficiency without decreasing the quality of living.
Building in the Cloud provides to the Owners and the Facility managers tools control and Energy’s monitoring costs for buildings or groups of buildings, by providing analytical tools for the management and evaluation of possible interventions to improve the structures or the equipment.
Building in Cloud also has a module for LEAN Construction Delivery implementation, including locally researched construction line item costs.
Building in the Cloud is an innovative service to create, share and manage all the information of a building.
The service is accessible via any standard web browser, regardless of any device type (PC, Tablet or Smartphone) without the need for any installation, by simply logging in.
By registering with the site you can use Building in Cloud without cost for one month; beyond which you can decide if you wish to continue to continue our use for as low as $26.90/Mo. for each concurrent user (unlimited number of named users). No credit card information is required for the free trial!
Try Building in Cloud now for free.
[1] https://www.eia.gov/outlooks/ieo/world.cfm – INTERNATIONAL ENERGY OUTLOOK 2016
The JOC Program Guide provides a framework for organizations considering, or in the process of implementing or executing a Job Order Contract.
If you are interested in the detailed processes and procedures for the execution and administration of JOC contracts following industry best management practices, please complete the below form.
JOC Program Guide TOC
FOREWARD.. 5
INTRODUCTION.. 6
Purpose. 6
History of Job Order Contracting (JOC) 7
Benefits of Job Order Contacting. 10
JOC Organization, Responsibilities, and Authorities. 12
JOC Implementation Considerations. 14
Strategic Evaluation of Objectives, Goals, and Appropriateness. 15
JOB ORDER CONTRACT ACQUISITION/PROCUREMENT STRATEGY. 16
Facility Management/Engineering Planning. 19
The JOC Unit Price Book. 19
Technical Specifications. 21
Statement of Work for the Job Order Contract 21
Economic Price Adjustments. 21
Environmental Coordination. 22
Technical / Document Library. 22
Source Selection Team.. 22
Selection Evaluation Plan. 23
Pre-award Activities. 23
Contractor Phase-In Plan. 24
Contractor Phase-Out Plan. 24
Pre-RFP Review.. 25
Contract Funding. 25
Preproposal Conference. 25
Proposal Evaluation. 26
Competitive Range. 26
Preaward Survey. 26
Evaluation of Contractor Performance. 27
Negotiations and Source Selection. 27
Debriefing Unsuccessful Offerors. 27
Staffing. 27
Facilities. 28
Preaward Activities. 28
Sample JOB ORDER CONTRACT SOP – Standard Operating Procedure – Operations Manual – Execution Manual 28
Sample – Job Order Contracting Internal Control Checklist 31
JOC Procurement/Award Process. 32
Identification of Participants. 33
Limitations. 33
WORK EXECUTION AND CONTRACT ADMINISTRATION.. 34
Contract Clauses. 35
Subcontracting Plan Regarding Small, Small Disadvantaged and Women-Owned Small Business 36
Job Order Execution. 36
Initiating and Reviewing Job Orders. 36
In-House or Contract Performance. 36
Methods of Contracting. 37
Job Order Contracting. 37
Job Order / Task Order Routing. 38
Assignment of a Project Manager. 38
Scope Validation Meeting. 39
Request for Contractor’s Proposal 39
Proposal Preparation. 40
Independent Owner Estimate Preparation. 40
Protection of Owner Estimate. 41
Evaluate Contractor’s Proposal 41
Negotiation of Job Order / Task Order. 42
Job Order / Task Order Award Package Preparation. 43
Placing the Order. 44
Preconstruction Meeting. 44
Administrative Responsibilities. 45
Non-Prepriced Items. 45
Contractor Performance. 46
Significant Events. 46
Task Order Close Out 47
Payroll Review.. 47
Timely Accomplishment of Requirements. 47
Contract Status Report 48
Bonding. 48
Payments. 48
Small Business Utilization Reporting. 49
Quality Assurance/Quality Control 49
Task Order Modifications. 50
Changes to T.O. Requirements. 51
FISCAL YEAR-END PLANNING.. 51
Execution of Task Orders Against the Guaranteed Minimum.. 51
Execution of Task Orders Issued After Guaranteed Minimum.. 51
ADDTIONAL ENGINEERING/TECHNICAL/DPW RESPONSIBILITIES. 53
Citation of Funds. 53
Task Order Status Report 53
Exercising Options. 54
FOLLOW-ON CONTRACTING FOR A NEW CONTRACT. 54
APPENDIX. 55
UNDERSTANDING THE CONTRACTOR’S COEFFICIENT. 55
ROLE OF JOC ADMINSTRATOR. 56
INTERNAL CONTROL AND REVIEW PLAN. 57
Job Order Contracting Internal Control Checklist 58
SAMPLE SCOPE OF WORK. 60
SAMPLE REQUEST FOR PROPOSAL. 62
SAMPLE CONTRACTOR’S PROPOSAL. 63
SAMPLE INDEPENDENT OWNER/GOVERNMENT ESTIMATE. 69
TAKE OFF NOTES: 69
COST ESTIMATE. 70
TASK ORDER FILE CHECKLIST. 74
QUALITY CONTROL PLAN REQUIREMENTS. 76
JOB ORDER CONTRACTING TRAINING. 78
ADDING NON-PREPRICED ITEMS TO YOUR JOC CONTRACTS. 80
ABBREVIATIONS. 82
DEFINITIONS. 85
References / White Papers 86
A job order contracting guide is a required component of any best practice Job Order Contract. Also referred to as a JOC Operations Manual, or JOC Execution Guide, the Job Order Contracting Guide is a written document that contains all of the strategic and operational elements and requirements associated with the JOC Program. An example of the some of the topic areas is shown below.
The Job Order Contract and is integral Job Order Contracting Guide should reflect current, objective, and transparent collaborative best management practices. LEAN construction methodology with a focus upon win-win long terms relationships, outcomes, and best value should be founding principles.
General areas that to be considered when preparing a Job Order Contracting Guide include:
Request SAMPLE Job Order Contracting Guide
A superior line item construction cost estimator generally has an intricate knowledge of field construction techniques, uses a common data environment, and is skilled at both collaboration and LEAN construction and/or facilities management.
Field construction knowledge – Without knowing what types of crews are currently used for drywall installation or asbestos removal, impacts of site conditions or security/access issues, etc., it’s virtually impossible to create an independent construction cost estimate and/or verify the estimates of subs / trades.
Common data environment – Using CSI MasterFormat and an associated construction cost database with common descriptions, terms, and full detail as to labor, material, and equipment costs is the ONLY efficient way to build, maintain, re-use, and share detailed line construction cost data. An experienced construction cost estimator knows this, but is it is surprising how few estimators practice these techniques. A unit price book and a common data architecture are critical to improving transparency and productivity.
LEAN collaborative construction delivery methods – Job Order Contracting, JOC (for renovation, repair, and minor new construction( and Integrated Project Deliver, IPD (for major new construction) are proven LEAN construction delivery methods that are capable of consistently delivering over 90% of projects on-time, on-budget, and to everyone’s satisfaction. That said, less than 5% of the AECOO market practices these methods, of fewer practice them appropriately. If one looks at the ability of various market sectors to understand and deploy JOC, for example, hears a ranking of best to worst…
All detailed costs associated with a renovation, repair, maintenance, or new construction project must be addressed and mutually understood. While this appears obvious, it is rarely the case for across Architects, Engineers, Contractors, Owners, and Facility Managers/Operators.
The fact that Real Property Owners, Architects, Engineers, Contractors, Facility Managers, and Users rarely share and understand detailed task descriptions and costs is a major factor contributing to industry-wide low productivity, rampant waste, and overall poor outcomes.
Owners are ultimately responsible for their built structures.. their quality and condition, ability to support the organizational mission, and life-cycle costs. The use of detailed line item unit costs significantly helps to communicate information among all project participants, beneficiaries, and oversight groups as well as focus attention upon specific requirements and intended outcomes. The use of unit cost methodology promotes and requires responsibility and accountability for decisions throughout the project life-cycle.
Benefits of Unit Cost Line Item Estimating
Every architecture, engineering, and construction management and/or facilities management school would benefit themselves and the AECOO industry by having LEAN Construction Institute. (AECOO = Architecture, Engineering, Construction ,Operations, Owner)
The only path towards improved renovation, repair, and new construction outcomes, on a consistent basis, is the implementation of LEAN collaborative construction delivery methodology.
Until Owners and Facilities Management improves their leadership skills and overall competency with respect to life-cycle management of the built environment, waste and low productivity will remain rampant in the construction sector.
Job Order Contracting, Integrated Project Delivery and other collaborative processes should be featured at the LEAN Construction Institute.
Collaborative LEAN construction delivery methods shared the following characteristics:
LEAN construction drives early and ongoing information sharing across multiple knowledge domains.
The systemic productivity problems associated to the AECOO sector are traceable to archaic, ad hoc, and antagonistic construction delivery methods…. all of which unfortunately have become part of our culture.
A primary focus upon education and change management is the only viable solution to reducing waste and improving productivity.. the the need for the LEAN Construction Institute.
Focus must shift from the prevalent “first cost mentality” to “life-cycle cost” planning. On average, only 20% of a built structures cost resides in initial construction. Procurement must shift from “lowest bidder” to “best value”.
Real property owners and facility managers must take on leadership roles in terms of stewardship of the built environment.
Collaboration must be mandated.
[1] LEAN CONSTRUCTION DEFINED
LEAN construction is the adaptation and application of processes from LEAN manufacturing. The latter is believed to have been was first implemented at Toyota Motor Company in Japan. The implementation, known as the Toyota Production System (TPS) was specific to Toyota and has since evolved in multiple forms of “LEAN philosophy”. LEAN is a collaborative business process with a focus upon team collaboration, early and ongoing information sharing, and continuous improvement. Minimizing waste, increasing value, and accepting input from all persons within an organization are the hallmarks of LEAN. LEAN, as a business process philosophy, has been successfully implemented via progressive construction delivery methods for over two decades (Integrated Project Delivery – IPD, and Job Order Contracting – JOC).
www.4BT.us – Independent, Objective, and Best-Value Job Order Contracting LEAN Construction Delivery Solutions.
Creating a cost estimate in construction requires experience not only in estimating but in actual construction tasks. Field experience on job sites is necessary in order to gain a full understanding of situational requirements. I would even argue that a site visit should be mandatory in addition.
Preparing multiple reasonable detailed estimates efficiently as requires using a line item construction cost database.
There are “national average” cost database available. These are a reasonable starting point. Using them exclusively, however, is not a recommended best practice. They do not represent local labor, equipment, and material costs sufficiently. The use of a national average cost database AND localization factors is also not a recommend best practice. The application of localization factors at such a “gross” level introduces significant error.
A locally researched line item construction cost database (complete with labor, material, and equipment detail and organized via CSI MasterFormat) combined with the decades of experience of skilled construction cost estimator is the best past toward an detailed, accurate, and collaborative cost estimate in construction.
Job Order Contracting, a collaborative integrated project deliveyr method, required the use of unit price book (UPB) to create a cost Estimate in construction. Best management practice required the use locally researched detailed unit price construction cost data.
Four BT, LLC is an innovator in providing construction data, cloud technology, and services for Job Order Contracting and physical asset life-cycle / total cost of ownership management. Our team of highly experienced and skilled professions is unsurpassed in the creation of construction cost data and life-cycle management from concept through ongoing operations. Our team members have provided services and solutions to the largest real property portfolio owners in America, as well as smaller facilities management organizations across all public and private sectors. If you organization is looking to delivery more renovation, repair, and construction project on-time, on-budget, and to the statisfaction of all stakeholders, contact us today.
info@4BT.US
Job Order Contracting Events… The Mid-Atlantic Chapter of the Center for Job Order Contracting Excellence (CJE) is seeking Facility Managers, Client Procurement personnel, Owner Management personnel, and Contractor participation in the Mid-Atlantic Chapter; and on the Mid-Atlantic Council Board.
CJE Membership and participation is open to public and private entities with a vested interest in JOC and IDIQ procurement and delivery.
The CJE is a non-profit organization created as the resource and collaboration center for education, best practices, research, and JOC Certification. We are seeking to build better JOC understanding, more transparency, increase data access and metrics, and maintain contract flexibility while ensuring contractual compliance. JOC is a great contract to have in your tool box and across the industry, we want to retain the strengths of speed and flexibility, add controls to increase clarity and transparency, and house data matrices that enable Contract Owners to measure and monitor multi-location and multi-agency use under the single procurement tool.
CJE Job Order Contracting Events have personnel available to discuss typical JOC issues, FAQ’s on differing types of IDIQ contracts, custom JOC potentials, availability and veracity of differing Unit Price Books, and pricing methods and mechanics. An open forum / panel discussion period is in the making for the Spring meeting; participants desired.
The next Mid-Atlantic CJE Chapter meeting is March 23 2017 in Falls Church, VA – no fees, lunch included! HITT Contracting is hosting this year’s event, please contact me go to https://jocexcellence.org/ and learn more about the CJE.
An integrated project delivery method is arguably required in order to achieve desired quality, satisfaction, timing, and cost for over 90% of renovation, repair, or new construction projects executed. Traditional design-bid-build, and even design-build are not capable of meeting this threshold, not providing appropriate levels of collaboration and financial transparency.
Job Order Contracting, JOC, is an integrated project delivery method design specifically for renovation, repair, and minor new construction. It provide multiple benefits to all participants and stakeholders. These benefits are largely derived through the use of a common data environment, CDE, which dramatically improves communication and collaboration throughout the project life-cycle.
A Common Data Environment (CDE) is a strategic tool for sharing cost information and managing a team.
The JOC LEAN Integrated Project Delivery Method as well as, Integrated Project Delivery, IPD, and BIM, are dependent upon a CDE to drive collaboration and minimize error, omissions, and miscommunication.
A detailed, full transparent line item construction cost estimate is critical for improving collaboration and reducing change orders.
An Example… CDE and LEAN JOC Construction Delivery
A role of a common data environment within a JOC integrated project delivery method is to provide actionable information in support of renovation, repair, and minor new construction. Real property owners, contractors, engineers, and architects are familiar with obtaining project task and cost information from a variety of sources, including published cost data (example: R.S. Means Company, LLC), vendor quotes from general and trade contractors, and historical cost records.
Within a Job Order Contract integrated project delivery method, the Common Data Environment is provided by the Unit Price Book, UPB. The JOC unit price book is used by owners and contractors to define and cost construction tasks required for each renovation, repair, and minor new construction project. All construction tasks are organized within a standard data architecture, such as CSI MasterFormat.
