Job Order Contracting versus Design Bid Build can help to measurably improve construction productivity, quality, delivery times, and overall satisfaction for all participants.
Job order contracting saves significant time and improves quality, consistency, and overall satisfaction vs. traditional design-bid-build.
Efficiently managing the numerous renovation, repair, maintenance, sustainability, and minor new construction projects facing real property owners and facilities management teams is critical to the success of every facilities dependent organization.
Job order contracting is a LEAN collaborative construction procurement and delivery method that that delivers major advantages versus conventional design-bid-build. The focus placed upon early upfront and ongoing communications and full transparency associated with Job Order Contracting is central to improving outcomes.
Even though job order contracting has been successfully practiced in the U.S. since the 1980’s, it remains unknown to many and is commonly poorly implemented.
Job Order Contracting requires competency and leadership on the part of the owner, and an appropriate focus upon change management. Collaboration, mutual respect and trust among selected service providers and the owner, and full financial transparency are targeted goals.
A locally researched, independently sourced detailed line item Unit Price Book, UPB, provides the basis for shared project knowledge and transparent pricing. A properly designed UPB lists common and repetitive commercial construction tasks construction tasks using industry standard terms in plain English. Each line item includes labor, material, and equipment costs as appropriate. The UPB generally has approximately 40,000 to 60,000 line items, including demolition line items and line item modifiers. The latter account for varying quantities, work location, and other variables. Best management practice notes that the UPB be updated annually and locally researched.
JOC is an an integrated project delivery (IPD) approach designed specifically for smaller renovation, repair and minor new construction projects, however maintains all the same collaborative principles.
Integrated project delivery ” integrates people, systems, business structures and practices into a process that collaboratively harnesses the talents and insights of all participants to reduce waste and optimize efficiency through all phases of design, fabrication and construction…. Integrated Project Delivery is built on collaboration. As a result, it can only be successful if the participants share and apply common values and goals.” – AIA
Benefits of Job Order Contracting versus Design Bid Build
- Higher productivity
- Improved quality and overall satisfaction
- On-demand services
- Improved financial visibility
- Virtual elimination of legal disputes
- Fewer change orders
- Fully defined roles, expectations, and deliverables.
Common Myths Associated with Job Order Contracting versus Design Bid Build
- Higher costs
- Best to outsource (JOC managed by a JOC consultant versus a JOC Owner)
- JOC is for everyone
- JOC can be managed in spreadsheets
- JOC doesn’t require continuous training
- Procurement, facility end-users, and technical teams (DPW/facilities management) are not directly involved
- Owners don’t need to review contractor estimates
- Owners don’t need to prepare their own internal estimates for some projects.
- JOC programs don’t need to be audited
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