An Introduction to Job Order Contracting, Uncategorized

An Introduction to Job Order Contracting

An Introduction to Job Order Contracting – The LEAN OpenJOC(TM) Way!

#1 JOC is  PROGRAM not a PROJECT

Job Order Contracting (JOC) is a way for organizations to get numerous, commonly encountered construction projects done quickly and easily through multi-year contracts. JOC reduces unnecessary levels of engineering, design, and contract procurement time along with construction project procurement costs by awarding long- term contracts for a wide variety of renovation, repair and new construction projects.

The OpenJOC Solution integrates processes/workflows, training, tools, cost data, and technology to drive collaboration and team work between owners and contractors.   This enables owners and their awarded JOC contractors to execute a wide variety of numerous repair, renovation, sustainability, and minor new construction projects.

JOC Programs are competitively procured, performance-based, and supports long-term owner-contractor relationships.    JOC’s history begins with the US Army in Europe in the 1980’s.   Smaller projects were taking up to 1 year to procure creating a growing backlog of work.  8-22% of project costs were being consumed in design and procurement.  Change orders easily increased project costs by 50% or more,  and claims and litigation were the norm, versus the exception.   Additionally, traditional low bid/design-bid-build procurement produced low quality results.     From these early beginnings, the multiple Army projects were piloted in the U.S.   The Air Force also got involved, naming a more refined approach SABER.    The Air Force and other DOD and non-DOD federal departments then went on to make JOC a huge success.

An Introduction to Job Order Contracting

JOC Basics

  1. JOC Solution – A long-term (3-5 years) contract for on-call construction • Competitive pricing established at outset of the contract through the use of a coefficient applied to a unit price book (UPB) • Best Value Procurement/Qualifications-based selection to ensure contractor performance • Individually-priced job orders
  2. JOC Benefits – Faster project delivery (3-9 months less) • Streamlined engineering and design • Assurance of cost reasonableness • Better contractor performance, a partnering relationship • More opportunities for small and disadvantaged business • More efficient/effective use of  funds (JOC Performance Study, 2016, Cassell, Jordan W., and Linda T. Gilday. Improving the Army’s Job Order Contracting Program. Logistics Management Institute, September 1997, et al.)
  3. JOC – Pricing structure relies on a Unit Price Book (over- the-counter or customized) • Competitive coefficient (multiplier, factor) establishes pricing at the outset of the contract • Effectively bidding every most common construction tasks.
  4. Job Order Pricing Job orders are firm, fixed price, lump sum – Unit price proposals represent contractor’s committed price—converts to lump sum • Owner driven change orders may happen • Contractor driven change orders are almost non-existent • Always a consistent pricing structure with the UPB • Different from other on-call contracts. Not Time and Materials, not cost-plus-fee, not Construction Manager @ Risk….   • Incentive to perform efficiently
  5. JOC contractors strive for: • Fast Delivery • High Quality • No Change Orders • No Warranty Hassles • Maximize budgets
  6. Contract may or may not have minimal work guarantee • Contract has clear volume potential ($3m minimum, up to $10m annually) • Base year plus up to 4 option years • Incentive to perform is more awarded work.
  7. Long-term contract fosters a higher level of investment in making the working relationship work • Allows development of a trusted partner • JOC Team operates as an extension of owner’s staff

Job Order Contracting Process  – Scope – Proposal – Execution

Scope

  1. Once a JOC Program is in place, owner requests individual projects.  JOC Process: –
  2. Typical JOC Process: Scope – Detailed Scope Developed – Notice of Work Requirement – Site Visit – Detailed Scope Development & Incidental Design – Scope Approval

Proposal

  1. Site Visit or Job Walk – Typically within days • Collaborative Process • Identifying components of work and discussing the options • Value Engineering suggestions
  2. Project Proposal Presented – Job Order Request (RFP) – Proposal Package – Negotiations / Further Input – Revised Detailed Scope and Proposal (if necessary) – Preliminary Schedules Developed – Final Job Order Form Approved – Job Order Issued by Client (NTP)
  3. Components of the OpenJOC UPB Estimate – Determine quantities of work • Build the estimate from UPB • Summarize the estimate and apply coefficient
  4. JOC Estimate – Owner must be competent, provide leadership, and have strong estimating skills to provide proper support and oversight… Are the line items right?  Quantities?

Execution

  1. Project Work is Executed – Final Project Schedule – Pre-construction – Project Safety and Quality Control Meetings – Selection of Subcontractors and Suppliers – Project Management and Site Supervision – Ongoing Communications with Owner/Client – Inspection – Project Closeout and Turnover of Documentation

OpenJOC Benefits

  1. Focus limited staff and budgets on mission critical and priority needs
  2. Adapt and expand OpenJOC Program to your changing needs
  3. Getting more work done on-time, on-budget, and right!  Improve building user experiences and satisfaction. Improved quality of delivery and results.  Achieve measurable cost savings.

How to Get Started with JOC

  1. Solicit your own contract – Need at least $2-3 million of annual repair, renovation, minor new construction volume
  2. Piggyback or ride on another contract (allowed in some States, check your statues/regulations)
  3. Utilize cooperatives.
  4. Contact us.
  5. Review white papers, research, and other resources.

Job Order Contract Construction Services Scope of Work

Job Order Contracting - The LEAN Way, Uncategorized

Job Order Contracting – The LEAN Way

The consistent deployment and leverage of efficient, collaborative, LEAN construction processes is what drives significant productivity gains for both owners and contractors.  

Common Data Environment for LEAN Construction Delivery

Efficiently managing the numerous, ongoing repair, renovation, and minor new construction projects facing owner Facilities Management and Procurement teams has proven challenging to many.    Assuring that over 90% of these projects are completed on-time, on-budget, and to the satisfaction of owners, contractors, and building users can be consistently achieved by harnessing the competencies, experience, and information across all internal and external teams.     The OpenJOC(TM) LEAN Job Order Contracting Solution provides the requisite processes, common data environment (CDE), training, and technologies to support owners and contractors alike.

 Financial Transparency

Having a locally researched unit prices book (UPB), organized using CSI Masterformat, and including both parent line item costs and line item modifiers, is one of several core elements.   Each line item is described in plain English and includes sufficient details to define the construction task as well as provides total price per unit of measure and associated labor, material, and equipment breakdowns.   The UPB is critical to financial transparency and complete work scope definition.

Understanding the Value of Collaboration

Effective Facilities Management, procurement, and construction professionals understand the value of collaboration, long term relationships, shared risk/reward, and mutual trust/respect.

The Role of Technology

Technology is an enabler and NEVER should drive the process.  The role of technology is simple… to enable lower cost and consistent deployment of robust processes, share and enable the reuse of actionable information,  and provide measurement capabilities.

Adaptability

LEAN Job Order Contracting provides a shared work environment and defined workflows that enable all participants to contribute to continuous  improvement.  While LEAN is based upon robust processes and defined workflows, individual leverage these to implement optimal solutions in response to dynamic nature of construction.   Problem sharing and team problem solve is encouraged.  It’s a given that no two construction projects are the same, an the ability to adapt is critical.

Compliance

Whether State, County, Local and/or Federal statutes/regulations apply, compliance must be assured.  Process, common date environments, financial transparency, and technology all are important to assuring requisite compliance.

Job Order Contract Construction Services Scope of Work

School Districts can Learn from LEAN Construction, Uncategorized

School Districts can Learn from LEAN Construction

What is “LEAN Construction?”

LEAN construction is a collaborative process that drives significantly enhanced productivity.   More specifically, Job Order Contracting, JOC, a LEAN construction delivery method, consistently delivers over 90% of renovation, repair, and construction projects on-time, on-budget, and to the satisfaction of all participants and stakeholders.  When compared to the industry norm of 75% of all construction projects being over budget, delayed, or resulting in legal disputes.  Isn’t is time for your ISD to consider LEAN construction delivery?

Common Data Environment for LEAN Construction Delivery

The OpenJOC(TM) Solution provides the tools, documentation, locally researched cost data, support, and enabling technology to enable  independent schools districts (ISDs) to leverage Job Order Contracting to its fullest extent.

Properly designed and implemented JOC Programs can optimize school operations budgets and construction bonds, resulting in more dollars spent on actual construction versus procurement costs and waste.

LEAN Job Order Contracting deployed via the OpenJOC Solution, requires collaboration, financial transparency, shared risk/reward, and mutual respect/trust among program participants.   Knowledge is shared early on with all team members and throughout the process from concept through completion.  Knowledge is tapped from internal and external teams, including operations, procurement, building users, builders.   Focus is upon desired outcomes and continuous improvement.

Whether your ISD needs to more efficiently leverage a new bond, or better manage its multiple and ongoing renovation and repair projects, JOC is a proven pathway to success.

 

Core tenants of LEAN construction

  • Collaboration – among all participants throughout the project life-cycle (Owners, Architects, Engineers, Contractors…)
  • Long-term relationships – 3-5 years+
  • Focus upon best value
  • Shared risk/reward
  • Financial Transparency
  • Standardized Data Formats / Common Data Environment (CDE)
  • Early and ongoing information sharing
  • Common terms, definitions, and data formats
  • Monitoring & Continuous Improvement
  • Reliance upon participants’ expertise

Job Order Contract Construction Services Scope of Work

On-call Construction, Uncategorized

On-call Construction versus Job Order Contracting

(Source: mrsc.org, repost, 2012, Capita, John On-Call Constracts Not Kosher)

On-Call Contracts Not Kosher

Over the past two to three years, there has been much interest and discussion about on-call contracts by local agencies, mostly related to prevailing wages for these types of contracts. Recently, the State Auditor’s Office (SAO) has determined that, because on-call contracts are not specifically authorized in state law, local agencies may not use them.

On-Call Contracts Defined

 What are on-call contracts? There is not an official definition, but MRSC has used this:

On-Call (Work Order) Contracts (OC/WO Contracts) are bid and awarded without a specific public works project or scope of work in mind, but rather are categorized around general types of anticipated work or trades. When a specific scope of work is identified, individual work orders are authorized based on either a not to exceed time and materials basis or on a negotiated lump sum amount, using the unit prices bid by the contractor and the contractor proceeds to complete the work.  Most typically, OC/WO Contracts are used for repair, renovation, and maintenance, of public facilities, all of which are included in the definition of public works in RCW 39.04.010, and as further defined by the courts and Washington Administrative Code. These contracts are typically on an annual basis, with optional renewals, (up to the maximum contract amount) although many agencies have multi-year contracts.

In contrast, the typical public works contract as envisioned in the public works contracting statutes has a fixed scope, estimated quantities that lead to a readily determinable project cost, and a specified time frame for completion.

MRSC “White Paper” Retracted 

In light of the SAO’s recent determination, MRSC has retracted a March 2011 “white paper” entitled On-Call (Task Order) Maintenance Contracts, which recommended best practices for on-call contracts, again mostly relating to prevailing wages.  As the SAO noted, these contracts can result in noncompliance with the public works contracting and prevailing wage statutes, even if there are obvious advantages to using them, such as:

  • Reducing the cost and time involved in bidding (either through advertising or through a small works roster) separate public works projects, especially with respect to very small projects that meet the technical definition of a public work, but that cannot be planned for ahead of time.
  • Having someone under contract at reasonable prices when the need arises, rather than having to pay sometimes inflated prices for last minute work.
  • Reducing the time required to administer very small projects as separate public works projects.

Where Do We Go From Here? 

New Legislation

There is a distinct gap in statutes governing public works contracting between job order contracts (JOC), available to only certain public agencies, and typical public works contracts.  As Mike Purdy, a noted public works contracting consultant, notes in his blog:

Selecting a Job Order Contractor is a more complex process than bidding an on-call public works project, and it requires a level of effort that may not be possible for all agencies to pursue.  In addition, applying the Job Order Contracting process to very small public works projects, where most of the work must be subcontracted, may not be as efficient as an on-call contract that is based on unit prices specifically bid for the work required.

Legislation to address this gap is needed.  While MRSC does not lobby for new legislation, we can lend our collective expertise to provide sample and model policy/procedure documents, contracts, and other information to AWC, WSAC, WASWD, and other associations as requested.

In the Meantime

So, what can agencies do with respect to these small projects and comply with state law? Well, each task (work) order that would, in a perfect world, have been under an on-call contract must be treated as a separate public works contract.  While this will create more paperwork, agencies should take advantage of every statutory and administrative shortcut available and develop short-form contracts.  I’ve developed a set of short form contacts and checklists for projects less than $5,000 and will provide them on request.

Note the following bond and prevailing wage matrix:

Estimated Contract Cost Bid Bond Required? P/P Bond Required? Prevailing Wages Notice of Completion
Over $300K Yes Yes Separate Paid I&A required Required
Under $300K and more than $35K and using small works roster Optional* Yes Separate Paid I&A required Required
Less than $35K at contractor’s option (RCW 39.08.010) No No Use Combined (Paid) Form but note restrictions at Alternate Processes Not Required
Less than $35K and not using limited public works (LPW) process No Yes Use Combined (Paid) Form but note restrictions at Alternate Processes (Option 2) Not Required
Less than $35K and using LPW process No No Use Combined (Paid) Form but note restrictions at Alternate Processes (Option 2) Not Required
Less than (say) $5,000 No Risk is Low. Require proof of payment for supplies and equipment rental. Use Combined (Paid) Form but note restrictions at Alternate Processes (Option 2) Not Required
Less than $2,500 No Risk is Low. Require proof of payment for supplies and equipment rental. Use Combined (Free) Form but note restrictions at Alternate Processes (Option 1) Not Required
*May wish to require bid bonds for all projects over, say, $100K

For projects with an estimated cost below agency bid limits, neither competitive bids nor the small public works roster use is required for these projects.  And, (theoretically) only one quote is required.  MRSC does not recommend single quotes for anything but really small projects, such as those costing less than $5,000.

System-Wide Maintenance/Repair Contracts

There is another type of contract that is often characterized as “on-call,” but is really not.  These are system-wide maintenance activities or repairs that are planned in advance and budgeted.  These contracts are usually on an annual basis, with optional renewals, but multi-year contacts are also common.  The project scope can be determined by the use of alternate bids or by reference to an annual work plan for system maintenance or a master plan for improvements, but the actual work performed depends on the budget amount available in relation to the bid prices.   Examples include:

  • Sewer or storm drain “jetting” (cleaning) up to a certain budget amount, but not an exact number of linear feet
  • Sidewalk/trail construction or reconstruction in relation to a agency’s pedestrian master plan, not necessarily a fixed quantity and up to a certain budget amount
  • Street lighting and signal maintenance and repair in relation to an annual, system-wide work plan.

With appropriate language defining the project scope (see Practical Applications for SAO Audit Findings), these projects can be structured so that they qualify as projects that have readily determinable quantities (and therefore costs) related to a fixed scope, which are what the basic public works statutes (Chs. 39.04, 39.08, 39.12, and 60.28 RCW) envision.

While system-wide contracts are more like traditional public works contracts, some elements of these contracts may resemble on-call contracts if emergency repairs are included in the contract scope.  For this reason, an agency should not include emergency repairs or task (work) order language in these contracts.

Your thoughts on the above?

Job Order Contract Construction Services Scope of Work, Uncategorized

JOC Scope of Work – Job Order Contract Construction Services Scope of Work

Many things go into a JOC Scope of Work.  The following outline, provided for general information only,  highlights just a few of the many aspects to be considered.

Job Order Contract Construction Services Scope of Work

Each JOC Scope of Work will vary based upon several factors…

  1. Owner-manged or cooperative Job Order Contract
  2. Multi-trade or single trade
  3. Repair, renovation, and minor new construction, or repair and renovation only
  4. Applicable Regulations, Statues – Owner entity type (Federal Government, DOD Federal Government, State/County/Local Government, Transportation Organization, Healthcare Organization, Educational Institution, etc.), and physical location
  5. Owner capabilities level
  6. JOC Program Size and Duration
  7. Strategy, Goals, and Objectives
  8. Contractor capabilities
  9. Unit Price Book and Technology Requirements
  10. Co-efficient – Number of co-efficients, calculations

– Brief SOW Description

– Detailed SOW Description

-Bonding Requirements

-Categorical Definitions

-Alternative Costing/Non-Prepriced (NPP) Items

-General Information

-Conditions Affecting the Work

-Record “AS BUILT” Drawings

-Purchase Order or Delivery Order Process

–Training & Partnering Sessions

-Debris and Cleanup

-Materials and Workmanship

-Associated Project Support Requirements

-Ability to Provide and Perform the Required Product(s) and/or Service(s)

-Special Conditions

JOC scope of work
Sample SOW Checklist
Uncategorized

Everything you need for building and project management

BiC-Designer-Constructor-Owner

Use Building in Cloud for free, 

Get started!

All of a building’s data in the cloud

Building in Cloud’s technology gives you a powerful and reliable IT platform, no need for IT staff or dedicated servers.

