4BT OpenJOC(TM) Job Order Contracting Solution assures a Compliant, Best Value Job Order Contract
The following are noted by a recent independent audit of a public sector Job Order Contract. Virtually all of the found issues can could easily have been mitigated with the use of an integrated Job Order Contracting Solution combined with appropriate training and management.
(Source: Annual Audit Report – https://www.scottsdaleaz.gov/Assets/ScottsdaleAZ/Auditor/Audit-Reports/2018+Reports/Selected+JOC+Construction+Contracts+-+HIGHLIGHTS+1804.pdf)
” WHAT WE FOUND JOC proposal evaluation phase cost controls should be improved.
Negotiating the cost for individual projects is critical to ensuring the City receives quality work at a fair and reasonable price.
We found:
• Guidelines have not been established for evaluating and negotiating job order cost proposals, and subcontractor selection requirements were not enforced in the reviewed job order proposals.
• Required approvals were not always obtained, and one reviewed project appeared to have been split to bypass the individual job order limit. Effective cost controls are needed during the project delivery phase. We found:
• CPM staff did not compare subcontractors used to those submitted in the proposal. Also, required reviews and approvals were sometimes not obtained prior to submitting contractor pay requests for payment.
• CPM was not effectively ensuring contractors provided required performance and payment bonds. Improved records retention practices and contract documentation can improve efficiency and consistency of contract administration. Creating documentation standards can ensure appropriate records retention and improve efficiency in locating documents. Some significant documents were not retained in the reviewed project files.
WHAT WE RECOMMEND We recommend the CPM department:
• Develop and enforce guidance or procedures for job order proposal evaluation, review and approval.
• Ensure that all job order contract, adjustment and pay request reviews and approvals are obtained and documented. • Ensure the contractors maintain sufficient bond coverage.
• Establish policies and procedures for the maintenance and retention of contract-related documents.
Additional Info:
Best Management Practice JOC Workflow (Sample Only)
