JOC, Job Order Contracting, is a collaborative, integrated LEAN project delivery method. JOC provides a best value transparent construction planning, procurement, and project delivery environment. Observing JOC best management practices enables owners and their services providers to consistently plan, procure, and execute quality repair, renovation, maintenance, and new construction projects on-time and on-budget.
- Select contractors with proven Job Order Contracting experience, or contractors that truly “get it” and understand the big picture of collaboration and joint problem solving.
- Tailor the JOC Program to your needs but maintain core LEAN JOC means and methods.
- Assure all participants fully understand the defined workflow, phases, and responsibility matrix.
- Leverage cloud technology to assure a ‘single source of truth’ for participants and stakeholders
- Use LOCALLY RESEARCHED construction cost data (no use of location factoring or economic index updating)
- Mandatory initial ongoing training for everyone covering initial planning through close out.
- Align JOC projects and workorders with the in-house trades
Advancing proven integrated planning, procurement, and project delivery solutions to consistently drive best value outcomes.
JOC Best Management Practices
- Focus upon mutually beneficial outcomes
- Mandatory collaboration
- Written Operations Manual or Execution Guide as part of contract
- Shared risk/reward and performance-based reward system
- Locally researched detailed unit price cost data (UPB) (Note: The use of “open book” pricing is not JOC. While some JOCs use national average cost data and cost localization factors, cost data is not truly reflective of local conditions.)
- UPB thoroughly updated annually, or more frequently as needed (no use of “ENR” or other economic factors)
- No “fees” based upon a percentage of total JOC construction volume
- Specified term
- Specified maximum and minimum contract dollar values
- Specified maximum and minimum project dollar values
- Specified construction types
- Required initial and ongoing training for all participants
- Full organizational support
- Regular independent third-party audits
- Key performance indicators, KPIs
- Continuous improvement
- Defined workflows, approvals, forms, documents
- Enabling technology
- Auditable and compliant
Relevant Terms associated with JOC Best Management Practices
Change Authorization (CA) means a Change Order Proposal Evaluation (CPE) which has been marked “Accepted” by the owner JOC Program Administrator and, upon receipt of the CA by contractor, constitutes notice to proceed with the changed work described therein.
Change Order means a written modification of the Contract between the Owner and Contractor, signed by the Owner, the Contractor.
Change Order Proposal Evaluation (CPE) means a Contractor-generated document in response to a Change Order Request (COR) which states the adjustment necessary to Contract Sum and Time, if any, in response to the changed work described in the Change Order Request (COR).
Change Order Request (COR) means an Owner-generated document which describes a change in the Work, including a description and Drawings and Specifications, as necessary, to inform the Contractor of the nature of the change.
Close-out Documents means the standard product brochures, product/equipment maintenance and operations instructions, manuals, etc., and as may be further defined or identified and required by the Contract Documents.
Contract means the Contract Documents between the Owner and the Contractor.
Contract Date is the date the Owner-Contractor Agreement is effective between the Owner and Contractor.
Contract Documents means the Owner-Contractor Agreement, the Conditions of the Contract (General, Supplementary General and Special Conditions), the Drawings, the Specifications, the Bidding Documents, Advertisement, Invitation and Instruction to Bidders, Contractor’s Proposal, Contract Award and all Addenda issued prior to and any Change Orders issued after execution of the Contract.
Contractor means the individual, corporation, company, partnership, firm or other organization that has contracted to perform the Work under the Contract with the Owner.
Contract Sum means the total compensation payable to the Contractor for completion of the Work in accordance with the Contract Documents as originally contracted for and as subsequently adjusted by Change Order.
Contract Time means the period between Date of Commencement and the date scheduled for substantial completion in the Contract Documents, as may be amended by Change Order.
Date of Commencement means the date designated in the Notice to Proceed that Contractor shall commence the Work.
Day means a calendar day, unless otherwise specifically stipulated.
Drawings mean the work product of the Architect/Engineer and/or appropriately designated individual, which depicts the location and quantity of elements of the Work.
Final Completion means the date established by the Architect/Engineer in a certificate when the Contract is fully performed according to the Contract Documents and is acceptable to Owner.
Interim Change Authorization (ICA) means an Owner generated document which authorizes the Contractor to proceed with changed work before submitting a CPE, when work must proceed in order to prevent damage to Work in place, to prevent significant delay in the Project Schedule or to maintain safety.
Maintenance Contract means a project with a set beginning and end date that has specified tasks or duties to be performed on a specified cycle or frequency.
Operations Job Order means the scope of work for a specific individual task that cannot be addressed by a maintenance job order
Operations Job Order Contract means a project consisting of several operations job orders.
Owner’s Designated Representative (ODR) means the individual appointed or assigned by the Owner to be its on-site representative during the Project, to exercise certain power on behalf of the Owner and to undertake certain contract administration activities as specifically outlined in the Contract.
Project means the Work as described by the Contract Documents for either a maintenance contract or an operations job order contract.
Samples means the physical examples of materials, equipment or workmanship, that are representative of some portion of the Work and which establish standards by which the Work will be judged.
Schedule of Values means the detailed breakdown of the cost of the materials and labor necessary to accomplish the Work as described in the Contract Documents submitted by Contractor for approval by Owner and Architect/Engineer.
Shop Drawings means the drawings, diagrams, illustrations, schedules, performance charts, brochures and other data which are prepared by the Contractor or any Subcontractor, manufacturer, supplier or distributor, and which illustrate some portion of the Work.
Site means the geographical area at the location where the Work is to be performed.
Special Conditions means the documents containing terms and conditions, which relate to a specific project and are peculiar to it. Special Conditions, when used, are a part of the Contract Documents and supersede the General Conditions to the extent of conflict.
Specifications means the Owner/Architect’/Engineer’s work product which establishes the quality of the products and processes to be used to produce the Work.
Subcontractor means a person or organization who, as an independent contractor, contracts directly or indirectly with Contractor to perform part or all of the Contract between the Owner and the Contractor. The term does not include the Architect/Engineer.
Substantial Completion means the date certified by the Owner/Architect/Engineer when the Work or a designated portion thereof, is so sufficiently complete, in accordance with the Contract Documents, as to be fully operational in all its components and fit for the use for which it is intended.
Supplementary General Conditions means the standard procedures and contract administration requirements of the owner that alter or expand upon matters covered in the Uniform General Conditions. Supplementary General Conditions, when used, are a part of the Contract Documents and supersede the General Conditions to the extent of conflict.
Unit Price Work means Work to be paid for on the basis of unit prices.
Unilateral Change Order (ULCO) means a Change Order issued by the Owner without the agreement of the Contractor.
Work means all labor, plant, materials, facilities, and all other things, including the construction and services necessary or incidental to fulfill Contractor’s obligations for the Project in conformance with the Contract Documents.
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