1. What is a typical JOC scope of work.
Job Order Contracts are used for a wide variety of multi-trade or single trade (roofing, paving, etc.) facility or infrastructure (road, bridges, airports, mass transit, utility…) renovation, repair, sustainability, maintenance, and minor new construction projects. They may be regulated by Federal/State/Local statue.
2. Is JOC Software required?
Yes. Required software, Unit Price Book, other “tools”, and training etc. are stipulated in the Job Order Contract. While smaller JOCs can be managed in spreadsheets, a JOC-specific software package helps to assure the requisite levels of collaboration, transparency, productivity, and oversight.
3. What is a Unit Price Book?
Job Order Contracts require a unit price book, UPB. It is a listing of construction tasks, organized using MasterFormat, including a detailed line item description and unit pricing for labor, material, and equipment.
4. What are the characteristics of a “good” unit price book?
A unit price book should include at least 90% of the tasks expected to be commonly encountered during the term of the Job Order Contract. While some UPBs have hundreds of thousands of line items, this can, and has, caused confusion. Most JOCs use 10,000 line items or less for the majority of tasks performed. For many/most JOCs a unit price book incorporating 50,000 line items or less is more than sufficient. It is critical, however, that the tasks and the prices reflect labor, material, and equipment specific to the area in which the JOC is located. For example, if the average hourly rate for an electrician in the JOC area is $27.90, the associated UPB labor rate should not be $67.89. Such variance is extreme, but not uncommon even from traditional sources. Furthermore, crews associated with a task should reflect current practices. For example, for drywall installation should not include a crew of one. Drywall installers work in teams for commercial projects.
5. Do JOCs require specific name-brand materials?
Any name-brand components required should be specified in the JOC and the UPB. Should the Owner wish to select a specific brand component, he/she should be reasonable when negotiating the task order in that specific situation.
6. As a contractor am I guaranteed work?
While there may be an annual or contract duration minimum, it is generally a very small value. Construction work is “earned” during a JOC through demonstrated performance. JOC is an indefinite quantity/indefinite delivery of construction services.
7. What is a co-efficient and does it vary?
A co-efficient is a factor, typically ranging from 0.80 to 1.20 that a contractor bids and adheres to during the Job Order Contract period. It is multiplied times the the total of a task order estimate, as built from the UPB. There may be one or several co-efficients (normal hours, after hours, secure locations, remote locations, etc.). Additional “adjustment factors” may be allowed, such as a factor to localize costs for particular cities or areas. A co-efficient should incorporate the contractor’s profit and any other costs/contingencies as stipulated for the particular JOC.
8. If the JOC is through a cooperative, should the administrative fee be calculated into the coefficient.
Yes.
9. What are “line item modifiers”.
Modifiers are line items associated with one or more “parent” line items. They may add or deduct to the cost of a parent line item to account for additional or less labor, material, or equipment cost. For example, when renovating an office, the cost per square yard of carpet is higher than if a full roll is being purchased for a number of offices. This increase in cost should is accounted for via a modifier.
10. Should a UPB include overhead and profit?
No. A UPB should reflect costs for a specific task without applying full overhead and profit. An allocation in the UPB for overhead and profit is generally acceptable in certain situations, if it is clearly noted. As noted previously, profit and contingencies should be included within the co-efficient.
11. Is contractor and owner training required?
Yes. A JOC following best management practices should requires a higher level of competency versus traditional construction methods. Initial and ongoing training is key to JOC Program success and continuous improvement. Fees for training should be noted in the contract solicitation and final agreement paperwork.
12. Are subcontractors allowed on a JOC?
The use of subcontractors is dependent upon the individual JOC program. In some instances subcontracting in not allowed, in others there may be established limits. When allowed, there are generally notification, approval, and other associated requirements.
13. Should a JOC consultant involved in approving actual JOC projects/task orders be receiving a percentage of the total JOC construction volume as payment?
No. This can be viewed as a conflict of interest, and has been noted as a potential factor to increase risk of fraud.
14. During the project/task or pricing phase, what type of information is given to the contractor for pricing?
Owners should provide sufficient information, in terms of a scope of work, to enable the contractor to develop a detailed line item estimate. This should include participation in a joint site visit, sketches, drawings, etc. The level and type of information given may vary from job to job.
15. How often is the UPB updated?
A JOC UPB should be updated annually, and may also provide for quarterly economic updates.
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