This LEAN Job Order Contracting Guide is designed introduce a subset of best management practices to optimize repair, renovation, sustainability, and minor new construction projects.
BEST MANAGEMENT PRACTICES TO OPTIMIZE REPAIR, RENOVATION, SUSTAINABILITY, AND MINOR NEW CONSTRUCTION PROJECTS VIA LEAN JOB ORDER CONTRACTING
- Early and ongoing involvement between all internal and external participants and stakeholders – technical and facilities management teams, procurement professionals, building users, contractors, subcontractors…
- Direct involvement, leadership, and management by real property owner, without the use of an intermediary (i.e. no outsourcing of key task to a JOC consultant except for training, independent audits, etc.)
- Direct/lump sum payments for JOC tools and services versus payment as a percentage of total JOC construction volume.
- Decision support system to enable better capital planning decisions
- Locally researched Unit Price Book, UPB, updated annually at a minimum
- Required introductory and ongoing training for all participants
- Regular independent audits
- Enabling cloud-based, collaborative, JOC-specific technology\
- Written JOC Operations Manual / JOC Execution Plan
- Use of Owner’s existing technical specifications (JOC specifications should not differ from owner requirements)
- Mutually beneficial, long-term relationships among owners, contractors, etc., based upon mutual respect and trust as well as share risk/reward.
- Contractor coefficients of 1.00+ (low coefficient indicate issues with the tools being used or an improperly structured/managed JOC Program.
- Best value contractor selection process
A written JOC Operations Manual, the JOC UPB, and professional training based LEAN best management practices are inextricably tied toe JOC Program success or failure. Far too often JOC is treated a procurement mechanism only…. a way to simply speed projects through “red tape”. Reaping the significant benefits JOC has to offer request treating JOC for what is is… a LEAN Collaborative Construction Delivery Method, of which procurement is one of several critical components.
Well designed an managed JOC Programs assure…
• The capital providers who supply funding are fully aware and in support of the JOC Program
• The acquisitions/procurement team signs off on every project after complete financial and technical review in collaboration with the owner facilities management/engineering team(s).
• The owners assign project manager regularly inspects each meeting.
• Building users are part of the planning and approval processes
• Full financial transparency
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Job Order Contracting is a long-term allocation of capital for repair, renovation, sustainability, maintenance, and minor new construction. Job Order Contacts generally consist of a one-year base period with up to four options years.
Developing a JOC strategy can take months to complete, typically falling within a span of 30 to 90 days. While JOC provides on-demand construction services, it is far from an ad-hoc process. The planning and approval process should include members from leadership, asset, operations and acquisitions teams. The teams need to communicate well and often. Participants must have a sufficient grasp on critical business and technical aspects.
This includes a sufficient grasp upon physical and functional requirements associated with the built environment and associated priorities. Communication and collaboration skills must be exceptionally strong to assure that requisite information is available to all who need it, when they need it.
JOC participants and users must meet on a regular basis to make “real-time” informed decisions that will maximize productivity, timeliness, quality, and overall satisfaction for resources expended.
LEAN Job Order Contacting can also reduce operating expenses by efficiently addressing maintenance and repair requirements.