Data security and permissions are regulated by AEC (Architectural, Engineering and Construction) tailored workgroups.

All Project Management, Asset Management and Facility Management activities are always updated and available wherever you are so you can make the right decision at the right time.

Building explorer

Building Explorer allows you to rapidly locate your property using Google Maps and immediately access all the information and documentation that you need.  Drive consistency and higher productivity across your real estate portfolio for the numerous tasks to be performed for specific projects and buildings.
The innovative and proven  way to more efficiently manage.

Asset facility management cloud BIM software

Building Information Modeling

Building in Cloud utilizes the benefits of BIM (Building Information Modelling), to increase levels of efficiency and collaboration between team members involved in the design, construction and operational phases of the building life-cycle.
Building in Cloud is designed to manage federated models and is compatible with both the IFC (Industry Foundation Class) format and the RVT format used by Autodesk Revit.

Project Management

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

Manage project teams

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

Notifications & Messages

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

Document Management

The Document Management module lets you manage and share files, while keeping a record of all reviews and uploaded documentation throughout the entire life-cycle of the building.
Upload and share documents and make them available to your whole team – including PDF, Word and Excel files, images and videos.
View and analyse data from BIM models (RVT and IFC formats) directly from your browser without the need to purchase expensive software.
Instant access to drawings using Building in Cloud built-in DWG viewer.

Internal and external team members gain instant authorized access to current information to share and manage tasks and solve problems.
Administrators can easily add new team members and define information access rights at the project or building level.
Building in Cloud allows authorized team members to access and share documents, manage tasks, or troubleshoot.
Administrators can easily add new members to the team, define access privileges by differentiating them for each project or building.

Asset Information Model

Building in Cloud lets you keep track of multiple asset classes: office equipment, furniture, laboratory equipment, facilities, etc..
Assets and components are easily imported into your building from BIM models, from excel files or manually.
This makes it easy to manage assets and components throughout their full life-cycle.
Add notes, technical specifications, pictures, documents or assign a task, or issue notifications.

Asset facility management cloud BIM software

Personal Dashboards

Personal and Team dashboard

Building in Cloud has built-in personalized dashboards that allows you to monitor the status of your activities/issues and of those assigned to internal and external team members.

Safety

Building in Cloud relies on the infrastructure and services provided by Aruba Cloud. Our servers have a SLA (Service Level Agreement) of 99.95%. Out infrastructure is made of redundant and scalable data centers physically located in different locations, this assures that your data is always safe and available.

Privacy

Building in Cloud does not share your information with third parties. At any time you can exercise your right to be forgotten and your data will be permanently deleted from our servers.

Encryption

Network traffic containing sensitive information, such as credentials, is transmitted securely over the Internet to the perimeter of our environment.
We use SSL certificates released by Alpha SSL that provides 256 bit encryption with RSA key generation.

Backup

Any time you upload a new version of a document Building in Cloud preserves the old version, these are available to be recovered, until they are deleted.
We make multiple daily backups of your documents and data an secure different servers.

Speed

Our datacenters speed toward the public network is 1000 Mbit/s, this ensures that there is no performance degradation independently on the number of concurrent users connected. Our data centers are certified ISO 9001 for quality and ISO 27001 for safety.

Login

Access to the system is granted through a triple control level; company alias, username and password. Optionally passwords can be configured to expire after a predefined amount of time has passed. User have access to the information based on the permission level that is granted them by the administrators.

 

 

 

 

Common Data Environment for LEAN Construction Delivery, Uncategorized

Building a Common Data Environment for LEAN Construction Delivery

A Common Data Environment, CDE is a critical to LEAN construction delivery and improving overall efficiency.  A CDE allows real property owners, facilities managers, building users, AE’s, and builders to share current and actionable information throughout the life-cycle of any program or projects, from concept, through warranty and beyond.

A common data environment includes a glossary and set of definitions in plain English using industry standard terms.  It also included common data format/architectures such a CSI MasterFormat, Uniformat, etc.   Detailed, unit price, locally researched cost data is also a core requirement in order to clearly communicate work scope and assure financial visibility.

Common Data Environment for LEAN Construction Delivery

In addition to to a CDE, the following factors are core elements of LEAN construction delivery methods such as Integrated Project Delivery, IPD (for major new construction), and Job Order Contracting, JOC (for repair, renovation, and minor new construction.

  1. Owner leadership and competency
  2. Collaborative, service-oriented team members with appropriate domain expertise and capabilities
  3. Fully defined roles, responsibilities, desired outcomes, schedules, workflows…
  4. Security and document management
  5. Ongoing training
  6. Continuous improvement
  7. Shared risk/reward
  8. Long-term relationships
  9. Focus upon outcomes
  10. Supporting technology

CDE

4BTOpenJOCcloud.gif

Uncategorized

Action Needed to Increase the Reliability of Construction Cost Estimates

Action Needed to Increase the Reliability of Construction Cost Estimates per the GAO.

While this report targets defense infrastructure, the issue is far worse at the GSA and other non-DOD government agencies where there is a basic lack of understanding and implementation of organization-wide, best value, LEAN Facilities Management, and LEAN Construction Delivery Methods.

Rethink, Reshape, Rewrite AECOO

In all instances more effort is needs to efficiently and strategically manage our government owned built infrastructure from life-cycle and best value perspectives.

GAO determined that DOD cost estimators did not follow all the best practices associated with the four characteristics—comprehensive, well-documented, accurate, and credible—of a reliable estimate for these projects.DEFENSE INFRASTRUCTURE:Action Needed to Increase the Reliability of Construction Cost Estimates

-DEFENSE INFRASTRUCTURE: Action Needed to Increase the Reliability of Construction Cost Estimates GAO-18-101: Published: Mar 27, 2018. Publicly Released: Mar 27, 2018.

Focus should be upon renovation, repair, maintenance, and similar sustainment activities to assure mission readiness.   The bulk of funding should be spent upon planned an preventive activities versus emergency or unplanned projects.

LEAN construction delivery methods such as Integrated Project Delivery, IPD for major new construction and Job Order Contracting, JOC for repair, renovation, and minor new construction should be used almost exclusively for infrastructure sustainment.   Open, locally researched, detailed unit prices should be used to improve the validity of project definition and cost estimates.

GAO DOD Cost Estimating

GAO

 

LEAN Job Order Contracting, OpenJOC LEAN Job Order Contracting, Uncategorized

LEAN Job Order Contracting

OpentJOC(TM) LEAN Job Order Contracting for Efficient Facilities Repair, Renovation, and Minor New Construction

4BTlogosquaretagline

Manage estimates, budgets and forecasts.

Accurately estimate and manage LEAN construction programs and associated renovation, repair, and minor new construction projects.  Effectively and transparently track and manage budgets, forecast performance and progress, and create a collaborative procurement and cost/project management process.

 

Plan and execute work seamlessly between Owners, Contractors, and Building Users

Clearly communicate work and project scope, deliver detailed line item estimates, and maintain operational efficiency and compliance.

Effectively manage concept development, requests for proposals, joint site visits, proposal reviews and negotiations, approvals/notices to proceed,  regular inspections, checklists, close-outs, warranties, and more!

 

Make better decisions faster.

Quickly gather and review current and actionable data generate the reports and dashboards needed to identify and address issues earlier, make better informed decisions and mitigate risk.

Unleash the power of BIM and full Document Management

Discover new opportunities and efficiencies throughout the project, from conceptualization  to turnover, by linking operational information to BIM models, without the need of costly and complex BIM software!

4BT-CE Building in Cloud & the OpenJOC(TM) Framework

  1. Welcome
    1. Use and limits
    2. Objective
    3. Introduction
    4. Overview
    5. System requirements
  2. Get started
  3. Benefits
    1. Buildings geolocation
    2. BIM management
    3. Documents
    4. Project management
    5. Asset management
    6. Measure and monitor
    7. Dashboard
  4. Home page and user interface
    1. “Building in Cloud” command
    2. “User profile” command
    3. “Notify” command
    4. “Settings” command
    5. The “Current position bar”
    6. The “Main menu toolbar”
    7. The “Command menu area”
    8. The “Working space area”
    9. The “BIM button”
  5. Settings and configuration
    1. Main settings
    2. Buildings settings
    3. General settings
  6. BIM Management
    1. BIM Model management
  7. Building Explorer
  8. Buildings
    1. New building
    2. Geolocate a building
    3. Manage buildings
    4. Linked BIM model
    5. Building’s data
  9. Team
    1. View the team members list
    2. Invite users
    3. Team management
    4. Skills
    5. Team members communication
    6. Team Member filters
  10. Document management
  11. Tasks
  12. Issues
  13. Spaces
  14. Components
  15. Safety
  16. Service level
  17. 4BT CE
    1. 4BT-CE Introduction
    2. 4BT-CE Welcome
    3. 4BT-CE Estimating
      1. Home
      2. Price List
      3. Manage Estimate
      4. Security Features
      5. Service Level Agreement

4BT-CE Manage Estimate

Click on “Manage Estimates” to view, edit, or add new estimates.

 

 

The “Manage Estimates” command provides list view of your estimates, and the ability to perform multiple actions:

  • Open an estimate by clicking on the check box (also referred to at “Tagging”) and then clicking “Open”
  • Create a new estimate in the same building by clicking on “New”.
  • Edit an existing building estimate by clicking on the check box (Tag) and then clicking “Edit”.
  • Remove a building estimate by clicking on the check box (Tag) and then clicking “Delete”.
  • Double click an estimate to open the estimate and edit line items.

 

 

To edit the estimate name, description, or coefficient, Tag the estimate and click “Edit”.  You can then change the appropriate fields.

 

 

ob Order Contract Cost Estimating, Uncategorized

Job Order Contract Cost Estimating

Job Order Contract Cost Estimating

Cost Estimation for JOC done right!

  • Confidently create detailed line item construction cost estimates
  • 60,000+ line items including labor, material, and equipment detailed information
  • Locally research (no use of cost factors / cost indexes)
  • Line item modifiers for locations, quantity, work methods
  • Easily create project-specific reports
  • Track priced and non-prepriced line items
  • Link estimates with schedules, other documents, issues, tasks, and more!

4BT Cost Estimating

4BT-CE is the estimating and LEAN construction delivery component of Building in Cloud.  4BT-CE embeds integrated project delivery best management practices, including the OpenJOCTM process, to enable higher levels of collaboration among owners, contractors, subcontractors, building users, and oversight groups.

Additional Features…

  1. Buildings geolocation
  2. BIM management
  3. Documents
  4. Project management
  5. Asset management
  6. Measure and monitor
  7. Dashboard

4BTlogosquaretagline

Job Order Contracting LEAN Construction Technology, Uncategorized

Job Order Contracting LEAN Construction Technology

4BT-CE is the estimating and LEAN construction delivery component of Building in Cloud, BiC.
4BT-CE embeds integrated project delivery best management practices, including the OpenJOCTM process, to enable higher levels of collaboration among owners, contractors, subcontractors, building users, and oversight groups.
JOC softwaere

4BT-CE provides many benefits to users and the user organizations as outlined below.

If your are setting up a JOC Program, or wish to improve an existing Job Order Contract, the 4BT-CE OpenJOC Solution provides the open, best-value alternative.

Estimating Features

  • Detailed line item construction cost estimating, as well as program, project, and document management
  • Supports multiple Unit Price Books and Detailed Line Item Commercial Construction Costs Databases
  • Support for multiple JOC Coefficients, multiple Locations, multiple Contractors, multiple Subcontractors, multiple JOC Programs…
  • CSI Masterformat (TM) UPB format (50 Division) for data organization
  • Electronic estimating — directly access, search, and use pricing guides without physical books, paper, or PDFs.
  • Full description of line items, in plain English using common industry terms, including crews, output, material, labor, and equipment costs.
  • Minimal use of confusing abbreviations or acronyms
  • Powerful search engine tools to find unit price line items quickly – Keyword search, Masterformat number, search, and Navigational Tree
  • Ability to tag and input multiple line items into an estimate
  • Easily locate any items lacking a quantity (highlighted in ‘yellow’)
  • Reports calculate and detail Prepriced (sourced from current JOC UPB) and non-prepriced line items, and show associated percentages of total estimating and total dollar amounts.
  • Ability to add and report notes at the line item level, estimate, or project level.

Project & Document Management Features

  • Progam, Project, and Document Management tools
  • Manage document templates to be used repeatedly on projects
  • Organize and locate all project documents in one common place
  • Document “check out/check in” assures everyone is working on the same current version
  • Mutliple permission levels can be assigned relative to document viewing, editing, etc.

General Features

  • Support for an unlimited number of users
  • Compliant with advanced security protocols
  • Pure cloud technology – Only requires an internet browser (Google Chrome recommend, though operable in all common browsers),. Excel™ and Adobe PDF™ are used for exporting, report viewing, etc.
  • Report generation and export to Excel™ or Adobe PDF™
  • Document version control
  • Document access control
  • Intuitive user interfaces
  • DWG, Revit, PDF, viewers
  • GPS mapping/visualization

Benefits

  • Tracks and manages all projects in one program
  • Enables team to share CURRENT information in REALTIME – Allows designated team members to access and/or edit assigned documents and share information/expertise
  • Reduces time spent creating and managing documents
  • Electronically supports contract pricing requirements
  • Support and training from a team that has decades of experience LEAN consturction delivery and life-cycle facilities / infrastructure asset management.
  • Monitors and helps to assure compliance with program requirements
  • Properly implemented, delvers 90%+ of renovation, repair, and new construction projects on-time, on-budget, and to the satisfaction of all participants and stakeholders.

 

Uncategorized

The Benefits of LEAN Job Order Contracting

Benefits of Lean Job Order Contracting

4BTlogosquaretagline

The 4BT OpenJOCTM  Solution provides an integrated set of tools, data, processes, and services to consistently implement LEAN Job Order Contracting.   

Within this proven framework, real property owners and their construction service providers are enabled to  consistently deliver over 90% of renovation, repair, and minor new construction projects on-time, on-budget, and to the satisfaction of all participants and stakeholders.

The OpenJOC approach is designed to allow owners and contractors to work collaboratively without the need for “JOC Consultants” or other unnecessary and generally counter-productive third-party administrators.

The Benefits of the OpenJOC Job Order Contracting System include…

  • Measurable Improvements in Collaboration, Accountability, and Financial Transparency

  • Improved Quality

  • Shorter Project Delivery Times

  • Reduced Waster

  • Significantly Improved Satisfaction Levels

  • Risk Mitigation

  • Lower Facilities Operating Costs

Learn how owner/contractor construction teams    maximize value and efficiency, minimize waste, and quite simply… do more with less.

Applying Lean construction management principles to a project is a way to improve productivity.

DOD shift to sustainment / repair, Uncategorized

Ongoing DOD shift to sustainment / repair at local level becomes formal

Other than base build-ups related to Irag/Afghanistan and terrorism, the DOD has been shifting priority to facilities sustainment, renovation, repair via local action and global oversight for decades.   This trend if being formalized via recent GAO reports and DOD agency guidance.

The GAO has historically and very clearly pointed out the serve issues with degradation of Federal Government (DOD and non-DOD)  physical infrastructure.  A recent GAO report highlights the DOD status in this area.

Furthermore, INCOM and their peers in other DOD agencies are issuing new guidance in this area, delegating more and more repair, renovation, sustainment authority to the local installation/base level.

In parallel, the recent availability of lower cost, open, transparent, and efficient LEAN Job Order Contracting solutions have become available to expedite this critical effort.

JOC Consutling Services

 

JOB ORDER CONTRACTING AND BIM, Uncategorized

JOB ORDER CONTRACTING AND BIM

Who says LEAN, JOB ORDER CONTRACTING, AND BIM don’t mix?

4BT-CE Building in Cloud leverages the power of LEAN Repair, Renovation, and Minor New Construction Delivery with BIM, allowing you to easily link to existing building BIM models, even in a federated form.  

Information in the BIM models is directly imported into the 4BT-CE Building in Cloud OpenJOC(TM) work environment, without the need for costly BIM software.

To link one or more BIM models to a building, select the Buildings menu from the figure below.

 Upload Bim

The “Buildings” menu

This command is only available for the System Administrator and the Building Manager.

To connect one or more BIM models to the current building, select the “Linked Models” tab as shown in the figure below.

 BIM2

The command for managing BIM models connected to a building

Select the “Upload BIM Model” command as shown in the figure below.

BIM3

 

The OpenJOC(TM) Solution …  LEAN, BEST VALUE, OPEN, FULLY SUPPORTED, COMPLIANT alternative for savvy real property owners.

JOC Consutling Services

4BTlogosquaretagline

Uncategorized

Improve Construction Productivity 50%+

Improve Construction Productivity 50%+ with LEAN renovation, repair, and minor new construction processes and a common data environment, embedded within cloud technology.