Unit Price Books – Pros and Cons
Research shows that only 2% of construction projects globally are delivered on-time, on-budget, and to the satisfaction of all participants and users.[1] To flip this traditionally negative outcome upside down, and consistently drive 98% satisfaction levels requires that timely and accurate information be shared transparently and as quickly as possible, without interruption, throughout all asset life-cycle activities.
Construction cost data must be in clear, common terms, which can be aggregated, distributed, updated and modified for all the varied participants, purposes and goals. This information is can only be cost effectively created, stored, and maintained within a CDE. At detailed line item level, an example being the CSI Masterformat data architecture.
The core objective of line item construction cost data is to provide better information, knowledge and wisdom to allow us to make better decisions, and drive higher efficiency. No one wants to change their work process needlessly, fill out the same information multiple times, waste time searching for information, or pay for new technologies where claimed benefits are not clearly defined.
Making the necessary changes within an organization to adopt common data architectures and collaborative work practices is nontrivial. Thus LEAN construction delivery methods such as Job Order Contracting, that can provide major benefits to all participants, are not always well received nor well implemented. New processes naturally lead to higher initial business costs, and requires both an associated learning curve, and specific supporting cultures. Thus, there is an acceptance barrier by many owners, contractors, and AEs when it comes to collaborative methods such as Job Order Contracting or Integrated Project Delivery.
Clearly organizations will not shift to requiring a Common Data Environment until overall investment costs in technology and training, and associated benefits can be quantified. That time, however, is now. Objective, best value, and timely line item construction cost data is available. Supporting training and technology is also readily obtainable. There is little reason not to improve productivity for renovation, repair, and construction projects. The world of construction is changing, and those that don’t take the path of innovation will be left behind.
CDE Players
Introducing the Common Data Environment impacts multiple players within the construction value chain:
“The Owner”
All real property owners who manage renovation, repair, maintenance or new construction projects need a Common Data Environment to develop, store, and distribute all relevant drawings, BIM models, documents, activities, and processes to all the relevant stakeholders.
Owners are becoming increasingly focused on demanding more value. They are aware of the traditional waste and productivity issues and are beginning to demand change.
Technology that embeds LEAN collaborative best management practices for the design and construction industry is available to manage an enormously wide range of complex data, and at the same time, is relatively simple deploy and to use.
Building Information Modeling software-solutions, including CAFM (computer-aided facility management for space planning), CMMS (computerized maintenance management software for routine maintenance under $10,000), CPMS (capital planning and management software for physical and functional condition assessment and reinvestment planning/decision-support, LEAN Product Delivery software (Job order contracting and integrated project delivery), and 3D visualization tools can jointly deliver benefits to stakeholders throughout every part of the construction and life-cycle management process.
“The Designer”
A high level of pressure will be put on architects and other specialist advisors as many clients currently see 3D visualization as the answer to ensuring cost effective construction project delivery. This, of course, must change to BIM. Developing a CDE to run and record the processes between you and your clients that includes all aspects of life-cycle management, especially that of collaborative LEAN project delivery will become mandatory. The designer needs to manage ongoing changes in real time as situations require, and be sure that the document available is current, and all prior changes archived.
Sharing the same information, in appropriate formats, with the Owner with the structural and MEP Engineers is critical for validation of work scope and minimizing errors, omissions, and miscommunications. The later are all result costly, yet largely avoidable, changes during the construction stage.
“The Contractor”
Within a BIM execution, the constructor is active part of the proceedings from the earliest planning stages. This enables inclusion of their since their proven field experience and knowledge. This is critical to meeting objectives for quality, timeliness and cost. All stakeholders must offer their contribution and their experience as early as possible.
The importance of using a LEAN construction delivery method can’t be overstated. Regardless of the LEAN construction delivery method selected, all require early and ongoing collaboration among project participants.
The traditional and problematic “transition between the design phase and the construction phase” is eliminated from an informational perspective within a LEAN construction/BIM process. The builder will already have all the information needed to complete the work per standards and specifications required by the Owner.
Finally, complementing and adding the information is in the life-cycle physical asset model is simplified using a CDE. This factor is indispensable in the during the operations management and maintenance phases.
“The Facility Manager”
The Facility Manager as well as the Energy Manager, and related colleagues, can depend upon a CDE to assure available access to historical, current, and planned operations and maintenance management activities, costs, and impacts.
Within the CDE, a wide range of standardized information can be stored and immediately accessed: locations, buildings, horizontal infrastructure, movable assets (equipment, furniture), major building systems, major equipment, and people (internal, and external). This information is always immediately directly available in the office or in the field.
Real time maintenance management activities can be costed, scheduled, and tracked on demand.
If the information comes from a building information model (see example figure) inside the CDE you may store additional information such as warranty information, building plans, permits, conformity certificates, data sheets, etc… This information allows the operator to increase the utilization of all available resources, while reducing risk and avoidable delays. Space use and energy efficiency can also be monitored locally and enterprise-wide.
In Summary
The AECOO industry (Architects, Engineers, Contractors, Owners, and Operators) and associated supply chain participants would be well served to leverage the appropriate integrated project delivery method and its associated Common Data Environment to allow for access of current, standardized and easily understood, and detailed information across all stages of the life-cycle of a built structure.
[1] McKinsey Study
Lean construction techniques are central to improving quality, timeliness, satisfaction, and lowering costs.
Traditional construction procurement methods and daily operations are unreliable.
Best Value Procurement and LEAN collaborative construction delivery methods are proven to delivery significant improvements.
Construction delivery processes must be structured to assure teamwork and continuous monitoring and improvement.
Participants must not only be competent, but share common goals as well as share risk and reward.
Focus must be upon outcomes, mission, and clients/customers.
LEAN CONSTRUCTION DELIVERY METHODS
Examples of proven LEAN collaborative construction delivery include Integrated Project Delivery, IPD, for major new construction, and Job Order Contracting, JOC, for renovation, repair, maintenance, sustainability, and minor new construction.
OWNER LEADERSHIP
Owner must demonstrate LEADERSHIP and require COLLABORATION and engage in innovation, agility, and performance improvement.
Owners must EMPOWER teams without excessive management and control.
Owners must assure essential capabilities and competencies are present throughout the TEAM.
JOC Construction Labor Costs
JOC construction labor costs provide the foundation for any successful Job Order Contracting Program. On average, labor accounts for sixty percent (60%) of a project total construction cost and is therefore a primary consideration.
Most “best practice” Job Order Contracts use prevailing wage rates, and more specifically Davis-Bacon wage rages if available. The wage rates are combined with material and equipment costs, and the time/crew required to perform a specified task in order to create a detailed JOC construction cost task or line item. The total for the line item is general the applied without contractor overhead and profit. The latter are accounted for by the job order contractor’s coefficient(s) as approved for the related Job Order Contract.
The listing of tasks for a Job Order Contract are contained within the JOC Unit Price Book (UPB). The UPB is generally updated annually to account for market fluctuations and the adding of any new unit price line items as required.
Historically, cost data from The R.S. Means Company, LLC has been used for the majority of Job Order Contracts. There are now independent, objective, and in some cases more suitable alternatives such as the 4BT JOC Unit Price Book.
Key considerations for a JOC Unit Price Book:
Learn more…
www.4BT.US – Independent, Objective, and Best Value Job Order Contracting Solutions
Construction Cost Estimate – A detailed Construction Cost Estimate must be represented in common terms using a standard data architecture (CSI Master Format), provide labor, material, and equipment breakdowns, and be researched locally (no using of localization factors or industry average values).
The 4BT OpenJOC Unit Price Book meets all these criteria, delivering an independent, objective, and best value industry resource for real property owners, contractors, architects, engineers, and county, state, and local governments.
4BT OpenJOC Unit Price Book, UPB and Cloud 4BT-CE JOC Software
HIGHLIGHTS
Locally research line item construction costs – No Use of Localization Factors
Descriptions in plain English
Full material, equipment, and labor details
Prevailing, current, accurate, and localized Davis-Bacon wage rates
Independent, objective, and best value data source
Guaranteed cost throughout the Job Order Contract term
The 4BT OpenJOC Unit Price Book is locally researched and provides a higher level of granularity/detail than so-called “North American standard” construction cost books.
Furthermore, the pricing of our cost data is guaranteed in future years as well as created and maintained by industry leading professionals formerly with the R.S. Means Company, LLC, and U.S. Cost, LLC.
Gain the confidence and get the support you deserve for you Job Order Contracting and other detailed unit price line item cost data requirements.
Our cost data is also available via a true cloud environment that runs on ANY major web browser… and your access is fast, dependable, and secure.
You can also embed our cost data within your own construction cost estimating environment.
www.4BT.us – Independent, Objective, and Best Value LEAN Construction Solutions.
4BT JOC Unit Price Books are individually created to account for at least ninety percent (90%) of the renovation, repair, maintenance, and/or construction costs associated the associated Job Order Contract. While some unit price books contain hundreds of thousands of line items, the most commonly associated with facilities and infrastructure involve far fewer line items in actual practice. Excessive numbers of line items can create confusion and inefficiencies.
A 4BT Job Order Contract UPB can vary in size, however, generally does not exceed approximately 60,000-unit price line items/construction tasks. Material, equipment, and labor detail are provided for commonly encountered renovation, repair, maintenance, construction tasks.
The pedigree of the 4BT Unit Price Book dates back, in part, to some of the first early Army/DOD Job Order Contracts deployed in the United States and subsequently have been refined by decades of research and field application. Over one hundred (100) variations of custom unit price books have also been developed.
The application of LEANconstruction is a focus upon best value for all project participants.
While some will argue that “Every situation is unique” and there is no standard application of LEAN construction, core characteristics are and requirements do exist. In short, consistency in process deployment is critical and can easily live within an environment of continuous improvement. LEAN construction processes are built to adapt based upon the competency and communication of participants.
The core aspects of LEANconstruction have been deployed for decades through collaborative construction delivery methods such as Integrated Project Delivery – IPD (for major new construction) and Job Order Contracting – JOC (for renovation, repair, maintenance, sustainability, and minor new construction).
Core Aspects of LEANconstruction
1. Collaboration
2. Best value procurement and execution
3. Shared risk/reward
4. Continuous improvement
5. Key performance indicators – KPIs
6. Mutual respect
7. Ongoing education and training
8. Common terms, definitions, and data architectures
9. Technology that supports rather than dictates process
10. Focus upon outcomes
Owners must lead the LEAN construction process and do so without excessive management and control. In order to lead, however, owners must first grasp and become “LEAN competent”.
Sign up for White Papers/Research…
A Construction Repair Cost Estimator for Public Agencies is now available that is independent, objective, and cost-effective. Forget out databases that claim to be the North American standard, or that supposed locally research construction labor, material, and equipment costs, including fringes, on a local basis.
4BT Construction Repair Cost Estimator
Introduction
The 4BT Construction Repair Cost Estimator and 4BT Unit Price Cost Books are specifically researched and published for each uniquely defined geographic area/market. A unit price book may include incorporate Regional, State, County, or City levels per client/contract requirement.
The 4BT JOC UPB Cost Data has been developed to enable users to create reasonable construction cost estimates for a wide variety of renovation, repair, and maintenance construction tasks commonly performed on buildings and other physical infrastructure.
While cost data from The R.S. Means Compay, LLC has been used for a large number of JOC Programs; lower cost, high value alternatives are now available as demonstrated by the 4BT Unit Price Book.
4BT JOC Unit Price Books are individually created to account for at least ninety percent (90%) of the renovation, repair, maintenance, and/or construction costs associated with Job Order Contracting. While some unit price books contain hundreds of thousands of line items, the most commonly associated with facilities and infrastructure, involve far fewer line items in actual practice. Excessive numbers of line items can create confusion and inefficiencies.
A 4BT Job Order Contract UPB can vary in size, however, generally does not exceed approximately 60,000-unit price line items/construction tasks. Material, equipment, and labor details are provided for commonly encountered renovation, repair, maintenance, and construction tasks.
History – The pedigree of the 4BT Unit Price Book dates back, in part, to some of the first early Army/DOD Job Order Contracts deployed in the United States and subsequently have been refined by decades of research and field application. Over one hundred (100) variations of custom unit price books have also been developed.
Update Frequency – The cost data is continuous, maintained and regularly updated by experienced cost engineers/researchers dedicated exclusively to cost research and cost engineering. In addition to being the most cost-effective and most accurate representation of labor costs, it likely represents the only true industry alternative to solutions provided by The RSMeans Company, LLC (acquired by The Gordian Group) and/or The Gordian Group. It is recommend that UPB’s be updated annually when used in association with Job Order Contracts.
Data Architecture – The use of standardized data formats and descriptions, which can easily be understood by all Job Order Contract participants, is central to any successful JOC program. CSI Masterformat (registered trademark of The Construction Specifications Institute) is the North American standard data format for organizing line item construction cost data and the format provided within the 4BT JOC UPB Cost Data. 4BT is a licensed partner of CSI, The Construction Specifications Institute.
Detailed Task Descriptions – The 4BT JOC UPB provides consistent, clear, and detailed descriptions for each line item in common terms, using “plain English”. All users can easily understand tasks as abbreviations and non-standard terms are avoided whenever possible. When used, abbreviations consistently follow established conventions.
Material, Equipment, and Labor Detail – Each line item task, in addition to a Description, includes labor, material, equipment information, and costs as appropriate.
4BT JOC UPB & Task Orders – A “detailed estimate of construction cost” for a JOC task or “task order” is a forecast of the predicted cost based upon unit prices with associated breakdowns/descriptions materials, labor, and equipment. Thus a detailed line item estimate created with an appropriate UPB should better reflect costs than a conceptual, or square-foot level estimate. The 4BT JOC UPB is designed to provide reasonably current and “accurate” costs of materials, and equipment. (Note: In many cases multiple “estimates” are totaled to create a sum for a task order or project, in order to better define work by type (i.e. electrical, mechanical, architectural, etc.). This level of organization can easily be created in the Job Order Contract System.
While contractors may know what it costs and how long it takes for them or their subs to complete a given task, representing this information in a way for Owners, Subs, AE’s, and Oversight Groups is critical to assure a common understanding of the Owner’s required scope of work and full financial transparency.
A well prepared UPB minimizes estimating efforts and lowers the costs associated with building, updating/maintaining, and associated training costs. Similarly, the use of standardized construction specifications and/or those specifications currently in use by the Owner also are preferable to custom “JOC” specifications for similar reasons.
A Lean Construction Common Data Environment is important to improving collaboration, quality, delivery times, and overall project satisfaction.
Job Order Contracting, JOC, and Integrated Project Delivery, IPD, the two most common LEAN construction delivery methods, both require a common data environment (CDE). A unit price book is an example of a common environment for JOC.
