LEAN Construction for Facilities Renovation, Repair, Minor New Construction can delivery 90%+ of construction projects on-time, on-budget, and to the satisfaction of all parties involved.

This is possible if the processes and tools used are independent and objective,  and LEAN best management practices (BMPs) are adopted and maintained.

The two most widely known and used forms of LEAN construction are Integrated Project Delivery, IPD, and Job Order Contracting, JOC.   IPD is used primarily for major new construction due to implementation costs, while JOC is used for faciliites renovation, repair, and minor new construction.

Benefits of JOC:

• Reduced procurement costs and time
• Shorter overall project delivery times
• Faster response times
• Improve participant satisfaction
• Long term, mutually beneficial relationships among contractors and real property owners / facilities management
• Financial transparency
• Few change orders
• Risk reduction
• Virtual elimination of legal disputes
• Focus upon outcomes
• Value-based procurement
• Reduced overhead for both owner and contractor
• Performance-based reward system

JOC Tools

• Independent, objective, locally research JOC unit price book (preferable to national average price books and adjustment factors)

• Ongoing training
• Enabling software
• JOC program audits
• Independent owner estimates
• Owner’s Technical Specifications (NOTE:  Special/custom technical specifications for JOC should NOT be used.  Owner should simply use their existing specifications.  Should an owner not have construction specifications, they are readily available from at least two major and reputable sources – Arcon/Masterspec, BDS/SpecLink).

LEAN Construction for Facilities Renovation, Repair, Minor New Construction may not be for everyone…

Barriers to Success

• Owners without appropriate leadership or competence
• Inability of owner or contractor to work collaboratively (Note:  The primary issue with owners is typically competence, while some contracts may be unwilling to be transparent with costs, work methods, etc.
• Using JOC as a method to bypass traditional procurement versus a best value delivery system
• Excessive reliance upon JOC consultants (IMPORTANT NOTE: A JOC consultant should NEVER be paid a fee based upon JOC construction volume and also be in a position to approve JOC projects/task orders.)
• Existence of so-call open book JOC and competitive JOCs.   An open book JOC is NOT a JOC by definition as costs are derived from subcontractors in a typical design-bid-build fashion and are not fully visible, defensible and transparent.  Competitive JOCs are contrary to the philosophy of JOC as they are cost-based not value-based.

JOC is a proven construction delivery method, with a 30+ year successful track record.  Learn more today!

Typical JOC Workflow

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