Learn how LEAN workflows improves collaboration, accountability, and provide financial transparency.

  • Improve design team productivity by 50%+
  • Create a shared information information resource for renovation, repair, and minor new construction program
  • Collaborate effectively with trusted construction partners across multiple sites
  • Go paperless with a digital program, project, and document management
  • Leverage a locally researched unit price book, with full labor, material, and equipment details, within an truly open environment and organized with CSI Masterformat 50 division.

JOC Consutling Services

LEARN MORE…

Uncategorized

LEAN School Maintenance Operations Construction

LEAN School Maintenance Operations Construction is easily attainable with capable leadership and the implementation of best management practices.

Whether you are head of M&O, Construction, Chief Financial Officer, Procurement, or Superintendent…   efficient management of the numerous and ongoing repair, renovation, and minor new construction projects, common to all K12 Schools, is critical to both the bottom line and the quality of educational services being offered.  Quite frankly, efficient stewardship of the built environment is critical responsibility for all.

As there is lot’s to do, and little to do it with, assuring that 90% of all repair, renovation, and minor new construction projects are completed… on-demand, on-time, on-budget, and to everyone’s satisfaction…  is a necessity.

The OpenJOC(TM) Framework for Job Order Contracting (JOC) provides all the tools, training, and information needed to meet your requirements.   JOC, when designed, implemented, and managed properly, has proven to consistently deliver 90%+ of all repair, renovation, and minor new construction projects are completed… on-demand, on-time, on-budget, and to everyone’s satisfaction.

That said, not all JOC Programs are the same.  They must be open, transparent, follow fundamental JOC best management practices, use locally researched and detailed construction cost data (updated annually and organized by CSI MasterFormat – 50 Division), require initial and ongoing training for ALL participants and stakeholders, and be regularly audited.

LEAN School Maintenance Operations Construction

Based upon the amount of construction dollars spent annually upon repair, renovation, and minor new construction, there are three ways that JOC services are typically provided.

  1. Owner-managed JOC Program – School creates, implements, and manages its own JOC Programs (for $2M-$3M+ spent annually)
  2. JOC Cooperatives – Leveraging a JOC Program already in place via an inter-local agreement.  Assure the JOC Program is administered and supported by a government agency and not a for-profit, or not-for-profit enterprise to assure compliance and best value. (under $2M-$3M+ spent annually)
  3. JOC Consultants – In some instances a JOC consultant is hired to “manage” a JOC Program.   This can be problematic for several reasons.  First, the core benefits of JOC are realized due to the direct collaboration between the owner and the construction contractor(s).  Having a third party between this relationship has shown to introduce communication issues, cause delays, create situation of bias, and even cause concerns for misuse and fraud in some cases.   Under no circumstances should a JOC Consultant manage a JOC Program is the consultant is being paid a fee based upon a percentage of construction volume and the consultant plays a role relative to the approval of projects.  (See JOC Audit Information…)

 

Job Order Contracting Made Simple, Uncategorized

Job Order Contracting Made Simple

OpenJOC Philosophy

OpenJOC(TM) JOC is Job Order Contracting made simple.  More than that, is abides by all fundamental JOC and LEAN principles and procedures.

If it’s time that all of your facilities repair, renovation, and repair projects were delivered on-time, on-budget, and to everyone’s satisfaction, with a focus upon client best value… and without any excessive administration fees… it’s time to consider the 4BT OpenJOC suite of tools and services.

OpenJOC UPB

Learn more…

 

 

Regulatory – Job Order Contacting Statutes and Guidelines, Uncategorized

Regulatory – Job Order Contacting Statutes and Guidelines

Regulatory – JOC

This is list is for reference only and may not be complete or current.  The JOC regulatory framework is evolving despite its long term use.  Any information provided it NOT intended as any form of legal guidance.

Regulatory JOC

Arizona – Note:  Arizona JOC statutes do not require a unit price book and thus do not  appear to conform with minimal requirements for a “best practice” JOC Program.
Arkansas
2010 Arkansas Code
Title 19 – Chapter 4 – Subchapter 14 (19-4-1416)

“Job Order Contracting” means the acquisition of contracting services using a selection method that requires contractors to submit qualifications and prices based on wage rates inclusive of fringes and burden, plus a pricing matrix for mark-ups on materials and subcontractors (Arkansas Code Annotated §19-4-1416).

California
AB-14 Public contracts: job order contracting.(2003-2004)
AB 1431 – Permits Job Order Contracting for K-12 Districts. – Authorizes job order contract to all K-12 school districts, that have entered into project labor agreements, for public works over $25,000.
AB-618 Local Agency Public Construction Act: job order contracting: school districts: community college districts.
Georgia
Georgia State Purchasing Division
SWC-90818 Indefinite Quantity Construction Services SPD-CP031b
Massachusetts
Administration and Finance Job Order Contracting Program
Minnesota
Minnesota Statutes 2017
Minnesota Statutes 2015
16C.35

Service Cooperatives

New York
The New York State Senate Senate Bill S6618
South Carolina
Job Order Contracting Blog Legislation for Job Order Contracting March 20, 2009
Texas
EDUCATION CODE TITLE 3. HIGHER EDUCATION CHAPTER 51 Sec. 51.784
Attorney General of Texas
Opinion No. GA-1028
Texas Education Agency Guide
Virginia
Associated General Contractors of Virginia Legislative Reports
HB 1835
General Assembly of Virginia Virginia Public Procurement Act
General Assembly of Virginia
Washington
House Bill Analysis Job Order Contracting HB 2412
HB 1240
Washington State Legislature RCW 39.10.440
Rethink, Reshape, Rewrite AECOO, Uncategorized

Rethink, Reshape, Rewrite AECOO

The only proven way to improve construction and facilities management outcomes to RETHINK,, RESHAPE, REWRITE AECOO.

Rethink, Reshape, Rewrite AECOO

Rethink how Architecture, Engineering, Construction, Owners, and Operators conduct business on a day-to-day basis.  Shift focus to best value.

Reshape the relationships among all parties such that all participants and stakeholders are involved earlier and throughout the full program/project life-cycle.

Rewrite contracts to include requirements for collaboration, use of a common set of terms, definitions, and data sets, including locally researched detailed, and open unit price tasks, organized by CSI MasterFormat.   Assure the use of LEAN construction delivery methods (IPD for major new construction, JOC for repair, renovation, and minor new construction…).  Include written Operation Manuals/Execution Guides as a component of all contracts.  The latter describing all roles, responsibilities, workflows, requirements, deliverables,  and metrics.

 

Introduction to LEAN Construction, Uncategorized

Introduction to LEAN Construction

The starting point for LEAN is focus upon “best value outcomes”.

LEAN Construction

Successful implementation, however, requires alignment of internal and external organizational cultures and change management.

LEAN construction delivery methods such as Integrated Project Delivery, IPD, for major new construction, and Job Order Contracting, JOC, for repair, renovation, and minor new construction have been proven over the past decades to consistently deliver over 90% of projects on-time, on-budget, and to the satisfaction of all participants and stakeholders.

That said, not all IPD an JOC implementations are the same.   Optimal results are only attainable with open, transparent programs supported with initial and ongoing training.  Furthermore, both IPD and JOC require direct owner leadership and participation and can not be “outsourced” to consultants for program management.

LEARN MORE?

4BTlogosquaretagline

free bim viewer, Navigate BIM Data, Uncategorized

Navigate BIM Data for FREE

Query and navigate BIM data!

 BIM Button.png

BIM button” is a very powerful tool that allows you to visually browse your BIM model or to query the data it contains.

Furthermore the BIM button enables you to manage multiple BIM federated models.

 BIM Video

Watch the video…

Watch the video to find out how Building in Cloud Professional adds value to your BIM data!

SIGN UP TODAY!

4BTlogosquaretaglineLemsys logo

Job Order Contract Cost Estimating, Uncategorized

Job Order Contract Cost Estimating

Job Order Contract Cost Estimating- A Quick Start Guide

Here’s the fast and best value path to Job Order Contract Cost Estimating.

4BT-CE is the estimating and LEAN construction delivery component of Building in Cloud.  4BT-CE embeds integrated project delivery best management practices, including the OpenJOCTM process, to enable higher levels of collaboration among owners, contractors, subcontractors, building users, and oversight groups.

4BT-CE provides many benefits to users and the user organizations. Below a brief outline of the many benefits, features, and capabilities provided.

Estimating Features

  •  Detailed line item construction cost estimating, as well as program, project, and document management
  • Supports multiple Unit Price Books and other Detailed Line Item Commercial Construction Costs Databases
  • Support for multiple JOC Coefficients, multiple Locations, multiple Contractors, multiple Subcontractors, multiple JOC Programs…
  • CSI Masterformat (TM) UPB format (50 Division) used for data organization
  • Electronic estimating — directly access, search, and use pricing guides without physical books, paper, or PDFs.
  • Full description of line items, in plain English using common industry terms, including crews, output, material, labor, and equipment costs.
  • Minimal use of confusing abbreviations or acronyms
  • Powerful search engine tools to find unit price line items quickly – Keyword search, Masterformat number, search, and Navigational Tree
  • Ability to tag and input multiple line items into an estimate
  • Easily locate any items lacking a quantity (highlighted in ‘yellow’)
  • Reports calculate and detail Prepriced (sourced from current JOC UPB) and non-prepriced line items, and show associated percentages of total estimating and total dollar amounts.
  • Ability to add and report notes at the line item level, estimate, or project level.

Project & Document Management Features

  • Progam, Project, and Document Management tools
  • Manage document templates to be used repeatedly on projects
  • Organize and locate all project documents in one common place
  • Document “check out/check in” assures everyone is working on the same current version
  • Mutliple permission levels can be assigned relative to document viewing, editing, etc.

General Features

  • Support for an unlimited number of users
  • Compliant with advanced security protocols
  • Pure cloud technology – Only requires an internet browser (Google Chrome recommend, though operable in all common browsers),. Excel™ and Adobe PDF™ are used for exporting, report viewing, etc.
  • Report generation and export to Excel™ or Adobe PDF™
  • Document version control
  • Document access control
  • Intuitive user interfaces
  • DWG, Revit, PDF, viewers
  • GPS mapping/visualization

Benefits

  • Tracks and manages all projects in one program
  • Enables team to share CURRENT information in REALTIME – Allows designated team members to access and/or edit assigned documents and share information/expertise
  • Reduces time spent creating and managing documents
  • Electronically supports contract pricing requirements
  • Support and training from a team that has decades of experience LEAN consturction delivery and life-cycle facilities / infrastructure asset management.
  • Monitors and helps to assure compliance with program requirements
  • Properly implemented, delvers 90%+ of renovation, repair, and new construction projects on-time, on-budget, and to the satisfaction of all participants and stakeholders.

From the you home screen, click on the ”Estimating” command from the side menu bar, as shown:

 

 

Single click on “4BT-CE” drop down, and “Cost Estimating” drop down arrows as required to access the “Home”, “Pricelist”, and “Browse Estimates” commands.

 

 

4BT-CE-Home

Clicking on “Home” provides a dashboard for your “Recent Estimates” and your “Price list” (Unit Price Books/UPBs) as shown below.

 

 

  • Edit an existing estimate by clicking on it.
  • Create a “New” estimate in the same “Building” by clicking on the “New” button.
  • See all estimates by clicking the “See all” button.
  • Or Browse a price list by selecting a “Year”, and “Location”.

Browse Price List (UPB)

Click on “Browse Pricelist”, and you can search through any selected avalable price database/price book.

Browse the “Pricelist” by:

  1. Masterformat Section/Number Tree
  2. Keyword Search, or
  3. Using the Scroll Bar.

 

Manage the Pricelist

 Manage Estimates

Click on “Manage Estimates” to view, edit, or add new estimates.

 

 

The “Manage Estimates” command provides list view of your estimates, and the ability to perform multiple actions:

  • Open an estimate by clicking on the check box (also referred to at “Tagging”) and then clicking “Open”
  • Create a new estimate in the same building by clicking on “New”.
  • Edit an existing building estimate by clicking on the check box (Tag) and then clicking “Edit”.
  • Remove a building estimate by clicking on the check box (Tag) and then clicking “Delete”.
  • Double click an estimate to open the estimate and edit line items.

 

 

 

To edit the estimate name, description, or coefficient, Tag the estimate and click “Edit”.  You can then change the appropriate fields.

 

 

Security Features

  • Password protected
  • Encryption
  • System administrator role
  • All databases are secured/locked – pricing guide ORIGINAL LINE items cannot be changed or modified. The ORIGINAL LINE item can be used to create a CUSTOM LINE item.
  • Multiple user/security levels (up to five)
  • Full raid backup
  • View only mode/capability
  • Multiple data centers (up to six): Access to confidential information are only to authorized staff. Controlled access, Network Operation Center (NOC) is supervised 24 hours a day, 365 days a year.  Redundancy between the NOC and two centers.
  • Risk prevention – Compliance with seismic laws
  • Separation of electrical system and batteries in special buildings monitored, refrigerated and protected against fire. Physical separation between the power center and the server room with two power distribution units for each rack cabinet.  Fuel storage capacity of over 48 hours for emergency power.
  • Logical Security- Respect of laws in force on IT and network security, management plan of IT incidents, troubleshooting, escalation, and incident management
  • Physical Security- Automatic smoke and fire detection systems fitted in the server rooms, under the raised floor, and above the false ceiling. Inert gas protection systems fitted in the sensitive areas.
  • Interception and interruption systems of fuel to the generators in case of fire. Liquid detection system to guarantee promptness in case of leaks or floods.
  • Certifications – ISO 9001:2008 Certification
  • Design, management, developing and provisioning of Data Center services, Dedicated Servers, Virtual Servers, Housing, Hosting, Cloud Oriented Solutions in IaaS, SaaS and PaaS mode, Certified (PEC) and conventional electronic mail, digital signature and qualified signature, graphometric signature, and other technological solutions of advanced electronic signature, remote signature, Certification Authority services, Public Key (PKI) or information security related infrastructure Document Dematerialization. Backup and Disaster Recovery
  • Tier 4*/Rating 4 – the data centers have been designed and built according to the Tier 4*/Rating 4 redundancy specifications (The Highest Possible Level).

Service Level Agreement

  • 100% uptime on an annual basis for electricity and/or air conditioning
  • 95% uptime on an annual basis and accessibility via the Internet to the virtual infrastructure created and allocated.
  • Planned maintenance – Time for planned maintenance is not counted in the uptime calculation.
  • Planned maintenance concerns activities regularly carried out to maintain the functionality of the
  • Data Center resources by means of which the Service and the physical nodes that host the virtual infrastructure is provided both ordinary and extraordinary. The implementation of the maintenance operations will be communicated to the Customer by Aruba with at least 48 hours’ notice by email sent to the email address indicated in the order phase. Every reasonable effort to carry out the planned maintenance tasks at times with minimal impact to the Customer’s virtual infrastructure will be made.
  • Detecting failures and/or faults – Any failures and/or faults of the resources of the Data Center by means of which the Service or the physical nodes that host the virtual infrastructure created and allocated by the Customer is provided, shall be reported by the Customer by opening a service ticket. Failures or faults can be reported by the Customer to the support service 24 hours a day. Any reports received will be promptly forwarded to the technical support respecting the chronological order of receipt. Monitoring of the Data Center is carried out using specific software packages that detect and indicate any failures or faults by notifying the Data Center support team, which operates 24/7, 365 days a year in real-time.

Uncategorized, What's in a JOC Coefficient

What’s in a JOC Coefficient

What’s in a JOC Coefficient should be specifically detailed in the Job Order Contract Request for Proposal.

Job Order Contract Execution Guide

Here’s a listing of what is typically included in a construction contractor’s Job Order Contract coefficient…

  • Contractor’s overhead and profit
  • Subcontractors’ overhead and profit
  • Insurance
  • All costs associated with bonding (specifically including bond premiums)
  • Employee payroll taxes, insurance, and fringe benefits
  • Business taxes, contributions, memberships, corporate headquarters support (legal, financial, etc.)
  • All waste and excess material
  • Sales tax on material and equipment costs
  • Clean up
  • Mobilization and close out for the total contract and each task order
  • Compliance with environmental laws (overhead [indirect] costs associated with performing work in compliance with EPA/OSHA regulations, including obtaining any necessary licenses and permits, reporting requirements, etc.)
  • Traffic and work site signs and barriers
  • Project management and supervision
  • Quality control
  • Office management and equipment
  • Depreciation of mobile office(s)
  • Interest associated with funding of equipment and payroll
  • Submittal preparation
  • As built drawings
  • Permits, licenses, and fees
  • Other risks of doing business (i.e. risk of a lower than expected contract dollar value, risk of a high inflation cost if factors are bid for option years, risk of poor subcontractor performance and re-performance)

via Four BT, LLC – The LEAN Job Order Contracting Solutions Provider

LEAN JOB ORDER CONTRACTING SOLUTIONS, Uncategorized

OpenJOC(TM)  LEAN JOB ORDER CONTRACTING SOLUTIONS

OpenJOCTM  LEAN JOB ORDER CONTRACTING SOLUTIONS

OpenJOC LEAN JOB ORDER CONTRACTING SOLUTIONS

­­

The OpenJOC approach drives maximum productivity by leveraging proven LEAN construction delivery processes.