Here are a few considerations with respect to designing, using, and maintaining a CDE…
Define Construction Procurement
Define Construction Procurement… It’s easy to define construction procurement right? Perhaps not. Improper construction procurement methods and a relative lack of competency on the part of procurement staff have greatly contributed to poor construction outcomes.
The appropriate procurement and management of construction services resulting in timely, cost effective, and quality outcomes has remained problematic for many/most public organizations.
While Federal, State, County, and Local Governments as well as other public entities may have volumes of regulations regarding construction procurement practices, in many cases they are outdated and do not include current LEAN construction procurement/delivery best management practices.
Define Construction Procurement– A process whereby contractual agreements are designed, bid, and executed between real property owners and construction contractors for renovation, repair, or new construction services for buildings or any form of physical infrastructure.
Services and/or work may include…
architectural or engineering/design, the construction, alteration, repair, refurbishment or fitting out of buildings and other structures;
the installation, alteration or repair of plant and equipment designed to be used in, or in relation to, the provision of services for buildings and other structures;
the undertaking, construction, alteration or repair of landscaping and earthworks (whether or not in relation to buildings and other structures);
the demolition, destruction, dismantling or removal of: buildings and other structures; plant and equipment, earthworks, the clearing of land and the development of land for use as urban land or otherwise; and any other matter declared by the regulations/statutes to be a work.
The estimated value and type of a construction services required (including any options such as contract extensions) should determines the appropriate procurement and construction delivery method. In order to achieve optimal outcomes both the construction services valuation method and the construction delivery method should be well defined and mandatory.
Regardless of the Construction Procurement and Delivery Methods selected, minimum and maximum dollars values should be established….and, of course, Define Construction Procurement.
Define Construction Procurement – Related White Papers and Resources
ASSET LIFE-CYCLE MODEL – Total Cost of Ownership Management – A framework for facilities life-cycle management.
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.
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.
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.
What is JOC might be answered differently by a real property owner, facilities management professional, or construction contractor.
The History of What is JOC Today
The United States Department of the Army is attributed with initially developing and deploying Job Order Contracting during the early 1980s. It did so in response to a growing need for increasing and unsupportable demands for construction throughout Europe.
Traditional design-bid-build (DBB) construction delivery was too inefficient for the large numbers of renovation, repair, and sustainment/maintenance projects. Associated delays were negatively impacting the Army’s mission.
An initial process framework was put in place that would later be improved to become what we now know as Job Order Contracting, JOC. The new method was designed to shorten procurement and overall project delivery times while also maintaining quality.
Since the initial European implementations, JOC was further developed and validated by the U.S. Department of Defense: West Point Academy in 1985, and multiple United States Air Force bases in 1986. The United States Air Force (USAF) has since gone on to become one of the largest, and perhaps most refined, user of Job Order Contracting to this day. Job Order Contracting goes under the name of SABER at USAF bases throughout the world.
Retired USAF and other DOD personnel who now work in other public sectors brought their knowledge with them.
JOC use significantly expanded during the 1990’s, and companies like 4Clicks Solutions, LLC filled the need for dedicated JOC software solutions and JOC training programs to support lower cost and more consistent deployment of Job Order Contracts. Cost data from the RSMeans Company, LLC was used primarily in support of Federal Government JOC / SABER programs.
Now JOC programs can be supported by multiple suppliers of unit prices books, software types, and associated services. State, County, and Local Governments, Transportation, Education, and Healthcare entities have begun to use establish Job Order Contracts. While these entities are relatively new to JOC and are learning to improve their implementations and deployments of this LEAN construction delivery method, the demand for greater efficiency is driving their capabilities forward.
That said, Owners must provide leadership and be competent in supporting JOC without the excessive reliance upon JOC consultants. Multiple independent and internal JOC program audits have demonstrated that excessive reliance upon JOC consultants and/or lack of sufficient owner training can result in conflicts of interest and/or poor JOC program performance.
JOC must not be used as a method to approve construction project that otherwise would not pass conventional procurement standard. JOC also should not be used to simply speed procurement. JOC should be used to improve collaboration, efficiency, quality, and to provide additional benefits for all participants and stakeholders.
Job Order Contracting (JOC), a competitively bid, firm-fixed price, Indefinite Delivery Indefinite Quantity (IDIQ) delivery system, is a LEAN construction method and a form of Integrated Project Delivery (IPD).
A real property owner (building or other forms of physical infrastructure) establishes a contractor to multi-year contract and relationship with a contractor partnership. (Note: In recent history JOC has also been provided as a service by a third party administrator. In this relationship, the service party should NOT be involved in approving JOC construction projects if they are receiving a fee based upon total JOC construction volume. This practice has been viewed as a conflict of interest and one which can lead to fraud.)
The specific Job Order Contract determines a unit price book (UPB) that has a number of unit price line items complete with descriptions and labor, material and equipment costs. The number of unit price line item varies, however, generally includes approximately 40,000 line items. Most JOCs actually use significantly fewer line items in actual practice. The important factor is that the UPB contain at least 90% of the items common used for the associated JOC.
The cost of a JOC project, also referred to as a Job Order (JO) or Task Order (TO) be determined by creating a detailed line item unit price estimate for the associated Statement of Work (SOW) provided by the Owner. The total of the estimate is then multiplied by a coefficient. The coefficient is a factor that generally ranges from 0.80 to 1.20 is intended to include contractor overhead, profit and any items that reflect the contractor and/or site and/or requirements.
A unit price book, UPB, is typically updated annually/
Cloud-based software is best used for JOC programs as it supports real-time collaboration using current, actionable information.
An example of a work flow involved in a Job Order or Task Order is shown below.
And don’t forget continuous improvement and training!
Learn more…
JOB ORDER CONTRACTING Cooperatives play an important role for real property owners, facilities manager, and contractors. As is the case for any business endeavor, it’s a benefit for all parties to do their homework.
Here are some tips for contractors considering working with JOB ORDER CONTRACTING Cooperatives or considering changes in within specific programs.
This particular document was circulated by the National Cooperative Purchasing Alliance, NCPA.
As a construction contractor considering a Job Order Contract (JOC), it is critical to be aware that all JOCs are not the same.
Carefully review all of the Job Order Contract and all associated documents. Make certain that the roles, responsibilities, tools, requirements and liabilities associated with the JOC are specified.
Determine the answers to the following questions BEFORE you price or accept a Job Order Contract:
The following is a listing of Job Order Contract Do’s and Don’ts. This format is used to review the primary elements of a Job Order Contract from a “best practice” perspective with a focus upon the construction contractor. It is important to review all Job Order Contract provisions to assure avoidance of any unnecessary financial risk or potential legal issues.[1]
Job Order Contracting (JOC) is a competitively bid, firm-fixed price, Indefinite Delivery Indefinite Quantity (IDIQ) LEAN construction delivery method. It is also implemented by the United States Air Force under the term SABER. Although some basic attributes of a JOC were originally developed in the early 1980’s in Europe, JOC was greatly refined in the United States by the U.S. Army and U.S. Air Force in the late 1980’s and continues to be improved and expanded.
JOC FUNDAMENTALS and Job Order Contract Cooperatives – Job order contracting, like any LEAN best management process, has basic requirements that focus upon collaboration, transparency, quality, and continuous improvement.
IMPORTANT: If the Job Order Contract you are considering is not in alignment with these core best practices, it is recommended that you discuss the document in more detail with appropriate parties, including, but not limited to, the real property owner / facilities manager, an experience JOC consultant or peer organization, and legal resources familiar with Job Order Contracts.
[1] This document is not providing, nor attempts to provide any form of legal advice. Please seek appropriate legal counsel.
If your interested in a sample job order contract, just send us your government sector/industry and we will be happy to assist you.
A JOC Operations Manual or JOC Execution Guide should always be a component of your job order contract. We can help you there also.
Example of a tables of contents …
History of Job Order Contracting (JOC) 7
Benefits of Job Order Contacting. 9
JOC Organization, Responsibilities, and Authorities. 11
JOC Implementation Considerations. 13
Strategic Evaluation of Objectives, Goals, and Appropriateness. 14
JOB ORDER CONTRACT ACQUISITION/PROCUREMENT STRATEGY. 15
Facility Management/Engineering Planning. 18
Statement of Work for the Job Order Contract 20
Economic Price Adjustments. 20
Environmental Coordination. 21
Technical / Document Library. 21
Evaluation of Contractor Performance. 25
Negotiations and Source Selection. 26
Debriefing Unsuccessful Offerors. 26
Sample – Job Order Contracting Internal Control Checklist 30
JOC Procurement/Award Process. 31
Identification of Participants. 31
WORK EXECUTION AND CONTRACT ADMINISTRATION.. 33
Subcontracting Plan Regarding Small, Small Disadvantaged and Women-Owned Small Business 34
Initiating and Reviewing Job Orders. 34
In-House or Contract Performance. 35
Job Order / Task Order Routing. 36
Assignment of a Project Manager. 36
Request for Contractor’s Proposal 38
Independent Owner Estimate Preparation. 39
Protection of Owner Estimate. 40
Evaluate Contractor’s Proposal 40
Negotiation of Job Order / Task Order. 41
Job Order / Task Order Award Package Preparation. 42
Administrative Responsibilities. 43
Timely Accomplishment of Requirements. 46
Small Business Utilization Reporting. 47
Quality Assurance/Quality Control 48
Changes to T.O. Requirements. 49
Execution of Task Orders Against the Guaranteed Minimum.. 50
Execution of Task Orders Issued After Guaranteed Minimum.. 50
ADDTIONAL ENGINEERING/TECHNICAL/DPW RESPONSIBILITIES. 51
FOLLOW-ON CONTRACTING FOR A NEW CONTRACT. 52
UNDERSTANDING THE CONTRACTOR’S COEFFICIENT. 54
INTERNAL CONTROL AND REVIEW PLAN. 55
Job Order Contracting Internal Control Checklist 56
SAMPLE REQUEST FOR PROPOSAL. 60
SAMPLE CONTRACTOR’S PROPOSAL. 61
SAMPLE INDEPENDENT OWNER/GOVERNMENT ESTIMATE. 67
QUALITY CONTROL PLAN REQUIREMENTS. 73
JOB ORDER CONTRACTING TRAINING. 75
ADDING NON-PREPRICED ITEMS TO YOUR JOC CONTRACTS. 77
Facilities management, practiced properly, is process-centered. People and processes should support core organizational strategies and goals. Far too often, focus is upon technology. Technology is an enabler, but should not drive decisions. The following white paper additional insight.
While Shakespeare was a great playwright, he has little to contribute to improving renovation, repair, and new construction outcomes.
Despite the “surveys”, “reports”, and hype associated with BIM, building owners and facilities management professionals have yet to fully understand BIM, let alone decide whether or not to practice it.
Asking the right questions is extremely difficult, and I would suggest a quote from a more relevant source, such as,
“My greatest strength as a consultant is to be ignorant and ask a few questions.” – Peter Drucker.
Real property owners and facilities management professionals would be better served learning new ways to serve building users the community both economically and environmentally.
While we are in the midst of a convergent explosive evolution of big data and technology, the real “battle ground” is internal CHANGE MANGEMENT and literally altering how we work on a day to day basis.
The times of fat cows will never come again and therefore we need to seize the new opportunities we have to take new roads.
LEAN Collaborative Construction Delivery techniques are where organizations will “win” or “lose” with respect to efficient life-cycle management of the built environment supported by digital technology, or BIM.
3D visualization is an advantageous tool, but only one of several technologies and business processes required to improve productivity, quality, and sustainability of built structures.
Focus upon fundamental LEAN construction delivery and facilities management practices provides the greatest return on investment. Fundamental aspects of this approach include the following five (5) basis principles:
The role of technology is that of enablement.
Technology lowers the cost of deployment, provides a platform for real time collaboration with current, historical, and predictive information, embeds best management practices to improve consistency, and assures ongoing monitoring and improvement through the use of key performance indicators.
The change that is going through the whole industry chain construction is not about whether or not use of a technologies such as BIM, CMMS, IWMS, CPMS, etc. The issue is how deal with the change to collaborative, transparent, and mutually beneficial LEAN processes, such as Integrated Project Delivery, and Job Order Contracting. The required changes are so radical they can’t be implemented or support by simply buying software. Change will only occur if fully supported throughout and organization, and linked to both government regulations and financial incentives for all participants.
The Path Forward
Renovation, repair, new construction, operation and ongoing maintenance require collaboration and financial transparency. As a building owner, facilities management professional, or member of an oversight group, ask yourself the following questions….
Conclusions
If you can answer “Yes” to the above questions, or have a plan to for addressing each, you are ready to begin the process of structural change within your organization and drive toward delivering measurable benefits.
LEAN Construction Delivery and life-cycle management of the build environment is proven to deliver greater than 90% of renovation, repair, and new construction project on-time, on-budget, and to the satisfaction of all participants. Why not begin the journey?
[1] 1996, Womack and Jones 1996
Cholakis – Senior Vice President, www.4BT.US L. Moscardi, www.buildingincloud.net
The JOC Unit Price Book 2017 JOB ORDER CONTRACTING GUIDE is and independent , objective, transparent, and best value resource for Job Order Contracting.
GENERAL – Cost data is organized using MasterFormat2004+[1] and includes detailed line item description and associated material, equipment and labor as appropriate. Descriptions used common terms in plain English and the use of abbreviations is limited whenever possible. Abbreviations, when used, follow standardized rules and generally are primarily relegated to common units of measure. All cost data is researched locally.
BEST VALUE – As noted, all unit price line item provided incorporate locally research labor, material, and equipment costs. This helps to assure the most accurate cost data possible. In addition, the price of our cost data is GUARANTTEED throughout the life of your Job Order Contract. The pricing of the Unit Price Books is guaranteed not to increase more than the nationally publishing consumer price index each year. This provide cost visibility throughout the life of the Job Order Contract for all participants. Descriptions used common terms in plain English and the use of abbreviations is limited whenever possible. Abbreviations, when used, follow standardized rules and generally are primarily relegated to common units of measure. All cost data is researched locally.
LABOR – Labor rates are researched for local markets and are based upon Davis-Bacon and/or prevailing wage rates wherever possible. It is assumed that all workers are skilled for the particular task in concert with safety (OSHA) requirements. Labor rates are for direct labor, without overhead and profit, however include fringe benefits and allowances for Social Security and Medicare taxes, worker’s compensation, unemployment insurance and employee benefits. Payroll taxes and workman’s compensation are included in the labor rates.
MATERIAL – Materials are priced by bulk purchase and include freight to jobsite with and assumed delivery of 10 miles.
