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.
- 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.
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