  1. Process – Assure full compliance with fundamental core LEAN JOC methods and workflows, as well as State, Local,  and EDGAR compliance.   Fully transparent and verifiable.
  2. Information – A shared common data environment, CDE, using LOCALLY RESEARCHED detailed line item construction cost data assures a mutual understanding of all project requirements. Industry standards terms and definitions, in plain English, are used with breakdowns for labor, material, and equipment costs (organized using CSI MasterFormat – 4BT is a licensed CSI MasterFormat provider).   Line item modifiers that account for varying work methods, locations, quantities, etc. are also included.
  3. Uses – On-demand renovation, repair, maintenance, sustainability projects and minor new construction are fully supported.
  4. People – Real property owners and approved construction contractors work within an atmosphere of collaboration, respect, and mutual benefit.
  5. Technology – The role of technology is one of enabling consistent, low cost deployment, collaboration, and monitoring. Cloud technology provides a secure method for all participants to create, view, and share current actionable information.   Communications, tasks, and documents are all maintained in a common digital environment.
  6. Assessment & Training – Key performance indicators, KPIs, and regular audits, as well as required ongoing training, assure proper JOC Program implementation, management, and continuous improvement.

certified-stamp-300x225

Job Order Contracts Require Owner Direct Management and Leadership, Uncategorized

Job Order Contracts Require Owner Direct Management and Leadership

JOC Programs can delivery 90%+ of repair, renovation, and minor new construction projects on-time, on-budget, and to everyone’s satisfaction.  That said Job Order Contracts require owner direct management and leadership.

This appears to be an example of what can happen if appropriate JOC Program oversight is not provided?

Source:  http://www.latimes.com/local/lanow/la-me-edu-lausd-overbilling-lawsuits-20180222-story.html

L.A. Unified rushed to rebuild cafeterias, then fought for years to recoup excess costs

By 
FEB 22, 2018 | 6:00 AM


L.A. Unified rushed to rebuild cafeterias, then fought for years to recoup excess costs
L.A. Unified was pleased that revamped cafeterias, including this one at Bravo Medical Magnet, have time-saving features, such as grab-and-go cabinets with hot or cold food. But the district sued contractors, alleging they overcharged for their work. (Christina House / Los Angeles Times)


For the Los Angeles Unified School District, the $37-million Cafe L.A. project at first seemed like a stunning success. In about 18 months, 64 school cafeterias had been gutted and transformed so that students could be served faster — with more time to eat and more healthy options to choose from.

Then the district’s auditors took a look at the books and concluded that the construction had come at too high a cost.

The three companies that had done the work, the auditors told school officials, had violated their contracts by overcharging for equipment and services, charging for unnecessary equipment that was never purchased and using different, less expensive materials than they had said they would.

The school district sued, launching nearly six years of litigation. So far, it has won almost $11 million in settlements and judgments, though that number could go up or down. Some rulings are still pending and there’s an upcoming trial, the latest of several.

Going after the money was a high-risk move for the nation’s second-largest school system, which faces financial challenges so serious that some officials question its future solvency. The targeted contractors — and their insurance companies — had resources to dig in and fight back. They also had motivation, since adverse decisions could make it hard for them to get other California public works contracts.

The district’s legal costs in the cases exceed $1 million, although officials hope to get most of it back. Overall, judges and juries to date have sided with the school system.

This month, a Los Angeles Superior Court jury awarded L.A. Unified $855,000 from Chicago-based F.H. Paschen — though the company’s attorney claimed partial victory because the district failed to get its legal fees paid or win damages for 43% of its claims.

For the most part, F.H. Paschen has not fared well, with the district winning judgments, including interest, totaling $5.04 million.

In a 2014 decision that guided future awards, Los Angeles Superior Court Judge Richard L. Fruin Jr. ruled that F.H. Paschen not only had earned more profit than its contract allowed but also had charged for more equipment than it installed. In some instances, the firm charged for fractions of items — such as one-fourth of a cabinet for keeping food warm — that could be sold or used only as complete units, the court ruled.

“The district sought and was awarded the difference between what it paid … and what it should have paid had the proposals been properly priced,” said David M. Huff, who was part of the legal team representing the school system.

The district also has won judgments, including interest, totaling $5.03 million from Torres Construction, while MTM Construction paid it $900,000 in a settlement.

MTM, which is based in the City of Industry, admitted no wrongdoing in the settlement, and the other two companies are still fighting in court. Lawyers for F.H. Paschen have argued in part that a series of L.A. Unified managers not only approved their proposals but also ordered the company to write them in the way that they did.

“At no point did F.H. Paschen overcharge the district for its work,” said attorney Marion T. Hack, who represents that contractor. “Any insinuation or statement otherwise would be false.”

“There was never any criticism of Torres during the time the work was being performed, either in terms of the pricing or the quality of work,” said attorney Andrew Harris, who represents the Los Angeles company.

The construction that led to the litigation came about when L.A. Unified set out to speedily solve one of its long-standing problems. For decades, many school cafeterias hadn’t been able to meet demand efficiently. Students waited in long lunch lines and ended up without enough time to eat. Many were skipping lunch altogether, relying on fast food or unhealthy snacks.

Addressing the cafeteria crunch became part of a broader healthy eating campaign that included banning the sale of sodas, hiring a master chef to develop healthier menus and serving breakfast in the classroom.

Students such as Brandon Sanchez, a ninth-grader, can make use of multiple lines and "grab-and-go" choices to get food faster at Maywood Center for Enriched Studies, which opened this school year.
Students such as Brandon Sanchez, a ninth-grader, can make use of multiple lines and “grab-and-go” choices to get food faster at Maywood Center for Enriched Studies, which opened this school year. (Brian van der Brug / Los Angeles Times)


The new cafeterias allowed for multiple lines in which students could quickly grab prepackaged offerings from cabinets that kept food hot or cold. They were not set up for cooking; food was prepared and packaged in central kitchens and then trucked to campuses.

To get the cafeterias ready quickly — and to try to save money — the district used what is known as job order contracting. It was a first for California school districts, though it is not uncommon for government projects.

To be eligible for the cafeteria work, contractors competed to be included in a group of available companies. They had to agree to follow a catalog that set prices and and a set amount of markup or profit.

Job order contracting has been known to work well when a project includes many similar jobs with small or midrange costs. In L.A. Unified the maximum for a single job was set at $1 million.

The project launched in March 2008. Construction began within six months and all 64 cafeterias were finished by September 2009.

When the project began, the three contractors already were getting a lot of work in a $20-billion districtwide effort to build, repair and modernize campuses, which had begun in 1997. F.H. Paschen and Torres, a company founded in 2001, each won about $120 million in contracts for projects across the school system, according to L.A. Unified. The contracts for MTM totaled $22.3 million.

In this 2014 photo, cafeteria worker Andrea Jimenez, left, keeps a food cabinet stocked as a student grabs items prepared in a central kitchen and then trucked to Bravo Medical Magnet High School in Los Angeles.
In this 2014 photo, cafeteria worker Andrea Jimenez, left, keeps a food cabinet stocked as a student grabs items prepared in a central kitchen and then trucked to Bravo Medical Magnet High School in Los Angeles. (Christina House / For The Times)

 

The Cafe L.A. project seemed likely to open the door to more opportunities for these companies, including future cafeteria makeovers at hundreds of other schools — until the series of audits by the district’s inspector general. The audits examined job-order contracts for cafeteria work as well as for other projects, by these companies and others.

“Some of the job orders were overpriced and unreasonably priced, but still approved,” auditors wrote in a 2011 report. Twelve of 17 sample projects exceeded proper costs by 77% on average, they concluded.

District officials made significant changes to the contracting program and decided to sue the three companies over the cafeteria work.

In his 2014 ruling for the district, Judge Fruin made note of school officials’ shortcomings in oversight.

F.H. Paschen, Fruin wrote, “has plenty of ammunition for its arguments” that the district bore responsibility.

In reconstructing events, Fruin noted that an L.A. Unified representative had instructed F.H. Paschen to prepare a proposal that would “mirror” one made by Torres for its share of the work. F.H. Paschen, its attorneys argued, took this to mean that it should charge L.A. Unified what Torres was charging — which led to more expensive proposals.

In his ruling, Fruin quoted a company attorney, who said, “We manipulated the contract…. We freely admit that, to match what we were supposed to do. That is exactly what we were instructed to do [by L.A. Unified] and we did it.”

L.A. Unified managers then approved these proposals, as they were doing with Torres and MTM. District managers also signed off on the completed work, and the district has not challenged its quality.

Still, Fruin concluded that the district had the right to seek remedies after the audit findings. He quoted the testimony of Tim Stone, an F.H. Paschen senior contract manager, that he was surprised at the prices L.A. Unified was willing to accept: “I felt that they would see that and from there, if that wasn’t what they wanted, I was reasonably sure, based on their track record, that they would more than likely reject it. But I don’t know what they do over there. I don’t have any control over what they do.”

The inspector general for L.A. Unified, which oversaw the audits, also evaluated the possibility of collusion between the companies and wrongdoing or negligence by L.A. Unified employees. But these investigations were either inconclusive or dropped. The auditors reached their conclusions as the major school construction program was winding down.

“By the time this was discovered, most if not all of the district employees and consultants involved had moved on,” said Mark Miller, an L.A. Unified attorney. “I believe there was a reduction in force and there was no one left to discipline.”

“Some district employees and consultants could have done a better job,” said Huff, the L.A. Unified legal team member. But “just because a district employee or consultant misses something … that doesn’t mean that the contractor gets to get away with it.”

howard.blume@latimes.com

@howardblume

Define and Deploy a Strategic, Best Value Job Order Contract, Uncategorized

Define and Deploy a Strategic, Best Value Job Order Contract

If you, as a real property portfolio owner, hope to reduce deferred maintenance and efficiently execute your numerous renovation, repair, and minor new construction projects, it’s time to Define and Deploy a Strategic, Best Value Job Order Contract.

Define and Deploy a Strategic, Best Value Job Order Contract

LEAN processes and workflows, a common data environment, and supporting technology are the proven path to measurable improvements in facilities repair, renovation, and new construction outcomes.

Success, however is IMPOSSIBLE without recognizing and implementing CHANGE MANAGEMENT internally and with your AEC service providers/partners.

  1. Reimagine your service levels.  Define your vision and strategy.   Set your economic, environmental, and service level goals and conduct a gap analysis to determine you current status and your requirements to achieve your desired level of improvement.
  2. Invest in skills.   Education, training must be required for ALL participants and stakeholders.  Not simply initial training, but ongoing and multi-level and multi-format training.
  3. LEAN processes and workflow drive everything.   Collaboration is also required.  Focus is upon outcomes, mutual trust/respect, leveraging team experience, soliciting and acting upon everyone’s ideas, front loading information requirements, shared risk/reward, long-term relationships, best value procurement.
  4. Assure a common data environment (CDE).  Require the used of a common glossary of terms and their associated definitions… in plain English.   Leverage locally researched construction task and cost databases, organized via CSI Masterformat.
  5. Focus upon the CONSTRUCTION DELIVERY METHOD.  No single item impacts project/program success more than the construction delivery method.  Do away with Design-Bid-Build, and even Design-Build, and deploy Integrated Project Delivery (IPD) for major new construction, and Job Order Contracting (JOC) for repair, renovation, and minor new construction.

All the tools, training, data, and technology are available to improve life-cycle management of the built environment.   Isn’t it time you did so?

OC Consulting Services RFP, Uncategorized

How NOT to write a JOC Consulting Services RFP

Here’s an example of how NOT to write an RFP for JOC Program Consulting Services… can anyone tell me what the issues are?

Job_Order_Contracting_Consulting_Services

JOC Consulting Services RFP

Center for Job Order Contract Excellence, CJE, Job Order Contracting, LEAN Job Order Contracting, The Alliance for Construction Excellence, Uncategorized

LEAN Job Order Contracting

LEAN Job Order Contracting adheres to the fundamental principles of collaboration, transparency, and best value.

LEAN Job Order Contracting

All JOC Progams are not the sample and careful evaluation by both real property owners and builders is required to assure long term, mutually beneficial relationships are the consistent result.

​If you’d like a full presentation on what LEAN Job Order Contracting can provide to your organization, give is a call.

LEAN Facilities Management​

  • Need​
  • Current Best Practices​
    • LEAN FM – Overview of Asset Life-cycle Management ​
      • Competencies, Technologies​
  • Dominance of Project Delivery – IPD/JOC vs. DBB,DB, CM@R…​
  • Value Proposition & LEAN Facility Management

Activities & Tools​

  • Strategy​
  • LEAN Construction Delivery (JOC, IPD)​
    • OpenJOC(tm) Drill Down​
      • JOC Estimating Methodology & Best Practices​
      • Coefficient Development & Enhancement​
      • 4BT OpenJOC Building in Cloud Estimating Software Overview ​
      • Contract Compliance Process​
      • 4BT Construction Cost Data Methodology​
      • 4BT OpenJOC Data Integration​

Training Material​

Available Support​

  • JOC Consulting Availability
  • Ongoing Training​
  • Audits/Reviews​
  • Center for Job Order Contract Excellence (CJE), The Alliance for Construction Excellence (ACE)

WWW.4BT.US

​

.

Job Order Contract Execution Guide, Uncategorized

Job Order Contract Execution Guide – Sample Template

A Job Order Contract Execution Guide is a required element for any successful, best management practice JOC Program.   The following template is provide for sample purposes only and should not be used a legally bidding document without through review and modification by appropriate Owner legal counsel.

Job Order Contract Execution Guide

JOB ORDER CONTRACT (JOC) EXECUTION GUIDE

PURPOSE

The purpose of this guide is to describe the procedure to be utilized in the
administration of the Job Order Contract (JOC), a Contract designed to provide the ORGANIZATION NAME with a flexible and responsive contractual capability in support of their renovation, repair, and minor new construction services needs.

DEFINITIONS

Job Order Contract A Job Order Contract is a competitive sealed proposal firm fixed price, indefinite-delivery, indefinite quantity (IDIQ) contract to perform work for the ORGANIZATION NAME. The contract may consist of a collection of proposed institutional facilities type projects. Each project will encompass detailed line item construction task and reference specifications encompassing improvements, alterations, renovation, remodeling,  major repairs, and minor new construction associated with ORGANIZATION NAME structures and properties. Much of the work may be performed during normal operating hours. However, as is typical with  facilities work, other hours may be necessary. It is also expected that during certain time of the year project loads may be significantly higher and contractor staffing should reflect these needs. For each
project task/line item, a full description in plain English, a unit of measure and a corresponding unit price, including labor, material, and equipment details, and an associated approved contractor coefficient are to be the basis for Contractor compensation. The JOC Contract shall use the current calendar year issue of locally researched unit price cost data equivalent to the OpenJOC(TM) Unit Price Book – UPB (subsequently referred to as UPB) with updates as applicable, as a basis for unit cost.   The 4BT-CE(TM) JOC cloud estimating and project management system, or equivalent, shall also be used.

Contractors submitting responses to an ORGANIZATION NAME JOC request for proposals (RFP) for a JOC Program are required to submit, and subsequently apply one coefficient or multiplier for normal or overtime hours.   The unit price book should NOT included overhead and profit, but rather be “bare costs”.   The contractors coefficient should include the contractors overhead and profits and other items as established by Contract requirements.    The total of the line items for a specific project is then multiplied by the appropriate coefficient to determine the actual cost the project.

Costs derived from Division 1 of the UPB are generally not to be allowed without written
authorization. The Contractor must take these costs into account when proposing the
coefficient (reference table of allowable overhead). Each Job Order is broken down into individual tasks of work, and a total price is developed based upon the
UPB rate and the Contractor’s multiplier.  ORGANIZATION NAME Technical Staff / Facilities Management Department Representative(s) and authorized ORGANIZATION NAME Procurement Authority review the Contractor’s Proposal.   The ORGANIZATION NAME Procurement Authority will authorize a Job Order (JO) for performance of work, or request additional information/changes.
The JOC will remain in effect for one year from date of contract award. The ORGANIZATION NAME retains the right to renew any resulting contract(s) for up to four (4) additional contract periods. Contracts can be renewed, with no increase in the Contractor’s coefficient, only if both the Contractor(s) and the ORGANIZATION NAME mutually agree to do so. Justification for nonrenewal from either the Contractor or the ORGANIZATION NAME is not required.
A Performance and Payment Bond may be required, per state law, by the Contractor for any individual project associated with Job Order Contracting in which the Job Order may
exceed $XXXXXXX.    Bonds, where required, are a reimbursable item with the JOC.
In the course of executing the Contract, the Contractor agrees to abide by the terms as stated in the General and Supplementary Conditions for the ORGANIZATION NAME
Architect/Engineer’s Guidelines, Quality Control, and other related documents in effect at
the time of award.