Material prices exclude sales tax and VAT.
EQUIPMENT – The equipment is based on daily rental rates, of equipment and associated operating costs such as electricity and fuel for all equipment, associated with completion of the line item/construction task.
LOCATION FACTOR(S) – Locations factors are not used, nor is the traditional technique of applying cost factors to a price book based upon a “national average”. Using factors and national average cost data can introduce wide variations in costs that do not represent actual local conditions.
DEMOLITION – Demolition line items are presented as individual line items and are organized at the beginning of each MasterFormat Section. This enables users to easily locate demolition tasks. Costs include all labor, equipment and material required for demolition, clean-up, and transportation to a designated area within 500 feet of the work site.
MODIFIERS – Modifiers are line items that vary in material, quantity, fabrication technique, or other specification that would cause a difference in price from the “parent” line item. Modifiers are located under the associated parent line item.
ESTIMATING PROGRAM SOFTWARE – The 4BT-CE UPB is available via cloud-based software that was design per our guidelines, or within 4Clicks Project Estimator Software from 4Clicks Solutions, LLC.
[1] MasterFormat is a product of the Construction Specifications Institute (CSI) and Construction Specifications Canada, and a U.S. copyright of CSI.
Learn more…
This Job Order Contract Audit Report dated 10/31/2016 is a follow up the an early JOC Audit conducted by City of Long Beach Auditor Laura Dowd.
The firm of Vicenti, Lloyd, & Sutzman (VLS) was retained to provide a construction consultant to further review certain JOC projects. The Job Order Contract Audit Report can be downloaded here. Vicenti, Lloyd & Stutzman LLP (VLS) was retained by the Office of the City Auditor for the City of Long Beach (City Auditor) to provide certain forensic and investigative consulting services related to the Job Order Contracting (JOC) program. The work performed by VLS was pursuant to the Request for Proposal (RFP) for Fraud Investigation Services dated 8/26/15 issued by the City Auditor, the proposal submitted by VLS on 9/18/15, and the Phase 1 and Phase 2 contracts between VLS and the City Auditor.
The following outlines general findings…
List of Findings (direct quote from report)…
“1) JOC contractors prepared and submitted inaccurate and inflated proposals: Several individuals interviewed indicated that the proposals submitted by JOC contractors included inflated quantities and/or incorrect line items in order increase the proposal estimate. This “padding” of proposals was done to offset the low adjustment factors bid by the JOC contractors. This was an understood practice within the JOC program. According to the interviewees, if the JOC contractors were to use the adjustment factors that were bid to the City, and included only the needed line items from the CTC to complete the project, the contractors would not be able to cover their costs of performing the work and make a reasonable profit.
2) Project managers did not have time to adequately review proposals: Due to the workload of project managers, there often was not adequate time to thoroughly review project proposals to ensure accuracy. Additionally, it was difficult for project managers to enforce the use of the CTC, which allowed increased use of Non-Pre Priced (NPP) items.
3) Project managers used their experience to determine whether proposal costs were reasonable: Because the “padding” of proposals was an accepted practice, project managers used their judgment, experience, and/or the department budget to determine what was a reasonable price quoted by the JOC contractor in their proposal. This essentially resulted in the City paying negotiated prices to the JOC contractors for work performed.
4) The scope of work was prepared by copying the JOC proposal: In some instances, the project managers used the proposals submitted by the JOC contractors to prepare the scope of work rather than defining the scope of work prior to the contractor preparing the proposal. This allowed the two documents to match; however, the scope of work would not accurately reflect the work performed.
5) Some projects were done as “pass-throughs”: Certain projects were performed as pass-throughs, which was not the intention of the program. This was generally the result of a City department having a preferred vendor, product, or material. The JOC contractor was asked to use the preferred vendor, product, or material in performing the work.”
The Job Order Contract Audit Report demonstrates a need for better training, implementation of best management practices, and continuous monitoring.
via Four BT, LLC – Independent, Transparent, and Best Value Job Order Contracting Solutions
Any trademarks maintain rights reserved to their respective owners.
Alternative Construction Delivery Methods provide significant benefits to traditional Design/Bid/Build, and are the first step toward change management and improved construction outcomes. Here is a quick look at the top five alternative construction delivery methods.
Construction Manager at Risk, CMAR/CM@R has its beginnnings in the early 1970’s.
CMAR inovlves contractors is in the design process, but without design liability intended. CMAR is priced in two phases, pre-construction service fees and guaranteed maximum price (GMP) execution.
Generally CMAR workflow includes design review, attendance at design meetings, periodic estimates of cost, periodic schedule for construction development, assistance with regulatory requirements and/or LEED requirements, and assistance with site logistics and planning.
The design-build, DB, construction delivery method, is structure to make a single entity, generally the construction contractor, responsible for design and construction. While some feel that DB enables faster project delivery, owners may feel left out of the design process. This may limit collaboration and flexibility in the ex and do not like the lack of flexibility in influencing the design as it progresses. Issue during the early phase of any project can lead to less than optimal outcomes.
Job Order Contracting (JOC) is a collaborative LEAN consturction delivery method specifically for renovation, repair, and minor new construction. The contractor bids projects using a unit price book, UPB, that defined specific tasks. As ther is no definite number of projects or value of orders to be delivered and no definite quantity of work that will be done, Federal Acquisition Regulationsm refer to this type of delivery method a form of as IDIQ (Indefinite Delivery, Indefinite Quantity) contract.
IPD, like JOC, is a LEAN collaborative construction delivery with a focus upon collaboration, transparency, and shared risk/reward among project participants. IPD, however, is generally used only for larger new construction projects due to the cost of initial set up.
PPPs generally uses one or more of the above construction delivery methods with some unique additional structures. The core benefit of PPP is a method for public entities to obtain some degree of construction financing from the private sector. Projects are typically very large in complexity and dollar value, such as bridges, highways, and energy sector.
Owner leadership and competency are requirements for the implementation of any of the above Alternative Construction Delivery Methods.
Alternative Construction Delivery Methods Glossary:
Minor Construction Project – A single undertaking at a building or other form of physical infrastructure that includes all construction necessary to renovate or repair an existing facility, or to construct a new structure of a specified type, size, and level of construction.
Alteration – Construction work required to adjust interior arrangements, or other physical characteristics of an existing building or physical structure that it will be make enable it to more effectively be used for a designated purpose.
Maintenance and Repair – Construction work that corrects failed or failing component of a physical structure.
JOC Contract strategy, development, implementation, and management involves a thorough understanding of LEAN Construction and Life-cycle Asset Management.
Basic steps involved in JOC Program implementation include;
Request a JOC Contract Operations Guide
Proper JOC contract design and management are central to improved renovation and repair outcomes. Public sector real property owners can significantly improve the percentage of quality construction projects delivered on-time and on-budget and to the satisfaction of all stakeholders.
A JOC Contract is the legal, multi-party procurement and construction delivery document that specifies roles, responsibilities, workflows, deliverables, time frames, and expenditure limits for renovation, repair, and minor new construction projects.
OpenJOC is a standardized, independent, objective, and defensible method for organizing, describing, pricing, procuring, and managing renovation, repair, and minor new construction activities.
JOC Unit Price Book
A locally researched unit price book, UPB (NOTE: A national average unit price book and associate use of localization or location factor is not recommended.) provides a common data environment, CDE, to help assure transparency, collaboration, and productivity.
The 4BT OpenJOC Unit Price Book provides transparent, locally research, detailed construction cost estimates for repair, renovation, repair, maintenance, sustainability, and/or new construction projects.
The use of standardized data formats and descriptions which can easily be understood by project participants is central to any successful construction project, and currently an industry void.
Construction cost unit price books should provide consistent clear descriptions of each line item in common terms that all parties can easily understand. Abbreviations should be avoided whenever possible.
Each line item task, in addition to being clearly defined in “plain English” should include any associated details such as material, equipment, and labor requirements.
• Simplify JOC management activities
• Maintain Job Order RFPs, Job Orders, Estimates, Reviews, and Documents… all in one place
• Comply with JOC best practices and audit requirements
• Assure you are always using the right coefficient and unit price book (UPB)
• Always use the most current information
OpenJOC is a Trademark of Four BT, LLC. Building in Cloud is a Trade mark of Lemsys S.r.l
Four BT, LLC
5430 LBJ Fwy Ste. 1200
Dallas, TX 75240
Mail: info@4BT.US
Website: http://www.4BT.US
LEAN Construction Deliver is the primary challenge to BIM adoption. Focus upon technology will do little to improve construction or facilities management outcomes. The solution to improved life-cycle management of the build environment lies within a greater focus upon improving competencies and business processes. Change management lead by competent real property owners and facilities managers is severely needed. Technology’s role is one of support, however, it should not dictate process.
Supporting White Papers and Research
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
Asset Total Cost of Ownership-Efficient Life-cycle Management Model
The Evolution of Construction Cost Estimating Technology
Maintenance and Repair of Federal Facilities
Integrated_Project_Delivery_for_Public and Private Owners – AIA, NASFA, COAA, APPA, AGC
IFMA – Efficient Repair, Renovation, Sustainability Project Delivery Methods
Improving facilities management in terms of efficient repair, renovation, sustainability practices required a pinpoint focus upon change management with respect to LEAN collaborative construction delivery methods.
The IFMA – Efficient Repair, Renovation, Sustainability Project Delivery Methodssession covers required foundation elements that owners must require and also improve their overall competence:
via www.4BT.US – Independent, Objective, Best Value LEAN & Job Order Contracting Solutions
IIFMA – Efficient Repair, Renovation, Sustainability Project Delivery Methods
Smart collaboration tools, built specifically for real property owners, designers, constructors engineers, and facilities managers
Building in Cloud 4BT-CE improves productivity through enabling cloud-based collaboration and real-time information sharing, securely, and at a fraction of the cost of less capable alternatives.
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A detailed Job Order Contract Operations Manual is a key component of any successful JOC Program. The JOC Operations Manual should be part of of the final Job Order Contract. It spans all aspects for JOC to assure a complete understanding of all participants and stakeholders. Topics may range from the history of JOC to strategy, responsibilities, and processes.
The appropriate selection of independent, objective, and experienced JOC consultant to assist in program design, implementation, and management can provide significant value to JOC owners and contractors.
The following is a sample Table of Contents. Please contact us to learn more.
FOREWARD
INTRODUCTION.
JOB ORDER CONTRACT ACQUISITION/PROCUREMENT STRATEGY.
WORK EXECUTION AND CONTRACT ADMINISTRATION
FISCAL YEAR-END PLANNING
ADDTIONAL ENGINEERING/TECHNICAL/DPW RESPONSIBILITIES
FOLLOW-ON CONTRACTING FOR A NEW CONTRACT
APPENDIX
UNDERSTANDING THE CONTRACTOR’S COEFFICIENT
ROLE OF JOC ADMINSTRATOR
INTERNAL CONTROL AND REVIEW PLAN
Job Order Contracting Internal Control Checklist
SAMPLE SCOPE OF WORK
SAMPLE REQUEST FOR PROPOSAL
SAMPLE CONTRACTOR’S PROPOSAL
SAMPLE INDEPENDENT OWNER/GOVERNMENT ESTIMATE
TAKE OFF NOTES
COST ESTIMATE
TASK ORDER FILE CHECKLIST
QUALITY CONTROL PLAN REQUIREMENTS
JOB ORDER CONTRACTING TRAINING
ADDING NON-PREPRICED ITEMS TO YOUR JOC CONTRACTS
ABBREVIATIONS
DEFINITIONS
References / White Papers
Yes… I’d like to learn more about developing a Detailed Job Order Contract Operations Manual…
Objective Best Value Job Order Contracting is now available to real property owners, contractors, subcontractors, and oversight groups. Job Order Contracts, when developed, implemented, and executed using LEAN best management practices deliver exceptional value.
Move from costly and antagonistic construction delivery methods such as design-bid-build and
“lowest bidder”, to BEST VALUE PROCUREMENT.
Objective Best Value Job Order Contracting can deliver over 90% of renovations, repairs, upgrades, or minor new construction on-time, on-budget, and to the satisfaction of everyone involved!
Benefit from the experience of our 4BT Team and leverage our training, unparalleled cost data, and wide range of services and tools, including cloud-based technology.
Job Order Contracting is a proven LEAN construction delivery method that targets the numerous renovation, repair, alteration, and minor new construction tasks facing real property portfolio owners and their awarded contractors.
JOC solutions based upon your need…
JOC Solutions that benefit all participants…not just the Owner!
Objective Best Value Job Order Contracting assures JOC Program integrity, compliance, and long term success.
Finally, an independent, objective, and best value resource… the OpenJOC Job Order Contract Unit Price Book UPB.
Learn more…
Leveraging objective and independent expertise is very valuable to the job order contract program development process. The following outline represents various components when developing a JOC Program.
Orientation Meeting
4BT-CE Software On- boarding
4BT JOC UPB Milestones
Technical Specifications Milestones
JOC Documents
Marketing JOC Program
Organize Client Workshops for JOC Execution
JOC Contractor Moblization
Assist Owner with Initial Projects during Ramp-up Period
Ongoing Support
Remember job order contract program development is an ongoing process as there is always room for continuous improvement.
www.4BT.US – Independent, Objective, & Best Value JOC Solutions
A Job Order Contracting Program Implementation Strategy based upon best management practices considers multiple interrelated factors. Here is a outline of a few items to be considered.
Remember that a Job Order Contract can be designed, implemented, and managed by the Owner, a combination of an Owner and a JOC Consultant, or JOC task orders can be executed leveraging a Cooperatives. Each method has its role as well as advantages an disadvantages. For Owners that have approximately $2M or more in JOC annual construction volume and appropriate levels of resources and capability generally get the highest value from and Owner-implemented and Owner-managed JOC.
List of Considerations when developing your Job Program Implementation Strategy….
Spend all the time necessary to develop the best written Job Order Contracting Program Implementation Strategy possible. Do you your homework. Contact multiple JOC consultants and vendors. Contact peer organizations and professional trade associations. Review public audits of Job Order Contracts. The later are very helpful in avoiding pitfalls.
www.4BT.US – Independent, Objective, Best Value Job Order Contracting Solutions
For more information…
Additional JOC Resources
ASSET LIFE-CYCLE MODEL – Total Cost of Ownership Management
BIM, LEAN Construction, and a Common Data Environment (CDE)
BIM, PROJECT DELIVERY METHODS, WASTE, & LACK OF LEADERSHIP
How to Select a JOC Unit Price Book – White Paper – Download – Select a JOC UPB
JOB ORDER CONTRACTING – Overview & Best Management Practices – Job Order Contracting White Paper 2016801
COLLABORATION IN CONSTRUCTION – IPD, JOC – Collaboration In Construction-White Paper
INTEGRATED PROJECT DELIVERY – for Public and Private Owners – Integrated_Project_Delivery_for_Owners_
THE HISTORY OF JOB ORDER CONTRACTING – The LEAN Construction Delivery Method
Job Order Contracting – A Procurement Success Story, 1998
Unit Price Books for Job Order Contracting
Why BIM Will Not Succeed – Higher Level of Owner Competency Required
The What, Why and How of Job Order Contracting (JOC) – CEFPI Educational Brief
Job Order Contract Implementation is a multi-part process. Whether you are implementing a Job Order Contract for the first time, or seeking to improve a current JOC, it’s important to address each are in full detail.
