Job Order Contracting doesn’t have to be complex or expensive. The numerous, ongoing facilities repair and construction project facing real property owners and facilities management professionals unfortunately have a high probability of failure. 80%-90% are late, over-budget, or basically a train wreck for one or more participants.
While there are many reasons why projects fail, it is the project delivery method and owner leadership and culture that ultimately is the primary cause.
The Design-Bid-Build (DBB) model has perpetuated an antagonistic inefficient environment for decades. Construction Management at Risk (CM at Risk) and other methods have done little to improve the situation.
If you want different outcomes, it’s time to try something different.
Job Order Contacting (JOC) and Integrated Project Delivery (IPD) are the only project delivery methods that have proven to consistently delivery superior outcomes for all participants.
That said, not all JOC Programs are the same. Some favor the owner, while others charge a percentage of total construction value. Neither of these two types of JOC approaches delivers the full benefit of JOC to the owner or involved builders, designers, or engineers.
Collaborative, Open, and Best Value Job Order Contracting
JOC Programs like the 4BT OpenJOC Solution, maintain fundamental collaborative principles that assure early and ongoing collaboration between of all participants, as well as mutually beneficial outcomes.
Below are examples of best practices to be considered when structuring and executing a JOB ORDER CONTRACTING PROGRAM.
- Senior leadership commitment, and support
- Mandatory initial and ongoing education/training
- Full information sharing and transparency
- Integrated internal and external planning, procurement, and project delivery teams
- Common data environment inclusive of locally researched detailed line item construction cost data
- Key performance indicators (KPIs)
- Performance-based reward systems
- Shared risk/reward
- Long-term multi-party agreement incorporating an Operations Manual or Execution Guide
- Enabling technology that simplifies the JOC Process, making it more transparent, efficient, and widespread.
If you are tired of late, over budget, train wrecks, then stop supporting traditional processes that force everyone to be selfish and work against each other. Build effective teams that focus on results and problem solving. Support these teams with tools and services and promote continuous improvement.
Conclusion
Your JOC Program shouldn’t be complex or expensive. Collaborative, open, and best value job order contracting delivers provide superior benefits with lower administrative and cost burden.
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