Job Order (JO) A Job Order (JO) is the contractual instrument issued by ORGANIZATION NAME designated Representative to the Contractor. The JO will be, in part, the
Contractor’s UPB estimate of tasks and quantities of labor, materials, and equipment to do the work, plans and specifications, and project timeline. The JO is issued and approved upon agreement between the ORGANIZATION NAME Representative and the Contractor on the scope of work, performance time, and the price for that work. The individual JO becomes in effect, a fixed price lump sum Contract when the Purchase Order for the JO is issued. The completed purchase order authorizes the Contractor to begin work.
Coefficient. The contractor’s coefficient is the price multiplier that the Contractor proposes. After award, the parties utilize this multiplier to determine the price of work. The total estimate for a JO is multiplied by  by the contractor’s coefficient. For example, if the labor unit price for painting one hundred square feet of gypsum board is $15.00 and the coefficient is 1.01, the Contract price would be $15.15 ($15.00 x 1.01 = $15.15). The proposal coefficient shall be a net decrease from or increase to the line item total costs.  The UPB costs should NOT include contractor overhead and profit.
PLEASE NOTE: In occasions where the contractor is asked to provide materials, equipment, and/or subcontract pricing for work by direct bidding that may, or
may not, be identified in the UPB. In these cases, the same “coefficient” will apply.
Overhead. The contractor typically bears overhead costs as part of the proposed coefficient of the JOC program. Allowable overhead items from the UPB, and/or allowed as directed by ORGANIZATION NAME Procurement Authority are detailed below.
The line item categories are:
Taxes
Field Office Expense
Field Office Personnel
Insurance
Job Conditions
Main Office Expense
Performance and Payment Bond
Permits
Small Tools
Scheduling
Surveying
Drawings
Temporary Utilities
Safety Nets
Personal Protective Equipment
Scaffold
Barricades
Fencing
Winter Protection
Security
Signs
Final Cleaning

Non-Prepriced Work. Non-prepriced work is categorized and addressed as follows:
Tasks that are not specifically included in the UPB but are within the basic intent and
general scope of the contract shall use the nearest UPB description and cost.  Descriptions and detailed costs shall be modified and included as well as supporting notes and documentation.

Normal Working Hours 8 a.m. to 5 p.m.
Monday through Friday. Other days/hours may be arranged.

JOC TECHNICAL CONTRACT SPECIFICATIONS DEVELOPMENT

The Owner’s Representative will develop/provide specifications necessary for the procurement and implementation of the JOC. JOC Contractors will adhere to JOC Program Specifications, ORGANIZATION NAME General and Supplementary Conditions for the  ORGANIZATION NAME Architects and Engineers’ Guide to Standard Technical Specifications, Quality Control, and similar documents/standards. If conflict exists in related contract documents then the following shall apply. All related contract documents may be superseded by individual Job Order project specifications (1st tier) and then these JOC Program Specifications (2nd tier). The intent of the specifications is to furnish concise institutional and/or industrial standards for maintenance, repair, and construction of ORGANIZATION NAME facilities. In the instance where the UPB offers, minimum/maximum costs associated with a particular task, or if the task is not listed in the UPB, the Owner’s Representative will cost out the materials based on local availability and use UPB labor rates most closely related to similar tasks, and apply them as directed in subparagraph A, below.
A. Materials:
(1) If materials specified by the JO for a specific task exceeds the unit material bare cost in the UPB,  the Contractor may request adjustments of the bare cost. In these instances, copies of at least two competitive materials vendor quotations must be submitted to the ORGANIZATION NAME Representative to substantiate material costs in excess of the
UPB. The Contractor will be required to provide copies of invoices and proof of
payment when requested by the ORGANIZATION NAME. These negotiations must precede the JO award/approval and are not allowed on a Change Order basis. In these instances the contractor will be reimbursed at 10% above the invoice cost.
Contractor is responsible for receiving and storing their own materials, including
unloading of delivery trucks, checking deliveries and transportation to the work area.
ORGANIZATION NAME employees are not responsible for this.
If the JO and plans do not agree the JO prevails. If the plans and specifications do not
agree the specifications will prevail.
ORGANIZATION NAME reserves the right to purchase material or job required merchandise.
Materials not used on the job shall be returned to ORGANIZATION NAME stock for credit to job.
The ORGANIZATION NAME will be required to deliver such materials to the job site or compensate the Contractor for providing labor to relocate owner-furnished materials to the job site.
This action will require a modification to the JO to reflect a change order credit.
Equipment: Equipment costs can be included in the JO only if a unit cost for equipment is
listed for the specific task in the UPB, and actually used on the job. The Contractor shall
furnish as part of his overhead cost included in the coefficient, all necessary protective
equipment, concrete mixing boxes, water barrels, wheelbarrows, hoes, shovels, tools,
mortar boards, ladders, portable scaffolding, shop tools, drills, saws, hand tools, shop
equipment, and fabricating items customary to the trade, etc., and all other movable
equipment necessary to completing the work performed under this Contract. The furnishing of tools shall include all maintenance, loss and breakage. The ORGANIZATION NAME Representative prior to its use must approve any equipment reimbursements.
Labor: ORGANIZATION NAME will reimburse the Contractor for “labor costs” as follows:
(1) Labor costs will be reimbursed to the Contractor at the UPB rate x Contractor
coefficient. The University will not recognize any premium or incentives pay
reimbursement. Work performed on an overtime basis or shift shall not be included as
a “job cost”.
(2) If a task is not literally identified in the UPB the Contractor will be reimbursed in
accordance with non-prepriced protocol with trade and labor unit costs matched
as close as possible to UPB rates, multiplied by the coefficient. Insurance, fringe
benefits, travel time, employee’s residence to job site, or vacation allowances are to be
included in the Contractor’s coefficient.
(3) A worker with overall project supervisory authority is to be present on each job site at all times. Supervisory costs are to be part of the Contractor’s coefficient and will not be
reimbursed as a separate labor cost.
(4) Time and cost associated with an employee’s travel to and from job site are not
reimbursable.
(5) The Contractor may be required to perform the work under this Contract on the job site in the presence of ORGANIZATION NAME employees, other ORGANIZATION NAME Contractors, and/or Subcontractors, whether union or non-union, and shall complete the work assigned in the time required by the JO. In off-site work such as off-site fabrication, the ORGANIZATION NAME shall be so notified at the time of the issuance of the JO by the Contractor. The ORGANIZATION NAME reserves the right to inspect such off-site work at any time.
(6) The Contractor shall maintain a local office with telephone available for receiving and making calls throughout the working day and shall have available sufficient storage
space for materials and equipment if his office and principal place of business is not
located within 50 miles of the ORGANIZATION NAME. Other office equipment and personnel competencies required are fax machine and computer with an email account. The communications response time of the Contractor (or equal authority Contractor’s
representative) to the ORGANIZATION NAME , Monday through Friday, 8:00 A.M. to 5:00 P.M. shall not exceed 4 hours.

Subcontracts: Contractors may use the services of Subcontractors if noted in Contract. The Contractor shall be responsible for reimbursing Subcontractors. The ORGANIZATION NAME Representative may require the submittal of payment affidavits for Subcontracts prior to final payment. The use of Subcontractors does not alter UPB unit costs or Contractor coefficient.
(1) The Contractor shall, as soon as practicable and before the execution of each JO, notify the ORGANIZATION NAME Representative in writing of the names/phone numbers of Subcontractors proposed for the principal parts of the work and for such others as the ORGANIZATION NAME  may direct. The Contractor shall not employ any Subcontractor that the ORGANIZATION NAME may for any reason object to as incompetent, unfit, irresponsible, or unsafe.
(2) The JOC Contractor agrees to be fully responsible to the ORGANIZATION NAME for the acts and omissions of the Subcontractor and of persons directly employed by the Subcontractor.
(3) Nothing contained in the JOC or Contract Documents shall create any contractual
relation between any Subcontractor and the ORGANIZATION NAME and nothing in the Contract documents is intended to make the Subcontractor a beneficiary of the Contract between the ORGANIZATION NAME and the Contractor. The Contractor agrees to bind every Subcontractor, and will see that every Subcontractor agrees to be bound, by the terms of the JOC and related Contract Documents inclusive of JOC Program Specifications, General and Supplementary Conditions, Architect’s & Engineer’s Guide to Standard Technical Specifications, Quality Control, and other similar documents/standards.

EXECUTION PROCEDURES

ORGANIZATION NAME /Contractor Coordination

(1) The ORGANIZATION NAME Procurement Authority contacts the Contractor(s) of
pending JO. The Contractor’s representative shall respond within XXXX (typically three)working days and scheduling a joint scope validation site visit and conference. During this meeting, the following are discussed and established:
a. Project number and title.
b. Site investigation.
c. Methods and alternatives for accomplishing work, plans, and specifications.
d. Scope of the work, definitions, tasks and quantities as required.
e. Time requirements for completion and site availability.

(2) Within XXX working days from the job walk (typically 5) the contractor shall review the project and submit a detailed line time price estimate.

3) The Contractor will be required to stand behind his negotiated price quotation for a minimum period of 30 calendar days from the date of its acceptance by the ORGANIZATION NAME.  If a final negotiation and Notice To Proceed have not been executed by the ORGANIZATION NAME within that time period, then the Contractor shall have the right to review his price quotation and to modify it as justifiable.

ORGANIZATION NAME /Contractor JOC Activities

(1) Once Notification of a Pending Job Order Contract is acknowledged, the ORGANIZATION NAME formally request the Contractor to examine the JO, acknowledging the
scope of work, plans and specifications, and any special instructions or conditions that
may exist.
(2) The Contractor is responsible for verifying tasks, refining quantities. The Contractor
then formally responds to the JO within five working days from date of initial site visit.
(3) After review of the contractor’s JO revisions (if any), ORGANIZATION NAME will
approve or disapprove the JO, negotiate, or advance to another contractor.
(4) Upon acceptance of JO by both parties the ORGANIZATION NAME will initiate the
generation of the purchase order for each project.
(5) Once the purchase order is issued, the Contractor will begin work as per date ranges
specified in the JO. ORGANIZATION NAME will perform the Contract administration
associated with the JO until work completion, including final inspection and acceptance
within the time frame designated on the JO.
(6) ORGANIZATION NAME may hold retainage for completion of any punch list items in
an amount estimated to be 200% of the cost to complete the punch list.
(7) At time of project completion (inclusive of the completion of punch list items), the
Contractor will submit a request for Final Payment to be approved by ORGANIZATION NAME .

MODIFICATION TO JOB ORDERS
A. It is the sole responsibility of ORGANIZATION NAME to authorize a Change Order to a JO.
Change Orders shall be generated from UPB as the sole source for pricing. If differing site
conditions are encountered during execution of the Job Order, or if there is a desired change
to the quantity or quality of work by the owner, then a modified or supplemental JO by way
of Change Order is required. If a Change Order involves negotiation with the Contractor,
all negotiations must be completed within 3 working days.
B. For the purpose of issuing change orders to a Job Order, three typical circumstances are anticipated:
1. Differing Site Conditions.
2. Increased scope of work.
3. Decreased scope of work.
C. ORGANIZATION NAME will prepare a proposed Change Order to the JO addressing
differing site conditions or increased/decreased scope of work.

REPORTING REQUIREMENTS AND PAYMENTS
A. ORGANIZATION NAME will be responsible for administering all JO’s under the Contract.
B. Normally, the Contractor will only be paid for completed Job Orders. Application for final
payment shall be submitted once all work and the punch list (if applicable) are completed.
If the performance period of a Job Order exceeds 30 days, partial payment is authorized,
based on the percentage of completion minus a 10% retainage of total sum of JO.
Liquidated Damages may be assessed if project extends beyond JO agreed completion date.
This includes punch list items. Partial and final payments shall be submitted to ORGANIZATION NAME using the standard AIA “Application for Payment” form and/or other form as required. When the work is certified complete by the ORGANIZATION NAME and an invoice received, and will process the invoice for payment through established procedures for prompt payment.
C. ORGANIZATION NAME reserves the right to deduct from the contract an equitable amount for any damaged or uncorrected work until such time as the it deems the work satisfactory. If unfinished work or damaged or uncorrected work remains after the agreed upon JO completion date, ORGANIZATION NAME reserves the right to proceed in accordance with contract requirements.
D. ORGANIZATION NAME may withhold or, on account of subsequently discovered evidence, nullify the whole or part of any payment certificate to such extent as may be necessary to protect it from loss on account of:
(1) Defective work not remedied;
(2) Claims filed or reasonable evidence indicating probable filing of claims;
(3) Failure of the Contractor to make payments properly to Subcontractor for material or
labor;
(4) A reasonable doubt that the Contract can be completed for the unpaid JO balance;
(5) Damage to another Contractor;
(6) The expectation that Liquidated Damages will be charged;
(7) Deductions associated with loss of or damage to ORGANIZATION NAME property as a result of negligence or non-conformance to JOC contract documents.
When the above grounds are removed, payment shall be made for the amount withheld
because of them.
E. Liquidated Damages shall be a part of each JO and are set at the joint signing of the JO.
The basis for Liquidated Damages shall be as stipulated. Warning of intent to assess Liquidated Damages may be sent to the Contractor and Bonding Company for insufficient progress or chronic under-manning of a project to the extent that it is believed that the project cannot be completed within the agreed time frame. If the scope of the project includes outside work that is affected by inclement weather the Contractor must document these days by submitting copies of local weather reports that indicate precise conditions.
F. The Contractor shall submit a weekly report of activities. If a specific reporting format is required, the specific JO will so state.
G. The Contractor shall submit a copy of all required documents to ORGANIZATION NAME used in the project as part of project closeout.
H. Department of Labor Prevailing Wage Rate Documentation must be submitted at time of invoicing.

TERMINATION
If termination of a JOC contract is desirable for whatever reason, it shall be effected in
accordance with the General and Supplementary Conditions.

Job Order Contracting - California Community College Districts, Uncategorized

Job Order Contracting – California Community College Districts

PROCUREMENT AND FINANCE – Job Order Contracting – California Community College Districts
Community College Districts Now Authorized to Use Job Order Contracting, AB 618 (Low D)
This new law authorizes community colleges to use job order contracting under terms parallel to existing law.  The law does require project labor agreements (PLA), however, which increase costs unjustifiably.

AB 618   (Low D)   Local Agency Public Construction Act: job order contracting: school districts: community college districts.
Status

9/26/2017 – Approved by the Governor. Chaptered by Secretary of State – Chapter 296, Statutes of 2017.

 

Summary

The Local Agency Public Construction Act authorizes job order contracting for school districts until January 1, 2022. The act restricts job order contracting to school districts that have entered into a project labor agreement or agreements, as defined, that will apply to all public works in excess of $25,000 undertaken by the school district through at least December 31, 2021, regardless of what contracting procedure is used to award that work. The act excludes any architect, engineer, or consultant retained by the school district to assist in the development of the job order contract documents from participation in the preparation of a bid with any job order contractor. The act requires job order contractors to submit a questionnaire to the school district containing specified information verified under oath.This bill would revise that restriction to restrict job order contracting under the act to school districts that have entered into a project labor agreement or agreements that will apply to all public works awarded through job order contracting and to all other public works that exceed a monetary threshold set by the school district. The bill would additionally exclude an architect, engineer, or consultant retained to assist the school district in the development of the job order contract documents from bidding. The bill would also exclude contractors retained to assist the school district from bidding or participating in the preparation of a bid with any job order contractor.This bill contains other related provisions and other existing laws.

(Based on text date 9/26/2017)
Commercial Construction Cost Estimator, Construction Cost Estimate, construction cost estimating software, Uncategorized

5 Tips for Construction Cost Estimators

Best practice, consistent, and efficient construction cost estimating should consider Owner, Builder, and AE requirements. Here’s a shortlist for your consideration and comment.

1. EXPERIENCE, EXPERIENCE, EXPERIENCE. Nothing is more important than decades of actual experience in the field as well as detailed line item experience.

2. COMMUNICATION – Use industry standard terms in plain English for each construction task. Minimize the use of acronyms and/or abbreviations. In fact only use abbreviations for units of measure.