Stakeholders need to clearly discuss and establish the goals of the job order contract, associated milestones, timelines, and resource requirements.
From an owner perspective stakeholders include senior management, project management, administrative, accounting, purchasing, building uses, and legal staff.
BIM, LEAN Construction, and a Common Data Environment (CDE) are all core elements to improving collaboration, productivity, quality, and overall satisfaction.
Definition of the roles and responsibilities of team members, with respect to CDE, throughout the life-cycle of a built structure… from Planning, to Design, Project Delivery, Operations & Maintenance, to Decommissioning/Recycling, and its integral relationship with LEAN Construction Delivery methodology are key requirements. This is done within the project delivery Operations Manual or Execution Manual, a component of the overall project contract. Learn more…2017 BIM, LEAN Construction, and a Common Data Environment (CDE).
One of the most important elements of a CDE is the detailed line item construction cost data architecture and associated construction cost research methodology. These a compiled within a Unit Price Book, UPB, an used for establishing and maintaining construction, renovation, repair, and maintenance costs. The format and content of the UPB is very important to assuring financial transparency for the real property owner / facilities management, building uses, and service providers.
There are multiple significant and beneficial outcomes with job order contacting if programs are implements properly. Job order contacting is a LEAN and AGILE Construction Delivery Method that is based upon process, common shared data, and collaboration.
It is best to leverage the knowledge and tools from independent, objective, and best value job order contracting solutions providers as well as engage in regular ongoing training.
via www.4BT.US – Independent, Objective, Best Value Job Order Contracting Solutions
JOC Unit Price Book UPB considerations for procurement include financial transparency, local research, current actionable data, and use of common terms and data organization. These are primary, fundamental, and requisite elements for any Job Order Contract Unit Price Book. The 4BT OpenJOC Unit Price Boodelivers all of these, and more:
Unit Price Books for Job Order Contracting
via www.4BT.US – Objective, Independent, Best Value Job Order Contracting Solutions
info@4BT.US
Financial transparency, local research, current actionable data, the use of common terms in plain English and MasterFormat data organization are requisite elements of any Job Order Contact Unit Price Book, UPB. The 4BT JOC Unit Price Book delivers all of these, and more:
The 4BT JOC UPB will enables Owners and Contractors contractors, to create detailed unit price line item cost estimates that reflect the project requirements in terms of scope of work and quality, and to equally benefit in JOC participation!
The consistent use of Common Construction Abbreviations are important to any LEAN construction delivery method or construction phase. Common construction abbreviations as as part of cost estimating software, Job Order Contracting software, and construction documents is a standard practice.
Proper use of abbreviations is enhance by following a few simple rules:
He is a sample listing of abbreviation derived across a wide venue of sources. (Architectural Graphic Standards, Time Saver Standards, Skidmore, Owings and Merrill Drafting Standards, Holabird & Root Drafting Standards, Nagle Hartray & Associates Standards, Murphy/Jahn Office Reference Manual, Braun/Skiba Standards Manual, Recommended Standards on Production Procedures, Northern California Chapter AIA, Graphic Communication in Architecture, William J. O’Connell, Interior Graphic and Design Standards, S.C. Reznikoff. While there are many differences between abbreviation standards between firms and/or individual authors, ongoing standardization should be giving a high degree of consideration.
2-PSS: Two-Part Polysulfide Sealant
2-PUMS: Two-Part Polyurethane Modified Sealant
@ At (the rate of)
& And
” Inch; Ditto
# Number or Pound
[circle with diagonal slash through it] Diameter, Round, Phase
A: Area, Ampere; Acre; Alcove; Compressed Air Line
AB: Anchor Bolt; Asbestos Board
ABV: Above
AC: Air Conditioning, Alternating Current, Acoustical
ACC: Access
ACF: Architectural Concrete Finish
ACFL: Access Floor
ACI: American Concrete Institute
ACL: Across the Line
ACOUST: Acoustical
ACPL: Acoustical Plaster
ACR: Acrylic
ACST: Acoustic
ACT: Acoustical Tile; Actual
AD: Access Door, Area Drain
ADA: Americans with Disabilities Act
ADAAG: Americans with Disabilities Act Architectural Guidelines
ADD: Addendum; Addition
ADDL: Additional
ADH: Adhesive
ADJ: Adjust, Adjustable, Adjacent
AF: Above the Floor
AFF: Above Finished Floor
AGA: American Gas Association
AGG: Aggregate
AGGR: Aggregate
AIA: American Institute of Architects, American Insurance Association
AIC: Amperes Interrupting Circuit
AIEE: American Institute of Electrical Engineers
AISC: American Institute of Steel Construction
AL: Aluminum
ALM: Alarm
ALT: Alternate, Alteration; Altitude
ALUM: Aluminum
ALS: Acrylic Latex Sealant
AMB: Ambient
AMP: Ampere, Ampacity
AMPY: Ampere
AMT: Amount
AN: Anode
ANCH: Anchor, Anchorage
ANN: Annunciator
ANOD: Anodized
ANT: Antenna
AP: Access Panel
APPD: Approved
APPROX: Approximate
APRVD: Approved
APT: Apartment
APX: Approximate
AR: Acid Resisting
ARCH: Architect, Architectural
ARS: Asbestos Roof Shingles
AS: Acoustic Sealant
ASB: Asbestos
ASC: Above Suspended Ceiling
ASCE: American Society of Civil Engineers
ASME: American Society of Mechanical Engineers
ASPH: Asphalt
ASSEM: Assemble
ASSOC: Association; Associate
ASSY: Assembly
ASTM: American Society for Testing and Materials
AT: Acoustical Tile; Asphalt Tile
ATC: Acoustical Tile Ceiling
ATTEN: Attenuation
ATM: Automatic Teller Machine; Atmospheric
AUTH: Authorized
AUTO: Automatic
AVG: Average
AW: Acid Waste
AWG: American Wire Gauge
AWM: Automatic Washing Machine
AWS: American Welding Society
AWWA: American Water Works Association
AX: Axis
B: Boiler, Bathroom, Bidet
B TO B: Back to Back
B & B: Balled and Burlapped, Bell and Bell
B & F: Bell and Flange
B & S: Bell and Spigot, Brown & Sharp
B/: Bottom (of)
BBD: Bulletin Board
BA: Bulb Angle
BAL: Balance, Ballast
BAF: Baffle
BB: Buffalo Box, Ball Bearing,, Bulletin Board
BBL: Barrel
BC: Broom Closet
BD: Board, Blow Down (pipe)
BDL: Bundle
BDY: Boundary
BDRM: Bedroom
BEL: Below
BET: Between
BETW: Between
BEV: Bevel
BF: Board Foot, Back Face, Bottom Face, Both Faces, Boiler Feed
BG: Bag (e.g., of cement)
BHP: Brake Horsepower
BHD: Bulkhead
BIT: Bituminous
BJF: Bituminous Joint Filler
BKR: Breaker
BL: Base Line, Building Line, Block
BLDG: Building
BLK: Block
BLKG: Blocking
BLO: Blower
BLR: Boiler
BLT: Borrowed Lite, Bullet Tips (Hinges)
BLT-IN: Built-In
BM: Beam, Bench Mark
BMT: Butyl Mastic Tape Sealant
BN: Bullnose
BNDG: Bending (re-bars)
BNT: Bent
BO: Blow Off
BOT: Bottom
BP: Base Plate, Blueprint, Bypass
BPL: Bearing Plate
BR: Bedroom, Brick, Brass, Boiler Room Branch
BRDG: Bridge, Bridging
BRG: Bearing
BRK: Brick
BRKR: Breaker
BRKT: Bracket
BRS: Butyl Rubber Sealant, Brass
BRZ: Bronze
BRZG: Brazing
BS: Both Sides, Backset, Bluestone
BSMT: Basement
BT: Bathtub, Bolt
BTR: Better
BTU: British Thermal Units
BTUH: British Thermal Units per Hour
BUR: Built-up Roof
BUZ: Buzzer
BV: Butterfly Valve
BVL: Bevelled
BW: Both Ways
BWV: Back Water Valve
BYP: By Pass
C: Courses, Curb, Channel, Degrees Celsius, Clock Outlet, Calcimine
C/C: Center to Center
C TO C: Center to Center
CA: Compressed Air
CAB: Cabinet
CAD: Cadmium, Computer-Aided Drafting
CAIS: Caisson
CAP: Capacity
CAR: Carpet
CARP: Carpenter
CAT: Catalog
CAV: Cavity
CB: Catch Basin, Concrete Block,
Cast Brass, Coal Bin
CBL: Concrete Block
CBX: Cast Box Strike
CC: Cubic Centimeter
CCT: Circuit
CCW: Counter Clockwise
CCTV: Closed Circuit TV
CD: Cold Drawn, Cadmium
CDS: Cold Drawn Steel
CEL: Cellar
CEM: Cement
CEM AB: Cement Asbestos Board
Cem P: Cement Water Paint
CER: Ceramic
CF: Cubic Feet
CFL: Counterflashing
CFM: Cubic Feet per Minute
CFS: Cubic Feet per Second
CFT: Cubic Foot
CG: Corner Guard
CH: Coat Hook
CHB: Chalk Board
CHR: Chilled Water Return
CHAM: Chamfer
CHAN: Channel
CHBD: Chalkboard
CHS: Chilled Water Supply
C.I.: Cast Iron
CI: Cast Iron
CIN BL: Cinder Block
CIP: Cast Iron Pipe, Cast-in-Place
CIR: Circle, Circular, Circuit
CIRC: Circumference
CISP: Cast Iron Soil/sewer Pipe
CITG: Clear Insulating Tempered Glass
CJ: Control Joint
CJF: Cork Joint Filler
CK: Caulking
CKT: Circuit
CL: Centerline, Clearance, Closing, Closure, Class, Closet
CLG: Ceiling
CLKG: Caulking
CLH: Clothes Line Hook
CLL: Contract Limit Line
CLO: Closet
CLP: Clamp
CLR: Clear
CLR OPG: Clear Opening
CLS: Closure
CM: Circular Mil (1/1000 inch),
Center Matched
CMP: Corrugated Metal Pipe
CMT: Ceramic Mosaic Tile
CMU: Concrete Masonry Unit
CMUP: Concrete Masonry Unit Painted
CND: Condition, Conduit
CNDS: Condensate
CNTR: Center, Counter
CNVR: Conveyor
COAX: Coaxial
C.O.: Cased Opening
CO: Company, Cleanout, Cased Opening, Cut Out
COD: Cleanout Door
CO & DP: Cleanout & Deck Plate
COEF: Coefficient
COL: Column
COM: Common
COMB: Combination, Combustion
COML: Commercial
COMM ED: Commonwealth Edison
COMP: Composition, Compressed
COMPO: Composition
COMPT: Compartment
CON: Construction
CONC: Concrete
CONCP: Concrete Painted
COND: Condenser, Conduit
CONN: Connection
CONST: Construction
CONSTR: Construction
CONT: Continuous, Continue, Control
CONTR: Contractor
CONV: Convector, Convenience
COP: Copper
COR: Corner, Corridor
CORR: Corridor, Corrugate
COV: Cover
CP: Cathodic Protection, Clothes Pole, Cesspool
CPE: Chlorinated Polyethylene
CPL: Cement Plaster
CPP: Cement Plaster Painted
CPR: Copper
CPT: Carpet
CR: Chromium (plated), Curtain Rod
CRPT: Carpet
CRS: Course, Cold Rolled Steel
CS: Countersink, Cast Steel, Cast Stone, Commercial Standard
CSG: Casing
CSK: Countersink
CSMT: Casement
CSN: Caisson
CSS: Countersunk Screw
CSTG: Casting
CT: Ceramic Tile, Cork Tile,
Cone Tip (hinges)
CTD: Coated
CTR: Center, Counter
CTSC: Communications Systems Terminal Cabinet
CTSK: Countersunk
CTWT: Counterweight
CU: Copper, Cubic, Coefficient of Utilization
CU. FT.: Cubic Feet
CU. YD.: Cubic Yard
CUR: Current
CV: Check Valve
CW: Clockwise, Cold Water
CWP: Circulating Water Pump
CWR: Condensate Waste Return
CWS: Condensate Waste Supply
CY: Cubic Yard, Cycle
CYL: Cylinder
CYL L: Cylinder Lock
D: Deep, Depth, Drop, Drain
D & M: Dressed & Matched
DA: Double Acting
DB: Decibel
DBL: Double
DBT: Drybulb Temperature
DC: Direct Current
DCV: Detector Check Valve
DD: Driveway Drain, Deck Drain
DEG: Degree
DEGC: Degree Celcius
DEGF: Degree Farenheit
DEM: Demolish
DEMO: Demolition
DEP: Dpressed
DEPT: Department
DET: Detail
DF: Drinking Fountain
DH: Double Hung
DIAG: Diagonal
DIA: Diameter
DIAM: Diameter
DIFF: Diffuser
DIM: Dimension
DISL: Disposal
DISP: Dispenser
DIV: Division
DL: Dead Load
DMH: Drop Manhole
DMT: Demountable
DN: Down
DO: Ditto, or Door Opening
DP: Dampproofing, Dew Point, Distribution Panel
DPDT: Double Pole Double Throw
DPST: Double Pole Single Throw
DPR: Damper
DR: Door, Drain, Dining Room
DRBD: Drainboard
DS: Downspout, Disconnect Switch, Door Switch
DSP: Dry Standpipe
DT: Drain Tile
DTL: Detail
DVTL: Dovetail
DW: Dumbwaiter, Distilled Water
DWG: Drawing
DWGS: Drawings
DWL: Dowel
DWP: Drywall, Painted
DWR: Drawer
DS: Downspout
DSP: Dry Standpipe
DX: Direct Expansion, Duplex
E: East, Enamel, Exhaust
E TO E: End to End
EA: Each
EB: Expansion Bolt
EC: Exposed Construction
ECC: Eccentric
ECP: Exposed Construction Painted