3. Common data format (CDE) – Use CSI MasterFormt (50 division) to organize data.

4. Detail – Assure labor, material, and equipment breakdowns are available for EACH task as appropriate.

5. Integrate your work with a LOCALLY RESEARCHED unit price commercial construction cost data base. You can’t know or keep up to date on everything, and even if you did/could, this is a great way to supplement your data. DO NOT USE a national unit cost book and/or location factors/indexes.  The latter will introduce significant error.OpenCostEstimating

Alternative Construction Delivery Methods, Construction Productivity

Improve Construction Productivity Via Relationship Management

Improve Construction Productivity Via Relationship Management has proven to be highly successful.

lean construction

Here are the 4 Steps to Improving Owner/Vendor Repair, Renovation, Maintenance, and New Construction Productivity.

  1. Best Value Procurement –  Put aside cost low bid/lowest technically acceptable procurement strategies.   Select vendors based upon best value to your organization over an appropriate timeline.  Consider total cost of the project/program, including change orders, potential for legal disputes, and especially prior performance on similar projects.
  2. Collaborative Construction Delivery Method – Select an appropriate collaborative construction delivery method that is based upon LEAN processes.   The most well know, and robust methods are Integrated Project Delivery (IPD) for major new construction, and Job Order Contracting (JOC), for repair, renovation, and minor new construction.
  3. Common Data Environment (CDE) – Use a unit price book that outlines and details ALL required construction tasks, inclusive of labor, material, and equipment information.  Costs should be locally researched.  Tasks should be organized by CSI Masterformat.  All task descriptions should be in plain English, easily understood by all participants and stakeholders.
  4. Long Term Relationships – Seek out service providers that truly will partner with you and understand the complexities of life-cycle facilities management.   Assure that the relationships are mutually beneficial and based upon shared risk/reward.

Learn more?  Link to Articles and Research Studies

 

 

LEAN Facilities Repair, Renovation, and Construction, LEAN Job Order Contracting, Uncategorized

LEAN Facilities Repair, Renovation, and Construction – OpenJOC(TM) Job Order Contracting

LEAN Facilities Repair, Renovation, and Construction consistently delivers 90%+ of projects on-time, on-budget, and to everyone’s satisfaction.

  1. LEAN is transforming Facilities Maintenance, Repair, Renovation, and Construction
  2. Focus is upon BEST VALUE, OUTCOMES
  3. Owners, Service Providers, and Building Users are Information Providers and Problem Solvers… part of a TEAM.
  4. Construction contractors are now on-demand, responsive, and sharing risks and rewards.

Your only obstacles to significantly improving your facilities outcomes and reducing deferred maintenance…

“We never know what’s coming next…” “We already know what needs to be done” “Why don’t you just let us do our jobs” “We don’t have time to i- m – p – r – o – v – e ”

Learn more? (Link to Articles, White Papers, and Independent Research)

LEAN Facilities Repair, Renovation, and Construction

LEAN OpenJOC(TM) Principles

  • Best Value Procurement
  • Value Added Customer Focus
  • Scorecard Metrics
  • Required Collaboration
  • Initial and Ongoing Training / Cross Training
  • Continuous Improvement
  • Shared Risk/Reward
  • Long-term Mutually Beneficial Relationships
  • Flexible Schedules
  • Common Data Environment (CDE)

 

Efficient Facilities Repair, Renovation, and Construction Basics, Uncategorized

Efficient Facilities Repair, Renovation, and Construction Basics

The implementation of LEAN Efficient Facilities Repair, Renovation, and Construction Basics can add significant value to physical assets, while also maximizing financial investments. 

Current Approach to Facilities Repair, Renovation, Construction, and Facilities Management

Multiple competencies/disciplines, business domains, and technologies are required to to ensure optimal functionality of the built environment.   It is the integration of people, process, information, and technologies that is provided for by adopting LEAN strategies.

LEAN FACILITIES ASSET LIFE-CYCLE MANAGEMENT

Currently most facilities management practitioners and service providers primarily rely upon archaic and antagonistic project delivery methods and a focus upon “first costs” versus “life-cycle costs”.   There is also not the required focus upon the used of a common data environment (CDE), including for example detailed line item construction tasks organized by CSI MasterFormat(TM).    Lastly,  paper documents and spreadsheets unfortunately either prevail or are used inappropriately, thus creating opportunities for miscommunication and avoidable errors/delays.

Even though the majority of costs (approximately 80% of total life-cycle costs) occur during the operational and maintenance (O&M) phase, decision-making is largely made based upon lowest bidder versus best value as well as current year impacts versus multi-year considerations.  As a result, staggering levels of economic and environmental waster are common across the architectural, engineering, construction, operations, and owner groups.

LEAN Facilities Management / LEAN Construction Delivery

LEAN methods provide a proven integrated, coordinated, and efficient way to manage all project and program phases (from design through construction, into operation, and beyond).

There are currently at least three proven LEAN methods relevant to this discussion:

  1. Life-cycle total cost-of-ownership modeling and management
  2. Integrated Projects Delivery
  3. Job Order Contracting

All require taht information is collected, managed and shared through a common data environment (CDE) to ensure that everyone working on a project has access to the latest information.

All focus upon best value outcomes and long term relationships, as well as continuous improvement and required ongoing training.

All necessitate a change in how people (participants and stakeholders) interact on daily basis.

The Benefits 

LEAN facilities manage can improve overall productivity by 60%.   Furthermore, 90%+ of projects can be consistently delivered on-time, on-budget, and to everyone’s satisfaction.

Change orders and legals disputes are all but eliminated.

The Obstacles

LEAN FM and project delivery has been around for over thirty years, yet is practices by less than 5% of the “market”.

Technology is not a barrier, nor should it be the driving factor.   For example, BIM technology is not required for either LEAN FM or LEAN project delivery, but is simply a optional tool.

The primary obstacles to BIM are … People, Culture, and Education.

Collaboration between the owners, service providers, building users, and the community allows knowledge to be captured and exchanged on an early and ongoing basis throughout the entire life-cycle of a built structure.   This encourages input form all “team members” and assure a clear “statement of works” and quantitative goals measurement, as well as longer-term thinking, all of which reduce the overall cost of the building/structure.

A shift in focus and associate improvement in formal and professional education with respect to the integration of all facilities management domains is sorely needed.

With respect to culture, owners must understand that they are responsible for all outcomes.   The must accept their stewardship roles and provide requisite guidance and leadership.  This includes technical and management competency.

From a public sector perspective, any requirement/statue dictating that the lowest bid/bidder must be use is counterproductive and demonstrated a complete lack of fiduciary responsibility.   Facilities and structures are NOT commodities and focus must be upon providing the best value for taxpayers over a reasonable timeline.

 

Learn more about what you can do?   info@4BT.us

Uncategorized

LEAN Construction Practices For Efficient Facilities Repair, Renovation, and Minor New Construction

LEAN construction practices consistently deliver 90%+ of repair, renovation, and new construction projects on-time, on-budget, and to everyone’s satisfaction.

LEAN Construction Practices

  1. LEAN Principles
  2. Successful Methods (IPD, JOC…)
  3. JOC Operations Manual / JOC Execution Plan
  4. Roles/Responsibilities
  5. Documentation
  6. Common Data Environment
  7. Assessment & Strategy
  8. Service Providers
  9. Tools
  10. Ongoing Training

Learn more?

LEAN Delivery Method, Uncategorized

Rewiring the Construction Sector with the OpenJOC(TM) LEAN Delivery Method

Rewiring the construction industry, and the overall AECOO sector (architects, engineers, construction contractors, owners, and operators) have been proven to be the only viable solution to the legacy of rampant economic and environmental waste.

JOC Trainig Session 2

The construction delivery method and its associated contractual framework affects the outcome of any repair, renovation, or new construction project more than any other single element.   This state, of course, is only valid assuming that the prerequisite levels of owner leadership and overall team competency are present.

Over the past three decades, LEAN construction delivery methods such as Integrated Project Delivery, IPD (for major new construction), and Job Order Contracting, JOC (for minor new construction) has aligned and achieved well-defined outcomes (see related white papers).   The have proven to consistently deliver over 90% of projects on-time, on-budget, and to satisfaction of all participants and stakeholders… when designed and implemented per their fundamental criteria.

When a 90% AECOO success rate is compared to the current industry average of 25%, the question must be asked… “Why is less thatn 5% of the AECOO community  actively engaged in true LEAN collaborative construction delivery?”.

The answer comes down to three elements, education, education, and education.  Both formal and professional education has traditionally not focused upon teaching the core elements of life-cycle total cost-of-ownership management and LEAN construction delivery.  Similarly technology vendors have marketing their solutions as opposed to integrated proven LEAN process within technology.  BIM is the most notable example of how a technology was hyped as a solution to the AECOO sector’s woes.

We must move away from the hostile contracting environment that characterizes many construction projects, including design-bid-build, low bid, and even design-build,  to a methods focus upon early and ongoing collaboration and problem solving among ALL project participants and stakeholders.   Note that collaboration, financial transparency, and shared risk/reward are CONTRACTUALLY REQUIRED for both IPD and JOC.

Procurement must be based upon BEST VALUE, with associated performance-based incentives for vendors/service providers.

Relationships between owners and services providers should be long-term, preferably with local supplies with local knowledge.  Mutual trust and respect is key in this regard.  For example, studies have consistently shown that the most successful path to innovation and problem solving and continuous improvement is to build a level of trust in which contributions/suggestions from ALL participants receive open, merit-based consideration and evaluation.  Each team member is considered part of the “community”, in which all are striving for improved outcomes.

Both LEAN IPD and LEAN JOC provide training and tools to transparently share data and enable information-based decision-making.   JOC, for example, requires a common data environment (CDE) in the form of a detailed line item unit price book (UPB).  The UPB contains a detailed listed of tasks required to accomplish virtually an repair, renovation, or minor new construction project.   In properly designed UPBs, descriptions are in plain English, using industry common terms.  The use of abbreviations and confusing acronyms is limited to units of information.  Full details are provided for labor, material, and equipment components, and costs.  Lastly, the UPB is locally researched, and does not rely upon a “national average cost book” and/or localization “factors”.

Certainly the path do improved AECOO outcomes requires changes in behavior, attitudes, skills, and supporting tools.  That said, it is ultimately the responsibility of real property owners to provide the leadership to drive any measurable positive improvement.


via www.4BT.US – LEAN Construction Delivery Tools and Services

10 Easy Steps for a Best Management Practice JOC Task Order, Uncategorized

10 Easy Steps to Create a JOC Task Order

10 Easy Steps to Create a JOC Task Order

  1. Request for Proposal (RFP) Issued by Owner (Issue by Procurement)
  2. Pre­Proposal Meeting
  3. Preliminary Proposal (Detailed line item proposal by JOC contractor using approved current unit price book.  Contractor submit proposal to owner with X days of site visit – example: –5 Days: $50k & Under–10 Days: $50k -$100k –15 Days: $100k & Over)
  4. Negotiation of Proposal
  5. Job Order Issued
  6. Pre-­Construction Meeting
  7. Pay Applications
  8. Regular Owner Inspections
  9. Punch List(if needed)
  10. Final Inspection

unit price book

JOC Contractors, Uncategorized

JOC Contractors

JOC Contractors

JOC contractors, can you currently…

  1. Shorten the project development and procurement time,
  2. Provide reliable and controlled construction,
  3. Consistently meet or exceed the needs of you Customer(s), and
  4. Delivery faster response time(s) for project commencement / on-demand renovation, repair, and minor new construction.

In not, maybe it’s not your fault, but the fault of the JOC Program you are serving,

The 4BT OpenJOC(TM) Job Order Contracting Solution was specifically to be transparent, efficient, and provide a best value, mutually beneficial to BOTH real property owners and is construction service providers.

The 4BT OpenJOC Solution, the way JOC Programs were intended to be!

Learn more?

Best management practice, best value JOC Programs should….

  1. Focus upon standardization of process and procedures within a comment data environment (CDE).
  2. Main DIRECT interaction between the awarded JOC contractor and the facility owner… without the additional “layer” of a “JOC consultant”… owner MUST have requisite JOC Program support staff: Program/Project Manager, Program/Project Manager, Inspectors/Project Coordinators (Fluctuating Capabilities), Administrative/Contract Support
  3. NEVER pay a “JOC consultant” a fee on the total JOC construction dollar amount if the JOC contractor plays a role in determining if a project is awarded or not… and never pay a fee of more than 1%-2% in ANY event,
  4. Required collaboration of all participants,
  5. Require initial and ongoing training,
  6. Assure shared risk/reward,
  7. Develop long-term relationships, especially with LOCAL construction contractors,
  8. Focus upon measurable outcomes, and implement Key Performance Indicators (KPIs),
  9. Use a locally researched unit price book that is fully transparent,
  10. Require direct owner review of detailed line item contractor price proposals, including field verification of the estimate and any associated drawings/documents, assure nonprepriced line items do not exceed ten percent of any project total (owners should also create internal line item proposals for individual projects over a certain dollar threshold),
  11. Continuously improve and maintain focus upon mutually beneficial outcomes, and
  12. Limit variation and waste.
JOC Programs

What’s WRONG with some JOC Programs?

Here’s just one example of what’s WRONG with some JOC Programs.   Do you agree?

“During the period of October 1, 2016 to December 31, 20 16, Gordian License Fee and project management fees totaled $654,744 or an overall average of 7% of the total construction contract value of $8,805,985 during this reporting period. This fee is lower than the industry standard of 10% for Construction Management fees. TGG services allow the County to implement a higher volume of maintenance and repair projects which would otherwise not be possible due to limited project management staff time.”

– Source: Monterey County 168 West Alisal Street, 1st Floor
Salinas, CA 93901 831.755.5066 Capital Improvement Committee Legistar File Number: 17-0342 –  Job Order Contracting from the Resource Management
Agency-Public Works and Facilities for the period ending December 31, 2016.

There are several things “wrong” with the way Job Order Contracting has been implemented in California.   There are also several issues I have with the above statement.   Do you agree, disagree?

  1. Job Order Contracting is NOT “construction management”, and any fees should NOT be so compared.  Job Order Contracting IS a LEAN and integrated construction delivery method and a procurement method.
  2. A FEE paid to a JOC consultant, based upon a percentage of construction volume, is a DIRECT CONFLICT OF INTEREST and represents a POTENTIAL FOR FRAUD, if the JOC consultant is indeed managing the construction and directly/indirectly approving contractors and/or projects.
  3. Paying 7% for this service, in addition to the above factors, is indeed excessive, and lower cost options are available to provide equivalent or superior services.
  4. Low bid is NOT fundamental element of JOC.  If awards are made using lowest bidder and procurement are not award on a BEST VALUE basis, it’s NOT JOC, period.

Your thoughts on what’s WRONG with some JOC Programs?

Job Order Contacting - The LEAN OpenJOC (TM) Method, Uncategorized

Job Order Contacting – The LEAN OpenJOC (TM) Method

JOC Software

Job Order Contacting – The LEAN OpenJOC (TM) Method was developed by Four BT, LLC (4BT) in response to an industry need for a best value job order contracting solution.

Four BT, LLC is a veteran-owned small business that develops, markets, and supports independent, objective, and best value Job Order Contracting solutions.  This includes 4BT-CE cloud estimating and project management software (4BT-CE), locally researched JOC unit price books, support, and a wide range of service.

Our team fully understands JOC and line item construction cost estimating, the overall JOC process, and JOC technology.   Our experienced and dedicated staff has decades of experience developing software, construction cost data, support services, and training programs for commercial and government real property owners, contractors, architects, engineers, building users, and oversight groups.  We get it!

Our core focus is based upon sharing and incorporating industry best management practices and to drive continuous improvement through increasing levels of collaboration,  knowledge, leadership, competency, and understanding, as well as leveraging the most current and beneficial tools and technologies.

We understand facility and physical infrastructure life-cycle and total cost of ownership management from concept through ongoing operations, maintenance, and eventual recycling.   We understand LEAN best value collaborative construction delivery.

We hope to understand your needs.

Our team has worked and supported hundreds of owners, thousands of contractors, and other stakeholders to more efficiently perform billions of dollars of renovation, repair, and construction work.

4BT-CE can help  you teams generate quality detailed estimates faster and more accurately in concert with the 4BT JOC Unit Price Book,, UPB, along with the ability to quickly generate summary and detailed reports, as well as key performance indicators (KPIs).

4BT brings you what no other firm can…. An independent, objective, and best value JOC solution tailored to your requirements…. and our promise to treat owners, contractors, and users equally and fairly.JOC Trainig Session 2

Job Order Contract Solution, Uncategorized

Job Order Contract Solution

The following is provided for those considering a job order contract solution, or who may wish to improve their current job order contract solution.

 A Job Order Contract Solution should…

1. deliver 90% of repair, renovation, and minor new construction projects on-time, on-buget, and to everyone’s satisfaction,

2.  treat both owners and contractors equally and support an atmosphere of mutual respect and trust,

3. NOT place an JOC consultant between the owner and the contractor (owner’s MUST provide leadership and be directly involved in all aspects of the JOC Program),

4. Use a locally researched, open, and transparent unit price book,

5. Mandate collaboration and the use of a written Job Order Contract Operations Manual / Job Order Contract Execution Manual,

6. NOT use a separate set of construction technical specifications.  The Owners current technical specifications should be used, and if unavailable, then reference a standard set of commercial construction specifications, modified as needed to meet specific owner requirements,

7.  NOT include an excessive number of construction cost line items (i.e. hundreds of thousands) if not required.   Unduly large UPBs create confusion and can lower productivity.

Learn more?

 

 

 

Here’s what can happen if Real Property Owners don’t provide direct leadership and/or do not adhere to LEAN best management job order contract principles…

Audit Findings and Conclusions

“The Department is unlikely to attain between $2 million and $3.7 million in cost savings from the JOC program because the program is not being administered as effectively as it should be.

“Specifically, we found that job orders are not developed in a timely manner, cost estimates are not reliable indicators of the actual cost of work, and construction work is not carried out in a timely manner.  Moreover, there is a lack of guidelines that spell out the circumstances and monetary threshold for job order work and a lack of standards for measuring whether the JOC program is, in fact, achieving anticipated cost savings.

Furthermore, when job order work was delayed, the Department did not impose liquidated damages totaling more than $450,000.

Additionally,  problems with the Department’s (SOFTWARE) database impede the Department’s ability to effectively monitor the status of JOC project work and ensure that projects are proceeding expeditiously.

Audit Recommendations

This report makes a total of 12 recommendations, including that the Department:

  • Formulate measurement criteria to assess whether the JOC program is attaining its goal of achieving savings in overall project costs.
  • Complete development and submit job orders for registration within the required 45-day timeframe.
  • Provide independent estimates for job order work.
  • Ensure that JOC contractors complete work on schedule.
  • Develop and implement written guidelines that stipulate the circumstances and monetary threshold under which the use of job order contracts would be appropriate.
  • Ensure that all job orders contain provisions for liquidated damages.  Determine whether liquidated damages should be assessed for the cases noted in this report.
  • Ensure that accurate and complete information is recorded in the (JOC software) system. “

– Source for above information within quotations – State audit of a Job Order Contract  Download full report

 

Job Order Contract Solution

Best Value Construction Procurement Solution, Uncategorized

Best Value Construction Procurement Solution

Best Value Construction Procurement SolutionLooking for a best value construction procurement solution that embeds LEAN Integrated Project Delivery to delivery 90%+ of renovation, repair, and minor new construction project on-time, on-budget, and to everyone’s satisfaction…owners, contractors, building users?    It’s time to stop overspending and start learning about the 4BT OpenJOC(tm) Job Order Contracting Solution.

Learn more…

Commercial Construction Costs - Canada, Uncategorized

Commercial Construction Costs – Canada

The construction cost data shown is not be applied to specific requirements, but rather intended as a general overview.     Detailed line item construction cost data should be used for the preparation of actual construction project costs in concert with an experienced construction estimator and knowledge of local conditions.

Commercial Construction Costs - Canada

Cost dataCommercial Construction Costs - Canada

Commercial Construction Costs - CanadaCommercial Construction Costs - Canada

Average-quality finishes (unless otherwise stated), both to the exterior and interior, are
also assumed.
Judgment factors must be applied within the average range to allow for:
• Quality • Type of contract
• Location • Extent of site works
• Building shape, size and height • Design method
• Topography and soil conditions • User requirements
• Schedule • Procurement advantage of
• Site restrictions developer/contractor
• Market conditions

Cost data shown is for construction only and does not include…
• Land and related costs • Tenant incentives
• Architectural and engineering fees • Permits and development charges
• Government registered programs • Purchaser upgrades
• Insurance and bond costs • Appraisals
• Legal fees • Soil and environmental tests
• Special design consultants • Land surveys
• Special equipment and furnishings • Property taxes
• Management costs • Broker commissions
• Site services outside the property • Contingencies
• Interest charges and lenders’ fees • Rezoning costs
• Marketing and advertising • Other municipal fees
• Levies • Developer profit

via Four BT, LLC, Tool, cost data, and services to support best value LEAN construction delivery, including Job Order Contracting.   www.4BT.US

Collaboration in Construction Matters

Collaboration in Construction Matters

Collaboration in construction matters as shown by mulitple case studies.

For example, a GSA study conducted by the University of Minnesota on eleven construction projects noted the importance of collaboration in construction as  the key to successful outcomes.

On a more general note Google’s “Project Aristotle” specifically looked at the level of innovation among project teams.   Oddly there was no statistical correlation to team success base upon seniority , expertise, or any characteristic other than “psychological safety”.    Psychological safety can be simply described as “mutual trust and respect”.    The most successful teams were found to be those that “self-correct” and continuously improve.

It is the  level of collaboration in construction that determines overall innovation and performance.

Collaboration in Construction
Collaboration in Construction

The follow characteristics are the core foundation of Collaboration in Construction  and  LEAN construction delivery methods such as Integrated Project Delivery (IPD), for major new construction, and OPEN Job Order Contracting (JOC) for repair, renovation and minor new construction.

  • Required collaboration among all participants
  • Common data environment (CDE), including locally researched detailed line item construction cost data organized by CSI Masterformat(TM).
  • Mutual respect and trust
  • Shared risk/reward
  • Written Operations/Execution Manuals
  • Best value procurement
  • LEAN processes
  • Key Performance Indicators (KPIs)
  • Mandatory initial and ongoing training for all participants
  • Supporting collaborative technology embedding LEAN workflows

When properly implemented and supported, LEAN collaborative construction delivery consistently delivers 90% + of building repair, renovation, and new construction on-time, on-budget,  and to everyone’s satisfaction.   Compare those numbers to the  AECOO (architecture, engineering, construction, operations, and owner) average of 70-72% of project over budget and over schedule!

Leave design-bid-build and even design-build behind if you truly want to maximize your limited facilities management resource to the betterment of your organization.

Significantly improving facility life-cycle repair, renovation, and new construction outcomes is both possible, and easily implemented IF owner leadership and competency are present.   Written implementation and operation manuals are available for both IPD and JOC, as are supporting standardized terms, definitions, data sets, training, and enabling technology.

Are you interested in improving your life-cycle facilities management outcomes?

 

 

 

5 Basic Steps to Efficient Repair, Renovation, and New Construction Project Delivery, Uncategorized

5 Basic Steps to Efficient Repair, Renovation, and New Construction Project Delivery

5 Basic Steps to Efficient Repair, Renovation, and New Construction Project Delivery

5 Basic Steps to Efficient Repair, Renovation, and New Construction Project Delivery

  1. Focus upon CHANGE MANAGEMENT.   Continuing to conduct day to day business in the same way will improve nothing.
  2. Understand the principals of a Job Order Contract Operations Manual (also called a Job Order Contract Execution Plan).  The fundamental LEAN AECOO processes and workflows are key to achieving measurable improvement.
  3. Understand that technology is an enabler and not the focus.   Technology should simply support lower cost, consistent deployment.  It should embed your strategies. 
  4. Understand the basic principals behind a Common Data Environment (CDE).  It’s far more than a document management system.    A primary example of a CDE is the a JOC unit price book.   It is a detailed line item list of tasks with full descriptions in plain English, and associate labor, material, and equipment pricing breakdowns.  It is organized via a standardized CSI Masterformat(TM) data architecture and locally researched (no use of cost factors/indexes).
  5. Mandated initial and ongoing training for ALL participants and continuous improvement are hallmarks of successful organizations and projects. 

LEARN MORE…

Job Order Contract Unit Price Books, Uncategorized

Job Order Contract Unit Price Books

Are you looking for information abut Job Order Contract Unit Price Books?

What construction task are needed for a Job Order Contract UPB?

What level of detailed is required for JOC UPBs?

Are assemblies good or bad in a JOC Unit Price Book?

How important are modifiers Job Order Contract Unit Price Books?

What at the most common abuses of JOC UPBs by owners and contractors?

If you’d like to discuss these topics, please contact us!   www.4bt.us

Job Order Contract Unit Price Books

JOC Cooperatives, Uncategorized

Beware of JOC Cooperatives that Require Low Bid Acceptance

Beware of JOC Cooperatives that Require Low Bid Acceptance…. seek our BEST VALUE JOB ORDER CONTRACTING SOLUTIONS.

In today’s world, it’s more important than ever to research the facts.

If you are a public sector facilities manager look for a best-in-class Job Order Contract, and perhaps considering starting off with a JOC Cooperative, make certain that the program is based upon BEST VALUE procurement, as well as other core Job Order Contract principles.   A JOC Program that requires acceptance of the lowest bidder is NOT a  true JOC Program.

There are also so-called JOC Programs that don’t require a unit price book.  These programs are also not true JOC Programs.

Job Order Contracting can be a win-win situation for real property owners and JOC contractors.  It can delivery over 90% of renovation, repair, and minor new construction projects on-time, on-budget, and to everyone’s satisfaction, ONLY if the JOC Program is based upon LEAN JOC best management practices (BMPs).

Learn more?  

LEAN Construction

Uncategorized

Job Order Contracting Solution OpenJOC™

Job Order Contracting Solution OpenJOC™

  • Best value procurement
  • Performance-based reward system
  • Contractors earn a reasonable profit
  • Non-adversarial, long-term, win-win collaborative and mutually beneficial owner/contractor relationships
  • Enhanced financial transparency and visibility
  • Reduced Risk
  • More efficient use of renovation, repair, and minor new construction funds
  • Use of local small business contractor familiar with site conditions/owner requirements
  • Simplified procurement process
  • Shorter project delivery times

job order contracting

  • On-demand construction services
  • Program compliance
  • Error-free detailed records of all project estimates and close-outs
  • Cloud-based secure project, estimate, and document management
  • Projects delivered as promised
  • Multi-site/multi-location simultaneous project delivery
  • Fixed price
  • Defined, robust LEAN processes/workflows
  • Project documents
  • Locally researched labor, material, and labor costs… OpenJOC 5% Rule™
  • Cost data organized by Organized by Construction Specifications Institute (CSI) MasterFormt® (Four BT, LLC is an approved licensee)
  • Word deliver per owner’s specified quality of materials and workmanship (construction technical specifications)
  • JOC co-efficient – Normal Working Hours, Other than Normal Working Hours
  • Non-prepriced (NPP) line item value limit per estimate/project/task order
  • Line item modifiers for parent line items to address quantities, specialized material installation factors, etc.
  • Minimum and maximum defined values for JOC term and individual projects/task orders
  • Training and support for all aspects of JOC process – for Owners and Contractors

Job Order Contracting

Uncategorized

Job Order Contract Practices for Owners

OpenCost Methodology

THE DO’S AND DON’TS OF A JOB ORDER CONTRACTING PROGRAM

DO:

Know the JOC Contract and its dollar limits
Know your contract plans and JOC Operations Manual
Check the math and extensions of each estimate
Randomly verify line items
Keep non pre-priced scope to less than or equal to 10% of a projects total cost
Review the coefficient
Apply the negotiated coefficient to the estimate total
Verify the current approved Unit Price Guide is being used
Question and validate the contractor’s proposal

DON’T:

Bid any of the approved JOC Contractors against each other or “Shop” bids
Solicit JOC proposals from non-approved JOC contractors
Assume a non pre-priced item is not in the Unit Price Book
Allow manipulation of the Unit Price Guide units, formulas, or descriptions
Allow non-normal working hour rates (overtime) on tasks that can be completed during normal working hours.
Use area cost factors, location factors, or similar techniques in an attempt to localize costs
Allow proposals developed using line items other than those from the currently approved Unit Price Book and noted NPP items.

Learn more

Job Order Contracting - The OpenJOC(TM) Advantage, Uncategorized

Job Order Contracting – The OpenJOC(TM) Advantage

Job Order Contracting – The OpenJOC(TM) Advantage

Job Order Contracting - The OpenJOC(TM) Advantage

The Only JOC Program featuring…

1.Open, Adaptive Unit Pricing

2.Locally Researched Costs with OpenJOC 10% Rule (TM)

3. No Cost Factors / Indexe

4. Exclusive Cloud Access including Project, Document, Facility, Asset Management, & BIM

Job Order Contracting - The OpenJOC(TM) Advantage

Transparent Job Order Contracting, Uncategorized

OpenJOC(tm) Transparent Job Order Contracting

Transparent Job Order Contracting

LEARN MORE!

  • OpenJOC Overview
  • JOC Contract Documents
  • JOC Process
  • The OpenJOC Unit Price Book – Locally Researched
  • JOC Coefficients
  • Considerations
  • Benefits
2018 - LEAN Facilities Management Trends, Uncategorized

2018 – LEAN Facilities Management Trends

AECOO Transformation – 2018 – LEAN Facilities Management Trends

2018 - LEAN Facilities Management Trends

A common and appropriate framework for LEAN project management

  • Front-loaded, cost transparent,  project planning within a comment data environment (CDE)

  • Life-cycle asset management focus versus myopic first cost driven decision-making

  • A common and appropriate framework for project management

  • Innovative procurement and management models with balanced risk sharing

  • Public/private partnerships

Best management practices,  processes, and operations.

New building and construction technologies, materials and tools

Enhanced owner leadership and associate management of, and collaboration with architects, engineers, builders, building users, oversight groups…

Rigorous project monitoring (scope, time, cost), including key performance indicators (KPIs)

Focus upon continuous education, training, and improvement

Regulation and policies requiring collaboration and improved outcomes

www,4bt.us

The Win-Win Job Order Contracting Solution, Uncategorized

The Win-Win Job Order Contracting Solution

The Win-Win Job Order Contracting Solution

A breakthrough in mindset, process, cost visibility, and technology,  OpenJOC Job Order Contracting reduces JOC Program overhead costs, while delivering superior outcomes for owners and construction contractors.

 

While real property owners,  facilities management and the construction industry have been slower than most to modernize processes and adopt LEAN methods,  the tide is turning.

The Win-Win Job Order Contracting Solution

 

Job Order Contracting improves overall life-cycle management of the built environment by reducing delivery times and improving quality, cost visibility, and overall satisfaction for all common renovation, repair, and minor new facilities construction.\

Owner get what they need, when they need it, and for a fair price. (Virtually unheard of for most construction projects, until now.)  They also gain access to  qualified, trustworthy, and on-demand construction services from local construction contractors.

Contractors benefit by gaining a more predictable revenue stream and earning a reasonable profit, without engaging in adversarial relationships with owners.

Optimizing planning and execution processes can easily reduce procurement costs, shorten delivery times, and enable optimal used of available facilities funds.  For example, projects that previously took months to begin, can be commonly started in weeks.    Furthermore, over 90% of all projects can be consistently delivered on-time, on-budget, and to everyone’s satisfaction.

The Win-Win Job Order Contracting Solution

Governments and other public agencies play a primary role in improving construction and FM productivity.   Governments and public agencies are significant owners and managers of real property.    They are furthermore dependent upon facilities long-term in order to support their organization missions.   Accelerating project conceptualization, procurement, execution, and sign-off reduces project delays and overall costs, while also improving service levels.

Challenges to the acceptance of LEAN approaches such as OpenJOC Job Order Contracting do exist.   The approach requires owners and service providers to work collaboratively, to share all information throughout the project and program life-cycle.  This includes detailed line item cost visibility and the associated used of a locally researched unit price book, based upon Davis-Bacon, and/or prevailing wage rates.

Acceptance of LEAN Job Order Contracting and Integrated Project Delivery will positively affect society, by reducing construction costs;  mitigating environmental impacts, improving  the appropriate use of scarce materials and making buildings more environmentally friendly.

Improving Construction Productivity with LEAN

Improving Construction Productivity with LEAN

The single most important thing you can do to improve construction productivity, quality, and satisfaction is to focus upon LEAN collaborative construction delivery methods.

It is the construction delivery method that defines relationships, responsibilities, levels of risk, deliverables, timelines, techniques, reporting requirements, and ultimately project success.

Great teams and long term relationships don’t just happen, they are built.  They are formed upon a foundation of mutual trust, transparency, communication, collaboration, and shared risk/reward.

Improving Construction Productivity with LEAN

The path toward achievement of best outcomes in terms of quality, productivity, and satisfaction is paved with LEAN best management practices.   The Toyota Production System (TPS) is perhaps the best documented LEAN process, though it all began with Henry Ford.  It has now moved into virtually every industry sector.

In construction, LEAN takes the form of Integrated Project Delivery (IPD) for major new construction, and Job Order Contracting (JOC) for renovation, repair, and minor new construction.

If, as an real property Owner, a Contractor, Sub, or AE… your goal is a greater percentage (90%+) of QUALITY construction projects delivered ON-TIME and ON-BUDGET and to EVERYONE”S SATISFACTION ….   LEAN is the path to success.