EDR: Equivalent Direct Radiation
EE: Each End
EF: Each Face
EFTS: Expanding Foam Tape Sealant
EG: Edge Grain
EIFS: Exterior Insulation and Finish System
EJ: Expansion Joint
EJECT: Ejector
EL: Elevation, Elevator
ELB: Elbow
ELEC: Electrical
ELECT: Electrical
ELEV: Elevator, Elevation
ELP: Emergency Lighting Panel
EM: Emergency
EMER: Emergency
ENAM: Enamel
ENCL: Enclosure
ENG: Engineer
ENGR: Engineer
ENJF: Expanded Neoprene Joint Filler
ENT: Entrance
ENTR: Entrance
EP: Electrical Panelboard, Explosion Proof
EPDM: Ethylene Propylene Diene Monomer
EPJF: Expanded Polyethelene Joint Filler
EQ: Equal
EQP: Equipment
EQPT: Equipment
EQUIP: Equipment
ERP: Emergency Receptacle Panel
ESC: Escalator
EST: Estimate
EVAP: Evaporator
EW: Each Way
EWC: Electric Water Cooler
EW & C: Electric Wiring and Communication
EWH: Electric Water Heater
EX: Exposed Construction, Exit
EXC: Excavate
EXCAV: Excavate
EXEC: Executive
EXG: Existing
EXH: Exhaust
EXH AIR: Exhaust Air
EXIST: Existing
EXP: Expansion, Exposed
EXPN: Expansion
EXPP: Existing Patched and Painted
EXS: Extra Strong
EXT: Exterior, Extinguish
EXTR: Extrude
F: Degrees Fahrenheit, Fuse
F TO F: Face to Face
FA: Fire Alarm, Fresh Air
FAB: Fabricate
FABR: Fabricate
FACP: Fire Alarm Control Panel
FAG: Fire Alarm Gong
FAO: Finish All Over
FAR: Floor Area Ratio
FAST: Fastener, Fasten
FB: Flat Bar, Face Brick, Floor Box
FBD: Fiberboard
FBM: Foot Board Measure
FBP: Fabric Panel
FBRK: Fire Brick
FC: File Cabinet, Foot Candle, Fault Current
FD: Floor drain
FDC: Fire Department Connection
FDN: Foundation
FDTN: Foundation
FE: Fire Extinguisher
FEC: Fire Extinguisher Cabinet
FF: Far Face, Finished Floor, Factory Finish
FFE: Finished Floor Elevation
FF&E: Fixtures, Furnishings & Equipment
FFL: Finished Floor Line
FGL: Fiberglass
FGR: Fiberglass reinforced
FH: Flat Head, Fire Hose
FHC: Fire Hose Cabinet
FHMS: Flat head machine screw
FHR: Fire Hose Rack
FHS: Fire Hose Station
FHWS: Flat Head Wood Screw
FHY: Fire Hydrant
FIL: Fillet
FIN: Finish, finished
FITG: Fitting
FIX: Fixture
FIXT: Fixture
FL: Floor, Fire Line
FLASH: Flashing
FLG: Flooring
FLEX: Flexible
FLG: Flange, Flashing, Flooring
FLR: Floor
FLUOR: Fluorescent
FLX: Flexible
FM: Fire Main, Factory Mutual Company
FND: Feminine Napkin Dispenser, Foundation
FO: Finished Opening
FOB: Free On Board
FOC: Face of Concrete
FOF: Face of Finish
FOS: Face of Studs
FP: Fireproof
FPL: Fireplace
FPM: Feet per minute
FPRF: Fireproof
FPS: Feet per Second
FR: Frame, Front, Fire Riser
FRG: Forged
FRM: Frame
FRPF: Fireproof
FRT: Fire Retardant
FS: Full Size, Far Side, Federal Standards, Fused Switch, Floor Sink
FSCW: Flush Solid Core Wood
FT: Foot, Feet, Fully Tempered
FTG: Footing, Fitting
FUR: Furred
FURN: Furnish, Furniture
FURR: Furring
FUT: Future
FVC: Fire Valve Cabinet
G: Gas, Girder, Gutter, Gram
GA: Gauge, Gage
GAGE: Gauge
GAL: Gallon
GALV: Galvanized
GB: Grab Bar, Glass Block, Gypsum Board
GC: General Contractor
GCMU: Glazed Concrete Masonry Unit
GD: Guard, Grade, Gutter Drain
GEN: General, Generator
GENL: General
GF: Ground Face
GFCI: Ground Fault Circuit Interrupted
GFI: Ground Fault Interrupted
GFRC: Glass Fiber Reinforced Concrete
GI: Galvanized Iron
GKT: Gasket
GL: Glass
GL BLK: Glass Block
GLB: Glass Block
GLVA: Globe Valve
GLZ: Glaze
GMU: Glazed Masonry Unit
GND: Ground
GOVT: Government
GP: Galvanized Pipe
GPDW: Gypsum Drywall
GPH: Gallons Per Hour
GPL: Gypsum Lath
GPM: Gallons Per Minute
GPP: Gypsum Plaster Painted
GPPL: Gypsum Plaster
GPS: Gallons Per Second
GR: Grade, Grille, Granite
GRAN: Granular, Granite
GRND: Ground
GRTG: Grating
GSS: Galvanized Sheet Steel
GSU: Glazed Structural Unit
GT: Grout
GV: Galvanized
GVA: Gate Valve
GVL: Gravel
GYP: Gypsum
GYP BD: Gypsum Board
H: High
HA: Hectare
HB: Hose Bib
HBD: Hardboard
HC: Hollow Core, Handicapped (better called Accessible”)
HCT: Hollow Clay Tile
HD: Head, Heavy Duty
HDCP: Handicapped (better called “Accessible”)
HDN: Harden
HDR: Header
HDW: Hardware
HDWD: Hardwood
HDWE: Hardware
HEX: Hexagonal
HGR: Hanger
HGT: Height
HH: Handhole
HHMB: Hex Head Machine Bolt
HID: High Intensity Discharge
HK: Hook or Hooks
HKD: Hooked (re-bars)
HL: Hydrant Line
HM: Hollow Metal
HMP: Hollow Metal, Painted
HNCG: Hollow Neoprene Compression Gasket
HOR: Horizontal
HORIZ: Horizontal
HOSP: Hospital
HP: High Point, High Pressure, Horse Power
HPS: High Pressure Sodium, High Pressure Steam
HR: Hour
HRS: Hot Rolled Steel, Hours
HS: Heat Strengthened
HSG: Housing
HT: Height, Heat, High Tension Duct
HTG: Heating
HTR: Heater
HTW: High Temperature Water
HV: High Voltage
HVAC: Heating, Ventilating & Air Conditioning
HVY: Heavy
HW: Hot Water, Heavy Wall
HWC: Hot Water Circulating, Heavy Wall Conduit
HWD: Hardwood
HWH: Hot Water Heater
HWR: Hot Water Recirculating Return
HWS: Hot Water Supply
HWY: Highway
HYD: Hydraulic
HYDRO: Hydrostatic
HZ: Hertz (Cycles Per Second)
I: Iron, Current (electrical)
IBV: Indicating Butterfly Valve
IC: Interrupting Capacity
ID: Inside Diameter
IE: Invert Elevation
ILK: Interlock
IMH: Inlet Manhole
IN: Inch
INC: Incandescent
INCAND: Incandescent
INCIN: Incinerator
INCL: Incline, Include
INCR: Increase
INFO: Information
INS: Insulate, Insulation
INSP: Inspect
INSTL: Install
INSUL: Insulation
INT: Interior, Internal
INTERM: Intermediate
INTM: Intermediate
INV: Invert
IP: Iron Pipe
IPS: Iron Pipe Size
IW: Indirect Waste
J: Joist
J-BOX: Junction Box
JAN: Janitor
JB: Junction Box
JC: Janitor’s Closet
JCT: Junction
JF: Joint Filler
JST: Joist
JT: Joint
K: Kilopound (1000 pounds), Kelvin (temperature)
KAL: Kalamein
KCP: Keene’s Cement Plaster
KG: Kilogram
KIP: Kilopound (1000 pounds)
KIT: Kitchen
KM: Kilometer
KO: Knockout
KP: Kickplate
KPL: Kickplate
KS: Kitchen Sink
KVA: Kilovolt-Ampere
KW: Kilowatt
KWH: Kilowatt Hour
KWHR: Kilowatt Hour
L: Angle, Left, Length, Lighting Panel, Long, Line
LA: Landscape Architect, Lightning Arrester
LAB: Laboratory, Labor
LAD: Ladder
LAM: Laminate, Laminated
LAT: Lateral
LAV: Lavatory
LB: Pound (weight), Lag Bolt
LBL: Label
LBR: Lumber
LC: Light Control, Lead Covered
LCD: Liquid Crystal Diode
LCL: Linen Closet
LCM: Lead Coated Metal
LD: Leader Drain
LH: Left Hand
LIB: Library
LIBR: Library
LIN: Linear
LINO: Linoleum
LIQ: Liquid
LKR: Locker
LL: Live Load
LMS: Limestone
LN: Length
LNDG: Landing
LNTL: Lintel
LOC: Locate
LOCS: Locations
LP: Low Point, Low Pressure, Lighting Panel, Light Proof
LPS: Low Pressure Sodium, Low Pressure Steam
LR: Living Room
LS: Limestone, Loud Speaker
LT: Light, Low Tension Duct, Laundry Tray
LTG: Lighting
LTL: Lintel
LT WT: Lightweight
LV: Low Voltage
LVR: Louver
LW: Light Weight
LWC: Light Weight Concrete
LWDP: Louvered Wood Door, Painted
M: Meter, Motor, Thousand (brick), Bending Moment
MACH: Machine
MAINT: Maintenance
MAN; Manual
MAR: Marble
MARB: Marble
MAS: Masonry
MAT: Material
MATL: Material
MAX: Maximum
MB: Mail Box, Machine Bolt, Mop Basin
MC: Medicine Cabinet, Mineral Core
MCC: Motor Control Center
MCM: Thousand Circular Mils (electrical wire size)
ME: Mechanical Engineer
MECH: Mechanical
MED: Medium
MED CAB: Medicine Cabinet
MEMB: Membrane
MERC: Mercury Vapor
MET: Metal
MEZZ: Mezzanine
MFD: Manufactured, Metal Floor Deck
MFG: Manufacturer, Manufacturing
MFR: Manufacture, Manufacturer
MH: Manhole
MI: Malleable Iron, Miles
MIKE: Microphone
MIN: Minimum
MIR: Mirror
MISC: Miscellaneous
MK: Mark
ML&P: Metal Lath & Plaster
MLD: Molding
MLDG: Molding
MM: Millimeter
MMB: Membrane
MO: Masonry Opening
MOD: Module
MONO: Monolithic
MOV: Movable
MP: Metal Acoustal Panel
MPS: Medium Pressure Steam
MR: Mop Receptor
MRD: Metal Roof Deck
MT: Mount, Mounted
MTD: Mounted
MTL: Material, Metal
MTR: Motor
MUL: Mullion
MULL: Mullion
MV: Mercury Vapor
MWP: Maximum Working Pressure
MWK: Millwork
N: North, Nitrogen
NAP: Napkin
NAT: Natural
NATL: Natural
NB: “Nota Bene” Latin phrase for “Take Special Note”
NC: Normally Closed, Noise Criteria
NEC: National Electrical Code
NEUT: Neutral
NF: Near Face
NFWH: Non-freeze Wall Hydrant
NI: Nickel
NIC: Not In Contract
NK: Neck
NMT: Non-Metallic
NO: Number, Normally Open
NOM: Nominal
NR: Noise Reduction
NRC: Noise Reduction Coefficient
NRP: Non-Removable Pin
NRS: Non Rising Steam Valve
NS: Near Side
NTS: Not To Scale
O: Oxygen
O TO O: Out to Out
OA: Outside Air, Overall
OB: Obscure
OBS: Obscure
OC: On Center
OD: Outside Diameter
OF: Outside Face
OFF: Office
OH: Overhead
OHD: Overhead Door
OHMS: Oval Head Machine Screw
OHWS: Oval Head Wood Screw
OI: Ornamental Iron
OP: Opaque
OPG: Opening
OPNG: Opening
OPP: Opposite
OPP H: Opposite Hand
OR: Outside Radius
ORN: Ornamental
OSD Open Sight Drain
OS&Y: Outside Screw & Yoke (valve)
OUT: Outlet
OVFL: Overflow
OW: Open Waste
OZ: Ounce
P: Pitch, Power Panel, Paint
P. LAM: Plastic Laminate
P SL: Pipe Sleeve
PA: Public Address
PAF: Powder Actuated Fasteners
PAR: Parallel
PARTN: Partition
PASS: Passage, Passenger
PB: Pull Box, Push Button, Panic Bar
PBD: Particle Board
PBMT: Preshimmed Butyl Mastic Sealant Tape
PB STA: Push Button Station
PC: Pull Chain, Piece, Precast Concrete
PCF: Pounds per cubic foot
PCPL: Portland Cement Plaster
PD: Pump Discharge, Plaza Drain
PDP: Paneled Door, Painted
PE: Porcelain Enamel, Professional Engineer
PED: Pedestal, Pedestrian
PERF: Perforate, Performance
PERIM: Perimeter
PERP: Perpendicular
PFN: Prefinished
PG: Pressure Gauge
PH: Phase, Preheat, Phone
PIV: Pivoted, Post Indicator Valve
PJF: Preformed Joint Filler
PKG: Parking
PKWY: Parkway
PL: Plate, Plan, Property Line, Plastic Laminate, Plastic
PLAS: Plaster, Plastic
PLAS LAM: Plastic Laminate
PLBG: Plumbing
PLF: Pounds Per Lineal Foot
PLG: Plumbing
PLMBG: Plumbing
PLTF: Platform
PLWD: Plywood
PLYWD: Plywood
PLUMB: Plumbing
PNEU: Pneumatic
PNL: Panel
PNT: Paint
POL: Polish, Polished
PORC: Porcelain
PORT: Portable
POT W: Potable Water
PP: Plaster, Painted, Power Panel, Precast Panel
PR: Pair
PRC: Precast
PRCST: Precast
PRE: Prefinished
PREFAB: Prefabricated
PRES: Pressure
PRESS: Pressure
PRF: Preformed
PRFMD: Preformed
PRI: Primary
PRMLD: Premolded
PROT: Protection, Protective
PRSTR: Prestressed
PRTN: Partition
PRV: Pressure Reducing Valve
PS: Plumbing Stack
PSC: Prestressed Concrete
PSF: Pounds per square foot
PSI: Pounds per square inch
PSIG: Pounds per square inch gage
PT: Paint, Point, Part, Potential Transformer
PTC: Post-Tensioned Concrete
PTD: Painted, Paper Towel Dispenser
PTD/R: Combination Paper Towel Dispenser/Receptacle
PTN: Partition
PTR: Paper Towel Receptacle
PV: Paving
PVC: Polyvinyl Chloride
PVF: Polyvinylidene Finish
PVG: Paving
PVMT: Pavement
PVT: Private
PW: Pass Window
PWR: Power
QUAL: Quality
QUANT: Quantity
QT: Quarry Tile, Quart
QTR: Quarter
QTY: Quantity
R: Riser, Radius, Resistance, Relay Panel
R & S: Rod and Shelf
RA: Return Air, Registered Architect
RAD: Radius, Radiator
RADN: Radian
RB: Rubber, Rubber Base, Resilient Base
RBC: Rubber Base (Coved),
Rubberized Bituminous Compound
RBS: Rubber Base (Straight)
RBT: Rabbet
RCF: Raised Computer Floor
RCP: Reflected Ceiling Plan, Reinforced Concrete Pipe
RD: Roof Drain, Round, Receptacle Distribution Panel
REBAR: Reinforcing Bar
REC: Receiver
RECEP: Receptacle
RECP: Receptacle
RED: Reducer
REF: Refer, Reference, Refrigerator
REFL: Reflected, Reflector
REFR: Refrigerate, Refrigerator
REG: Register, Regular
REINF: Reinforcement, or Reinforce
REM: Remove, Removable
REQ: Require, Required
REQD: Required
RES: Resilient
RESIL: Resilient
REST: Resistance
RET: Return, Retaining
RETG: Retaining
REV: Reverse, Revise, Revision
REV DR: Revolving Door
RF: Roof
RFG: Roofing
RGTR: Register
RGH: Rough
RGH OPNG:Rough Opening
RH: Right Hand, Reheat, Relative Humidity
RHC: Reheat Coil
RHMS: Round Head Machine Screw
RHR: Right Hand Reverse, Reheater
RHWS: Round Head Wood Screw