Learn more…

Resource for Job Order Contracting Implementation, Uncategorized

Resource for Job Order Contracting Implementation

An Industry Resource for Job Order Contracting Implementation,  Four BT, LLC provides support for real property owners, facilities management, DPWs, construction contractors, subs, and oversight groups.

Resource for Job Order Contracting Implementation

  • LEAN Facilities Management
    • Need
    • Current Best Practices
      • LEAN FM – Overview of Asset Life-cycle Management
        • Competencies, Technologies
      • Dominance of Project Delivery – IPD/JOC vs. DBB,DB, CM@R…
      • Value Proposition &  Advantages of OpenJOC(TM) LEAN Facility Management
  • Activities & Tools
    • Strategy
    • LEAN Construction Delivery (JOC, IPD)
      • OpenJOC Drill Down
        • JOC Estimating Methodology & Best Practices
        • Coefficient Development & Enhancement
        • 4BT OpenJOC Building in Cloud Estimating Software Overview
        •  JOC Estimating Contract Compliance Process
        • 4BT Construction Cost Data Methodology
        • 4BT OpenJOC Data Integration
  • Training Materials
  • Available Support
    • JOC Consulting
      • Ongoing Training
      • Audits/Reviews
  • Center for Job Order Contract Excellence (CJE) & the Arizona State University JOC Study of 2016
  • Open Panel Discussions
  • Workshops (Go thru a specific Project beginning to end)

 

Learn more,,,,

OpenJOC Job Order Contracting

A Better Job Order Contracting Approach, Uncategorized

A Better Job Order Contracting Approach

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

Time for a better Job Order Contracting approach?

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

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

A Better Job Order Contracting Approach

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

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

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

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

Learn more …

 

LEAN Methods for Facilities Operation and Maintenance, Uncategorized

LEAN for Facilities Operation and Maintenance

LEAN METHODOLOGY

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

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

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

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

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

Figure 4. LEAN Practices Asset Competency Model

Figure 4. LEAN Practices Asset Competency Model

Figure 5. LEAN Considerations

Figure 5. LEAN Considerations

MULTIPLE COMPETENCIES, BUSINESS PROCESSES, AND ACTIVITIES

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

Competencies/Activities

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

Business Processes

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

Figure 6. Life-cycle Management

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

SUPPORTING TECHNOLOGY AND TOOLS

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

Technologies

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

Tools

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

EDUCATION, TRAINING, AND SUPPORT SERVICES

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

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

METRICS/KEY PERFORMANCE INDICATORS (KPIS)

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

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

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

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

O&M performance indicators include the following:

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

CHALLENGES AND OBSTACLES

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

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

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

Learn More…  www.4BT.us

Facilities Operation and Maintenance Planning

Facilities Operation and Maintenance Planning 2018

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

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

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

 

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

Job Order Contracting Basic Definitions

Job Order Contracting Basic Definitions

 Job Order Contracting BASIC DEFINITIONS

 

APPLICABLE  REQUIREMENTS

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

APPLICATION FOR PAYMENT

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

BASE TERM

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

CERTIFICATE FOR PAYMENT

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

 

CONTRACT / JOB ORDER CONTRACT

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

CONTRACTOR / AWARDED JOC CONTRACTOR

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

DEFECTIVE WORK

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

DETAILED SCOPE OF WORK (SOW)

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

DRAWINGS

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

EXCUSABLE DELAY

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

EXTRA WORK

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

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

FINAL COMPLETION

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

GUARANTEE TO REPAIR PERIOD

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

HAZARDOUS MATERIAL

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

INEXCUSABLE DELAY

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

JOC COEFFICENT

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

JOB ORDER

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

JOB ORDER AUTHORIZATION

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

JOB ORDER MILESTONE

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

JOB ORDER PROPOSALS / SCHEDULE OF VALUES

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

JOB ORDER / JOC PROJECT SCHEDULE

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

JOB ORDER TOTAL COST / SUM

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

JOB ORDER TIME

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

JOB ORDER WORK

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

JOC PROGRAM ADMINISTRATOR   

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

JOINT SCOPE MEETING / JOINT SITE VISIT

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

MAXIMUM JOC CONTRACT VALUE

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

MINIMUM CONTRACT VALUE

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

NON-PREPRICED ITEM (NPP)

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

OPTION TERM / OPTION YEAR

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

OWNER JOC PROJECT MANAGER

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

PREPRICED LINE ITEM

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

PROJECT

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

SEPARATE CONTRACTOR

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

SPECIFICATIONS / TECHNICAL SPECIFICATIONS

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

SUBCONTRACTOR

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

SUPERINTENDENT / CONTRACTOR JOC PROJECT MANAGER

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

 

UNIT PRICE

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

UNIT PRICE BOOK

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

 

 

Learn more…

 

 

 

Uncategorized

Job Order Contracting Training Note – JOC Coefficient

Job Order Contracting Training Note – JOC Coefficient

 

Job Order Contracting Training Note - JOC Coefficient

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

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

 

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

Learn more…

Job Order Contracting Training Note - JOC Coefficient

Uncategorized

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

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

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

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

Learn more…

FM & Cost Estimating Tools

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

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

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

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

Screenshot

Uncategorized

LEAN Facilities Renovation, Repair, and Construction

LEAN Facilities Renovation, Repair, and Construction

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

LEAN FACILITIES ASSET LIFE-CYCLE MANAGEMENT

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

OpenJOC Job Order Contracting helps to…

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

Learn more about OpenJOC Job Order Contracting….

 

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

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

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

JOC Cascading Service Encounter

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

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

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

OpenJOC Job Order Contracting

Learn more…

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

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

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

JOC Cascading Service Encounter

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

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

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

Learn more…

The Alternative Job Order Contracting Solution, Uncategorized

The Alternative Job Order Contracting Solution

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

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

What is OpenJOC Job Order Contracting….

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

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

Learn more…

OpenJOC Job Order Contracting

LEAN Facilities Asset Life-cycle Management, Uncategorized

LEAN Facilities Asset Life-cycle Management

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

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

Learn more?

OpenJOC The LEAN Job Order Contracting Solution, Uncategorized

OpenJOC(TM) The LEAN Job Order Contracting Solution

OpenJOC Job Order Contracting

OpenJOC(TM) The LEAN Job Order Contracting Solution

• Stage 1 : Define Need

• Stage 2 : Develop Measurement Strategy

• Stage 3 : Initial and Ongoing Training for ALL Participants

• Stage 4 : Procure, Mobilize, Execute JOC Program

• Stage 5 : Collect, Interpret and Analyze Results

• Stage 6 : Report Findings

• Stage 7:  Improve

Learn more…

 

 

 

LEAN Job Order Contracting and Cloud Facilities Management

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

Building in the Cloud & The Digital Transformation of Construction

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

 

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

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

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

 

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

 

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

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

 

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

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

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

 

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

 
What’s new in Building in Cloud?

 

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

Here are just a few…

-Advanced document management

-Advanced BIM data management

-Federated Model Management

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

 

Several new task, data, and document management tools.

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

 
facilities management in the cloud, Uncategorized

Facilities Management in the Cloud FREE

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

BIC Video Image

Designer

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

Constructor

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

Owner

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

Sign up today…

 

Uncategorized, What is OpenJOC LEAN Job Order Contracting

OpenJOC LEAN Job Order Contracting (TM)

OpenJOC Job Order Contracting

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

OpenJOC LEAN Job Order Contracting provides the following benefits:

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

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

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

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

Learn more…

 

JOC Programs Done Right, Finally, Uncategorized

JOC Programs Done Right, Finally

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

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

evolution

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

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

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

4BTOpenJOCcloud

2018 BIC Features

Open Construction Cost Estimating, Uncategorized

Open Construction Cost Estimating

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

 

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

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

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

#4. Reduces variation while enabling alternative solutions.

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

Decide if open construction cost estimating is for you?

3Steps to Higher Productivity

Uncategorized

LEAN Construction Delivery and supporting cloud-based technology

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

Ashleigh Brilliant

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

They are changing… 

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

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

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

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

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

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

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

 

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

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

Learn more…

 

Making Construction Efficient

Making Construction Efficient

Rocket

Making construction efficient is not rocket science.

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

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

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

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

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

Why is the AECOO Sector Failing!*

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

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

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

#2 –  Culture

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

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

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

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

#3 – Lack of Robust Processes

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

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

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

#4 – Lack of Metrics and Control

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

Moving Forward

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

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

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

After all, making construction efficient is not rocket science.

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

Setting up a Job Order Contract Using Best Management Practices

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

Setting up a Job Order Contract Using Best Management Practices

 

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

 

Definitions.

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

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

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

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

 

Applicability.

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

 

JOC Characteristics.

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

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

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

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

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

Planning and coordination.

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

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

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

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

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

Procedures.

Presolicitation.

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

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

Solicitation.

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

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

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

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

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

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

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

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

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

Ordering.

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

Statement of work.

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

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

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

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

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

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

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

(d) Negotiations.

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

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

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

(e) Limitations.

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

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

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

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

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

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

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

(g) Forms, numbering and reports.

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

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

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

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

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

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

Contract administration.

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

Purchasing / JOC ordering authority

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

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

(c) Authorization and limitations.

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

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

(ii) adequate training is provided;

(iii) purchasing approves; and

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

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

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

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

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

(d) Responsibilities. JOC purchasing authorties —

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

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

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

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

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

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

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

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

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

(i) Monitoring compliance with the SOW and schedule;

(ii) Contractor or supplier compliance,

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

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

(v) Recommendations for changes to existing orders,

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

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

(viii) Preparation of any JOC status reports required;

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

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

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

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

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

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

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

Internal controls.

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

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

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

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

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

Local Construction Cost Data, Uncategorized

Local Construction Cost Data

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

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

Interested?

OPEN Job Order Contracting, Uncategorized

OPEN Job Order Contracting

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

OPEN Job Order Contracting

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

Learn more…

Efficient, Uncategorized

Job Order Contracting – LEAN, OPEN, Efficient

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

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

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

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

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

LEAN, open JOC Programs optimize benefits and savings.

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

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

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

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

Learn more?

 

 

 

Open Construction Cost Estimating, Uncategorized

Open Construction Cost Estimating

Open Construction Cost Estimating for 2018 and Beyond!

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

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

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

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

Open Construction Cost Estimating

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

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

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

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

Open Construction Cost Estimating

 more about OpenCost…

Construction cost estimators and project managers work smarter and faster.

It’s that simple.

Learn more?

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

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

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

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

Learn more?

Uncategorized

LEAN beats BENCHMARKING

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

There are several issues I have with benchmarking…

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

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

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

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

LEAN beats BENCHMARKING

Learn more…

Job Order Contracting 2018 and Beyond, Uncategorized

Job Order Contracting 2018 and Beyond

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

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

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

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

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

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

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

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

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

Free Project, Construction, and Facilities Management Software

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

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

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

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

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

Learn more…

 

FREE Cloud-based Construction Collaboration Tool

FREE Cloud-based Construction Collaboration Tool

Collaborate Anywhere-Anytime Free
Collaborate Anywhere-Anytime Free

Free Cloud-based Construction Collaboration Platform

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

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

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

Improved Collaboration Translates to Great Efficiency

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

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

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

Create, share, and track activities and issues.

Sign up today!

Job Order Contract Execution, Uncategorized

Job Order Contract Execution

Work Execution and Contract Administration

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

Job Order Contract Execution

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

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

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

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

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

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

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

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

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

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

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

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

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

 

LIMITATIONS

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

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

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

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

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

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

Learn more?

Job Order Contract Staffing, Uncategorized

Job Order Contract Staffing

Job Order Contract Staffing

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

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

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

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

Learn more?

Job Order Contract Program Implementation

Job Order Contract Program Implementation

LEAN Pre-Construction Services Considerations

Basic steps involved in JOC Program implementation include;

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

 

Strategic Evaluation of Objectives, Goals, and Appropriateness

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

 

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

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

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

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

 

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

 

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

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

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

Development of acquisition/procurement approach

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

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

 

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

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

 

JOC Acquisition Phase                         Months

JOC PROGRAM Development and Acquistion Timeline

 

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

 

Components of an acquisition plan;

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

Plan of Action

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Facilities Management/Engineering Planning

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

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

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

 

THE UNIT PRICE BOOK

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

Can line items be added/deleted?

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

Is support provided? Type of support? Cost?

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

What are the computer hardware and software requirements?

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

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

Does the database address the current Masterformat data architecture?

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

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

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

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

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

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

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

Technical Specifications

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

STATEMENT OF WORK – SOW

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

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

ECONOMIC PRICE ADJUSTMENT

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

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

 

ENVIRONMENTAL COORDINATION

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

 

ESTABLISH TECHNICAL LIBRARY

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

SOURCE SELECTION

Source Selection Team

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

Selection Evaluation Plan

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

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

 

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

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

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

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

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

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

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

(5) Price, including completeness, reasonableness.

 

PREAWARD ACTIVITIES

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

Owner Support for the Contractor

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

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

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

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

Contractor Phase-In Plan

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

Contractor Phase-Out Plan

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

Identification of Special Contract Requirements

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

Pre-RFP Review

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

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

FORMAL ACQUISITION PROCESS

Contract Funding

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

Preproposal Conference

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

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

Proposal Evaluation

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

Competitive Range

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

 

Preaward Survey

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

Evaluation of Contractor Performance

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

Negotiations and Source Selection

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

Debriefing Unsuccessful Offerors

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

 

SUPPORTING THE JOC PROCESS

Staffing

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

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

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

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

Facilities

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

Preaward Activities

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

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

Sample JOB ORDER CONTRACT SOP

STANDING OPERATING PROCEDURE OUTLINE

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

SOP OUTLINE

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

 

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

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

 

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

 

 

Sample  – Job Order Contracting Internal Control Checklist

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

Response: YES ______ NO ______

REMARKS:

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

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

needs of the installation and the requirements of job order

contracting?

Response: YES ______ NO ______

REMARKS:

  1. Have JOC ordering officers received training and orientation

regarding policy and procedures for operation of the JOC contract

which specifically addresses their authorities, limitations and

responsibilities?

Response: YES ______ NO ______

REMARKS:

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

different personnel?

Response: YES ______ NO ______

REMARKS:

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

contract contain sufficient detail to assure that the government can

properly develop an IGE and that the contractor can properly prepare

responsive and cost-effective proposals with a minimum of nonprepriced

work?

Response: YES ______ NO ______

REMARKS:

D-3

(Back To Table of Contents)

 

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

evaluation of the task order?

Response: YES ______ NO ______

REMARKS:

  1. If there were significant differences between government estimates

and contractor proposals, were they evaluated to determine

reasonableness of bids or accuracy of government estimates and

documented in the task order file?

Response: YES ______ NO ______

REMARKS

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

bona fide needs?

Response: YES ______ NO ______

REMARKS

  1. Does contractor notify government quality assurance representative

at critical construction points (hold points)?

Response: YES ______ NO ______

REMARKS

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

Response: YES ______ NO ______

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

Learn more???

 

 

 

 

 

 

 

 

 

 

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

JOC Program Guide – Job Order Contract Considerations

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

Information is provided for each of the following major areas:

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

Request your complimentary copy…

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

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

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

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

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

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

Key Characteristics of LEAN Collaborative Construction Delivery

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

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

Job Order Contract Unit Price Book Basics

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

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

BrowsePriceListFeatures

Job Order Contracting Services & Tools, Uncategorized

Job Order Contracting Services & Tools

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

Job Order Contracting Services & Tools

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

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

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

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

OpenJOC LEAN Job Order Contracting Framework, Uncategorized

OpenJOC (TM) LEAN Job Order Contracting Framework

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

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

OpenJOC LEAN Job Order Contracting Framework

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

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

OpenJOC LEAN Job Order Contracting Framework

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

LEAN-Job-Order-Contract-2017

 

 

 

 

 

 

Highly Performing Job Order Contracts, Uncategorized

Highly Performing Job Order Contracts

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

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

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

Leverage OpenJOC

Learn more…

 

Job Order Contracting Done Right, Uncategorized

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

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

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

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

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

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

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

(more…)

LEAN Construction Project Delivery, LEAN Project Delivery, Uncategorized

LEAN Construction PROJECT DELIVERY

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

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

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

LEAN Construction - Delivering Better Facilities

www.4bt.us

Cloud Facilities Management, Uncategorized

Cloud Facilities Management – Free Version

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

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

1. AIM (Asset Information Model)

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

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

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

 

2. CDE (Common Data Environment) 

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

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

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

3. CDM (Construction Document management) 

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

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

Building in Cloud “Free”

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

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

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

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

Get your free version today… 

Uncategorized

International Construction Cost Data Report

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

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

 

2017 International Construction Cost Data Report

Uncategorized, Why the BIM Revolution Fizzled

Why the BIM Revolution Fizzled

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

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

LEAN Construction

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

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

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

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

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

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

LEAN Construction

The buck stops with owners.

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

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

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