RM: Room
RMS: Root Mean Squared
RMV: Remove
RN: Riser Nipple
RO: Rough Opening
ROB: Rod Out Basin
ROW: Right of Way
RPM: Revolutions Per Minute
RPT: Repeat (like “Ditto”)
RR: Railroad
RT: Rubber Tile, Right
RTR/RR Rubber Tread/Rubber Riser
RVS: Reverse Side
RVT: Rivet
RW: Redwood
RWC: Rain Water Conductor
RWD: Redwood
RWL: Rain Water Leader
S: South, Sealant, Supply, Sink
S4S: Surfaced 4 Sides
S&M: Surfaced & Matched
S&S: Stained & Sealed
S&V: Stain & Varnish
SACT: Suspended Acoustical Tile
SALV: Salvage
SAN: Sanitary
SB: Setting Basin, Splash Block
SC: Solid Core, Short Circuit, Self Closing, Sill Cock
SCD: Seat Cover Dispenser
SCFT: Structural Clay Facing Tile
SCH: Schedule
SCHED: Schedule
SCR: Screen
SCUP: Scupper
SCWD: Solid Core Wood
SD: Soap Dispenser
SE: Structural Engineer
SEAL: Sealant
SEC: Second, Section, Secondary, Security System
SECT: Section
SECY: Secretary
SED: Sewage Ejector Discharge
SEL: Select
SERV: Service
SEV: Sewage Ejector Vent
SF: Square Foot
SFGL: Safety Glass
SGG: Structural Glazing Gasket
SGS: Silicone Glazing Sealant
SH: Shelf, Sheet, Shower
SHR: Shower
SHT: Sheet
SHTH: Sheathing
SHTHG: Sheathing
SHWR: Shower
SIG: Signal
SIM: Similar
SJS: Silicone Joint Sealant
SK: Sink
SKL: Skylight
SL: Siamese Line
SLOT: Slotted
SLV: Sleeve
SND: Sanitary Napkin Dispenser
SNGG: Sponge Neoprene Glazing Gasket
SNR: Sanitary Napkin Receptacle
SNT: Sealant
SP: Soil Pipe, Standpipe, Soundproof, Single Pole
SPC: Spacer
SPD: Sump Pump Discharge
SPDT: Single Pole Double Throw
SPEC: Specification, Specifications
SPECS: Specifications
SPK: Speaker
SPL: Special
SPLR: Sprinkler
SPM: Sprinkler Main
SPP: Skim Coat Plaster Painted
SPST: Single Pole Single Throw
SQ: Square
SS: Stainless Steel, Set Screw, Soil Stack, Service Sink, Slop Sink
SSD: Sub-soil Drain
SSGS: Silicone Structural Glazing Sealant
SSK: Service Sink
SSS: Silicone Sanitary Sealant
SST: Stainless Steel
ST: Straight, Storm Water
STA: Station
STC: Sound Transmission Class
STD: Standard
STG: Storage, Seating
STGG: Structural Glazing Gasket
STGR: Stagger
STIFF: Stiffener
STK: Stack
STL: Steel
STM: Steam
STO: Storage
STOR: Storage
STP: Standard Temperature & Pressure, Standpipe
STR: Straight (re-bars), Strainer, Structural, Starter
STRL: Structural
STRT: Straight
STRUC: Structural
STRUCT: Structural
ST W: Storm Water
STWY: Stairway
SUCT: Suction
SUPP: Supplementary, Supplement
SUPT: Superintendent
SUR: Surface
SUSP: Suspended, Suspend
SV: Safety Relief Valve
SW: Switch
SWBD: Switchboard
SWGR: Switchgear
SY: Square Yard
SYM: Symmetrical
SYN: Synthetic
SYS: System
T: Tread, Thermostat, Tee
T/: Top
T&B: Top and Bottom
T&G: Tongue & Groove
T&P: Temperature & Pressure Relief Valve
TAN: Tangent
TB: Towel Bar
TC: Top of Curb, Terracotta
TCLO: Telephone Closet
TCS: Terne Coated Stainless Steel
TD: Trench Drain
TEL: Telephone
TEL CL: Telephone Closet
TEMP: Temporary, Tempered, Temperature
TEN: Tenant
TER: Terrazzo
TERR: Terrazzo
TERM: Terminal
TGL: Toggle
TH: Thermostat
THK: Thick, Thickness
THKNS: Thickness
THR: Threshold
THRESH: Threshold
THRM: Thermal
THRMST: Thermostat
THRU: Through
TKBD: Tackboard
TL: Twist Lock (receptacle)
TLT: Toilet
TOL: Tolerance
TP: Top of Pavement
TPD: Toilet paper Dispenser
TPH: Toilet Paper Holder
TPTN: Toilet Partition
TR: Tread, Transom
TRANS: Transformer, Translucent
TRAV: Travertine
TRD: Tread
TS: Time Switch
TSL: Top of Slab
TST: Top of Steel
TSTAT: Thermostat
TT: Terrazzo Tile, Traffic Topping
TTC: Telephone Terminal Closet
TV: Television
TW: Top of Wall, Thin Wall (conduit), Tempered Water
TYP: Typical
TZ: Terrazzo
UC: Undercut
UH: Unit Heater
UL: Underwriters’ Laboratories
UNEX: Unexcavated
UNEXC: Unexcavated
UNF: Unfinished
UNFIN: Unfinished
UNO: Unless Noted Otherwise
UON: Unless Otherwise Noted
UP: Unpainted
UR: Urinal
USG: United States Gauge, United States Gypsum Company
USS: United States Standard
UT: Utility
V: Volt, Valve, Vinyl, Vent, Ventilator
VA: Volt Ampere
VAC: Vacuum
VACBR: Vacuum Breaker
VAR: Varnish, Varies
VAT: Vinyl Asbestos Tile
VB: Vapor Barrier, Valve Box, Vinyl Base, Vacuum Breaker
VBC: Vinyl Base (Coved)
VBS: Vinyl Base (Straight)
VC: Varnished Cambric
VCP: Vitrified Clay Pipe
VCT: Vinyl Composition Tile
VENT: Ventilate, Ventilator
VERT: Vertical
VEST: Vestibule
VF: Vinyl Fabric
VFGT: Vinyl Foam Glazing Tape
VIF: Verify In the Field
VIN: Vinyl
VIT: Vitreous
VLT: Vault
VNR: Veneer
VOL: Volume
VP: Vapor Proof, Vent Pipe
VR: Vapor Retarder, Vacuum Return, Vertical Riser
VRM: Vermiculite
VS: Vent Stack
VT: Vinyl Tile
VTR: Vent Through Roof
VWC: Vinyl Wall Covering
W: West, Width, Wide, Watt, Waste, Water, Water Main
W/: With
W/O: Without
W&M: Washburn & Moen Gauge
WAINS: Wainscot
WB: Wood Base
WC: Watercloset
WD: Wood
WDP: Wood, Painted
WDSS: Wood, Stained & Sealed
WDW: Window
WF: Wide Flange (structural steel)
WFS: Water Flow Switch
WG: Wired Glass
WGL: Wire-Glass
WH: Water Heater, Wall Hung, Wall Hydrant
WI: Wrought Iron
WIN: Window
WM: Wire Mesh, Water Meter
WP: Waterproof, Working Point, Working Pressure, Weatherproof
WPR: Waterproofing
WPT: Working Point
WR: Water Resistant, Water Repellant, Waste Receptacle
WRSTP: Weatherstripping
WS: Weatherstripping, Water Stop
WSCT: Wainscot
WT: Weight, Water Table, Watertight
WVNR: Wood Veneer
WW: Window Wall
WWF: Welded Wire Fabric
XH: Extra Heavy
X HVY: Extra Heavy
X STR: Extra Strong
YD: Yard
YR: Year
via www.4BT.US – Independent, Objective, and Best Value Construction Cost Estimating, Job Order Contracting, and LEAN Construction Delivery Solutions
As a construction contractor considering a Job Order Contract (JOC), it is critical to be aware that all JOCs are not the same.
Carefully review all of the Job Order Contract and all associated documents. Make certain that the roles, responsibilities, tools, requirements and liabilities associated with the JOC are specified.
Determine the answers to the following questions BEFORE you bid or accept a Job Order Contract:
Will you be able to perform?
Will you work directly with the real property owner or a consultant?
Will you be able to develop a positive, long term relationship with the owner?
Will you earn a reasonable profit?
As a construction contractor considering a Job Order Contract (JOC), it is critical to be aware that all JOCs are not the same. Here are a just a few things contractors should know about job order contracts.
Carefully review the Job Order Contract and all associated documents. Make certain that the roles, responsibilities, tools, requirements and liabilities associated with the JOC are specified in appropriate detail.
Determine the answers to the following questions BEFORE you bid or accept a Job Order Contract:
Will you be able to perform?
Will you work directly with the real property owner or a consultant?
Will you be able to develop a positive, long term relationship with the owner?
Will you earn a reasonable profit?
The following is a listing of Job Order Contract Do’s and Don’ts. This format is used to review the primary elements of a Job Order Contract from a “best practice” perspective with a focus upon the construction contractor. It is important to review all Job Order Contract provisions to assure avoidance of any unnecessary financial risk or potential legal issues.[1]
Job Order Contracting (JOC) is a competitively bid, firm-fixed price, Indefinite Delivery Indefinite Quantity (IDIQ) LEAN construction delivery method. It is also implemented by the United States Air Force under the term SABER. Although some basic attributes of a JOC were originally developed in the early 1980’s in Europe, JOC was greatly refined in the United States by the U.S. Army and U.S. Air Force in the late 1980’s and continues to be improved and expanded.
JOC FUNDAMENTALS – Job order contracting, like any LEAN best management process, has basic requirements that focus upon collaboration, transparency, quality, and continuous improvement:
IMPORTANT: If the Job Order Contract you are considering in not in alignment with these core best practices, it is recommended that you discuss the document in more detail with appropriate parties, including, but not limited to, the real property owner / facilities manager, an experience JOC consultant or peer organization, and legal resources familiar with Job Order Contracts.
The JOC Unit Price Book (UPB) should provide a sufficient number of unit price line items to assure the ability to create detailed construction costs estimates for each task of which the value derived from the UPB is at least ninety (90%) of the total construction value of the project.
Each line item should include a description using common terms, written in plain English, and without abbreviations.[2] Material, equipment and labor costs for appropriate renovation, repair, and minor new construction tasks should also be incorporated.
The JOC UPB should be locally researched specifically for the area(s) of coverage designated by the Contract (not use or be dependent upon localization factors or indices).
The JOC UPB should be developed and maintained by an independent and objective resource.
Separate demolition line items should be included.
Line items modifiers (items that add to, or deduct from, the parent line item cost) should be included as appropriate to account for quantity, site/location factors, material qualities, etc.
Labor rates should reflect the local prevailing and other wage requirements of applicable local laws (Davis-Bacon Wage Rates).
Unit Price Books should be updated annually.
Premiums for restricted area (e.g. prison, airport, court house) work and after-hours work will need to be included in the books, or otherwise provided for.
Review the methodology used to create the Unit Price Book being used for the Job Order Contract.
What is the background of the individuals that created the UPB?
What is the total number of material, labor, equipment, modifier, and demolition line items?
Are new items added to the UPB throughout the period of the JOC? Frequency?
The UPB should not have an excessive number of line items. Hundreds of thousands of line items are not required for the majority of multi-trade JOCs. In fact fewer than 40,000 line items should be adequate.
While unit price books may contain several hundred thousand line items, approximately 10,000 line items are typically used on a regular basis for estimating most of the common facility related renovations and repair tasks encountered.
Single trade JOCs require even fewer line items. An excessive number of line items actually can be a major contributing factor to higher costs. Researching, maintaining, locating, and reviewing data can all be excessively cumbersome, time consuming, and costly if the UPB is unnecessarily large.
The JOC UPB should NOT be associated with any consultant for resource that will benefit directly from construction dollars spent on projects, especially if that resource also has a decision-making role with respect to JOC task order/construction project awards. Example: receiving payment for services based on a percentage of total JOC construction volume.
The UPB should not use or be dependent upon localization factors or indices.
Non-prepriced work, tasks that are not within the unit price book, should not exceed 10% of the total value of the job order. The cost of non-prepriced work should be based upon the best value alternative derived from three (3) written quotes, copies of which should be reviewed by the owner technical team and procurement authority.
Note: Most JOC Consultants and JOC Unit Price Book providers place the responsibility upon JOC Contractors to verify the unit prices and to modify their coefficient(s)/adjustment factors accordingly.
In general, JOC coefficients should range between 0.80 and 1.20. The use of a standard hour, non-standard hour, and non-prepriced coefficient are also a common practice. There may also be coefficients applicable to specific locations or regions.
Don’t bid or consider working on JOC with coefficients of less than 0.80 unless you have thoroughly reviewed all factors involved and have determined that there are extenuating circumstances and that a reasonable profit is likely attainable.
An Owner-managed Job Order Contract is the most efficient, beneficial, and least costly mode of JOC Program implementation for Cooperatives with numerous regional, state-wide, and/or national members (various educational and/or non-federal government agencies) with ongoing facilities renovation and repair needs exceeding approximately $2,000,000 per year.
In some cases, however, a member may use a Cooperative’s JOC Managed Service[4] , due to a volume of JOC work lower than a cost effective threshold, or to learn more about the JOC process. Participants should carefully review the COOP program to assure there is proper support, that JOC best practices are followed, and that any fees required are not excessive.
If a JOC Cooperative is involved, it is generally because the real property owner does not have the competence, capability, and/or resources to deploy a fully independent managed Job Order Contracting Program. Do not get involved in a JOC Cooperative that charges excessive fees based upon total construction dollars. Fees are generally considered excessive at the four percent (4%) or greater level, however, any JOC fee greater than two (2%) is deserving of additional scrutiny. Make certain that your company can both perform adequately AND make a reasonable profit.
An Owner-managed[3] JOC is the most efficient, beneficial, and least costly mode of JOC Program implementation for Owners with numerous and ongoing renovation and repair needs exceeding approximately $2,000,000 per year.
In some cases, however, a JOC Consultant is hired to assist in core Job Order Contracting processes. If a JOC consultant is involved, it is generally because the real property owner does not have the competence, capability, and/or resources to deploy a fully independent owner-managed Job Order Contracting Program.
If a JOC Consultant is involved in supporting the real property owner, or managing aspects of a JOC Program, clarify the role of the consultant:
The primary role of a Job Order Contracting Consultant may include the design, implementation and management, including Who, What, How, Why, and Timing, in specific areas such as…
The overall goal of any best practice Job Order Contract is provide significant measurable long term benefits for ALL JOC Program participants… Owners, Cooperatives, Contractors, Subcontractors, Building Users, and Oversight Groups.
If a JOC consultant is managing the JOC Program and has a decision-making role in approving JOC task orders or projects, the situation requires significant additional scrutiny. There may be instances where it is best for a JOC construction contractor to not get involved. Improper design and/or management of a Job Order Contract may result in significant conflict of interest and carries a higher risk of fraud and/or misuse.
Language in a Job Order Contracting RFP should be carefully reviewed as it may create a situation that fails to consider the best interests of all JOC participants. The following are examples of situations that may require additional investigation.
“The JOC Contract Implementation Services agreement will be a performance-based contract with no fees paid up-front to the JOC consultant, but a percentage fee is paid for successful issuance of construction task orders resulting from the consultant’s preparation of unit price books and contract bid documents.”
“Consultant’s Annual Fee: For the satisfactory performance of all required services hereunder, the Consultant shall be paid an Annual Fee, the amount of which shall be calculated as a percentage of the dollar amount of task orders which are (a) issued to construction contractors utilizing the JOC System, and (b) registered by the Comptroller during the specified year.”
Remember that if a JOC Consultant is managing the JOC Program, or supporting the JOC in areas[5] beyond training, tools, or auditing, it can be due to the associated lack of JOC knowledge and/or resources on the part of the real property owner. This factor, when combined with the introduction of a third party (the JOC consultant) into the JOC work processes, can create confusion, delays, and other issues than can negatively impact the JOC program and the awarded JOC construction contractors.
Job order contracting software should primarily focus upon enabling contractors and owners to create detailed line item construction cost estimates, using the appropriate JOC unit price books that adequately reflect the scope of work required by the owner.
The software should be easy to install and use. It should lock the JOC unit price book as well as clearly differentiate between priced (unit prices from the current JOC unit price book) and non-prepriced line items (NPP).
Cloud-based software provides the above as well as enables higher levels of collaboration.
The system should support the JOC process.
JOC software should also be reasonably priced and available on a price per concurrent user.
Do not rely upon spreadsheets or “cost calculators”, or online generic cost estimating systems for a JOC. These approaches are cumbersome and prone to error. In addition, not using JOC-specific software may create serious issues regarding contract compliance and lead to economic loss and/or legal issues.
JOC software should not hinder the JOC process or negatively impact productivity.
JOC software fees should not be paid as a percentage of the overall construction volume, as this can easily result in excessive costs.
JOC software technology should not only be used exclusively by the JOC consultant, but used by the real property owner (both technical and procurement/purchasing authorities), and awarded JOC contractors.
Follow all requirements noted in the JOC solicitation such as… “The Proposer shall clearly indicate what portions of the scope of work will be subcontracted. Provide an organizational chart of prime and subcontractors to illustrate contractual relationships, and clearly indicate in the proposal response which entity is responsible for which portions of work.” Monitor the quality and amount of work performed by subcontractors to assure compliance with contract requirements.
Do not engage a subcontractor that is not familiar with and/or not willing to use a JOC Unit Price Book and detailed line item cost estimating; Or if there are restrictions relative to the proposed use of subcontractors similar to the following example: “The Consultant is not permitted to enter into any subcontract(s) for construction services for the JOC Program.”
Technical Specifications are generally referenced in the Job Order Contract. In most cases the technical specifications have already been developed by the owner/facility manager and reflect current commercial construction standards. In most cases the technical specifications are developed and maintained using either Masterspec, BSD SpecLink, or Unified Facilities Guide Specifications (UFGS). There may be some modifications to these “standard” specifications and/or a limited number (generally less than two hundred – 200) of customer specification required do to specialized infrastructure requirements.
The purpose of LEAN collaborative construction delivery methods, including Job Order Contracting, is to standardize and clarify terms, definitions, and requirements. Thus excessive customization should be avoided.
As noted the purposed of a Job Order Contract is to simplify processes, enhance communication, and drive higher productivity. A new set of technical specifications specifically for the JOC Program should be avoided as it can drive excessive costs and/or fees, create unnecessary confusion, and negatively impact productivity. If a Job Order Contract program requires a dedicated set of Technical Specifications that are not standard and simply references versus something that requires additional maintenance and costs, further justification should be sought.
The JOC LEAN construction delivery process encourages and actually requires contractors/subcontractors and owners to be involved early, and throughout the process, from concept onward.
Prior to approval and execution of each job order issued under a JOC, the contractor’s estimates of unit quantities and any other items contributing to the price must be independently verified by the owner/project manager. Following such verification, each job order should be submitted by the project manager to the owner procurement/purchasing individual with authority to approve JOC task orders for approval and execution.
A typical JOC process has the following stages. Assure that the JOC Program has a similar process.
As noted the JOC task order process should encourage early and ongoing communication DIRECTLY with the owner, facility manager, and building user(s). If this is not the situation and if the only true source of information is an intermediary, such as a JOC consultant, additional clarification should be sought from the owner to assure proper information exchange. The inability to obtain and validate construction requirements directly from or with the owner is contrary to JOC best management practices and may significantly impact the construction contractor’s ability to reduce costs, shorten project delivery times, and mitigate disputes.
JOC Consultants sometimes will review and clarify the JOC task order requests and subsequently schedule a scoping meeting with the appropriate contractor(s). It is critical that the contractor(s) and owner conduct a joint site visit and define the scope of work.
The contractor(s) submits a job order package and the owner reviews to ensure it reflects the scope of work. A JOC consultant should never be paid a percentage of the total construction cost to accomplish all of these tasks in lieu of the owner. If this happens the owner has no true visibility into requirements and costs.
If the owner simply does a cursory review of the JOC task order package and then approves the task order, the fundamental benefits of JOC, as well as implicit checks and balances, are not fully present.
It could be argued that in this type of “false JOC” scenario, that JOC is simply being used to bypass traditional procurement techniques. The Owner in these cases is not providing leadership or enhancing their skills and capabilities, thus also not improving productivity.
Successful JOC Programs require current and ongoing education, training, and support. Building the best possible team with the highest level of capability and competency possible is what Job Order Contracting is all about. A full suite of education, training, and certification offerings can help bring confidence, comfort, and elevated performance to all Job Order Contract participants. Look for providers that provide direct access to training services as well as a network of business partners, professional associations, and universities.
Trainers should be subject-matter experts with national training experience in Job Order Contracting, Construction Cost Estimating, and Program/Project Management.
Look for the availability of multiple training formats to assure maximum participation and benefit for all levels of participants.
Training should include hands-on sessions, complete with JOC software and exercises. Developing skills and confidence enhances leadership and achievement of better overall outcomes.
Look for trainer involvement with organizations such as the Center for Job Order Contract Excellence and Alliance for Construction Excellence, ACE.
Training should include modules about procurement rules and current legislation regarding JOC, and all other aspects of JOC set-up, implementation, and management.
Despite decades of proven application of JOC, many real property owners and facility managers remain unaware of the fundamental best management practices associated with Job Order Contracting.
Standardized, open, and efficient deployment requires introductory, advanced, and ongoing education, training, and support provided by an independent, objective, and experienced provider. If these services are not provided by an independent and objective party, these issues should be raised with the real property owner and JOC consultant as appropriate.
[1] This document is not providing, nor attempts to provide any form of legal advice. Please seek appropriate legal counsel.
[2] Units of measure are commonly abbreviated using standard nomenclature.
[3] An owner-managed Job Order Contract is a situation where the Owner has primarily developed, implemented, and manages the daily processes involved. A JOC consultant, if used, may have assisted in developing the program, or provides tools, training, and/or audits.
[4] A Cooperative’s Job Order Contract Managed Service is a situation where the Cooperative has primarily developed, implemented, and manages the daily processes involved. A JOC consultant, if used, may have assisted in developing the program, or provides tools, training, and/or audits.
[5] The various services provided by a Job Order Contracting Consultant may include, but are not limited to:
· Strategic planning for the JOC Program
· Development of the JOC Program inclusive of a JOC Operations Manual
· Locally Researched Line Item JOC Unit Price Book
· JOC Program Marketing
· JOC Program Contractor Selection Support
· JOC Education, Training, and Support
· JOC Audits
· Review, clarify, document JOC Proposal Requests
· Participate in JOC Project on-site meetings
· Review JOC Proposals
· Review JOC Contractor Job Order Packages
· Verify JOC Contractor Proposals
· Monitor JOC Workflow
· Assure JOC Program Compliance
The below additional DPW Job Order Contracting Courses have limited availability. Please contact the appropriate authority as soon as possible to assure you ability to attend.
2017 PURPLE BOOK
DPW JOB ORDER CONTRACTING ADVANCED
Tuition: $1246 CEU’s: 2.0
Purpose.
This course teaches students strategies and procedures for technical discussion and negotiation with contractors in the JOC task order process. Students shall learn how to apply the IDIQ Delivery Order Limits, which is locked in by the FAR and codified in public law. JOC is most applicable to the Directorate of Public Works (DPW) organization on an Army installation or community and USACE MSCs/District Offices.
Class Type: Classroom
Description:
After completing the course, the student should be able to serve as a knowledgeable ordering officer for the JOC Branch within the DPW as well as scope SRM projects using the JOC unit price book, manage construction contracts and schedules, and manage projects in accordance with RPMA program requirements, i.e., determine appropriate funding programs, work
classification, etc. as well as understand the IQC delivery process, competitive bid process, and firm-fixed price requirements. The students will understand the overall process of contract changes, modifications, and claims processes in accordance with the FAR and AFARS.
The course covers the elements of JOC; task order scoping; task order proposal requesting, receiving, reviewing, evaluation, negotiation, and documentation; task order placement by ordering officers; key JOC management issues; and contract administration procedures under JOC. The underlying themes through all the modules of the course emphasize a cooperative working agreement between contractor and government; efficient and timely processing and completion of
projects; and adherence to proper contract administration procedures.
Prerequisites:
It is recommended that nominees be Army installation DPW or supporting contracting office personnel, which includes USACE District support offices, that are, or expect to be, performing as JOC project managers, ordering officers, or contract administration personnel.
Contractor personnel are not eligible to attend. It is advisable to have completed the Job Order Contracting Basic Course and have at least one year working experience with JOC prior to taking the Job Order Contracting Advanced Course.
CEUs: 2.0
Tuition: $1246
Purpose.
This course teaches students the basic policies, and procedures for properly executing sustainment,
restoration, and modernization (SRM) projects using a Job Order Contracting (JOC) contract applicable to the Directorate of Public Works or a USACE District Office.
Class Type: Classroom
Description:
After completing the course, the student should be able to serve as a knowledgeable ordering officer for the JOC Branch within the DPW as well as scope SRM projects using the JOC unit price book, manage construction contracts and schedules, and manage projects in accordance with RPMA program requirements, i.e., determine appropriate funding programs, work classification, etc. as well as understand the IQC delivery process, competitive bid process, and firm-fixed price
requirements. Additionally, the students shall be able to apply the IDIQ Delivery Order Limits, which is locked in by the FAR and codified in public law. The course covers the elements of JOC; task order scoping; task order proposal requesting, receiving, reviewing, evaluation, negotiation, and documentation; task order placement by ordering officers; key JOC management issues; and contract administration procedures under JOC. The underlying themes through all the modules of the course emphasize a cooperative working agreement between contractor and government;
efficient and timely processing and completion of projects; and adherence to proper contract administration procedures.
Prerequisites:
The nominees for this course may include any DPW and contracting office personnel. However, the course is specifically oriented for personnel assigned or about to be assigned duties in the JOC activity within the DPW, and personnel of the supporting contracting office that will be involved in JOC contract administration. This includes USACE District support offices.
via www.4BT.us – Objective, independent, and best value job order contracting solutions.
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If you currently have a Job Order Contract, or are planning on implementing a Job Order Contract, I highly recommend you get a copy of Job Order Contracts – A Review of Independent Audits.
Job Order Contracts, when created, deployed, and managed using LEAN best management practices, can provide significantly better outcomes that traditional construction delivery methods.
Unfortunately, if an Owner or Facilities Manager is not educated on the topic and relies exclusively upon a JOC consultant, major problems are common.
Excerpt..
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Request a copy of the report – Job Order Contracts – A Review of Independent Audits
Again Job Order Contracts – A Review of Independent Audits is a “must read” for anyone planing or currently work with a Job Order Contract.
www.4BT.US – Independent, Objective, Best Value Job Order Contracting Solutions
www.4BT.US – Independent, Objective, Best Value Job Order Contracting Solutions
